Germany begins build up to 2006 World Cup

For football fans the merchandising machine was to be seen cranking into action with the opening in Berlin of the first official World Cup shop.

Franz Beckenbauer, head of the World Cup organizing committee, and Juergen Klinsmann, new coach of the German national side, were at the launch of what is the first of more than 300 such shops to open throughout the country.

At world governing body FIFA, a staff of 70 is employed in marketing the World Cup which is to be played in 12 German cities between 9 June and 9 July 2006. FIFA itself expects some EUR 600 million in marketing revenue from the finals.

For retailers, World Cup business is forecast to make more than EUR 1.6 billion worldwide over the next two years. That compares with 1.2 billion in Japan and South Korea in 2002 and around 1 billion France four years earlier.

*quote1*The lion's share of the profits is expected to come from Europe, with hosts Germany the largest market for World Cup products.

Not only Germany's millions of football supporters will be interested in acquiring World Cup articles. One million foreign fans are expected in Germany during the tournament, with many sure to want to buy articles during their visit.

Reason enough for retail giants KarstadtQuelle to obtain several exclusive World Cup licences from the Munich marketing rights holder EM.TV.

KarstadtQuelle - Germany's largest sporting goods retailer with a 12 percent share of a EUR nine billion market - has the sole rights to sell fan articles in the official World Cup shops.

Most of the sales will be in the chain of Karstadt department stores, but the company also has the exclusive rights to sell fan articles in the 12 World Cup stadiums.

It is not yet clear how the sports television channel DSF, in which KarstadtQuelle has a 49.9 percent share, will be used.

What is known is that the official World Cup collection will be changed twice a year. "We want to make sales after all," company spokesman Michael Scheibe said.

Football legend 'Kaiser' Franz Beckenbauer helped launch new World Cup shops

EM.TV, which is marketing the merchandising rights for Europe, has sold 12 other licences.

For example, media giant Bertelsmann has obtained the rights to print the official World Cup magazines, books and calendar.

But the merchandising rights even cover such things as cleaning cloths for spectacles (the Swabian family firm Etuis Dugget), key rings (Deumer GmbH of Luedenscheid) and World Cup pins (Eder Holding of Munich).

Sports equipment and clothing giant Adidas is also banking on big business from the World Cup. Adidas is a member of the exclusive club of 15 international World Cup partners.

The company plans to present a new range of footballs and football shirts for the finals, as it has done at all major recent tournaments.

Company spokesman Oliver Brueggen said the new World Cup ball alone could be worth EUR one billion in turnover.
DPA

September 2004

[Copyright Expatica 2004]

Subject: Life in Germany, World Cup, football business