The quadrennial World Cup, the 2022 World Cup in Qatar, is coming. It is the first time in history that the World Cup has been held in Qatar and a country in the Middle East, and it is also the second World Cup in Asia.

According to FIFA, a total of 3.572 billion people watched the 2018 World Cup in Russia, accounting for about 47% of the global population, of which the finals of France and Croatia attracted 1.12 billion viewers around the world.China has the largest audience for the World Cup, with 660 million people watching the World Cup in Russia.

In terms of commercial value, the commercial value of the World Cup is more than $30 billion, much higher than other sporting events. The current president of FIFA, Mr. Invantino, defines the World Cup as "the most high-profile sports feast".He expects the World Cup in Qatar to attract more than 5 billion global viewers.

With the advent of the World Cup, A shares often have a wave of World Cup "theme hype", the related stocks make money effect is obvious.CITIC analysts Liu Yi, Tian Peng, Wang Tao and Wang Dan pointed out in their "quadrennial football feast, with four main lines leading the forefront of investment," that the World Cup is expected to lead to growth in sales of electronic screens, sports lottery tickets, leisure food and sports facilities.

The World Cup: a quadrennial global phenomenal topic

The Qatar World Cup is the first World Cup to be held in winter in the Middle East and the Northern Hemisphere.It is also the first truly open international competition since the outbreak of the epidemic.

In terms of the significance of hostingThe World Cup in Qatar is "unique" in terms of match positioning, hosting time, hosting country, preparatory budget and competition technology.The unrestricted positioning of the game after the outbreak means that people from all walks of life have the opportunity to arrive at the scene of the competition, which will give rise to more off-court topics. Qatar's budget for the World Cup reached $220 billion, far exceeding the $14 billion spent by Russia's World Cup hosts.

In additionThe time of this competition is relatively friendly, and the domestic audience rating may be at its peak.The time difference between Qatar and China is five hours, and the kick-off time of the World Cup is divided into five time points, namely 18:00, 21:00, 23:00, 0 and 3 o'clock Beijing time, which is more in line with the viewing habits of the Chinese people.

According to Analysys, the match that kicks off from 18:00 to 23:00 attracts the most attention from Chinese fans, and the Qatar World Cup has the most kick-off times during this period.It is expected that the domestic audience rating and attention will be significantly higher than that of previous World Cups.

Meanwhile,The impact of this World Cup covers marketing nodes such as Singles' Day, double Twelve and Christmas. It is expected that the brand publicity will be greater, and the ratings of each broadcaster will also increase rapidly.

Supply side: Chinese brands and "made in China" contribute to the World Cup

Sponsors: the popularity of large-scale sponsorship of Chinese brands continues unabated.

According to CITIC, the sponsorship structure of Qatar World Cup is divided into three categories from high to low: FIFA partners (6-8 seats), World Cup sponsors (6-8 seats) and regional sponsors (20 seats in five regions).

CITIC believes thatThe opening time of the Qatar World Cup coincides with the Chinese e-commerce shopping festival "Singles Day" and "double Twelve", which is expected to attract more brands to compete with the third-tier regional sponsors of the World Cup and put in more World Cup-related advertisements.

Broadcaster: CCTV cooperates with Migu and Douyin Group to achieve win-win results

CCTV's treatment of World Cup copyright has gone through three stages of distribution-exclusive supply-cooperation, constantly adjusting its strategy to maximize the value of copyright. CITIC believes that the logic behind CCTV's copyright attitude from distribution-exclusive supply-cooperation is to maximize the value of World Cup copyright:

1) after the satellite access to every village and every household, the audience of CCTV became larger, and CCTV withdrew its distribution rights to improve its advertising revenue; 2) with the rapid development of new media, CCTV chose to cooperate with Migu and Youku. while earning copyright revenue, we will expand the advertising audience and further expand the cake of World Cup copyright.

Migu video won the right to cooperate in the World Cup in Qatar, and the sports "upstart" has grown into a leader in the industry.For the World Cup in Qatar, Mi Gu has signed Zhan Jun, Zhang Lu, Huang Jianxiang, Yan Qiang, Xu Yang, Lou Yichen, Liu Yue, Liu Chang and other famous mouths, and with them as the main body of content creation, the position in the sports field is expected to be further stable.

Douyin Group has become a privileged broadcaster of the World Cup in Qatar, introducing PGC content to enhance UGC advantage.On June 21, 2022, China Central Radio and Television head Office and Douyin Group jointly held a cloud launch event, announcing Douyin Group as the strategic partner of Qatar World Cup holder and live broadcast of the Central Radio and Television Station in 2022. After the sports live broadcast is over, users prefer to communicate on UGC content communities such as Weibo Corp and Douyin. Winning the World Cup copyright by Douyin will not only expand the number of users, but also further enhance its UGC content advantages, forming a virtuous circle.

Construction of venues: "made in China" shines in the World Cup

For the first time, Chinese enterprises have undertaken the construction of top World Cup venues, which embody Chinese elements everywhere:

China Railway Construction Corporation is responsible for the construction of Russell Stadium, the main stadium of the World Cup. In addition, China International Marine Containers is responsible for the production of containers for the 974 stadium, and the steel cable material comes from Xushui Juli.

