With the 2010 FIFA World Cup starting today, business information analyst IBISWorld believes that there will be some major Australian winners off the pitch in the form of merchandisers, retailers, football organisations and bookmakers.
The fact that more and more Australians play and support soccer will translate into greater spending to cheer on the Socceroos at the FIFA 2010 World Cup, with IBISWorld forecasting that the average Australian will fork out $40.05 (a total of $884.2 million) – win, lose or draw.
If the Socceroos end up playing more than their three 2010 FIFA World Cup Group D matches – beyond the expectations of most pundits – then IBISWorld believes these figures could rise to a maximum of $369.51 per Australian (a total of $8.16 billion) in the event that they reach the final.
While Australia’s estimated spend sounds like a lot of money, it will be relatively low compared to those of more established football-loving countries such as England, Germany and Spain, with IBISWorld estimating that a total of $265.6 billion will be splashed out worldwide.
IBISWorld anticipates that one million Australians will buy a merchandise item to show their support for the Socceroos at the 2010 FIFA World Cup. This activity is forecast to add $85 million to clothing spending, boosting the monthly Australian clothing retail spend for June/July by 8.5 per cent. Socceroos merchandise is expected to account for most of the estimated clothing spending ($74 million), with the other $11 million going on gear of the other 31 teams.
“Football fever will be used to promote everything from breakfast cereals to deodorant,” said IBISWorld general manager (Australia), Robert Bryant.
“Non-clothing merchandise including Socceroos branding to generate sales is forecast to attract an additional $300 million in revenue, or three per cent of Australia’s overall monthly retail spend.”
While previous sports events have seen Australians spend big bucks on big televisions, IBISWorld believes that total dollar sales will be timid during the 2010 FIFA World Cup, since most Australian households who can afford a flat-panel TV have one already – and a decent sized one at that.
“While Australian retailers are spruiking the World Cup as a reason to buy the latest 3D televisions, we expect demand will be subdued,” said Bryant.
“Only a few manufacturers will have 3D televisions in Australian stores before the World Cup kicks off and the technology is limited by the need to wear expensive 3D glasses – something that is not really appropriate when watching an important World Cup match with a large group of mates.”
However, IBISWorld does tip DVD and hard-drive recorders and TiVo devices as likely winners out of the 2010 FIFA World Cup, given that most of the 64 games will be broadcast late into Australia.
Overall, IBISWorld expects the 2010 FIFA World Cup will result in a four per cent revenue boost for Australia’s TV and electrical goods sector, which equates to an additional $10 million in revenue.
Takeaway outlets, convenience stores and liquor retailers will benefit from those Australian football fans who choose to watch 2010 FIFA World Cup matches from the comfort of their own homes, with IBISWorld forecasting tournament-related total food and alcohol spending of $52.3 million between mid June and mid July, including $21.6 on takeaway food and $20.5 on alcohol.
When it comes to advertising, almost every product in Australian retail stores is likely to try to capitalise on the 2010 FIFA World Cup, with companies in the traditional major advertising markets such as car manufacturers, electronics retailers, fast-moving consumer goods and the food and beverage sector all investing significant sums in prominent campaigns to tie into the tournament.
“Businesses need not be official FIFA sponsors to get involved and green and gold will be the colour for all sorts of goods this June and July, from Havaianas to M&Ms, while men’s products such as deodorants, shavers and the like will be particularly football flavoured,” said Bryant.