Matsunichi to allocate $100m for marketing

Digital consumer electronics maker Matsunichi Communication Holdings will invest heavily in marketing this year, including hiring American Olympic swimmer Michael Phelps as its ambassador, the company's executive director said.

James Siu Wai-yip, announcing the company's annual results yesterday, said it had budgeted $100 million for marketing, nearly half its $201.7 million net profit from last year. Its marketing budget last year was $28 million.

The maker of MP3 players and cameras said Mr Phelps would visit Hong Kong next month to promote its new portable media player.

'As part of our Asian promotion, Mr Phelps will visit Beijing after leaving Hong Kong,' said Andrea Chan, head of corporate communications for Matsunichi. The campaign will cost $10 million over the next two months.

Mr Phelps, who won six gold medals at last year's Athens Olympics, is on a four-year contract, to include the Beijing Olympics.

Mr Siu said the company also aimed to increase European sales to 30 per cent of turnover this year, from 7 per cent last year. North America was last year's biggest market at 45 per cent of sales, while the mainland accounted for 37 per cent and Hong Kong 6 per cent.