Munich, Frankfurt, Dusseldorf The kick in the desert could become an economic disaster for many German companies. With three weeks to go before the start of the soccer World Cup in Qatar, there is anything but anticipation in sectors that otherwise benefit from major soccer tournaments.
Most retailers have no special promotions, many restaurants and cities do not want to broadcast the games, and the breweries are even expecting a total failure, as Handelsblatt research shows.
The omens for the first winter tournament from November 20th to December 18th could hardly be worse: Host country Qatar is being criticized because human rights are being violated there and there have been fatal accidents on the World Cup construction sites. In addition, the tournament comes at a time when companies and citizens have existential concerns in view of high energy prices.
The Handelsblatt spoke to representatives of various industries – and, despite all the skepticism, also identified two winners. An overview:
Soccer World Cup 2022 – Effects on retail: Supermarkets and discounters do not expect any additional business
Many consumers do not have football fever. Almost half of retail customers are opposed to a World Cup before Christmas, according to a representative survey by market researcher Pospulse. Retailers don’t expect big business from the World Cup either.
So Aldi does not want to organize any campaigns for the World Cup. “There will only be a small, very selected range with football motifs.” Rewe assumes that the World Cup “will meet with comparably less interest than previous major tournaments”. For customers, the focus is more on the Christmas season. At least one hopes in Cologne for “positive radiation effects” on the sale of drinks or snacks.
Rewe assumes that the World Cup “will meet with comparably less interest than previous major tournaments”.
(Photo: imago images/Future Image)
Edeka does not dare to make a forecast “due to the current economic situation and the unusual time it takes to hold the event in winter”. Lidl alone wants to sell T-shirts with a World Cup design. In doing so, they want to “take into account the enthusiasm for football”, even if one sees the fundamental criticism of hosting the World Cup in Qatar.
Breweries & the 2022 World Cup in Qatar: Historically low sales feared
Depending on the performance of the German team, up to a million hectoliters more beer is usually drunk at a World Cup – that means one percent more annual sales for the brewing industry. Not so this year: “Our industry does not expect any impetus from the event in winter, you have to look at it very soberly,” says Holger Eichele, General Manager of the German Brewers’ Association.
The brewers do not expect any additional business from the World Cup.
(Photo: PR)
The Veltins brewery is not planning any special promotions. “We have no hope that there will be any noticeable sales impulses, because there are largely no open-air pack watching and barbecues, which otherwise boost beer consumption,” says Michael Huber, General Manager at C. & A. Veltins. The World Cup collides with other events such as the Christmas market and Christmas parties.
World Cup 2022 in gastronomy: pubs forego sales in the millions
Although the restaurateurs are groaning under the consequences of the pandemic and are struggling with rising prices, many companies are not transmitting to send a signal. Under the hashtag #KeinKatarinmeinerKneipe, there are numerous restaurants and event locations on social media that have joined a call for a boycott.
So does the Düsseldorf steelworks. Public viewing events with up to 2,000 guests have been held there regularly since the 1990s. This time managing director Robert van Bronswijk will not be broadcasting a game. “In the dictatorship of Qatar, human rights are trampled underfoot.” The company deliberately foregoes a five-digit turnover.
Many restaurateurs do not show the football games.
(Photo: dpa)
Mühlen-Kölsch even missed out on a six-figure additional income. “We lose twice because regular guests who prefer to watch football stay away,” says Managing Director Michael Rosenbaum. “We don’t want to make any money at the World Cup in Qatar. People are discriminated against there.”
For other restaurateurs, the time is inopportune because after a two-year break from the pandemic, the Christmas celebrations are starting again. “This business is very important for us,” says Silja Wardrobe-Steinberg, landlady at the Munich Hofbräukeller. The risk of blocking the big ballrooms for pack watching is too high for her.
Business is also falling outside: it was economically unsafe for Wardrobe-Steinberg to broadcast football in a large tent. “Nobody knows whether fans come in winter or whether they prefer to watch football at home with friends.”
