With the World Cup 2022 in Qatar kicking off on Sunday, business operators expect a moderate boost in consumer spending from the 32-day football tournament.
Amnaj Singhachan, senior marketing manager of LG Electronics (Thailand) Co, the local marketer and distributor of LG appliances, said demand for TVs during the World Cup is not as active as predicted because the live broadcast deal was slow to materialise.
The Sports Authority of Thailand clinched a deal on Nov 17 with FIFA to pay US$33 million (1.2 billion baht) for the rights to broadcast live all 64 matches of the World Cup.
Thai football fans now know they can watch all the matches live for free after weeks of uncertainty surrounding the government's bid to find funding to pay for the broadcast rights.
Low season
Though a broadcast deal was confirmed, Mr Amnaj said there is uncertainty about whether the World Cup will stimulate TV sales because November is considered the low season for TV sales.
During previous World Cups, demand for TVs increased by 30-50%.
"Given the last-second broadcast deal, few companies are likely to ramp up their marketing activities to stimulate demand," he said.
"I have not seen big-lot sales of big-screen TVs, comprising 4-10 units, as in the past. This indicates restaurant and pub owners are not preparing to promote activities during the World Cup."
A salesperson at a branch of a sporting goods chain in western Bangkok who requested anonymity said products related to the World Cup do not have active sales. Shirts account for the majority of sales, with little interest in other accessories.
Viseth Singhsachathet, chief business officer of fashion retailer Jaspal Co, said the company sees a great opportunity to develop and grow its business presence in international markets during the World Cup.
Jaspal is the only fashion brand in Thailand licensed to design products in collaboration with FIFA for the World Cup.
The licensing deal should help reinforce recognition of Jaspal as a world-renowned brand, said Mr Viseth.
Biggest sports fan base
Panuwat Kaen-ngern, senior insight analyst at Nielsen Thailand, an audience measurement service provider, said sports programmes always tally high audience ratings in Thailand.
He declined to speculate on the volume of media spending in Thailand for the World Cup.
Citing the Nielsen Sports Fan Insights 2022 report, Mr Panuwat said football is the top sport in Thailand based on fan numbers and interest level, with 62% of Thai respondents saying they favour football programmes, followed by 56% for volleyball, 42% for badminton and 41% for Muay Thai.
Some 31.9 million Thais are football fans this year, up 7% from last year, the report found.
The World Cup ranks as the top sports event in terms of viewership in Thailand according to 59% of respondents, followed by e-sports at 54%, the Asian Games at 54% and the SEA Games at 53%.
According to the report, social media platforms are the most popular option for sports viewership in Thailand, with 70% of respondents choosing this channel, followed by free TV at 69%, over-the-top platforms at 55% and streaming platforms 50%.
At the previous World Cup in 2018, many brands created marketing campaigns during the competition, spending 105 million baht on advertising, said Mr Panuwat.
On Nov 9, the University of the Thai Chamber of Commerce (UTCC) said consumer spending during World Cup 2022 is expected to increase from the previous tournament, driven by greater economic activity, though there are concerns over a possible surge in gambling on matches.
The UTCC estimates 18.5 billion baht will be spent during the tournament scheduled to take place from Nov 20-Dec 18.
The figure represents a 3.7% increase over the amount spent during World Cup 2018, which was held in Russia, and a surge of 22% over the total amount spent during the UEFA Euro 2020 tournament.
According to the UTCC, the live broadcast of the World Cup in Thailand should help boost the economy, as live broadcasts on free TV channels typically prompt people to go out to eat and drink while watching the games on big TV screens at bars, restaurants and pubs.
Economic activities would lead to higher spending on sports apparel, restaurants, internet and communication, advertising, new TV purchases and entertainment venues, said the university.
The UTCC expects spending during the World Cup to circulate throughout the economy, propelling economic growth momentum through the end of the year.
The university previously estimated spending during Loy Krathong would increase by 5.9% to 9.68 billion baht thanks to the country's reopening and the anticipated extension of government stimulus measures.
The UTCC expects the economy to grow 3.0-3.5% this year and 3.5-4.0% in 2023.
