TMTPOST— Of the 13 official sponsors of the just-concluded Euro 2024, five were Chinese companies, namely Alipay, AliExpress, BYD, Hisense, and Vivo, which exceeded the combined total of American and German sponsors.

The five Chinese companies, along with global brands like Coca-Cola and German sportswear giant Adidas, dotted the stadium with their image advertisements.

Other leading sponsors include French IT services group Atos, Greek betting company Betano, Amsterdam-based travel website Booking.com, Visit Qatar, and German companies Lidl and clothing brand Engelbert Strauss.

"The Chinese brands, which have built a strong foundation in their vast domestic market, are now seeking to expand beyond their borders and reach new audiences and markets," said UEFA marketing director Guy-Laurent Epstein.

Revenues from Chinese sponsors—Ant Group’s Alipay, Alibaba’s AliExpress, smartphone maker Vivo, consumer electronics firm Hisense, and electric vehicle manufacturer BYD — are also vital to UEFA’s commercial goals.

Their money transfers have helped Euro 2024, which culminated on Sunday with the final between England and Spain in Berlin, to collect an record revenue of over €600 million from commercial rights, according to Epstein.

This marks a minimum 15% increase from the €520 million at Euro 2020 and at least a 24% increase from the €483 million at Euro 2016.

In 2020, four Chinese companies (TikTok, Vivo, Hisense, and Alipay) sponsored the tournament, up from only one (Hisense) in 2016.

In contrast, the number of Chinese sponsors for the FIFA World Cup has dropped from 36 at the 2018 Russia World Cup to 22 at the 2022 Qatar World Cup. Several factors influence this shift, including the host country and corporate marketing strategies, but it's clear that Chinese companies have their sights set on the European market.

The reasons for this shift include the European Championship's high viewership, large audience base, notable players, targeted regional focus, and compact schedule. Additionally, sponsorship costs are lower compared to events like the World Cup or the Olympics, making it a more attractive option for companies.

The size and concentration of the audience are particularly appealing to businesses. The European Championship, held since 1960, boasts a long history and a significant following.

UEFA's latest audience statistics showed that this year's tournament attracted 5.8 million visitors to fan zones in host cities and set new records for TV viewership in participating countries.

Organizers project the tournament will attract a cumulative live audience of over five billion people across approximately 200 territories. Beyond traditional televised broadcasts, fans increasingly follow sports on social media, often watching shorter clips.

Despite China's poor performance in football, the sport and the Euros are immensely popular in the country.

According to CSM Media Research, ratings for China’s national broadcaster CCTV’s sports channel soared 45% between June 14, when the tournament began, and July 3.

More than 187 million viewers in China have watched the matches since the opening game, despite the significant time difference with host country Germany.

Technology has also enhanced advertising by enabling sponsors to tailor billboards around the pitch for different audiences. This allows fans in China to see different ads on their screens compared to what is visible in stadiums or other broadcast feeds.

In addition to domestic audiences, Chinese fans living abroad or traveling to watch Euro 2024 matches are another potential target. Some brands also aim to attract European fans.

Germany’s branch of consumer electronics group Hisense saw its first-half revenue rise 53% from the previous year, Louis Hou, general manager at Hisense & Gorenje Germany, told local media.

AliExpress recorded an 80% year-on-year increase in sales of football-related goods on its cross-border marketplace in May.

Electric car maker BYD, which became the "official e-mobility partner" of Euro 2024 in January, said that its partnership with UEFA is key to introducing consumers to its technology.

BYD’s collaboration with UEFA is part of its strategy to expand in Europe as the EU tightens regulations on car imports from China. This week, the company secured a $1 billion deal to build an electric vehicle plant in Turkey, adding to its plans for a separate production facility in Hungary which marks BYD as the first Chinese car manufacturer to establish a plant in the European Union.

Since 2021, BYD has been selling electric vehicles in Europe, opening over 260 stores starting from Norway and quickly expanding to Germany, Britain, Spain, Italy, France, and 20 other European countries.

In 2023, BYD sold 15,588 vehicles in Europe. Michael Shu, the general manager and CEO of BYD's European auto sales division, said that the company's goal is to capture 5% of the European electric vehicle market before the start of production in Hungary. For BYD, sponsoring the European Championship is an effective way to enhance its influence and brand recognition among potential European customers.

Vivo, which set up its European headquarters in 2019, became an official partner of the European Championship in 2020. Since entering the European market, Vivo has expanded to countries including France, Germany, Italy, Spain, Britain, and Poland. By 2022, it had further extended its reach to Albania, Bulgaria, Croatia, Greece, and 11 other new markets, covering a total of 21 European regions.

Tech media outlet Engadget praised Vivo's strategy, saying, "Through its partnership with UEFA, Vivo has increased its brand visibility in Europe. The company conducted extensive market research before entering Europe to ensure its products met local consumer needs."

While brands like Vivo, BYD, and Hisense aim to sell products, AliExpress seeks to build up its popularity, as it may be less known when compared to platforms like Taobao, Pinduoduo, JD.com, or Amazon.

Launched by Alibaba Group in 2010, AliExpress primarily serves overseas markets. Alibaba's Q3 2024 financial report showed a 60% year-over-year increase in AliExpress orders and a 44% rise in international e-commerce revenue, exceeding market expectations for six consecutive quarters.

The report attributes AliExpress's growth to its Choice program, which offers lower prices and faster logistics. By January 2024, Choice accounted for about half of AliExpress's total orders. Logistics is a core advantage, with the "Global 5-Day Delivery" service now covering 10 countries, including Germany, France, Britain, and Spain, where consumers can receive packages from China within five working days.

AliExpress's accelerated growth aligns with the expanding European e-commerce market. In 2022, European B2C e-commerce revenue increased from €849 billion in 2021 to €899 billion, with a projected growth rate of 8% in 2023. Sponsoring the European Championship is part of AliExpress's strategy to enhance its brand recognition and influence in Europe, showcasing its capabilities on a global stage.

These efforts highlight the accelerated overseas expansion of Chinese companies in recent years. Europe, with its population of 741.6 million, numerous developed countries, and high purchasing power, is a crucial market for any company eyeing the global market.

The European Championship, beyond being a sports event, serves as a valuable "traffic channel," allowing Chinese brands and products to reach their target audience effectively. By leveraging sports event content and global broadcasts, companies can extend their influence to a broader audience.

It is clear that the European Championship won't be the end of the road for Chinese brands. With the Paris Olympics approaching later this month, more "Chinese presence" on the global stage is expected.