Should Supercars Expand Into Asian Markets? (With Poll)

[GTRMagic]

To me, the logic of adding new markets & additional rounds to Supercar is very clear.

Motor racing on every level has the ability to soak up money like a sponge.The teams need to generate more income to be more competitive to create the action you and I enjoy at circuit or on the teev.

Supplementing support from existing major international brands (Red Bull, Virgin, Monster, BOC, Mobil, Penske, Castrol, Dunlop, Freightliner etc.) is a big winner from a financial perspective.Creating the activation possibility with the local brand custodian, for hospitality, for display of car and driver, for interviews & media, for giveaways and the like, can not only improve the brand profile in that market, but potentially offer an alternate funding source for the teams.Win Win.

Where the brand is a local Australian one, and from first glance has no international potential, the international race may just be the device that can open up relationships with local partners to carry those products into those markets.Ice Break milk coffee for example is an Australian brand, owned by Parmalat… who are international… who are motorsport sponsors of years past… who subscribe to the concept of global sourcing.Win Win.

New sponsors for the overseas events also remains a demonstrated possibility.When 888 went to China with Supercar, they transformed the liveries on their cars from Betta Electrical to LG, who were a car sponsor, and for that weekend, were a naming rights partner with full car signage.Teams are talking in hushed tones about sponsorship being difficult to secure locally, why not create access to local round sponsors in other markets, and perhaps open up the connection with the local brand custodian to continue support.Win Win.

The operating model Supercar uses to attend international events seems to assume that the bulk of the cost is borne by the promoter/sponsor/host of the event.Teams may bring along additional personnel, and sometimes equipment, by other means, but for the most part, the actual cost of getting cars, people and equipment to these events, housing them & looking after them, are all at someone else’s cost.The teams wear the cost of running & maintaining their cars, but not the cost of the event itself, and may share in a proportion of the purse in their REC income.Win Win.

Supercar has indicated in the past that overseas rounds would be a supplement to existing Australian race meetings.New races would mean the calendar gets fuller, that races may happen every second or third weekend across the whole season, creating regularity for the fan to know when racing is on, to keep the news in the newspapers & on the teev.So the sport gets more media attention locally, and internationally for teams, sponsors, and drivers.Win Win.

Imagine that the new rounds demonstrate a new standard of facility on track, in pit lane & garages, for the crowds, in hospitality, in media centres, in officialdom, in all aspects of hosting a round of the Supercar series such that it creates the impetus for local Australian circuits to improve or transform their facilities to a similar or even better standard for the working crews, and the loyal fans (and maybe a new fanbase is created) who want to go to watch racing at circuit.Competition is said to improve the breed after all.Win Win.

Timezones remain a concern for fans thinking of rounds in other markets.Having events occur outside of regular Saturday & Sunday viewing times can impact local ratings, and access to the Virgin series at convenient times.The shift of focus into Asia for Supercar has meant that the issue of time zones is reduced.Tokyo for example is Sydney -1 hour, Jakarta is Sydney -3 hours, Bangkok is Sydney -3 hours, Singapore is Sydney -2 hours, Kuala Lumpur is Sydney -2 hours, Manila is Sydney -2 hours, Shanghai is Sydney -2 hours.Mostly no better or worse than rounds held in Perth which is Sydney -2 hours.So with the right scheduling, races in Asia could be set to run in prime time spots just as the races from Clipsal or Winton or Darwin are available.Win Win.

A lot has been spoken of regarding the teev package of the sport, that the races are shown live on Foxtel and not live on free to air (except for Clipsal, Bathurst, Gold Coast etc..).The thing is, this situation isn’t changing if the races are in Tasmania or in Kuala Lumpur.It’s the agreement the sport has struck with the media providers.And until the contracts are up for negotiation, are not likely to be changing any time soon.Meantime, enjoy the excellent Foxtel product where it works for you to have access to it, or the #10 FTA broadcast.Or make a different decision.The Foxtel coverage has improved the dimensions of the sport out of sight, in my view.Win Win.

Imagine that the Supercar series puts a number of extra events into the calendar, and need to bring on additional engineers, mechanics, paint & panel, engine people, sub assembly, fabricators, machine operators or any number of other key resources to support a fuller calendar, to support a level of work/life balance for the existing hard working crews.Giving opportunities to more people, providing them with a permanent full time wage in the sport they are passionate about, and giving more people interested in a career within the sport, the possibility of employment within larger operations.Win Win.

The Gen2 and Gen3 technical regulations have been/are being designed to cause a transformation in the body styles of cars and their technical specification in the Virgin series.There has been an argument that Commodore and Falcon are only sold in Australia, and as such have no market relevance to international fans, and that this was/is a cause of disappointing crowd attendance at some of the previous overseas rounds.Imagine racing in markets with a GM World Car like an Insignia, or Ford with the Mustang, cars relatable in those local (but international to us) such that crowds & interest grows in this category on the back of connection to those vehicles.Its what the car companies say the consumer wants.Win Win

So.. what do you think of more international races in a close time zone?