Public viewing for the 2022 World Cup: No crowd watching in the 20 largest cities
The cities are also cautious: A Handelsblatt survey shows that there will be no public viewing events in the 20 largest German cities. Otherwise, the pack watching was a popular meeting place for fans. This time there will not be the big fan mile at the Brandenburg Gate either. This is “not feasible due to too many imponderables”.
This year there will be no public football broadcasts in the 20 largest German cities.
(Photo: dpa)
In Munich, a public viewing in winter “doesn’t make any sense in terms of the weather”, in Dortmund there isn’t enough space due to the large Christmas market in the city centre. Many cities don’t give reasons why they don’t put up big screens.
One becomes clearer in Frankfurt: The awarding of the World Cup to Qatar was a mistake overall, and there is now a great deal of agreement on that. The city wants to take a stand against the problematic human rights situation in the host country.
Football World Cup 2022 – transmission of the TV stations: feared bad ratings
Years ago, the bodies of the public service broadcasters only agreed to the broadcast of the World Cup with “great reservations” and argued that the contributors would expect that. However, in a survey for the sports information service, more than half of the fans now state that they do not want to watch the tournament.
With regard to the ratings, “we are curious”, according to the ARD. It is “difficult to make a forecast” because it is the first Winter World Cup. The ZDF answers evasively, saying that the World Cup “attracts a lot of attention worldwide”.
The TV ratings were already worse at the 2021 European Championship.
(Photo: dpa)
The broadcasters are reluctant because the last major tournament attracted significantly fewer viewers. The TV rate for the opening game of the 2021 European Championship was 37 percent, while it was 50 percent for the previous European Championship. In 2021 there was hardly any atmosphere because the EM was held all over Europe. The low level of interest can also be explained by the public criticism of individual venues – as was the case this year.
Fans can watch 48 of the 64 World Cup games on free-to-air TV. Telekom’s Magenta TV pay channel has all the rights. Concrete expectations have not been heard from Bonn. “We want to increase the awareness and relevance of Magenta TV and win new customers.” The broadcasters emphasize that they also want to use the World Cup to report critically on the host country. However, Qatar has announced that it will restrict free reporting.
Aviation: Increased interest in World Cup tickets, but expectations not met
Because of the World Cup, aviation is experiencing an increased interest in flight tickets to Qatar. Lufthansa does not normally have the capital Doha in its program, but is offering 18 special fan flights from Frankfurt for the World Cup.
“We are satisfied with the current booking situation,” says Lufthansa. Depending on the flight date, the aircraft are used up to 80 percent, mainly by customers from Germany and Latin America. This is considered a good value in the industry.
In company circles, however, it can be heard that one or the other flight has promised even more. Hansa expects further bookings in the short term when the DFB selection moves into the finals.
According to data from the search and booking platform Skyscanner, the weeks beginning on November 14th and 21st are the most popular World Cup travel weeks for Germans. In October, bookings increased by 30 percent compared to September.
Qatar, with its 2.7 million inhabitants, expects up to 150,000 passengers every day. However, foreigners are only allowed to enter the country if they have booked a World Cup ticket and hotel accommodation and can show a special fan ID card.
Sporting goods manufacturer: Jersey sales for the 2022 World Cup in Qatar are up and running
The sporting goods manufacturers alone expect more from the World Cup in Qatar. At Adidas, soccer sales increased by more than 20 percent in the first half of the year. “Compared to the 2018 World Cup, we are seeing stronger demand,” says the world’s second largest sporting goods manufacturer. Current bestsellers are the national jersey of Mexico and the official Adidas match ball “Al Rihla”.
The sporting goods manufacturer is seeing good demand.
(Photo: IMAGO/MIS)
Adidas, which supports the football association Fifa as a sponsor, equips seven of the 32 teams, including favorites such as Germany, Argentina and Spain. Competitor Puma does not equip a team that is said to have great chances of winning. Therefore, according to Puma boss Björn Gulden, the effects on overall sales are limited.
The manager sees at least one advantage in the winter appointment. He can well imagine that more parents will put their children’s football boots under the Christmas tree this year.
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