Chinese medalists sign gold sponsorship deals

China’s young generation of athletes is attracting interest from major companies for sponsorship deals, while the commercial value of gold medalists has reached new heights following the recently concluded Paris 2024 Olympic Games.

Such sponsorships have helped companies gain greater brand prestige following the global sporting extravaganza. In fact, major brands have begun signing partnerships with athletes across a range of disciplines even before the Games begin, as companies look to capitalize on the significant marketing opportunities that the competition will provide.

One of the most notable cases is the bet that various brands made with Chinese tennis player Zheng Qinwen after she won gold for China in the women’s singles at the Paris Olympics.

Ahead of the opening ceremony, Zheng signed cooperation agreements with nearly 10 major brands, covering a wide range of sectors such as sports, luxury goods, cosmetics, finance companies and catering companies. They include Nike, Lancome, dairy group Yili, vitamin brand Swisse, McDonald’s and Rolex.

According to Forbes’ ranking of the world’s 20 highest-paid female athletes for 2023, Zheng ranked 15th with total earnings of $7.2 million, including $1.7 million in tournament prize money and $5.5 million from sponsorship deals. Zheng became the second Chinese tennis player to be included on the list, after two-time Grand Slam winner Li Na.

Behind Zheng is New York-based sports agency IMG, which has also signed Chinese athletes such as freestyle skier Eileen Gu, men’s overhead jump champion Su Yiming, and Li Na.

Industry experts say that during previous Olympics, Chinese athletes in table tennis, swimming, diving, gymnastics and shooting were favored by brands in securing sponsorship deals.

“The commercial value of athletes is mainly reflected in sponsorship deals. If athletes want to achieve higher commercial value, they need to constantly refresh their records to maintain frequent exposure,” said Zhang Shule, an independent internet sector analyst.

“The Olympic Games attract a lot of attention around the world as an all-encompassing international sports event. Gold medalists tend to attract a wide audience, including those who are not fans of a specific sport,” Zhang said.

Zhang added that the Olympics make it easier for athletes to gain global attention and recognition. That makes the commercial value of gold medalists exponentially different from winners of specialized competitions like the world championships or regional all-around events like the Asian Games.

This year, Chinese online travel agency Trip.com Group signed sponsorship deals with four Chinese athletes ahead of the Paris Olympics, including record-breaking swimmer Pan Zhanle. The company has proven to be making a good investment.

Before the Games, you signed cooperation agreements with many brands, including companies operating in the personal care, tourism, food and automotive sectors.

Trip.com said it predicted Pan would become the world’s fastest swimmer after the company saw his outstanding performance at the 2023 Asian Games in Hangzhou.

“Compared to table tennis and diving, swimming tends to attract more global attention and generate greater influence, which prompted us to sign a sponsorship agreement with you,” said Ding Lu, general manager of integrated brand marketing at Trip.com.

“Compared to other fields, sports stars can better represent a positive image of the country. We will not usually adjust the price of sponsorship deals based on gold, silver or bronze medals won,” Ding said.

Ding added that some consumer goods manufacturers tend to have larger budgets when signing sponsorship deals with athletes, and may decide to work with an entire national team in a given sport.

Companies can consider several elements of athletes when deciding on sponsorship deals. These elements include age, appearance, historical competition results, whether the sport attracts global attention and whether the athlete attracts enough attention on social media platforms.