Molten Corporation has signed a global partnership agreement with FIBA, the international governing body for basketball. Why does a global sports equipment manufacturer promote international sports partnerships? What are the secrets behind one of the world's longest-standing partnerships, which celebrated its 40th anniversary in 2022? The author interviewed Mr. HASEGAWA Noa, Head of the Brand Marketing Group, Marketing Division at Molten Corporation. (Written by HAYASHI Tetsuro, Edited by ISHIHARA Ryutaro)
What role do sports partnerships play at Molten?
At Molten, we approach partnerships based on two main axes: "business impact" and "social value."
The first aspect, "business impact," concerns how to increase sales of Molten products through contracts with International Sports Federations (IFs) and National Federations (NFs). For example, contracts with IFs lead to the adoption of Molten balls by countries participating in world competitions such as the World Cup and continental tournaments across regions, including Europe. Additionally, these agreements with IFs often effectively contribute to contracts with NFs and leagues in various countries, creating a cycle where Molten sports equipment is used from the top level to the grassroots.
The global governance offered by an IF like FIBA is also attractive. They place strategic priorities on the development of NFs and oversee across continents, including Europe and Asia. This structure allows us to more easily coordinate with FIBA, continental federations, NFs, and tournament organizing committees. When Molten aims to collaborate on sales and promotion at continental competitions, as well as engage in sports and social initiatives, these efforts can enhance the reach of our activities and maximize the strengths of our sales network.
Regarding the second aspect of "social value," it is based on our desire to become a social brand needed by society. Memorable scenes created by athletes and teams competing, and moments of sportsmanship inspire many people. We believe there is great value in our brand being present at these moments. In addition, we are also considering how Molten can contribute to the sports world and social issues, such as environmental concerns and obstacles leading to decreased sports participation.
Our relationship with IFs, including FIBA, is not just about balancing the value of rights granted through partnerships with the payment of consideration. It has evolved into a multiplicative relationship, where we focus on how to leverage each other's assets and enhance our mutual value. Within such a relationship, being able to have frank discussions is the ideal form of partnership. We can interact directly with FIBA so that we are able to propose ideas with transparency and speed, allowing us to execute plans with mutual consent.
What led to the partnership with FIBA?
I heard that we had approached FIBA initially to expand globally and have Molten products used in many countries and regions outside of Japan. For the first time, Molten was used as the official game ball at the FIBA Basketball World Cup in Colombia in 1982 for men, and at the FIBA Women's Basketball World Cup in the Soviet Union in 1986.
Through our long-term partnership spanning 40 years, the basketball product itself has significantly evolved. We have always worked together with FIBA to enhance the function and performance of the ball, collaborating with players, basketball associations, and other stakeholders to advance our products and change the standards. Our aim to have more people use our ball, the product itself, and FIBA's aim to enhance the value of basketball by improving competitive performance have always been aligned in the same direction.
There are three main points that FIBA appreciates about Molten. The first point is undoubtedly the quality of the product. As previously mentioned, we have been working with FIBA to improve the quality, which I believe has contributed to their positive evaluation.
The second point is delivery, a factor highly valued by every NF and other sports organization. For example, there is high regard for the ability to reliably deliver products to countries with challenging shipping conditions. There is also appreciation for our agility in situations where items are suddenly needed for tournaments or promotional activities. While it may not be the most visible aspect, but delivery is the most crucial part of managing competitions, both domestically and internationally.
The last point is what is called "activation," which refers to the brand's activities at the World Cup and continental tournaments. For instance, at FIBA Basketball World Cup 2023, we created opportunities for fans and children to experience basketball. We installed a mobile basketball court setup known as the molten B+ game unit in the event zone where fans visit before games. Additionally, we offered free face painting inside the arena, which drew long lines and was very exciting.
This is also a basic brand promotion activity as part of our marketing rights. High quality is also expected through the collaboration of FIBA, NFs, the organizing committees, along with our sales and marketing teams. FIBA has highly rated our activation as "Exceptional" for outstanding results.
What activities does FIBA expect from Molten?
FIBA has three strategic priorities: Shape International Club Competitions," "Empower NFs," and "Women in Basketball." For each of these, Molten is expected to contribute in specific ways. For the first priority, " Shape International Club Competitions," this includes exposure at tournaments and promotion activities. For the second priority, “Empower NFs," we are working with FIBA and our global sales network to deepen relationships with NFs around the world and jointly contribute to the development of basketball. For the third priority, "Women in Basketball," the focus is on increasing the number of female basketball players, as the name suggests.
Under "Women in Basketball," our approach differs from the previously mentioned activation. We collaborate with FIBA on initiatives like ”Keep Playing” to create an environment where not only players but also coaches, referees, and other supporters involved in basketball can enjoy the sport for the long term.
The evaluation of the partnership at Molten ultimately comes down to the sustainability of the business. We are always required to generate sales and profits for the contract fees and the provision of sports equipment. Especially since the Brand Marketing Group I belong to is a cost center, it is all about whether we can envision growth against our investments. If the economics do not make sense, we cannot pursue the partnership, even if we want to. That is the primary consideration.
Evaluating non-financial areas is important as well. The "Women in Basketball" initiative I mentioned earlier has also proven to be very effective. Instead of proclaiming grandiose terms like "solving social issues," we are taking concrete actions through legacy activities at tournaments and specific regional projects, combining the assets of FIBA and Molten. I feel that FIBA has recognized the steady accumulation of these efforts.
◇HASEGAWA Noa
Head of the Brand Marketing Group, Marketing Division, Molten Corporation
Hasegawa oversees the entire communication strategy at Molten, including brand strategy, collaborative activities with sports organizations, and product promotions. He started playing football/ soccer at a young age and had played in Mexico and Germany. After gaining experience in marketing and brand management in Japan, the UK, and the USA, he joined Molten Corporation in 2021. He is a graduate of the Chicago Management Institute at the University of Chicago Booth School of Business.
◇HAYASHI Tetsuro
Marketing Director, Beside Japan Ltd
A sports business consultant based in London and Tokyo, Hayashi serves as a hub between Europe and Japan, providing support for innovation creation and marketing assistance centered around sports. He holds an MA in Innovation Management at Central Saint Martins, University of the Arts London. He is a SKYLIGHT Sports Global Advisor and an advisor for JSPIN.
Edited by: ISHIHARA Ryutaro (Editor at BIOTOPE co., ltd. / Representative Director of the Culturepreneur Collective, a general incorporated association)
*Affiliations and titles are as of the time of writing in June 2024
Note: This article was originally published in Japanese on Jun 20, 2024. The original article can be accessed here.
