In her first U.S. speaking engagement Yuan Bin, director of marketing for the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG) highlighted the organization’s marketing plan for the upcoming Olympics during the Sports Licensing Summit at the Licensing Show on Tuesday.
“Through our licensing program, we’ll like to enhance the Beijing brand and to raise funds for the operation of the Games,” Ms. Yuan said. So far, the committee has agreements with 30 licensees and 20 retailers in major tourist destinations throughout China, she said.
To generate revenues for Beijing, BOCOG unveiled five mascots in November to represent the Games. Named the five Friendlies, the mascots are five little children who embody the Olympic message of friendship and unity. They also represent some of China’s popular animals including the panda, fish and Tibetan antelope and include the Olympic Flame.
“The mascot products in the market have been very well received,” Yuan said. “For the first three months, they’ve made [USD $62.5 million] compared to the total retail licensed products, which made [USD $125,000],” she said.
On the sponsorship side, Adidas, Volkswagen and UPS have already partnered with BOCOG for the Games, which will feature some 37 sports venues.
To become a potential licensing partner of the Games, a company must have an operating entity within China, Yuan said. Also, to combat merchandise shortages, BOCOG works together with licensees to evaluate the marketplace for which products are intended to gauge demand, she said.
Meanwhile, with so many products slated for mass production during the Games, counterfeiting questions have arisen.
“We believe counterfeiting is a really serious problem endangering the marketing and licensing of our brand,” Yuan said. To date, Chinese government agencies have embarked on an education program through mass media that tells consumers that purchasing knock-offs deprives Beijing of much-needed revenue to host the Games, Yuan said. Technology is also being used to produce merchandise with labels or logos that cannot be reproduced, she said.
“It’s proven effective so far but as the Games draw nearer, we expect [counterfeiting] to be a more serious problem,” Yuan said.
The problem is especially prevalent in an industry where sports licensing generated an estimated $18 billion in worldwide retail sales in 2004.
The Licensing Show kicked off on Tuesday at the Jacob Javits Center in New York City. The show ends today.
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