Olympic Ambush Marketing Intensifies Competition Between Lining And Adidas

By igniting the Olympic torch, which cost nearly $200 million of Olympic sponsorship fees and marketing fees, Adidas launched the advertising marketing manager's "ambush marketing", which was launched by Adidas.

The so-called "ambush marketing" refers to a company's marketing activities through commercial sponsorship while another company adopts various means to attract the attention of the target audience of the sponsorship activity.

Greg Pohl, partner of R3 market research company in Beijing, said that the Li Ning Co's founder and chairman lit the Olympic torch as "probably one of the basic ambushes".

"This will have a huge impact on his brand because they have been hoping that Lining's brand will go global further.

Such a global event like the opening ceremony of the Olympic Games is a better stage.

Shares in Li Ning Co listed in Hongkong rose 3.4% on Monday.

Li Ning Co may use this as a propaganda tool.

Even after the stock price rose on Monday, the company's shares fell 37% this year because investors are worried about competition from Nike, Adidas and other Chinese companies.

Five years ago, Lining occupied the top spot in the Chinese market. But with the expansion of Adidas and Nike from Beijing and Shanghai to small and medium-sized cities, Lining's market share gradually decreased.

Many Chinese may feel that it is exciting to choose Lining to ignite the Olympic torch, but Lining's eminent position will undoubtedly bring a heavy blow to Adidas.

Bi Baoyuan, vice president of Adidas's Greater China market, said that the company spent a lot of money (sponsorship fees and about $190 million in marketing expenses related to Olympic Games) to become a partner in Beijing's Olympic sports apparel, which helped the company occupy the largest market share in China.

Adidas estimates that the Chinese market will earn $1 billion this year, which will make China the second largest market after the US.

Herbert Heiner, chairman and chief executive of Adidas, said at the media Roundtable in August 7th: "we are quite satisfied with the business in China.

We think this growth will last for several years, because our brand is very popular in China.

At the opening ceremony, they were overwhelmed by the local competitors.

Now, as Lining has successfully publicised the world's 4 billion audiences, the German company is looking for a ray of hope.

Adidas spokesman Jan Runau pointed out that Lining did not wear Lining clothing on the night of the opening ceremony.

He said, "Lining is wearing a torchbearer's costume and is Adidas's."

But the damage has already been done.

Every Chinese I interviewed the day before yesterday knew that Lining was the last torchbearer, but no one knew what brand he wore in his white torch bearer.

Wang Zhong, who watched the opening ceremony on television, said, "let me guess, I would say Li Ning Co."