Having a successful brand in China depends greatly on the perception of the brand by the consumer. Many brands who enter into the market, often look for more well established brands to partner with in order to gain the attention of the consumer market, which is a smart decision to make. This is what the Spanish sports agent Best of You Sports SA, stands to gain with the partnerships with Guirenniao Sportswear Company, an apparel marker in China, who already has a reputation in China.
The deal involves Guirenniao spending around $21.4 million with the agent, taking a 45% stake in the agent, in order to gain more popularity among the football players of Europe. The main goal of the companies are to look at integrating the world of football with the European and Chinese people. They have high hopes through integrating football between the two areas, the game will improve for everyone.
Best of You Sports SA stated on its website:
“Best of You actively seeks strategic alliances that generate new business opportunities in its field of expertise.”
This new venture is sure to gain some attention from both the European market and the Chinese market. Best of You or BOY, manages the reputation of some of the most famous European football players, it is this aspect that Guirenniao hopes to expand upon. These famous players include Iker Casillas, Xabi Alonso and Alvaro Arberloa.
One of the main questions being asked by people is why Guirenniao has decided to take a stake in Best of You now? There are several reasons, but mainly football is gearing up to become more popular in China. The Chinese government has put stricter rules on the games in hopes of alluring more high quality players. In addition, they have put football as a requirement into the elementary and middle schools throughout the country. It is this strong government support that has people eager to get into the market within China.
The general manager at Octagon in China, Lambert Li stated:
“Therefore, investing in football has the potential to bring huge returns for sponsors.”
BOY already has some presence in the Chinese market, as they have an office in Shanghai that is dealing with the image rights of Cosmin Contra. This tie in could help Guirenniao to make even more profit as they link themselves with the company.
Guirenniao is known for sporting goods associated with specific sports, and is often the go to company for those who are looking for shoes, workout gear and the like. The company already had 1920 M CNY in sales for 2014, and is projected to earn even more in the years to come.
This move is being seen more and more around China, as company’s pair with others in order to make the most successful venture on the market. It is a method providing to work as many companies are seeing higher profits and higher recognition within the Chinese community. It is a branding method that is certain to work for both companies involved.