Olympics strategy boosts BOC to new range of services

Partnership with the Beijing Olympic Games has helped Bank of China (BOC), one of the oldest banking institutions in the country, meet leading international standards and improve its overall strength.

In 2004, when BOC signed a sole banking partner sponsorship agreement with the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG), the bank pledged to provide sufficient capital, multiple banking products and related services to the Beijing 2008 Olympic Games, the Beijing 2008 Paralympics, BOCOG, the Chinese Olympic Committee (COC) and the Chinese delegation to the Games.

In return, BOC was entitled to enjoy corresponding rights and interests authorized by BOCOG.

However, profits resulting directly from sponsoring the Games are not the bank's major concern, said Xiao Gang, chairman of BOC.

"The partnership with BOCOG has not only helped the bank realize its dream of participating in the Olympic Games, but also helped raise its service quality and management level, as well as fully display its brand image and corporate culture." said Xiao.

According to Xiao, the bank's direct sales revenue from the sponsorship has so far surpassed its total investment in the Beijing Olympic Games.

"Improvement of banking services is the core competitiveness for us. And we will take advantage of being the sole banking partner with the Games to enhance our overall strength," Xiao said.

Marketing plans

As a result, BOC, which has a history of around 100 years, has launched a series of marketing plans for the Games over the past four years, said Xiao.

On the first anniversary of becoming the sole banking partner of the Beijing Olympic Games, Hua Qingshan, former vice-president of BOC, released the bank's Olympic Games marketing strategy - developing in partnership with the Games and assisting the Games through the bank's business development.

The strategy meant that BOC boosted its competitiveness in partnership with the Games, and promoted its brand names, banking products and services to better meet the needs of the Games.

"The sole banking partnership will push us to expand the domestic market as the Beijing Olympic Games has brought huge potential market opportunities," Hua said.

According to a survey conducted by the International Olympic Committee, more than 92 percent of Chinese people will pay attention to the Beijing Olympics and 81 percent of Chinese consumers will support enterprises that have established partnerships with the Games.

Banking products

Verified banking products specially designed for the Beijing Olympic Games over the past few years have helped BOC stand out in the domestic banking market, Hua said.

On July 22, 2004, backed by its pioneering advantage in international credit card payment and in support of the Chinese delegation to the Athens Olympics, BOC presented the first Olympic-themed financial product to the public - the Collector's Edition of the Great Wall Euro Visa Card for the Athens Olympic Games.

Within the next three weeks, over 28,000 such cards were sold.

In December 2004, the bank, in cooperation with Visa International, jointly held the launching ceremony for the first BOC Visa Olympic Credit Card, of which over 1 million have now been sold.

"Olympic-themed products have helped meet the different needs of customers from all walks of life, and helped improve our competitiveness in the domestic and overseas markets," said Hua.

For BOC, the Beijing Olympic Games has not only helped improve its brand image, but also resulted in a huge number of potential customers, Hua said.

According to tourism authorities, there will be as many as 4.6 million overseas travelers to China this year, spending around $4.5 billion.

"Additionally, there will be huge development of personal banking and retail services as Chinese people have more savings today," said Hua, adding the bank will do all it can to make the most of these great opportunities.

The bank has participated in the BOCOG's market development plans, including sponsorship, licensed products, ticket sales and torch relay activities, said Hua.

Sales of the Games' licensed products in the bank have so far totaled more than 2 billion yuan, according to the bank.

"As the sole banking partner of the Games, BOC has reaped many benefits. For example, we have realized revenue of about 3.5 billion yuan in selling souvenirs of the Games," said Xiao.

(China Daily 08/05/2008 page25)