Euro 2024 sponsorship deals drive Chinese brands deeper into Europe

European advances

Shipments of Hisense TVs in Europe surged 35.9 percent year-on-year in the first quarter of 2024, data from market consultancy AVC Revo shows. The company accounted for 13.6 percent of global TV shipments during the same period, ranking second in the world, according to market research company Omdia.

Hisense, based in Qingdao, East China's Shandong province, has ramped up its 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 percent year-on-year to 3.8 billion euros last year.

Hisense's total revenue surpassed 200 billion yuan last year, while its overseas sales reached 85.8 billion yuan, accounting for 43 percent of total revenue.

The company is also stepping up its investment in product research and development and technological innovation to target high-end overseas markets and improve its customers' viewing experience.

Fang Xueyu, president of Hisense's international marketing unit, said localization is at the core of globalization, and companies need to satisfy local consumers' demands as well as provide products suitable for local markets.

"Chinese companies sponsoring the Euro 2024 soccer tournament highlights these enterprises' determination in going global and leveraging major sports events to showcase their latest products, technologies and achievements in innovation to a global audience," said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation's e-commerce research institute.

Hong said sponsorship of important international sporting events is conducive to connecting with consumers across the globe, helping Chinese enterprises speed up global business plans, and significantly enhancing brand recognition and a company's international standing.

Sports marketing is an important way for Chinese brands to increase their global competitiveness, expand their footprint abroad and boost sales in overseas markets, Hong added.

Electric avenues

For the first time, BYD is 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 during the tournament. It is also presenting its latest new energy vehicle models and cutting-edge technologies at the competition venues, which help show soccer fans BYD's commitment to greener and more intelligent motoring solutions.

BYD exported over 242,000 vehicles last year, surging 334 percent 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.