The network of Olympic franchise outlets is to nearly triple
throughout China this year as BOCOG recruits more distributors to
sell Olympic licensed products.
The Beijing Organizing Committee for the Games of the XXIX
Olympiad (BOCOG) expects to increase its franchise network to 2,000
by the end of this year, up from the current 700 outlets, Tang
Yonghong, chief of the Games' licensing and marketing division,
said in Beijing yesterday.
BOCOG has also cut the price of Olympic licensed products by 6
to 8 percent from earlier this year.
The mascot Fuwa and other products, like everything else related
to the Beijing Olympics, are becoming increasingly sought-after by
both business and the public.
Sales of Beijing Olympics licensed products have already
surpassed half of the total goal volume, according to Tang. Sales
in the two years before the Olympics normally account for about 20
percent of the total, Tang said, citing the experience of both the
Athens and Sydney Games.
Tang did not give details for the Beijing Olympics' expected
total sales volume, but he said it could be huge.
"The current sales will be only a tiny part of the total sales
volume," said Tang.
When the Games are held in 2008 there will be nearly 10,000
Olympic retail outlets, Tang said.
To further expand its network, BOCOG will allow retailers to
recruit more regional distributors to sell the products from this
year.
BOCOG has asked local retailers to decrease prices to make
products more accessible to consumers. The organizer began price
cuts in February. Both the organizer and the distributors have
decreased their profit margins to benefit consumers, Tang said.
In the first two years, BOCOG controlled the number of retailers
to build a positive image and to better manage the sales network.
From this year, the organizer will quicken its pace to expand the
number of chain stores.
BOCOG will develop distributors under the current 63 regional
retailers. For now, distributors will have to meet certain
requirements to get licenses. They must be registered with local
industry and commerce authorities and have retail experience before
they can apply.
Individual dealers are currently not allowed to sell the
products, but they will be able to from the end of this year.
BOCOG also plans to sell $7million worth of franchise licenses
to product sellers by the end of the Games. It has already
distributed half of them.
The Xinhua News Agency said earlier that BOCOG's sales target is
$700 million. The China Securities Journal reported
unnamed analysts had forecast sales of franchised goods would hit
$1 billion.
(China Daily April 11, 2007)