Business is ready for FIFA World Cup 2018
Football is a big business which stimulates sales in various spheres. For some companies, FIFA World Cup becomes an opportunity to make their business work internationally.
For example, the total operating revenue from FIFA World Cup 2014 in Brazil was 4.8 billion USD, and the net profit of the companies was 2.6 billion USD. Alexander Ferreira, a former football player and a chocolatier, especially for that World Cup manufactured a line of chocolates with ingredients from the “football“ countries: Brazil (chocolate with caipirinha flavor), Mexico (chocolate with red pepper), Argentina (chocolate with apricot), France (chocolate with champagne), USA (chocolate with blackberries) and Italy (chocolate with pistachio). These chocolate bars enjoyed the hottest demand: the company sales jumped 50%, and international companies placed orders on the company’s factory.
FIFA World Cup 2014 in Brazil also brought a record for Panini, an Italian company specializing in manufacturing and sale of stickers with photos of football teams and football players, of stadiums and football matches. The nostalgia of 30-year old football fans for stickers and cards of the times of their childhood (like the one of collecting stamps or playing pogs) brought a record sales revenue for the company (not less than 181 million USD only in Latin America).
FIFA World Cup 2018 in Russia will bring 100 to 150 billion rubles of additional revenues to small and medium-sized businesses by 2022.
Only authorized manufacturers will be able to make money on the symbols of FIFA World Cup 2018 in Russia: all souvenirs of FIFA are protected by licenses. The license program is coordinated by Megalicense Entertainment Company. In 2017 the company chose 44 sub-license holders, who were authorized to manufacture licensed products in different product categories (clothes, toys, souvenirs, etc.) The chosen manufacturers decide on their own how to distribute these goods: via their own retail chains, or via a distributor network. These distributors, in their turn, can establish their own sales outlets or sell through sub-dealers.
Not only brand style elements of FIFA are licensed: the names of the cities participating in the tournament are protected by the license too; and even the word Russia is under license if it goes together with the 2018 number.
WHAT BUSINESSES WILL STAND TO GAIN FROM 2018 FIFA WORLD CUP RUSSIA:
- EKSMO Publishing House (books, printed issues): 9 billion rubles
- Khatber-M (stationery, school bags and backpacks, shoe bags): 3.1 billion rubles
- Origami Group of Companies (games and toys, creativity sets): 1.3 billion rubles
- OLMI 2000 (souvenirs, spring balls, swimming accessories): 234 million rubles
- Lucky Child (clothes for children): 213.6 million rubles
- Sokhatskiy O.V. (games and toys, sports goods): amount unknown
- Astranord (games and toys): amount unknown
(Source: incrussia.ru)