The World Cup has come to an end, and the "football business opportunities" that have lasted for a whole month have also come to a close. Some businesses are smiling and making a lot of money in the World Cup month; some businesses are deeply choked and hit hard by the World Cup, but whether it is profit or loss, the vigorous potential contained in the sports market has undoubtedly emerged in front of all small and medium-sized enterprises, and many people have set their sights on the 2008 Beijing Olympics, a more abundant sports feast...
The World Cup came to an end yesterday. The Shanghai distribution companies that originally hoped to make a lot of money by riding on the "sports business opportunities" did not expect that they would be kicked to the edge of losses by the World Cup. Yesterday, Manager Liu of Shanghai Huihao Trading Co., Ltd. complained to the "Daily Economic News" that due to the impact of cheap pirated products, Huihao, which operates licensed products related to the World Cup, lost 120,000 to 130,000 yuan in the past month.
Piracy impact, licensed products are not selling
"This game hurts me!" Manager Liu really didn't expect that the "World Cup business opportunity" would be so difficult to play. At the end of April this year, Huihao signed a contract to become a lower-level distributor of World Cup home textile souvenirs, distributing umbrellas, cushions, mouse pads, T-shirts and other World Cup authorized products. This is Huihao's first foray into large-scale sports business opportunities.
In fact, from the beginning, the overall sales situation was not optimistic. "Compared with the pirated products that can be seen everywhere outside, the price of authorized products is too high and they can't be sold at all." For example, the price of the World Cup cushion is 175 yuan, while the pirated ones can be bought online for less than 100 yuan; the price of the World Cup T-shirt is 175 yuan per piece, while the pirated ones are only a few dozen yuan.
Clearance and price reduction, still can't beat pirated products
According to the law, 70-80% of the market opportunities are concentrated during the World Cup period, and the performance during this period will lay the tone for the entire sales. Therefore, although the contract stipulates that the sales period of the World Cup authorized products can be extended to the end of the year, Manager Liu has been eager to reduce the price and clear the backlog of goods in his hands in the past two days. For example, the World Cup cushion, which was originally priced at 175 yuan per piece, is currently cleared at around 100 yuan, a reduction of 42%. "Even if we lose money, we must get rid of these overstocked goods as soon as possible and recover the funds quickly, otherwise the company will get deeper and deeper into trouble."
However, what makes Manager Liu painful is that the price of pirated goods drops much faster than that of "regular troops". Yesterday, the reporter learned from online inquiries that the price of World Cup-related cushions has fallen to 27 yuan, while Huihao's purchase price is close to 100 yuan. Adding labor, freight and other expenses, the selling price of 100 yuan is already unprofitable.
World Cup training, aiming at the Beijing Olympics
As the exclusive general distributor of World Cup home textile souvenirs in China, Mr. Wu, general manager of Li Tianxia Gift Company, also believes that this year's domestic market is "more on the spree than on the excitement, but not really prosperous" for the World Cup business opportunities. Mr. Wu analyzed that although domestic companies saw the World Cup business opportunities, they started too late and were not well prepared, resulting in poor market sales. It is reported that domestic companies basically started to discuss the issue of distribution authorization with FIFA in March, and it was already the end of April or the beginning of May when they got the authorization. Some authorized dealers did not get the goods even after the opening of the World Cup on June 9, missing out on good market sales opportunities.
Some merchants who have obtained exclusive distribution rights admitted that they participated in the World Cup with the mentality of "protecting their capital". These merchants revealed that their goal was the 2008 Beijing Olympics. "The World Cup is too far away from China, and its economic benefits have been relatively weak in the Chinese market, but the Beijing Olympics is different." Merchants said that by participating in the World Cup, they not only accumulated distribution experience, but also took the opportunity to expand their own network, paving the way for the Beijing Olympics. page footer
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