China is Australia’s biggest trading partner and provides the highest number of migrants, international students and tourists to Melbourne.
As the oldest football club, Melbourne has embarked on engaging and understanding this community to develop its own relationships and build opportunities that enable future growth.
China presents a range of complex opportunities and challenges that are outside the club’s established routines, expectations and historical understanding.
For Melbourne to connect with China, it has developed a strategic approach that at its heart is serious and underpinned by sound knowledge, as chief executive Cameron Schwab explains.
“The key with the whole strategy in relation to China is to make sure there are clear commercial outcomes, but they’re only realised if we also integrate the player opportunities and the community aspects,” he told melbournefc.com.au.
For the past six years, Melbourne has been slowly testing the water, building expertise and assessing the best way to build a whole club approach to China.
In the shadow of the Global Financial Crisis, Australia’s recent economic reforms, abundant natural resources and China’s rapid industrialisation created a mutually beneficial relationship that ensured continued prosperity for the two nations.
China is undertaking breathtaking reform with plans to urbanise 300 million people in 30 years, effectively building a city the size of Brisbane every month.
They need iron ore and other materials to meet their deadlines.
But what’s this got to do with footy?
China’s growing importance provides new commercial opportunities for outward looking Chinese brands seeking to strengthen their position in the Australian market.
Aligning with the oldest AFL club provides the best way to localise and normalise their products and services to Australian consumers. For example, Korean electronics giant, LG entered Australia through the Melbourne Football Club sponsorship in the 1990s.
Schwab, who was Melbourne CEO when LG sponsored the Demons, said the club’s recent entry into China had already provided benefits.
“We’re building a narrative with what we’re doing with China, which we started last year on the personal development. We took the whole club there and that was an integration of everyone,” he told melbournefc.com.au.
“It’s really unfortunate that more hasn’t been said or read into that [trip]. For anyone that attended, it was just an extraordinary personal development experience.
“What that has created is community - for example when we saw our club in primary schools in Shanghai, which was unbelievable. Then we had the game, which was great for the young kids.”
One person who has become an integral part of Melbourne’s entry into China is club strategic relationship manager Tom Parker, who is a China specialist, having studied Chinese (Mandarin) since 1987.
For Parker, China is a life-long passion. And he has become a significant asset for the club, in terms of his Australian and Chinese bilateral relationships.
A Mandarin speaker, Parker’s long-term engagement with China has resulted in impressive networks and successful business outcomes.
Previously, he has held China focused roles in The Asialink Centre, Austrade (Beijing), City of Melbourne and as a writer and reporter for the ABC in both China and Australia for Radio National’s Asia Pacific Program.
Parker has also delivered intercultural training programs for multinational and government clients in Australia and China including: the Australian Football League (AFL), AMP, GHD, Lonely Planet, ANZ, Morgan Stanley, DFAT and Austrade.
He worked with the AFL to deliver the first exhibition game of Australian Rules in China and assisted IVG in the recruitment of bilingual staff for the Australian Pavilion at the Shanghai World Expo in 2010.
Parker is a well-connected Australia-China facilitator with extensive experience assisting business and government better understand and access their opportunities in China.
And Schwab said it was these opportunities that will help the club’s commercial outcomes.
“When you have discussions at a more commercial level, particularly with sponsorship, you’ve actually got a story to tell - and that’s based on the culture you’re dealing with. It also recongnises those who want to build a brand in Australia. Football is the conversation by which a lot commercial activity gets done,” he said.
“We went into companies where they had done a lot of study on our club and they absolutely understood that we’re more than 150 years old. That’s an unbelievable thing from a sport tradition, but hearing that from people who are part of one of the oldest civilisations in the world - there’s an honour associated with it. So that was encouraging.
“At the same time it’s strategic and commercial and brand building. We also have a major opportunity with our Chinese community in Melbourne. We have in part, but haven’t fully engaged and our conversation with them is based on having a strong association with China and as it relates to their new heritage in Australia.”
Football provides a great opportunity to create pathways for social inclusion to our different migrant communities. Although our Chinese community is one of the oldest, its involvement and exposure to AFL is not as distinct as others.
Through a range of programs and events, Melbourne is aiming to become the preferred club of choice for our strong and proud Chinese community.
In turn, Melbourne hopes it will grow its commercial and football involvement, creating a whole club approach to China and its inherent long-term outcomes.
Background on Melbourne trips to China
August 2006 - Melbourne visits Tianjin as potential site for exhibition match
May 2007 - Melbourne visit Tianjin, Shanghai and Suzhou
October 2007 - Melbourne’s China Mission includes eight players (young leadership development group) visiting. They are James Frawley, Matthew Bate, Lynden Dunn, Ricky Pettard, Clint Bartram and former Demons Brock McLean, Chris Johnson, Michael Newton and Paul Wheatley. The trip is also a business/corporate mission.
October 2009 - Chief operation officer Matthew Green attends signing ceremony for 2010 exhibition match in Shanghai
May 2010 - Strategic relationships manager Tom Parker scopes visit for China Mission
August 2010 - Parker scopes visit for China Mission
October 2010 - Melbourne plays first AFL game in China. It also includes a club/team building trip.
May 2011 - Parker makes a corporate and AFL mission
October 2011 - Tianjin ground opens and coincides with AFL game development trip
November 2011 - Director of sports performance Neil Craig visits to inspect altitude training centre and potential ground to host AFL games
November 2011 - Chief executive Cameron Schwab, chief commercial officer John Poulakakis, Parker and general manager of commercial operations Peter Maynard visit. They have meetings, visit the altitude training centre inspection and undertake a ground inspection.