Five of the 13 official global sponsors of the UEFA Euro 2024 championship are Chinese companies, giving China the most significant advertising presence at the event. This is a testament to Chinese brands’ growing desire for global expansion (and to the draw of the billions of dollars of revenue the Euros is set to generate).

The Chinese companies sponsoring the tournament are home appliance giant Hisense, cross-border e-commerce platform AliExpress and financial technology giant Ant Group (which owns Alipay, both part of Alibaba), smartphone brand Vivo, and new energy vehicle manufacturer BYD. Hisense, TikTok, Vivo and Alipay also sponsored Euro 2020. At that time, UEFA told the BBC that while it wasn’t specifically focusing on Chinese collaborations, it was looking “to engage a global audience, as do the brands who join [its] commercial programme.”

Per Bloomberg Intelligence, the Chinese brands will “likely lean on their affiliation with the tournament to expand into new overseas markets and strengthen their presence in existing ones.” Many of these companies already have the edge in their home market – BYD is China’s biggest EV company and even sold more battery electric vehicles (BEVs) (526,409) than Elon Musk’s Tesla (484, 507) in Q4 of 2023.  However, there’s a scramble to increase international engagement among the country’s biggest shopping platforms in particular, after the success of Temu‘s reported US$14 million splurge on two TV spots during Super Bowl LVII in February 2023.

“Alibaba needs to raise weekly active users (WAUs) on AliExpress during June 14-July 14 by up to 70% versus a month earlier to prove that its marketing expenditures on this year’s UEFA European Football Championship can aid its e-commerce expansion outside China, in the same way that Temu’s advertising at the US Super Bowl had an impact,” notes Bloomberg’s report.

However,  if previous tournaments are anything to go on, the success rates of such plans appear high. The overseas revenue of Hisense jumped 83% after the TV maker became a sponsor of the tournament in 2016.

The companies are also presenting their sponsorships in a number of ways beyond the most obvious pitchside ads: AliExpress has signed English footballer David Beckham to front its ‘Score More with AliExpress’ campaign, and is giving away prizes in its app for every goal scored. Meanwhile, Hisense is providing the screens for the video assistant referees (VAR) during the tournament.

The sponsorships have gone down well in China, where hundreds of thousands of football fans will be avidly watching the games. Euro 2020 (which was actually held in 2021 due to the Covid-19 pandemic) saw an increase in viewership in China of 43% compared to Euro 2016, according to UEFA.

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Cross-border e-commerce platform AliExpress is sponsoring the UEFA Euro 2024 championship, which will be played at stadiums across Germany this summer. Beckham will front the ‘Score More with AliExpress’ campaign, appearing in TV ads. During the Euros, AliExpress is giving away prizes in its app for every goal scored.

Beckham is a popular figure in China. In 2013, he was named global ambassador for Chinese football and has visited the country numerous times. He has also visited in his capacity as a UNICEF Goodwill Ambassador. More recently, he visited The Londoner Macao, a luxury casino resort on Macao’s Cotai Strip, where he has designed suites as part of his ambassadorship for the brand.

The Euros are also a popular event in China, where the UEFA Euro 2020 competition (which was actually held in 2021 due to the Covid-19 pandemic) saw an increase in viewership of 43% compared to Euro 2016, according to UEFA.

While not as famous as Tmall and Taobao, AliExpress has become a key driver of growth for Alibaba over the past year or so.  Its international division recorded revenue growth of 45% year-on-year in Q1 2024.

Nevertheless, it is facing a strong challenge from PDD’s discount shopping platform Temu, whose sales topped US$5 billion in 2023, just one year after launch. Temu has also invested in sports marketing, reportedly spending more than US$14 million on two TV spots during Super Bowl LVII in February 2023.

