World Cup boon for some

2006-06-09 18:07
Berlin - Big companies that paid big sums for the right to sponsor the World Cup in Germany are not the only ones trying to cash in.

Building centres are offering lawn mowers with a "World Cup discount." Banks are promoting "goalgetter bonuses." Pizza delivery services go "G-g-o-o-a-a-l-l" when you order a special topping.

There are hopes that the tournament, expected to bring a million more potential customers into the country, will be a shot in the arm for retailers, who have suffered for years from anaemic consumer spending.

Experts, however, do not anticipate a broad-based boost to the German economy. Certain sectors will directly benefit, while others have reason to worry.

Thanks to huge marketing campaigns, cash registers in sporting goods stores have been jingling for several weeks already.

Adidas, the German sporting goods company, has sold more than 15 million "Teamgeist" (team spirit) footballs, the official ball of the tournament and more than a million German national squad jerseys.

Adidas expects that sales of products having to do with football will increase 30% to 1.2 billion euros this year.

Counting on delayed benefits

Puma, a rival German sporting goods company, is also optimistic. It sees a a 35% jump in total sales, to 2.4 billion euros, but lower profits due to "the biggest advertising campaign in the company's history."

Many companies are counting on delayed benefits from the world's biggest sporting event.

"Whoever says the World Cup sells cars has calculated incorrectly," said Karl-Heinz Engels, head of German operations for the South Korean carmaker Hyundai.

Though it is an official World Cup sponsor, the company expects slower growth in Germany this year. But Engels says that in the long run, Hyundai's involvement will be immensely important in raising the company's profile and awareness of its car models.

For some companies, the World Cup is a springboard to introduce new products. It is no coincidence that Germany's big cellphone operators kicked off trials just before the start of the tournament.

The consumer electronics industry is hoping that the World Cup, televised around the globe, will bring the long awaited breakthrough for high-definition television. Flat-screen TV manufacturers such as Loewe and Philips are already reporting increased sales of more than 10%.

With the help of the World Cup, soft drink giant Coca-Cola aims to put its canned drinks back on German store shelves - in special, more slender cans featuring pictures of the players on Germany's national football team. Sales of canned drinks plummeted in Germany after deposits were levied on them several years ago.

Businesses in many big German cities are gearing up for four extraordinary weeks in which the country's restrictive store-closing hours will be eased in many places.

It remains to be seen, however, whether people will shop in droves late in the evening and on Sundays.

It is also unclear how much the hotel industry will benefit from the World Cup. Fifa has cancelled several thousand rooms it had reserved on short notice.

The move was not only a blow to hotels in Berlin. In Hanover, which is also a match venue, many rooms were said to be still available.

Nevertheless, Germany's minister of economics and technology, Michael Glos, says he is confident the World Cup will boost the economy.

There is definitely one winner, namely Fifa. Its proceeds from the sale of exclusive broadcast and sponsorship rights is expected to total some 1.8 billion euros. Most of the money will be redistributed among the various national football associations.

Fifa's financial future looks bright, too. Looking ahead to the 2010 World Cup in South Africa, Fifa general secretary Urs Linsi said: "There'll be a considerable increase."


AB praises selfless skipper

2010-11-21 18:15

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts

Jobs in Cape Town [change area]

Jobs in Western Cape region


Cape Town
Professional Career Services
R215 999.00 - R216 000.00 Per Year

Prepress / Repro Manager

Western Cape
CTP Cartons and Labels
R25 000.00 - R35 000.00 Per Month

Senior Web Developer

Cape Town
Mass Staffing Projects
R30 000.00 - R55 000.00 Per Month

Property [change area]

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.