The Paris 2024 Olympics present China with a significant chance to elevate its global image, increase trade, and expand its market presence through sports-related exports and e-commerce. The Games also spur growth in China's sports industry, buoyed by supportive government policies and a rising public interest in fitness and sport.
As one of the foremost global events, the Paris 2024 Olympic and Paralympic Games highlight athletic excellence and cultural exchange on a grand scale. This highly anticipated event not only celebrates sport but also offers participating nations a critical opportunity to bolster their international standing. Known for bridging divides and fostering global unity through sportsmanship and competition, the Olympics serve as a platform for diplomacy, cultural exchange, and economic advancement. Consequently, the Paris 2024 Games offer countries a unique opportunity to showcase their strengths and capabilities to a global audience.
For China, a major player in the global economy, the Olympics are a strategic opportunity to enhance its international image and influence. By participating in this esteemed event, China can demonstrate its progress in technology, infrastructure, and cultural diplomacy. Additionally, the Games act as a catalyst for expanding global trade relations and fostering international business partnerships.
The Paris 2024 Olympics create ample opportunities for Chinese businesses to engage in global trade and commerce. From sponsorship deals and product placements to export opportunities and investment ventures, Chinese enterprises can capitalise on the worldwide attention generated by the Games to strengthen their market presence. Sectors such as technology, consumer goods, and sports equipment are particularly well-positioned to benefit from the increased visibility and consumer interest spurred by the Olympics.
This article examines how the Paris 2024 Olympics impact China’s economic outlook. By exploring the strategic implications of the Games for China’s global branding, trade relations, and economic opportunities, we aim to provide insights into how international sporting events influence global economies.
Leveraging Major Sports Events for Global Branding
Major sports events offer unmatched reach and engagement for marketing, with the Olympics representing the pinnacle. This global stage allows brands to connect with audiences in impactful ways.
Coca-Cola, a long-time Olympic sponsor, has used the Games to promote unity and togetherness since 1928, while Nike has associated itself with sports excellence through athlete endorsements and themed apparel. Similarly, the FIFA World Cup provides branding opportunities, with Adidas showcasing sportswear and Budweiser creating engaging campaigns. At the Super Bowl, Pepsi and Anheuser-Busch invest heavily in creative ads, with Pepsi’s halftime show becoming a major cultural event that amplifies the brand’s reach.
The recent UEFA Euro 2024 championship underscored the growing role of sports events in branding, particularly highlighting the increasing influence of Chinese companies. Five out of the 13 official global sponsors were Chinese: Hisense, AliExpress, Ant Group (owner of Alipay), Vivo, and BYD. This notable presence highlights the strategic push of Chinese brands for international visibility.
Hisense, continuing its Euro sponsorship, showcased its products through pitchside advertisements and provided screens for video assistant referees (VAR). AliExpress collaborated with English footballer David Beckham for its 'Score More with AliExpress' campaign and engaged fans with app-based prize giveaways. Vivo and BYD also utilised their sponsorships to strengthen their global presence.
These efforts reflect a broader trend where Chinese companies use sports sponsorships to enhance their international footprint. According to the China-Britain Business Council, Hisense saw an 83 percent increase in overseas revenue following its previous Euro sponsorships. Likewise, Alibaba boosted its weekly active users on AliExpress by up to 70 percent through its Euro-related marketing, illustrating how effectively sports events can drive e-commerce growth and global engagement.
Chinese brands' visibility is further enhanced by their roles as official partners and sponsors of the 2024 Olympics. Major Chinese companies, including Alibaba and Mengniu, are top-tier sponsors of the Games. Mengniu, in particular, stands out as the sole Chinese consumer goods company among the global Olympic partners, boosting its brand visibility on an international scale. These partnerships not only enhance brand recognition but also open up opportunities for increased consumer engagement and market expansion.
Economic Opportunities from the Paris 2024 Olympics
Surge in Export Demand for Sports Equipment and Olympics-Related Goods
The lead-up to the Paris Olympics has seen a substantial increase in demand for Chinese-made goods, driven by both the Olympics' scale and China's strong manufacturing capabilities. Data highlights a sharp rise in the export of Chinese sports goods and event-related products.
From January to April 2024, exports of sports equipment from Guangzhou exceeded RMB 15.9 billion (US$2.22 billion). In Zhejiang, a major manufacturing hub, sports goods exports surpassed RMB 10 billion (US$1.39 billion) during the same period, marking a 24.8 percent year-on-year increase. Yiwu, a key player in global small commodity trade, reported a remarkable 45.6 percent increase in sports equipment exports.
This surge is partly due to Chinese manufacturers' significant role in producing Olympic merchandise. The Paris Organising Committee has confirmed that 80 percent of the Olympic mascots are made in China, with a large portion produced in Yiwu. This dominance underscores China’s strategic advantage in the global supply chain for Paris 2024 event-related products.