[Oldtony]

The question should be "Should VASC been made relevant to Asia?".

[Alan52]

If there was enough commercial interest then it would be a good idea providing it doesn't come at the expense of any Australian permanent circuits.However I doubt it is any more relevant than the question "should the Asian Le Mans series expand into Australia?"
The series biggest supporters have a very unrealistic view of it's place in the wider world.

[D.R.T.]

Is there demand for this product in Asia?

[Juarez Jed]

I'm convinced from my frequent travels to Singapore, Malaysia & Thailand that there is no interest among the general public in Australian sedan racing.
The success of the KL street race was dependent on large numbers of Aussies and Nz's filling the hotel rooms. I believe the original contract was an incentive based one where the amount of money received by Supercars was relative to the amount of accommodation nights sold by hotels.
These o/s ventures always fail to deliver because the Aussie fans are told "look how popular we are in China/US/Middle East" and yet the o/s promoters are under the impression that their event will attract a massive influx of Ausssie/NZ tourists creating a Clipsal-like atmosphere and it just doesn't happen.
So the Aussie & NZ fans watch these events on TV in front of empty grandstands wondering where this overseas fanbase is and the overseas promoters wonder where the foreign tourists are. Lose /Lose.

[Armco Bender]

NYET......

[Kingair]

No problems with me if they want to run a few rounds in Asia, provided it doesn't mean any rounds lost Australia.

However so far we on the V8 adventure we have been to the Middle East which was going to be bigger than Ben Hur! Then we were off to the good old US of A to show them how we do it in Ozstralia,.
We have tried the Chinese experiment.
Now KL has disappeared.

Personally I reckon two rounds in NZ, must be more beneficial than flying over for one round.

If they want go with the Asian experiment, why not link up with the Singapore Grand Prix?

Or maybe go for a round in Russia?

[dsg]

I'm convinced from my frequent travels to Singapore, Malaysia & Thailand that there is huge interest in motor racing.

The problem is the cost of racing in Australia is barely viable let alone the additional cost of transporting the series overseas. If a benevolent benefactor was to pick up the costs to put on some events at a price the local population could afford the series would become very popular in Asia.

But as that is not going to happen, so if a promoter wants to pick up the costs to put on an event like what happened in China, Bahrain and the USA by all means the series should go. Just because KL didn't happen doesn't mean VASC should discount the idea outright.

[TWRv12]

V8SC want more manufacturers, there are more manufacturer in Asia.

If they can't make it work in China, Japan, South Korea or Singapore, its not going to happen.

Political instability in Malaysia, Thailand, Indonesia and Philippines most make races there unlikely. Anywhere else?

The obvious thing would be work as a support act for F1 which has a poor support races in many countries.

Could it partner with Asian LeMans Series?

[porsche91722]

It's like any new concept or product, someone may be trying to introduce into a foreign market. If it has legs, it will be successful. If it's something people are crying out for, it will be a winner. If it is a genuinely, new and exciting concept/sport that will attract the punters in numbers to a venue, and in turn, convince them to be crying out for more, then.....yes, it could be a success.
However, if it is a worn out old concept, that even in its country of origin is struggling to maintain its position in the sporting landscape, relying on contra deals with its major sponsors and suspect attendance and TV ratings figures to justify its position.... if it's a sport that changes its dodgy ruleset around at the drop of a hat to attract fans..... if the cars are something that nobody outside of its country of origin are even remotely interested in..... if it's a sport that turns away its diminishing, working class fan base by going to a payTV platform, then...no, it ain't gonna wash with any overseas/Asian potential markets (as it hasn't done in recent past efforts).
The answer- Get their house in order here in Australia, before attempting to sell their idea to the Asians, or any other potential market.
The drivers are the most quality part of their product atm. Put them in something that is relevant and exciting to a potential market and then go, and sell it to the world.
Cuba, however could be a goer. The cars would certainly have some sort of relevance in that country.

[Alan52]

There is no value for a F1 promoter in Asia unless it is going to bring extra people through the gate.The number of people in Singapore ,China or Japan that would decide to pay F1 admission prices based on seeing a couple of 30 minute V8 races would fit in a car.When V8's supported F1 at Abu Dhabi the stands were absolutely deserted during their races.

[D.R.T.]

Originally Posted by Juarez Jed

I'm convinced from my frequent travels to Singapore, Malaysia & Thailand that there is no interest among the general public in Australian sedan racing.

Enough said really

[GTRMagic]

Originally Posted by D.R.T.

Enough said really

And yet that argument misses the point.

It is quite a romantic notion to contemplate there will be countless thousands in other markets Supercars does not go to, that follow the series with an intensity of an Australian fan who has grown up with the sport for years and years.

For the most part, motorsport is in its infancy in these markets.

I am really present to the number of people who attend the F1 GP in Albert Park or the Gold Coast Indy event each year who have not much more than a passing interest in the actual racing on track.

They are there mostly because the motor racing series' have brought a party to the streets.

An event outside the usual intention for the normal every day streets as a reason to congregate and simply enjoy being with other people whose company they enjoy, in the spirit of 'being there'

The guests may pick a car to follow for the weekend because they recognise the driver name, or the sponsor, or even if they just like the colour & livery design.

