Chinese companies reap financial benefits from World Cup
With many previous sponsors being deterred from an association with the World Cup due to the FIFA corruption scandal, Chinese companies filled a void created by sponsors such as Sony and Johnson & Johnson. Chinese companies accounted for over 30% of the $2.4bn in advertising costs from the World Cup in Russia, with returns stemming from a global audience of around 3.2bn people. The highest contributing companies, as listed by FIFA were; Dalian Wanda Group, Hisense, Vivo and Mengniu Dairy.

That is reminiscent of the strategies that major Korean companies such as Samsung Electronics and Hyundai Motor started to employ some 20 years ago. They have been active in sponsoring the Olympics, World Cup and other sporting events as well as world-famous sports clubs to let the world know about their brands and enhance their image.

Chinese companies flocked to sponsor the monthlong global football event and succeeded in promoting their presence among 3.2 billion viewers watching the event around the world.

France may have clinched the trophy at the World Cup in Russia, which ended on Sunday, but it is said in the marketing industry that the true winner is China.

Four Chinese companies were among the 12 top FIFA partners and sponsors of this year's World Cup. They were real estate giant Dalian Wanda Group, TV manufacturer Hisense, smartphone maker Vivo and Mengniu Dairy. Three others -- electric scooter company Yadea, apparel maker Diking and virtual reality glasses maker Luci -- were included among "national supporters," the third tier of FIFA’s sponsorship that allows companies in pre-defined global regions to promote their products in their domestic markets.

According to U.K.-based market researcher Zenith, Chinese companies accounted for more than a third of the US$2.4 billion in advertising costs for the World Cup in Russia. They spent twice as much as U.S. companies ($400 million) and 13 times more than firms from the host nation ($64 million). They filled the void created by the exit of global sponsors such as Sony and Johnson & Johnson in 2015 amid a FIFA corruption scandal. The tacit encouragement of Chinese President Xi Jinping, reportedly an avid football fan, also played a role.

The hefty sponsorship will prove highly beneficial. In the 10 years during which Samsung Electronics sponsored English football club Chelsea from 2005, its European sales rose 111 percent and brand awareness increased 68 percent.

China's sports marketing is also in full swing in India, where Samsung recently built a smartphone factory. Vivo and OPPO, the two main brands of Chinese smartphone maker BBK, are now major sponsors of cricket matches and teams in the country.

OPPO will pay 10.8 billion rupees (W178 billion, US$1=W1,129) over the next five years to become an official sponsor of the Indian national cricket team. That is five times the amount paid by former sponsor Star India. OPPO's main competitor for the sponsorship deal was its affiliate Vivo.

Undeterred, Vivo has since signed a five-year deal to become the official sponsor of the Indian Premier League cricket tournament. Vivo offered 4.5 times more than the previous sponsor. Indian media reported that the local cricket world was surprised to see a previously unknown Chinese company account for more than half of India's total sports sponsorship fees.

OPPO and Vivo are now the third and fourth biggest smartphone makers in India's burgeoning telecommunication market.

Meanwhile, Chinese telecom equipment and smartphone maker Huawei has been strengthening its European marketing by signing sponsorship deals with famed football clubs AC Milan, Arsenal and Paris St. Germain.