Normally, a football World Cup creates a boom. But this time it looks completely different. The Winter World Cup in Qatar could be a disappointment.
War in Ukraine, winter weather, inflation, energy crisis and contested venue. The football World Cup in Qatar begins next Sunday, and for many reasons there is still no sign of anticipation in Germany. That can still change. But at the moment it looks as if the hopes of companies such as sporting goods manufacturers, electronics retailers and breweries through to pubs for a booming World Cup business could be dashed.
It starts with the fact that watching a group in beer gardens in cold drizzle or even with slush is not really attractive. The demand for jerseys, scarves and beer will probably be significantly lower than in previous years without public viewing. Especially since inflation and high energy costs are forcing many people to keep their money together. That means: fewer fan articles, fewer visits to the pub. “Our industry does not expect any impulses from this event, you have to look at it very soberly,” said the head of the German Brewers’ Association, Holger Eichele.
“Summer weather is basically the best beer seller, while the postponement of the tournament to the cold winter time should reduce the desire for a cool beer,” said a spokeswoman for the Radeberger Gruppe. The company assumes that demand will remain well below the level of similar major sporting events. Because of the criticism of the venue, some restaurateurs are said to have announced that they would refrain from live broadcasts altogether.
Daniel Ohl from the Baden-Württemberg Hotel and Restaurant Association confirmed that some restaurateurs are boycotting the World Cup in Qatar because of the human rights situation. Ohl expects the hospitality industry to be less busy than usual. He cited the time of year, the collision with the Christmas business and the critical attitude of restaurateurs towards the event as reasons.
And the retail? “It would certainly have been easier for the retail trade if the tournament had been held in the tried and tested manner in the summer. And the situation with Qatar as the venue is certainly a special one,” said a spokesman for the German Retail Association. Every major sporting event brings revenue effects to a greater or lesser extent to specific retail sectors. And experience has shown that a football World Cup in particular provides impetus for fan articles, jerseys and some groceries.
A World Cup in Qatar cannot be compared with sporting events in their own country, the spokesman said. “Fan events in public spaces will certainly take place much less frequently in winter.” In addition, rising energy costs curbed consumption. Forecasts for the World Cup business are difficult because the trade association has not yet had any experience with such a tournament.
According to the Intersport trading association from Heilbronn, the demand for World Cup fan articles is much more restrained this time. “Due to the timing of the World Cup in winter, there are no public viewing events and no beer gardens where there would be a lot of atmosphere and a great need for articles,” said Frank Geisler from the Intersport Germany board. The venue is viewed critically by customers and by Intersport. “So far there has been less euphoria.” The energy crisis and inflation also played a role, it said. “Nevertheless, we also hope for a possible positive surprise.”
Despite the general conditions, the sporting goods and clothing manufacturer Adidas is expecting a business worth millions – specifically, the company from Herzogenaurach is hoping for a sales boost of up to 400 million euros, as a spokesman said. That would be around two percent of annual sales. The number two in the global sporting goods market supplies seven of the 32 participants and more than 100 individual players, including the national teams of Germany, Spain and Argentina as well as kickers such as Lionel Messi and Manuel Neuer. Football sales increased by 30 percent in the first nine months. The “Al-Rihla” World Cup ball has been on sale since spring. According to Adidas, it is one of the top sellers, as is the jersey for the Mexican national team. Puma, on the other hand, has lower hopes for the World Cup: only six outsiders wear the jersey of the Adidas rival after European champions Italy did not qualify.
Collecting fever usually breaks out in Germany before major football tournaments. However, before the controversial World Cup, the coveted football collector’s cards are not as popular as usual. The managing director of the Stuttgart Panini publishing house, Hermann Paul, told the “Augsburger Allgemeine” newspaper that he expected much worse business than at previous tournaments.
In the past, people liked to use big football tournaments to buy a new television – to the delight of the electronics industry. A spokeswoman announced that the Ingolstadt-based electronics retail chain MediaMarktSaturn has not yet seen a noticeable increase in sales of TV products like at the past European and World Championships.
In principle, a football World Cup will ensure a special boom in some product segments, said the managing director of the Institute for Retail Research (IFH Cologne), Kai Hudetz. “This is especially true for the TV sets.” The timing is bad this year. “Because the situation in the supply chains has improved, many warehouses are full, but demand has plummeted,” said the expert. Many customers are currently reluctant to make larger expenditures because of high inflation, the energy crisis and the looming recession. “More than 40 percent of consumers are postponing purchases in the consumer electronics sector,” said Hudetz. In the case of TV sets in particular, price competition is therefore more intense than ever.
“To what extent this World Cup is developing into a spectator magnet in front of the screens with sales increases in beer, chips
After all, a look at 2024 should make the local economy optimistic. Then the European Championship will take place in Germany – as usual in the summer.