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In this series we look at China-based entrepreneurs, the businesses they have developed and how they have coped with recent obstacles created by the pandemic. Media, entertainment and sports expert and author of “Bamboo Goalposts,” Rowan Simons recounts his China journey

I first came to China in September 1987 to study Chinese as part of the undergraduate degree programme at Leeds University.  I chose Chinese partly because the course at Leeds offered a full year in China, providing an early chance to get a feel for the country. I enjoyed my time here so much and saw so many opportunities, that I decided to stay in the country. I started working with the BBC in a commercial capacity and then established a media business that was involved in the import of TV programmes and commercial sponsorship. The 1990s was the golden era of TV in China and the opening and reform policies meant there was great interest in foreign content and many international companies looking to promote their brands here.

My first career was in the media, and I was invited to become a guest commentator on Beijing TV’s live coverage of the Premier League and FA Cup. People would stop me on the street to say how much they loved football and I would ask them, “do you play?”. The answer was usually negative and I started to realise that China did not have the grassroots network of social clubs that is common in all developed football nations. After some years, I decided that the most practical way to show China that football is a participation sport, not just TV entertainment, was to actually build a grassroots club from scratch.

ClubFootball was established in 2001 and is the longest-running foreign-invested football club in China. We focus on providing all-round education courses for kids aged between 3.5 and 18 years old. We employ mainly British fully qualified coaches supported by local assistant coaches and deliver services to over 30 international, bilingual and local schools as well as directly to parents at multiple facilities across Beijing and neighbouring cities. We have also developed a coach education programme and operate a ClubFootball Culture Store on Taobao that focuses on introducing authentic British and global sports memorabilia to the China market. We also have a charitable initiative called Football for Life, which brings the joys of sport to disadvantaged kids — a fantastic opportunity for British companies in China to get behind our national sport as part of their CSR activities.

ClubFootball’s mission is to inspire, educate and energise China’s football enthusiasts — making them truly feel part of the global football community, and establishing a sense of ownership and passion for the game. Our USP is that we follow a British model and our coaches all have professional qualifications from the UK and other European countries. We are pioneers of the concept of “Play Football, Speak English,” which has proven very effective in encouraging Chinese parents and kids to join our programmes.

I think we have faced and largely overcome all possible challenges over the last 20 years. When we started, sports were not an important component of regular education, so very few parents saw the value in terms of its physical, psychological, technical and social benefits. As the first foreign company in a new space that we were creating, we also faced challenges in working with the government system. Culturally, China did not have the history of civic societies that we take for granted in the UK, so it took time before a new generation of parents started to embrace this philosophy.

There have only been two times when that growth has suffered significantly. The first was in 2008 when Beijing held the Summer Olympics and Paralympics. What should have been a golden time for sports turned out to be the opposite as almost all social activities were cancelled for security reasons. The second is Covid-19, which led to the closure of schools and public sports facilities.

In the early days of the Covid-19 pandemic, we were quick to move online with a video series called Skills in Small Spaces, which enabled our members to continue practising by themselves. However, football is fundamentally an offline group activity, so there is no alternative to getting out onto the pitch to play. We have used this downtime to improve our internal systems and streamline our operations, so we are well placed to expand again once the situation stabilises. The key to that expansion is a change in the visa situation, so we can bring more coaches into the country.

Beyond generating short term revenue from sponsorship and licensing deals, the real opportunity for international football businesses and brands is to support the growth of China’s own football culture. China is already an important commercial market for big European leagues, clubs and their superstars, and there is fierce competition between them. However, the main problem is that China has still not developed wide-based participation at grassroots levels and this is the key if football is to become a viable industry in the long term. This is a long term project and few brands (foreign or Chinese) seem to have the patience required to take that path.

Everything has totally changed since I first came to China. Back in the 1980s, almost all the products and services that make up a modern consumer society were yet to be developed, so the opportunities were endless. Now, China is far ahead in many aspects, particularly the digital economy, so the opportunities are more limited. Though my media and sports businesses have grown independently as foreign-owned enterprises, my advice for entrepreneurs coming to China now would have to be the importance of finding a trusted local partner who can help navigate the many differences in this market.

