Sports Branding ~Why Sports Create Value for Regions and Japan

There is a growing trend of "utilizing" sports for corporate and regional branding. Why does sports hold such potential as a "catalyst"? Professor Munehiko Harada from Waseda University's School of Sport Sciences (*) and Keisuke Konishi from Dentsu Inc. discuss this topic.

※ Engages in education and research on sports itself and the various phenomena it generates. Also hosts the "Sports MBA Essence" program, an education program for working professionals aimed at acquiring knowledge in sports business and management, with the goal of cultivating talent well-versed in the sports industry.

 

From left: Keisuke Konishi of Dentsu Inc., Professor Munehiko Harada of Waseda University's School of Sport Sciences

The appeal lies in "empathy" and "simultaneity." A platform showcasing companies' latest technologies

Konishi: With mega-sports events like the 2019 Rugby World Cup and the 2020 Tokyo Olympics and Paralympics approaching, sports business in Japan is gaining attention from various perspectives. Could you explain the background and current landscape?

Harada: In Japan, the momentum is building not just for promoting sports themselves, but also for using sports as a catalyst to develop businesses and regions. A major turning point was likely the establishment of the Sports Agency in 2015. We're also seeing the field expand, such as with the emergence of e-sports, broadening the meaning and value of sports.

From the perspective of corporate utilization, sports are a major target in global sponsorship. The intense emotional swings of spectators make it easier for them to empathize with involved companies. Moreover, today, behind the fans in the stadium, hundreds of times more fans are connected online. During the 2014 Commonwealth Games opening ceremony, UNICEF's appeal resulted in hundreds of millions of yen in donations being raised in an instant.

Konishi: The shift in media and content distribution environments due to digitalization is also significant. Perform Group, which operates DAZN, made headlines in 2016 when it acquired the global broadcasting rights for the J.League for 10 years at 210 billion yen. The value of sports content is rising in the global market. The excitement generated by sports as unpredictable, real-time experiences has a very high affinity with platforms like social media.

Harada: As television viewing habits changed, shared topics experienced simultaneously decreased. Even so, sports remain a topic that many people experience at the same time and can widely discuss. In terms of reaching the majority, the significance of companies creating value alongside sports is increasing.

In recent years, sports have also been utilized as a "platform to showcase a company's latest technologies and services." At Wimbledon, IBM has been introducing AI and other technologies over the past few years, advancing automated highlight editing. This can be described as "direct experience branding" – showcasing cutting-edge technology while maximizing the fan experience. Japan should be able to increase this further.

Booming "Martial Arts Tourism": Sports for Becoming a Tourism Powerhouse

Konishi: Professor Harada, you also lead efforts to promote sports tourism. Sports as a resource still hold significant untapped potential for tourism and regional branding.

Harada: There are significant opportunities for regional revitalization through sports. For example, UK inbound tourism increased by approximately 9 million people over five years after the Olympics, from about 31 million in 2012 to about 40 million in 2017. Leveraging the Games' information dissemination for tourism branding was the greatest legacy, and Japan could create the same situation.

Konishi: While many municipalities and companies have recently engaged in regional sports events, the challenges lie in differentiating through uniqueness to attract tourists and linking sports to extended stays.

Harada: In doing so, they should leverage Japan's unique tourism resources that are highly compatible with sports and activities. Outdoor sports are prime examples. Japan boasts abundant nature; for instance, Sayo Town in Hyogo Prefecture hosts a long-distance cycling event along the Inaba Highway, which has now become an event attracting international participants.

Another interesting approach is the martial arts tourism promoted by the Japan Sports Agency. Overseas, there's high interest in the spiritual aspects of Japanese culture, and martial arts, rich in this element, hold strong appeal. Moreover, dojos and instructors exist nationwide, making them excellent tourism content. Ninja culture also sees strong overseas interest and could be a hit activity for foreigners.

Konishi: I previously collaborated with Professor Harada on the "Okinawa Karate" project. As the birthplace of karate, Okinawa—home to over 100 million practitioners across 200 countries—is seeing increasing foreign visitors seeking to learn its spiritual essence, expanding the foundation for karate tourism.

Harada: Over 60% of visitors to Japan are now repeat tourists, and they're venturing beyond major cities into more remote areas. Providing activities that leverage locally rooted assets like nature and martial arts will significantly boost their satisfaction. Ideally, Japan should transform into a tourism powerhouse by offering resource-based activities, positioning itself as a "nation of experience creation."

Strategic personnel are essential to maximize the use of sports

Konishi: The relationship between sports and society encompasses diverse perspectives, including extending healthy life expectancy, fostering humanity and diversity, and building the centripetal force of local communities.

Harada: Sports can also be leveraged for diversity and urban development. In Oita, the Oita International Wheelchair Marathon began in 1981. This led to the development of barrier-free urban planning within the city. Sports teams are now mainstream in engaging with regional branding through community ties, and the relationship between regions and teams is also strengthening in Japan's professional baseball and J.League. Of course, these are also co-creations with athletes and fans.

Konishi: While this demand exists, unlocking the potential of the sports business and achieving growth requires talent with diverse expertise beyond the sports competition itself—such as management, marketing, and finance.

Harada: The connection between sports and society will only grow stronger. However, to realize co-creation with companies and communities, we need people who can strategize and execute. What can companies achieve through sports? What can be done for regional revitalization? Compared to other countries, Japan still has few people with this knowledge. Furthermore, there aren't many institutions that systematize and teach it. That's precisely why we launched the "Sports MBA Essence" program.

A lecture scene from "Sports MBA Essence." Launched in 2017, this marks its third year.

Utilizing sports to create value for companies and regions. This trend is definitely advancing in Japan. That's precisely why it's crucial to identify knowledgeable talent and build the necessary systems, isn't it?

(After the discussion)
Leveraging sports to achieve co-creation of social value, transforming Japan from the local level

Today in Japan, while market growth in the sports business is anticipated, the broader social value inherent in "sports" is also being reevaluated.

New initiatives are advancing, using sports as a starting point to transform society: building social capital through sporting events, sports tourism and regional revitalization, realizing human happiness, purpose in life, and a diverse society.

Moreover, amidst a major shift in the times—from creating products to creating experiences, and from outward-facing branding to inward-facing branding—the vision of unlocking the value and potential of "sports" as the most human activity, embodying elements of play beyond rationality, is truly exciting.