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World Cup’s Mixed Feelings

Posted June. 03, 2002 08:03,   


The World Cup has begun, but industries are going through mixed feelings. There are those, which are enjoying special procurements, while others are concerned about reduced sales. On the other side, some industries are expected to have flexible sales depending on how the World Cup progresses.

∇Those That Smile = Electronics, beer, airline, paper, and beverage industries are appreciating the World Cup. Demands for large TV after May have soared for over 30 per cent compared to last year, as more people are trying watch games more realistically. Especially, sales of wall-TV have increased 5 to 7 times higher than last year.

Beer industry is also joyful. Beer sales at large wholesalers have risen by over 10 per cent.

Airline industry is also smiling. June is expected of traveling boom. Korean Air Lines are already operating special planes for Chinese and European flights since the mid-May. Japanese flights are not meeting the expectation, but other flights are all full. Air delivery and rent-car industries are also enjoying the World Cup fever.

Home-shopping industry is expecting prosperity despite the previous expectation for depression. Sales are growing. The industry is forecasting that sales will become better if the Korean team does well. Hyundai Home-shopping plans for a special event of giving back maximum 50 per cent of purchase price, if the Korean team wins against Poland on the 4th.

Paper industry is enjoying a double-boost, as the election and World Cup are creating much demand for prints. Beverage and sports-utility industries are also busy to attract special procurements.

∇Those That Cry = Shopping malls and wholesalers are worried about sales. An E-Mart authority said, “We are either extending the business hours or concentrating on sales events.”

Entertainment industries like food service industry and cinemas are suffering from depression. There is no better `entertainment` than the World Cup. In fact, when the opening match was held on the 31st, over 20 per cent of customers were reduced at cinemas. Bookstores are also quite vacant.

Hotel industry is having mixed feelings depending on the size. In case of super-class hotels, room occupancy has risen compared to last year and especially, expensive suite rooms are quite full. However, mid and low cost hotels are suffering from low reservation rate.

Heon-Jin Lee Hyung-June Park mungchii@donga.com lovesong@donga.com