Although China’s national soccer team is not taking the field at Euro 2024, China’s flagship companies are filling stadiums and television screens with advertising through hefty sponsorship deals. Chinese companies account for more than one-third of the 13 top-tier sponsors at the ongoing UEFA European Championship in Germany, making the country the single-biggest source of sponsorship for the event. The strong sponsorship demonstrates the rising technological prowess and competitiveness of Chinese brands on the global stage and their commitment to expanding into overseas markets, experts said.
Ant Group, home appliance firm Hisense, e-commerce platform AliExpress, smartphone manufacturer Vivo and electric vehicle maker BYD are among the official global sponsors for the championship, which runs from June 14 to July 14.
Alipay+, the cross-border mobile payment platform owned by Ant Group, announced plans to expand the acceptance of cross-border digital payments, and provide convenient payment services and special benefits for global soccer fans and travelers through its merchant network during the tournament. Together with the company’s two other international brands – Antom merchant payment services and international payments business WorldFirst – Alipay+ has appeared on LED billboards at stadiums and on 50 TV channels across Europe. The UEFA top scorer trophy, sponsored by Alipay+, will be awarded at the Euro 2024 final in Berlin. The company is accelerating its presence in the United Kingdom and EU countries including France, Italy, Spain and Germany as globalization is one of its core strategies. As of this month, over 400,000 merchants in Europe accept mobile payments through Alipay+ from 14 international e-wallets and banking apps, according to a news release from the company.
Users of Alipay+ partner wallets can make mobile payments at department stores, supermarkets, convenience stores, airports, duty-free stores, restaurants and tourist attractions by just scanning an Alipay+ QR code. Alipay+ expects this summer to be busier than usual as sports fans travel from around the world to watch Euro 2024 and the upcoming Paris Olympic Games. The company said it will enable more merchants to benefit from the expected influx of fans, athletes and tourists via its mobile payment technology and digital solutions. In 2018, Ant Group’s digital payment arm Alipay and UEFA announced an eight-year global partnership for all UEFA national team soccer competitions from 2018 to 2026, including Euro 2020, Euro 2024, and the UEFA Nations League finals. Before the partnership, the sponsorship of major global sporting events had for decades been provided by international bank cards like Mastercard and Visa.
This year’s European Championship is expected to draw a global audience of more than 5 billion, according to the marketing director of UEFA. Other global sponsors of the event include Adidas, Booking.com, Coca-Cola and Qatar Airways. UEFA estimates Euro 2024 will generate €2.4 billion in revenue, mainly from broadcast and sponsorship deals, ticket sales, hospitality, and licensing fees for official merchandise. The tournament presents an important opportunity for companies to reach new consumers, increase brand exposure, and expand their businesses in overseas markets, industry insiders said. In the 1980s and 1990s, it was common for Japanese and South Korean companies, such as Sharp and Samsung, to be major sponsors of international sports events, but in recent years they have been absent from top-tier sponsorship. Chinese brands are now leading the change of sponsors, with their names seen in commercials and on billboards at global sports competitions.
Hisense is a sponsor of the UEFA European Championship for the third consecutive time. The company is the official screen provider for the video assistant referees (VAR) during this year’s tournament, and it is providing display technology support for the central VAR room in Leipzig, Germany, to help on-field referees make decisions. “Continued investment in world-class sporting events represents Hisense’s determination to become a global brand, and it helps us build stronger relationships with global consumers and accelerates the company’s globalization process,” said Jia Shaoqian, Chairman of Hisense. In 2016, the company became the first Chinese sponsor of the UEFA soccer championship. It also sponsored the 2018 FIFA World Cup in Russia and the 2022 World Cup in Qatar.
Shipments of Hisense TVs in Europe surged 35.9% year-on-year in the first quarter of 2024, according to market consultancy AVC Revo. The company accounted for 13.6% of global TV shipments during the same period, ranking second in the world, according to market research company Omdia. Hisense, based in Qingdao, Shandong province, has ramped up efforts to expand its footprint in the European market in recent years. The company has set up six research and development centers and five major manufacturing bases, with sales revenue on the continent rising 19.5% year-on-year to €3.8 billion last year. Hisense’s total revenue surpassed CNY200 billion last year, while its overseas sales reached CNY85.8 billion, accounting for 43% of its total revenue.
BYD is for the first time an official partner of the European Football Championship, and has replaced German automaker Volkswagen as the event’s official vehicle supplier. “This prestigious event will enable us to showcase our latest advancements in electric vehicles to a far-reaching audience,” BYD said on its website. The company is providing a diverse range of new energy vehicles (NEVs) and presenting its cutting-edge technologies at the competition venues. BYD exported over 242,000 vehicles last year, surging 334% year-on-year. It has entered the markets of more than 70 countries and regions, including 19 European nations. In December, the company announced it plans to build a new EV production base in Hungary as it steps up efforts to make inroads into the European market. The facility, the first of its kind to be built by a Chinese auto company in Europe, is expected to create thousands of jobs. Hungary will be the center for BYD’s European production operations, it added.
Ouyang Rihui, Assistant Dean of the Central University of Finance and Economics’ China Center for Internet Economy Research, said: “An increasing number of Chinese enterprises, especially those gaining a competitive edge in frontier sectors including digital payments, cross-border e-commerce, smartphones and NEVs, are seeking new development opportunities in overseas markets fueled by the rise of China’s economic strength and industrial upgrade.” Sponsoring Euro 2024 shows Chinese enterprises want to expand their sales channels and increase their voice on international cooperation, Ouyang said. The sponsorship will help more overseas consumers learn about China’s technological advantages in some emerging and strategic forward-looking sectors, he added, as reported by the China Daily.