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How long have you been dealing with China, how did it start and how has it evolved?

At Manchester City, we have had a fan base in China for many years and it has always been a market we’ve been keen to have a presence in. More recently, with President Xi’s widely stated ambition to develop grassroots football in China, which we were fortunate to hear first-hand when he visited the City Football Academy in Manchester, we saw an opportunity to participate in that movement and have a more permanent and sustainable presence in China.

In the past few years, we have seen City Football Group’s presence grow in China. We had a minority shareholding investment from a China Media Capital-led consortium in 2015, opened offices in Shanghai and Shenzhen, and now have commercial and media partnerships and coaches operating in schools across the country as part of Ministry of Education Programme. Most recently, along with our partners UBTECH and China Sports Capital, we were excited to fulfil our ambition of acquiring a Club in China, Sichuan Jiuniu FC.

With President Xi’s widely stated ambition to develop grassroots football in China we saw an opportunity to participate in that movement and have a more permanent and sustainable presence in China

How did the purchase of Sichuan Jiuniu FC come about and how will it work with the partners UBTECH and China Sports Capital? 

It’s no secret that we had been looking for an opportunity to be involved with a club in China for some time. Fortunately, we already had a relationship with China Sports Capital and UBTECH. We considered lots of other opportunities, but this one felt right for all of us, and fortunately, we were able to move forward with it. We are now focused on building and developing the Club to improve its performance on and off the pitch.

There has been a gradual swing from British companies investing in China’s infrastructure such as sports academies to Chinese investment into British football clubs and now, with this project, we see a British club investing into a Chinese club. What is next for UK-China football trade?

We look at it more in terms of global football. At City Football Group, we are invested and operating in the UK, US, Australia, China, Japan, Singapore, UAE, Spain and Uruguay. Within that, we see China and the US as significant football markets which still have huge capacity to develop and grow, so we believe there will continue to be more opportunities ahead.

Scott Munn CEO of City Football Group

Why is it important that City Football Group gets involved with China and what are the long term aims and goals?

We are committed to participating in the growth of football in China. We want to do this in a long-term and sustainable way and we believe the opportunity to grow and develop. Sichuan Jiuniu provides exactly that potential, in a significant city which loves football.

There are clear commercial goals of attracting sponsorship and investment as well as a new generation of fans but are there on field aims – such as player exchanges or recruitment ambitions?

All our investments are primarily football ones. We want to grow and develop successful teams which play an attractive style of football, engage their fans and play a key role in their local community. We believe if we can get those things right, other opportunities will follow.

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From all-star players transferring to Chinese teams to President Xi’s high profile visits to Premier League clubs, the Middle Kingdom’s growing relationship with English football often makes headlines. Most recently, in February, City Football Group (CFG), the parent company of Manchester City, purchased Sichuan Jiuniu, a Chinese club based in Chengdu.  The company’s Chief Executive, Ferran Soriano, said “China is an extremely important football market, which we have been focused on for some time. We believe strongly in the future of football in China”.

Ferran and CFG are in good company. Their investment follows the lead of other top clubs, like Liverpool FC, who offer coaching and player training in Kunming through their international academy program, and Manchester United, who next year plan to open club-themed entertainment and experience centres throughout China.

Clearly China is a fast-growing market that is attractive to the big players. But it’s not just for Premier League clubs or even businesses that focus solely on football; opportunities abound throughout the sports sector. One example of a British SME that has broken into the market is the Cavendish Group.

Manchester City parent group CFG recently purchased Chinese team Sichuan Jiuniu

Cavendish has been operating in China since 2003, initially as a publisher of a bilingual magazine, and now as a host of conferences such as the International Capital Conference and Host City Asia. Ben Avison is their Editorial and Conference Director and first introduced a China-specific event in 2008 to coincide with the Olympic Games. “China’s sports and major events market is currently the fastest-growing in the world and [with] Beijing hosting the Winter Olympics in 2022, Beijing is the most important city in Asia right now”.

