Games mean really big business for companies

Transformation

Although none of the 11 TOP sponsors of London 2012 are from China, the Games have seen the transformation of Chinese companies. Some have distinguished themselves by their creativity, usurping the standard image of cheap Chinese products; while others are seeking, and gaining, brand recognition after previously existing only at the lower end of the manufacturing scale.

LEDs at London 2012 by Crystal CG International, which rose to fame during the 2008 Beijing Games. The company also provided animations for the opening ceremony in London. Provided to China Daily

Before the Games, the leader of the US senate, Harry Reid, called for TeamUSA's uniforms to be piled in a heap and burned. Reid was outraged that the outfits were designed by the US couturier Ralph Lauren, but made in China.

However, boycotting one Chinese product probably also means skipping TV, the opening and closing ceremonies, and the main venues, since Chinese companies are involved in all of those aspects.

Danny Boyle, the Oscar-winning film director (Slumdog Millionaire, Trainspotting) responsible for the opening ceremony at London 2012, gave special thanks to Crystal CG International, the Chinese company responsible for the animations at the event.

The ability to change raw materials into end products as quickly as possible and at the lowest feasible cost has been a key strength of Chinese manufacturing.

For instance, Honav started out making pins for the Atlanta Olympics under contract to a Western company. A pin is sold at around $10, and the Chinese manufacturer earns less than $1 of the retail price. The factories also have to bear the high environmental and labor costs of production.

Other important aspects of modern business practice, such as branding and marketing, are relatively new concepts to these entrepreneurs.

Manufacturing has been transformed over the past several decades. The 2008 Beijing Olympics was a turning point for many companies. Honav designed and made pins for the Beijing Games and Crystal CG made the "hand-roll" animation featured at the start of the opening ceremony. The organizers of the London Games were impressed with the performances of these two companies and invited them to bid to become official sponsors and licensing companies for 2012. Both companies acted on the invitation and won.

Going forward

Honav probably has gained as much business experience as profit from its involvement with the Olympics. The main theme of the London Olympics is sustainability and specific requirements were instigated across the board, said Yin. "The requirements could be as specific as: Which side will a door open?" he noted.

Meanwhile, partnering with the Olympics also requires companies to pay attention to the welfare of their workers in terms of the length of shifts and the level of wages. Those rules, well established in the West, still appear unusual to Chinese entrepreneurs, who are used to their factories working 24 hours a day, seven days a week. Workers are now subject to a shift pattern, but the machines are never idle.

Crystal CG represents a completely different style of management for a Chinese company going global. Unlike Honav, which sent its management team to London from Beijing, one could be forgiven for gaining the impression that Crystal CG is not really a Chinese company at all. Its art director, Will Case, is British and the managing director, Gilles Albaredes, is French. However, Albaredes is adamant that nationality is irrelevant, merely commenting, "It is the quality of the work that counts."

Looking ahead, these companies have opportunities beyond the London Games. For example, Crystal CG has produced promotional films for Olympic bids from Moscow and a number of other countries.

Involvement in the Olympics has also provided the opportunity to work with other companies related to the Games. Crystal CG was hired by Panasonic Corp to make displays for Olympic venues, while Honav counts Coca-Cola and Dow Chemical as clients.

In fact, even before the London Games began, Honav had won the bid to design and make pins for the 2016 Games in Rio de Janeiro. Even as people are still celebrating London 2012, Jack Chen, Honav's chairman, is already counting down to the next games. "There are 1,430 days to go, and we need to try our best," he said.

Contact the reporter at diaoying@chinadaily.com.cn

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