Lebron James’ “Decision” All About Renminbi – NBA Marketing in China
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According to Magic Johnson, if LeBron James “wants to be a billionaire, or close to it, [he’s] gotta go to New York.”
Nike, however–the company that is LeBron’s top sponsor–believes that another destination is more vital for achieving this goal.
China.
In the run-up to James’ announcement he would join the Miami Heat to form – along with Dwayne Wade & Chris Bosh – a “super-team”
According to Magic Johnson, if LeBron James “wants to be a billionaire, or close to it, [he’s] gotta go to New York.”
Nike, however–the company that is LeBron’s top sponsor–believes that another destination is more vital for achieving this goal.
China.
In the run-up to James’ announcement he would join the Miami Heat to form – along with Dwayne Wade & Chris Bosh – a “super-team”
ESPN evaluated Nike’s strategy of creating LeBron James as a global brand, and showed why China,
currently the world’s largest basketball market with over 300 million basketball enthusiasts,
is a necessary step on the path toward LeBron’s billion-dollar aim.
The biggest reason, as CNBC’s Darren Rovell explained:
“It’s clearly not about US market size anymore when you talk about endorsements.”
And thus, based on the numbers, China, whose number of basketball fans almost totals the population of the United States, is the most logical place to look to.
Currently, according to Rovell, Nike has a $400 million basketball operation in China experiencing stunning annual growth of about 12%-15%.
To put this in perspective, Nike’s basketball-related profit in the United States is growing annually at just 1%.
But, according to Terry Rhodes, owner of a marketing firm in Shanghai, the Chinese are attracted only to champions–
a category that has yet to include Lebron, as has been widely harped on, particularly after the Cavaliers’ loss to the Celtics this year.
On this note, Rhodes offers a suggestion:
“For LeBron and Team LeBron, the ultimate objective has to be get those rings onto LeBron’s fingers,
and then, the rest of the opportunities in China really can become available.”
The numbers seem to back this up.
Ever wonder why Kobe Bryant’s jersey keeps outselling LeBron’s year after year,
despite LeBron’s meteoric rise in popularity in the United States?
According to Rovell, Kobe’s popularity is “at least two times bigger” than LeBron in China,
a fact that has caused Kobe’s jersey to continue to be the number one selling jersey in China
(LeBron though is number 2. Also, it’s worth noting that LeBron has risen from 7 to 2 over the course of a year.
Question, though: If winning is so important, why is Tracy McGrady #4 on this list??
He’s never won a playoff series. We’re aware of this right? Someone get me on the phone with China.).
It is for this reason that ESPN reporter Mark Scwartz correctly said beforehand in this fascinating piece,
“If James decides that being in New York is not his best opportunity to be a champion,
don’t expect him to succumb to the seductive appeal of Madison Avenue.”
This viewpoint was seconded by a blog piece in Forbes.com that argued LeBron’s decision was indeed all about China — and its huge market.
In one of endless “run-up” shows on ESPN, Stephen A. Smith –
a brash journalist who sometimes ruffles feathers in sports circles because he’s not afraid to speak his mind –
insisted emphatically, categorically and unequivocally that King James was going to the Miami Heat to join Bosh and Wade.
In fact, Smith has been saying all along LeBron would join the Heat.
First, it’s all about winning championships, and Smith made a strong case the Miami Heat would be virtually unbeatable with James in the lineup.
Secondly, he said that it didn’t matter anymore what city a star plays for – it’s now about China,
and he made an oblique reference to LeBron’s contract with Nike.
So there you have it.
Once NBA superstars like LeBron James make choices based on how those decisions will play in China,
you know that the vast Chinese consumer economy is not far behind.
LeBron is a young man who has had only a little exposure to China – but apparently he gets it … big-time.
