The 'football economy' also celebrates with the qualification of the National Team to Qatar 2022 |The nation

2022-06-15 13:05:59 By : Mr. Arthur SONG

Imagine: it is Wednesday, November 23, 2022 and it is 10 in the morning.Costa Rica debuts against Spain in the 2022 World Cup in Qatar. Thousands of Ticos are in front of televisions, at home or in bars, many with new screens, food, drinks and wearing the National Team jersey.They have been preparing for weeks and even got into debt thinking that there are only a few days left for the payment of the Christmas bonus.How much money will this qualification for the World Cup move in the country?More than $18 million, calculates the Marketing in Sports Contexts specialist and professor at the Business Administration School of the University of Costa Rica (UCR), Francisco Navarro Picado.Of that amount, half, $9 million, is the prize guaranteed by the Costa Rican Soccer Federation (and the soccer teams and leagues) for participating in the first World Cup round.That figure could even count as direct foreign investment, since it would be redirected to expenses of the soccer industry, most of it within the country.But, the $9 million could go up by another $3.4 million that the different soccer teams would receive for loaning out 17 players ($200,000 each), which would total $12.4 million for soccer.That, without counting if the National Team advances to the second round after also facing Japan and Germany.Without a doubt, qualifying for Qatar 2022 promises to become a catalyst for the economy, especially in a country characterized by its great love of football.Therefore, after two convulsive years for business, merchants, as well as several subsectors within services, are optimistically awaiting the reactivation that the victory in the playoff against New Zealand would bring.It is not for less.The numbers show that soccer games with great national teams at the head cause great euphoria in consumers, who increase their purchases in supermarkets, shopping malls, bars and restaurants in order to watch the games in a good atmosphere.Other activities such as advertising and even food and beverage delivery applications also benefit.Thus, qualifying for Qatar 2022 could benefit the country from three angles, Navarro Picado details:1. The industries linked to the men's first team, with everything related to friendly matches such as ticket sales, merchandise, transmission rights, among others.2. Sponsorship and products offered by sponsors.3. The economic chain generated by "micro-events", that is, games from family or friends' houses, in bars or restaurants, buying items to enjoy the games and all the expenses that this implies.Estimates from the Costa Rican Chamber of Commerce (CCCR) show that the effect that the biggest soccer day of 2022 could have is up to ¢3,360 million colones for the commercial sector.According to this business group, in previous World Cups, the restaurant and bar sector reported increases of between 15% and 20% in sales, while beer sales showed increases of up to 5%.Also, purchases in supermarkets rise around 20% while sales of television screens have growth of between 30% and 50% during the fair period.The evidence is also found in the collection of taxes.According to data from the Ministry of Finance cited by La Nación for the 2014 World Cup in Brazil, the billing of taxes for importing television screens skyrocketed just a month before the tournament began and during the event.In May, the collection had a growth of 127% with respect to the same period of 2013;in June, this percentage was 55%.Informal commerce also takes advantage of the celebrations of the Ticos for soccer, who seek identification items with 'Sele' such as flags and t-shirts.(Rafael Pacheco Granados)Although the businesses hope that a World Cup will benefit them with or without Sele on the field – and they prepare conscientiously with that objective in mind – the truth is that the pass from Costa Rica to Qatar is an extra stimulus, which is added, in this occasion, at a special juncture: the World Cup will be in the last two months of the year, a time already of great commercial peak and Christmas bonus.Luis Diego Argüello, Marketing Manager of the Oxígeno shopping center (Heredia), explained that the establishment defined its strategy for the 2022 Qatar World Cup independently of the National Team's classification, as they would also seek to attract soccer fans with the installation. of their “World Cup stadiums”.But with Costa Rica included in the fair, the expectation of visitors is even greater.“We are going to make sure that the World Cup can be enjoyed in a special way at Oxígeno.The World Cup benefits us because of the euphoria and emotion that it can generate in the consumer;It could arrive at a key moment because we would also be in the best months of the year commercially speaking (November and December)”, Argüello commented.Some shopping centers, such as Oxígeno in Heredia, set up spaces called "world cup stadiums" for the enjoyment of the National Team matches from a few hours or even days before.(Courtesy Oxygen)Other shopping centers such as Multiplaza Escazú, Multicentro (Desamparados) and City Mall (Alajuela) also resort to the installation of spaces dedicated to the enjoyment of the National Team games.This June 14, they maintained World Cup stadiums with giant screens to attract the audience, for example.On the other hand, data from Kantar Ibope Media, a company that analyzes consumer trends, indicates that the popularity of the soccer world cups is taken advantage of by brands.During the 2018 Russia World Cup, the categories with the highest advertising investment in Costa Rica were mobile phone operators (27%), followed by cable television companies (14%), savings accounts (7%) and advertising campaigns. random (5%).Likewise, another of the benefited sectors are those of cable television or streaming services that maintain channels with the rights to broadcast World Cup matches and that, in addition, offer soccer analysis content.“Historically, our subscriber base has been waiting for this date and there are also new users who want to connect to the services to watch the World Cup.Above all, in high definition, as well as in DTH, where we can offer these services in rural areas or where there are no fixed networks”, commented Julio Sosa, spokesperson for Tigo.Sosa assured that small and medium-sized businesses are starting operations again, reactivating their TV and Internet services, so that, as the World Cup draws closer, they expect the demand for new subscribers to increase.In the Internet and TV service provider, Liberty (formerly Cabletica), they assured that for several years the World Cups are not only consumed by fixed television (by cable or screen, at home), since it became part of the content that the audience obtains through mobile devices, so in addition to cable, the client also demands streaming services and different platforms.As part of soccer celebrations, Ticos also use delivery services that generate different offers during special dates and link customers with food and beverage stores.In the case of Uber and Didi, for example, they enabled a series of promotions within the framework of the Sele game on June 14, as they have done on previous occasions.According to the information provided by Uber, on the dates that the National Soccer Team plays, they have observed marked trends in consumption.For example, for the Costa Rica vs. United States playoff game on April 4, 2022, the most frequent requests from app users were hamburgers, fried chicken, and pizza, as well as beers and salty snacks.Precisely, the marketing specialist, Francisco Navarro, says that the 2014 World Cup in Brazil had an impact on the decline in unemployment in several countries."The results of an international study were revealing: World Cup fever reduced unemployment by an average of 5% in the countries analyzed during the competition."Why do the good results that the National Team can have drive consumption so much?Navarro assures that there are two explanations from the theory: “the first is that national identity is enhanced through football, that is, the feeling that we are part of a group that has a common desire: the victory of Costa Rica in the games you face.This feeling is so powerful that it leads people to adopt attitudes and even financial sacrifices to enjoy it in the best possible way.“The second is related to social behavior: the norm.If the neighbor or coworker spends on a television, an HD transmission or the official uniform to watch the games, a person will see it as "normal" to do the same.It's kind of a chain action,” he added.The journalist Esteban Ramírez collaboratedEconomy journalist.He writes about business, foreign trade and production.Graduated from the University of Costa Rica.Winner of the 2021 Stock Market Journalism Award.For the benefit of transparency and to avoid distortions of the public debate by computer means or taking advantage of anonymity, the comments section is reserved for our subscribers.The full name and ID number of the subscriber will appear automatically with the comment.© 2022 All rights reserved, any use requires express written authorization from Grupo Nación GN SA© 2022 All rights reserved, any use requires express written authorization from Grupo Nación GN SAMember of the Grupo de Diarios América (GDA)