Computer maker Lenovo Group Ltd (聯想), China's only global Olympics sponsor, will end its top-level support after the Beijing Games, the company said.
A brief statement on the company's Web site said it was refining its global marketing effort, but gave no specific reason for the decision to let the relationship expire.
Olympic sponsorship had "helped the company build a global brand," said the statement, dated Tuesday.
"As Lenovo grows, the company's marketing strategy is evolving to pinpoint opportunities that serve strategic needs in targeted geographies," it said.
The Beijing-based company has announced ambitious plans to step up Olympics-related marketing ahead of the Beijing Games in August.
It was the first worldwide sponsor to design the Olympic Torch, which will be carried on the worldwide relay ahead of the Games.
Lenovo also claims to be providing the largest computer hardware commitment to any Olympic Games in history -- about 20,000 machines and peripherals, including desktop and notebook computers to be serviced by a team of 500 technicians.
Sports marketing industry veterans said the decision to end the sponsorship seemed natural given that the Olympic tie-up had been a strategic move at a time when Lenovo was seeking to establish its brand after acquiring IBM Corp's personal computer unit in 2005.
Lenovo, now the world's No. 3 personal computer maker, reported a 12-fold jump in profits in the April-June quarter to US$66.8 million on strong sales in China and the Americas.
"Originally it aligned quite well with the overall strategy. Now that the objective has been achieved, they are looking again at their priorities," said a Beijing-based sports marketing veteran who asked not to be identified.
Global sponsorship is the highest level of Olympic sponsorship and limited to about a dozen companies willing to pay top dollar to associate their brands with the Olympics worldwide.
Lenovo and the International Olympic Committee have refused to disclose how much the company's sponsorship cost, but analysts estimate it paid US$80 million to US$100 million in cash and services for the three-year cycle covering last year's Turin Winter Olympics as well as the Beijing Games.
Olympic global sponsorships remain highly desirable and their price tags continue to climb, partly as a result of the IOC's decision to limit the numbers.
That should appeal to the growing number of Chinese brands, especially large state-owned banks and other companies who have launched spectacular stock market offerings this year.
Although some of those have signed deals with other franchises such as Formula One, the Olympics, with its mass appeal, is still considered the pre-eminent sports marketing opportunity.
"In terms of global brand awareness, there's nothing that comes close to it," said the Beijing sports marketing veteran.
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
RSS