In a bid to grow its client base in Asia, Australia and New Zealand Banking Group (ASX: ANZ) will change some of its Australian Open sponsorship to Chinese for the final matches of Australia's premier tennis event.
ANZ has been a sponsor of the tennis since 2010 and says, "[it] is a sign of our continued commitment to the Australian market, as well as being aligned with our goal to be a super-regional bank and grow our presence in the Asia Pacific region."
As tennis takes off in Asian countries, thanks largely to the success of Chinese female tennis star Li Na, many big companies are likely to seek sponsorship of major games and events. ANZ already achieved "Diamond" sponsorship status at the Shanghai Masters last year, but will also search for other opportunities in the region.
Women's Tennis Association managing director, Peter Johnston, told The Australian Financial Review Li Na's success has positively promoted the sport in China: "The sport is popular and played at all levels, from government officials down to the rest of the population. So we have both international sponsors and Chinese companies wanting to reach the wider consumer market coming to us." Jacobs Creek, another top sponsor, owned by French company Pernod Ricard is also looking to make a similar move to ANZ.
In 2007, ANZ CEO Mike Smith launched the 'Super Regional Strategy' which is unique amongst Australia's big banks including the Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), because it actively competes against local and foreign financial institutions in the region. By 2017 the bank hopes to draw between 25% and 30% of group revenue from its strategy.
Foolish takeaway
Many big Australian businesses have realised the potential of booming Asian economies and sought to position themselves to benefit – ANZ will join a host of Australian blue chips like Telstra Corporation Ltd (ASX: TLS) and Insurance Australia Group Limited (ASX: IAG) in pursuing growth in Asia. As tennis gains momentum in Asia, sponsors will pay higher prices to promote their businesses, but it certainly seems a worthy investment.