And that is their initiation to the sport, an introduction fully underwritten by the local promoter, based on whatever funding source (including local businesses & government) they have achieved.

I see lots of decisions on the poll but not much in the way of reasons as to why it should/shouldn't happen.. I hope that isn't always the case

[Umai Naa]

I've got no issue with them racing wherever. If they can ensure financial sustainability, then great.

[Tourer]

Originally Posted by D.R.T.

Is there demand for this product in Asia?

There is clearly at least some demand from promoters in Asia, otherwise they wouldn't be doing deals to take the series there.

There is much of the chicken and egg in all this - until such time as any form of live sports entertainment is presented to a populace, there is going to be little interest but by taking events to those markets, interest can be generated and grown. Clearly, the promoters paying for the series to go to their country see potential for growth.

There is also an opportunity for sponsors to spread funding across a number of national budgets, which could lead to more sustained health across any sports entertainment product going to those markets.

To me, it makes sense for VASC to have a go at those markets, particularly when the promoter pays for freight, accom, team travel and also pays a sanction fee. As a result the cost is negligible or at least moderate for the series overall.

[one five five]

Just stick to Australia, they have rammed the 'history' of the "Australian Touring Car Championship" down our throats in recent years (despite ignoring it and event distancing themselves from it for many years after 1997), especially when it comes to milestones and drawing lineage when a Volvo or a Nissan has good results.

Running a race in Asia doesn't make much sense when they spend so much time focusing on the above, just look at Sandown this year as an example with the "Heritage" event.

[D.R.T.]

Originally Posted by Tourer

There is clearly at least some demand from promoters in Asia, otherwise they wouldn't be doing deals to take the series there.

Is there sustainable demand?

China, Bahrain, Abu Dhabi were all failures because the promoters pushed these events without fan support. These promoters wised up after a short period of time as well

How many attempts before V8SC get the message?

[NaBUru38]

Japan could work. I'd love a Motegi oval race, perhaps with two chicanes a la Rafaela.

[Deleted]

Originally Posted by TWRv12

Could it partner with Asian LeMans Series?

Unfortunately that series is stubbornly reluctant in sharing the track with others and act as if they're the headliner.

[Axeman444]

Originally Posted by NaBUru38

Japan could work. I'd love a Motegi oval race, perhaps with two chicanes a la Rafaela.

Your 1st sentence potentially. The 2nd not so much

[Tourer]

Originally Posted by D.R.T.

Is there sustainable demand?

China, Bahrain, Abu Dhabi were all failures because the promoters pushed these events without fan support. These promoters wised up after a short period of time as well

How many attempts before V8SC get the message?

Don't know but sometimes perseverance can pay off as lessons get learnt, the model is adapted and a successful approach found. Whether that can happen in this case remains to be seen.

There are many instances of successful businesses that have struggled somewhat to begin with but commitment and perseverance has paid off.

Originally Posted by Chiana

Unfortunately that series is stubbornly reluctant in sharing the track with others and act as if they're the headliner.

Is that really the case though? The series shared equal billing with Champ Cars at the GC Indy, has run with other series (including as a support to F1) and have openly discussed double headers before unless my memory is playing tricks on me.

[Deleted]

Originally Posted by Tourer

Is that really the case though? The series shared equal billing with Champ Cars at the GC Indy, has run with other series (including as a support to F1) and have openly discussed double headers before unless my memory is playing tricks on me.

I was talking about the ASLMS.

[Tourer]

Originally Posted by Chiana

I was talking about the ASLMS.

Ah- sorry about that. Yeah, that would make it hard.

Cheers

[D.R.T.]

Originally Posted by Tourer

Don't know but sometimes perseverance can pay off as lessons get learnt, the model is adapted and a successful approach found. Whether that can happen in this case remains to be seen.

How long before perseverance turns to throwing good money after bad? It didn't take China, Texas, Abu Dhabi too long to make that call.

Additionally a street race was an unfathomable failure in New Zealand as well.

Originally Posted by Tourer

Is that really the case though? The series shared equal billing with Champ Cars at the GC Indy, has run with other series (including as a support to F1) and have openly discussed double headers before unless my memory is playing tricks on me.

Didnt V8SC blow up extensively about supporting F1 at Abu Dhabi and only getting 12 lap races?

[Tourer]

Originally Posted by D.R.T.

How long before perseverance turns to throwing good money after bad? It didn't take China, Texas, Abu Dhabi too long to make that call.

Additionally a street race was an unfathomable failure in New Zealand as well.

How long? Don't know - allegedly Colonel Sanders got over 1,000 "no" responses before he got a "yes". Ultimately, if they can make it stack up and start to work then good on them, if they can't then they can't.

A street race might well be a step too far for the NZ market - certainly seems that way. Auckland did all the numbers and wanted one, Resource Consent made it too hard, Hamilton stuck with it and ultimately it didn't work. We still have a round in NZ though, so the expansion into NZ works for one round.