A Slam Dunk for the NBA in China

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"The NBA is part of our future," says Grag. Other multinationals partnered with the NBA in China include Gatorade, DHL, McDonald's (MCD), and Toyota Motor (TM).

Mainland companies, especially those with global ambitions, have recognized the value of marketing partnerships with the NBA. Sports shoemaker Li Ning and China Mengniu Dairy have the rights to use the NBA for marketing in China. Mengniu, one of the country's savviest marketers, ran an NBA promotion last season with scratch cards on 60 million milk containers. Appliance maker Haier (HRELF.PK) in 2006 signed a multiyear marketing deal with the NBA to help promote its products globally, which includes becoming the NBA's official partner for high-definition television, while computer maker Lenovo is the league's official supplier of personal computers.

While high-profile events such as the NBA China games create huge buzz, grassroots initiatives play a big part in overall marketing campaigns. Official NBA outfitter in China Adidas operates 1,000 stores in China, Taiwan, and Hong Kong and expects overall sales of Adidas products to reach €2.42 billion ($3.45 billion) in Greater China by 2010. Adidas launched a 5-on-5 summer league this year, which drew 1,000 teams in six cities, culminating in the finals at an outdoor court erected in downtown Shanghai during the NBA China games. "This is more of a permanent league, not just a carnival event," says Paul Pi, Adidas general manager in Shanghai.

Balfour is Asia Correspondent for BusinessWeek based in Hong Kong .