After initially engaging Chinese corporates by bringing them over to events hosted in the UK, Cavendish established a Chinese office to build a local team. Being a complex and rapidly developing country, they sought out experience on the ground. As Avison says, “strong personal relationships and respect for local structures are crucial and we have found our friends and colleagues in China to be extremely supportive in this regard.” This insight helped to establish Cavendish in China, which in turn has helped to raise its brand profile across the world more generally.

For British companies interested in China, there is an imperative to go but it’s not enough to simply survey the conditions on the ground. Foreign companies should recognise the need to be flexible and adapt to a very different market than at home. In many instances that means new products, in others, it’s about understanding how to market to local consumers.

You might be a big fish elsewhere, but in a pond of over 1 billion, you need to know how to differentiate yourself in the right way culturally

Future Lions is an international football academy that has been running programmes in Southern China for several years. Here in the UK, they use traditional social media channels like Instagram or Facebook to tailor messages to segmented populations but, after recognizing that the digital channels that they are familiar with have little or no reach in China, they embarked on learning about those that do. As Founder and CEO Ritchie Jeune says, “WeChat is effectively the be-all and end-all with our market space, somewhere where our existing knowledge was worthless.”

Part of localising is recognising the preeminent position of the government in China. There are benefits that come from local government support and from thinking about how to design services that can be seen as consistent with the aims of the national government in mind. In order to do that Ritchie and his team studied China’s 50-point football reform plan (published by the State Council in 2015) to better understand the state’s strategy for modernising football and how to better “build a long-term identity for Chinese football.”

For Future Lions, taking a long-term view has meant focusing on the grassroots development that is crucial to the reform plan. They have done this by hosting local events, sending coaches over to train unfamiliar PE teachers on how to teach the sport, and introducing football to students that previously may not have even kicked a ball. The goodwill and connections gained from supporting the government aims for wider engagement in football has led to a situation in which the government have been helpful to Future Lions.

This support has been crucial to entering the market commercially and ensures that Ritchie and his team are building a business that is responsive to local conditions and one that can grow and adapt as the country does. As Jeune says, “You might be a big fish elsewhere, but in a pond of over 1 billion, you need to know how to differentiate yourself in the right way culturally and believe in and understand your routes to market intensely.”

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Football’s grassroots development in China received a jolt in the arm from the vocal and widely publicised support of Xi Jinping back in 2014. There is, however, still a very long way to go before China can come close to achieving its stated goal of winning the World Cup. There is no quick fix and an overhaul of the existing system will be required before any significant progress can materialise.

China’s national men’s team has failed to qualify for the World Cup since 2002 (the only time China did make it through to the finals) and there are few signs to suggest this is going to change soon. The problems go back a long way, but the 1990s are significant as this was when the leagues were professionalised and the ownership of teams and, crucially, the local elite academies passed from the State over to private enterprise. Subsequently, the academy system went through nearly a decade of neglect. Without state funding, the academies were regarded as a burden for the clubs who, at the time, were not motivated by the combination of money and the national cause in the same way as they are today.

Investment is beginning to be made in the right places though. Clubs are placing importance on and investing funds in nurturing China’s next generation of footballing talent, although the numbers required to produce a substantial talent pool will require efforts beyond just the clubs. In 2014, responsibility for developing grassroots football in China transferred from the Sports Bureau to the Ministry of Education (MOE) who unveiled a plan to establish a network of 20,000 ‘schools with football specialisation’ around the country. The MOE’s aim is to get as many young people playing football as possible.

Building the talent and physical infrastructure required to turn around China’s footballing fortunes will take significant amounts of time and money as well as know-how from overseas. This has not gone unnoticed, meaning that many overseas clubs and companies have developed relationships and projects in China that include the delivery of both short and long-term coaching programmes, the seeking out of commercial partners and sponsors, and the building up of local fan bases.

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