Hard hit by declining margins due to the 2008-2009 recession, the retail and hospitality sectors are once again looking to the World Cup to power sales on established products, a study conducted by market intelligence Euromonitor reveals.
The commercial opportunities associated with the World Cup are countless - from the sale of merchandise to electronic gadgets like TVs/mobiles and foodstuff - it is unsurprising that the event has a huge economic impact that goes beyond the host nation.
“The feel good factor generated by Germany hosting the event in 2006 gave a significant boost to the country's economic growth that year, and South Africa is hoping for a similar effect this time.
However, the World Cup's economic impact goes well beyond the host nation, as consumers worldwide will be eating pizza and burgers and guzzling beverages as they settle down to watch games on shiny new TVs,” the research firm added in its new report that focuses on spending habits during World Cup period.
According to Euromonitor, sales of foodstuffs and beverages receive a huge boost during the tournament, as many fans like to watch games in bars or hold World Cup parties and barbeques at home.
“Products like pizzas and fresh meat will benefit disproportionately, as take-away foodservice sales will rise, since consumers tend to spend more time in front of the TV and less in the kitchen,” the research adds.
Shopping malls, hotels lure soccer fans
Locally, the study was reinforced further after beverage supply-company Sirocco announced that Dubai’s Barasti Bar is expected to serve more beverages during the World Cup period.
The venue, located at Le Meridien Mina Seyahi Beach Resort & Marina, was busy last weekend after it launched a special mega dome to coincide with the opening of the Fifa World Cup in South Africa. The structure has a 270 tonne air conditioning unit providing a ‘super cool’ environment, and also boasts an enormous 12-metre-wide screen, streaming all the matches live from South Africa.
“We certainly made more orders on beverages and food just to tap the fervor surrounding the World Cup, as we anticipate many people would be coming to watch the games at the new dome,” Barasti’s beverage manager told Alrroya.com, but declined to reveal details of the additional extra purchases.
A number of hotels and shopping centres have also set up big screens and are offering refreshments to lure fans into “camping out” while watching the games.
Elsewhere, the spokesperson of sportswear chain Adidas outlet at Festival City also said that sales of merchandise including branded T-shirts, caps, footwear increased manifold before the start of the games in South Africa.
Manufacturers seek to introduce new technology
Small shops selling fancy merchandise including souvenir flags of countries, have also seen sales boosted as fans don colourful headwear and decorate their vehicles, in their quest to be identified with the colours of the respective teams they’re supporting.
“I’ve spent around Dh600 on all my World Cup attire and decorations,” said Dubai-based footie fan Khalid Walid, a staunch Argentina’s supporter, while showing off his light-blue and white striped T-shirt and hair wig.
Sales of televisions are always boosted by World Cup, and retailers are looking to this tournament to drive consumer awareness, especially of emerging 3D technology.
According to Euromonitor International data, rise in TV sets spiked in several countries during the year of the previous World Cup in 2006.
“Consumer electronics manufacturers have long recognised that the World Cup presents them with an open goal for pushing new technology in the realm of television,” the report says.
“When the World Cup was broadcast in colour for the first time in 1970, it gave a major boost to sales of colour television sets. Similarly, sales of LCD and plasma flat-screen TVs jumped in many markets in the run up to the 2006 World Cup in Germany,” it adds.
Electronics giant Sony launched an advertising campaign for its 3D TV offering to coincide with the start of the event. The product is currently available in some selected countries.
“Even after the last ball has been kicked, the impact of the World Cup on consumer sentiment can linger,” Euromonitor says.
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World Cup to push up consumer spending in Dubai
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