Peak in Cross-Border E-Commerce Activity
The excitement surrounding the 2024 Paris Olympics has significantly impacted the digital marketplace, with Chinese e-commerce platforms like Temu, SHEIN, and AliExpress capitalising on the event. These platforms have leveraged the Olympic buzz to boost their visibility in Europe, offering a range of products from budget accessories to high-end sports gear. The competition among these sellers mirrors the intensity of the sports events, featuring aggressive pricing and strategic promotions. This surge in e-commerce helps Chinese sellers overcome challenges in brand recognition and entry into mainstream European markets.
Tourism and Travel Surge for the Paris 2024 Olympics
The Paris 2024 Olympics have notably impacted tourism and travel between China and France, highlighting the event’s potential to strengthen international connections and economic activity. There has been a remarkable increase in flight bookings and travel-related activities during the Games, from July 24 to August 11, 2024, despite the aviation sector's ongoing recovery from the pandemic.
Flight bookings from China to France have more than doubled compared to the same period in 2023. Data from Umetrip revealed that bookings surged by 114 percent, and travel to Paris saw a 194 percent increase in hotel reservations year-on-year. This sharp rise reflects the Olympics' ability to attract a substantial influx of tourists eager to experience the Games.
The frequency of flights between China and France also saw a significant increase, with over 100 weekly passenger flights between the two countries, marking a 60 percent rise from the previous year. However, this increase still falls short of pre-pandemic levels. Flight Master data indicated that during the Olympics, there were 284 flights scheduled on the China-France route, up 70 percent from 2023 but still well below the 461 flights in the same period of 2019.
Despite these gains, the aviation industry faces challenges in fully restoring pre-pandemic flight volumes. The only foreign carrier on the China-France route, Air France-KLM Group, has yet to restore its pre-pandemic flight levels. For the 2024 summer season, the airline scheduled seven weekly flights each to Beijing, Shanghai, and Hong Kong, down from the 14 weekly flights to Beijing and 10 to Shanghai before the pandemic.
Yet, the increase in travel and tourism linked to the Olympics presents significant economic opportunities for both China and France. The higher visitor numbers are likely to boost spending in local economies, from hospitality to retail sectors. For Chinese travellers, the Paris Olympics offer a unique chance to engage with global events while strengthening international tourism ties.
The "Olympics Effect": Trends in China’s Developing Sports Industry
Winning medals and showcasing national athletic prowess are crucial, but the broader impact of the Olympics lies in stimulating public interest in the sports industry, enhancing physical fitness, and improving overall health.
Government Support for China’s Sports and Fitness Industry
In recent years, China has introduced several policies to promote comprehensive fitness and develop a strong sports sector.
Following the successful hosting of the Beijing Olympics in 2008, China designated August 8 as National Fitness Day and elevated national fitness as a strategic priority in 2014. The 19th National Congress of the Communist Party set the goal to "widely promote national fitness activities and accelerate the development of a sports powerhouse." To achieve this, the State Council released the Outline for Building a Leading Sports Nation in 2019, aiming to transform China into a "modern sports power" by 2050.
Similarly, the 14th Five-Year Plan specifies the aim of establishing China as a sports powerhouse by 2035, emphasising the nation’s commitment to sports development.
To advance national fitness and address existing gaps, the State Council issued the National Fitness Plan (2021–2025) in 2021. This plan outlines goals and tasks for fitness initiatives during the 14th Five-Year Plan period: by 2025, the proportion of people regularly engaging in physical exercise is expected to reach 38.5 percent; public fitness facilities at various levels will achieve full coverage; and there will be 2.16 social sports instructors per thousand people.
Examples of relevant policies include:
Time | Policy | Issuing Department | Main Content |
October 2021 | “14th Five-Year Plan for Sports Development” | General Administration of Sport of China | Comprehensive national sports development plan for the "14th Five-Year Plan" period. |
October 2021 | Guidance on Promoting Sports Parks Construction | Multiple Departments | Aim to build approximately 1,000 new or expanded sports parks nationwide by 2025. |
December 2021 | Basic Public Service Standards for National Fitness (2021) | General Administration of Sport of China | Guidelines to enhance the accessibility and quality of fitness services across the country. |
Growth of China’s Sports Industry and Fitness Market
The sports industry in China, including fitness-related activities and sectors, has seen notable growth due to the government's supportive policies and the public's growing interest in health and wellness. Key trends and developments include:
Increased Public Participation: National fitness initiatives and sports activities have gained traction, with a rise in participation rates and community sports events.
Expansion of Sports Infrastructure: Investment in sports facilities and infrastructure has accelerated, providing more opportunities for public engagement and sports development.
Emergence of New Fitness Trends: Innovative fitness solutions, including wearable technology and digital fitness platforms, have become popular among Chinese consumers.
In summary, the Paris 2024 Olympics offer China a valuable platform to enhance its global image and economic opportunities. By leveraging this major event, China can bolster its international trade, increase market visibility, and advance its sports and fitness industry, contributing to its broader economic and cultural goals.
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