US-China Olympic races include Nike vs. Anta, Comcast vs. TikTok
Functions for the Market
Background
While the world’s best athletes face off at the Olympics, investors and strategists may be more interested in the competition for corporate power between the media and sports brands using sponsorships of the 2024 Summer Olympics.
Parallel to gymnastics or track and field events, companies can be compared on increases in sales numbers and viewership, securing media coverage, and potential returns from ad campaigns, sponsorships, and other placements.
The issue
Analysis of media, advertising, and sales performance shows potential dominance by established leaders — though significant threats loom from new competitors.
Nike Inc. is front and center in much of the Olympics coverage, but earnings may keep it from the podium. China’s Anta Sports Products Ltd. and Li Ning Co. alongside Germany’s Adidas AG are all experiencing faster sales growth. Nike’s 3.6% gains in apparel revenue over the past five years have lagged behind the 5% median.
Analysts suggest Nike and Anta may see sales improvements correlate to brand exposure and gold medal performance of the Olympic teams and athletes they sponsor. LeBron James and Jamaican sprinter Shelly-Ann Fraser-Pryce — both Nike-sponsored athletes — are enjoying prominent coverage on social channels and in the media.
Fashion brands are also taking center stage. LVMH Moët Hennessy Louis Vuitton outfitted many performers during the opening ceremonies and designed the medal boxes, while Ralph Lauren Corp.’s designs for Team USA have picked up quite a few media mentions.
Air France-KLM — an official partner of the games — could demonstrate revenue uncertainty from the Olympics as it projects a shortfall from tourists avoiding Paris due to the Olympics. The brand revised its group capacity growth to 4%, down from 5% last year.
In the media itself, there’s the potential for upset thanks to new competitors. One closely watched race is the performance and reach of Comcast Corp.’s NBC and the Peacock streaming service against the TikTok phenomenon and its partnerships with Team GB. Viral videos have already generated millions of views for ByteDance Ltd.’s platform, while Peacock hopes to increase subscriber numbers. For streaming subscribers, Netflix would be the winner, followed by Disney+ and Paramount+.
The Olympics provide Chinese brands with more potential inroads into European markets as they aim to increase global sales. Anta — the sponsor of Team China — has opened more than 40 Olympic-themed storefronts so far and credits them with an increase in Q1 sales. Alibaba Group Holding Ltd., one of just two Chinese official sponsors, has continued to beat analyst estimates since Q2 2023.
Tracking
Use Bloomberg’s NCAT and SOCI tools to analyze news and social mentions of companies, individuals and Olympic athletes. Run KPIC and EEG for brand sales and revenue of top contenders and rivals.
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