Chau Ming Technology and Lehman Optoelectronics provide LED displays to some venues and off-site commercial projects, while Gree provides central air conditioning to some venues.

In terms of power system, China Power Construction has undertaken the first photovoltaic power station in Qatar to ensure the power demand of the World Cup, and Sumida has become a partner in emergency power guarantee equipment for the World Cup in Qatar.

In terms of event security and supporting services, Yutong bus provided a total of 888 pure electric buses to the card side, effectively ensuring the transportation service during the World Cup. Hangzhou Fude won three consecutive World Cup mascot commodity designers and manufacturers, using BABA 1688 platform big data to match manufacturers to respond quickly to customer demand.

Demand side: fans watching, listening and tasting the game comfortably.

Electronic big screen: fans form a team to watch the game, boosting screen demand

CITIC believes that electronic screens are greatly affected by content, and large-scale sports events such as the World Cup and the Olympic Games will boost screen demand in the short term:

According to TrendForce data, after global TV shipments entered a stable period in 2014 and 2018, global TV shipments increased by 5 per cent and 3 per cent respectively compared with the same period last year, much higher than the compound growth rate of 0.3 per cent between 2013 and 2021. According to the World Cup consumption report 2018 jointly released by JD.com and Meituan, during the 2018 World Cup, 60-inch 4K ultra-high-definition televisions and 75-inch OLED high-end televisions increased 3 times and 10 times respectively compared with the same period last year. In addition to forming a team at home to watch the game, bars such as Beijing Workers' Sports, Shanghai Julu Road and Guangzhou Pazhou are the best choices for fans to team up to watch the game. It is expected that this World Cup will also boost the demand for bars, night excursions and other scene display screens.

Football Lottery: increase fans' sense of experience and participation

Sales of sports lottery tickets are brisk during the World Cup.On the whole, the sales of sports lottery in China show a gradual upward trend. affected by the control of the epidemic in 2008, it has returned to the 2019 level in 2021, and the average annual compound growth rate from 2021 to 2021 is 13.4%.

Among all competitive sports, football events make the greatest contribution to sports lottery sales. Monthly sports lottery sales increase significantly after the start of the five major leagues every year. The World Cup, as the event with the largest number of spectators in the world, has the most obvious pulling effect on sports lottery sales. In World Cup years 2010, 2014 and 2018, China's sports lottery sales increased by 22%, 33% and 37% respectively compared with the same period last year, which is much higher than the trend compound growth rate.

Leisure food and drink: watching football games with meals, which are necessary for fans.

Fans' food consumption increased significantly during the World Cup, and hoarding pie and current pie have their own preferences. According to a survey conducted by iResearch Consulting, more than 45% of Chinese fans increased their consumption of beer, drinks, snacks and takeout during the World Cup in Russia. From the type of fans in our country, hoarders prefer leisure snacks, beer, coffee and milk tea, crayfish, energy drinks; now eat pie prefer crayfish, duck neck stewed meat, kebabs, Korean fried chicken, Chinese barbecue.

The World Cup promotes the high-end promotion of the beer industry.Since 2014, the era of "horse racing enclosure" of beer enterprises has temporarily come to an end, each brand has identified its own strong region, the competition pattern of the industry has gradually stabilized, and beer enterprises have begun to attach importance to the improvement of profitability.

CITIC believes that:

As the main marketing battlefield of beer enterprises in the World Cup, major wine companies often take advantage of the opportunity to launch new products to promote the upgrading of product structure. In the context of the industry's overall focus on structural upgrading, although beer sales increased during the World Cup, the contribution to the overall annual beer production growth is not obvious.

The World Cup, held in winter, is expected to prolong the traditional peak season of beer sales in the second and third quarters, leading the beer industry to achieve a simultaneous rise in volume and price.

Sports facilities: fans' enthusiasm for sports is ignited.

The World Cup ignites fans' enthusiasm for sports. According to Analysys, the average daily use of KEEP app has increased from 21 minutes to about 23 minutes after the start of the World Cup in Russia. According to the World Cup consumption report 2018 jointly released by JD.com and Meituan, JD.com 's sales of football, jerseys and body fat increased by more than 60 percent year-on-year during the World Cup.

In the short term, it is expected that the holding of the World Cup in Qatar will enhance the sports enthusiasm of fans; in the medium to long term, it is expected that the national policy to support the development of the sports industry will gradually increase.The National Fitness Program (2021-2025) and the 14th five-year Plan put forward that by 2025, the per capita sports venues will reach 2.6m2, and the proportion of people who regularly participate in physical exercise will reach 38.5%, driving the total scale of the national sports industry to 5 trillion yuan.

Summary

CITIC believes that around the World Cup in Qatar, it is suggested to focus on four main investment lines:

Main line 1: sports lottery sales and operators, sports lottery sales during the World Cup are strong in history. Under the background of strong supervision of Internet lottery, there are various ways to play sports lottery in the World Cup, which can meet the needs of different consumers to buy lottery.

Main line 2, suppliers of stadiums, facilities and equipment, in the short term, it is expected that the holding of the World Cup in Qatar will enhance the sports enthusiasm of fans.

Main line 3, electronic large screen provider, it is expected that large sports events such as the World Cup and the Olympic Games will boost screen demand in the short term, medium-and long-term Mini LED will accelerate its penetration in the backlight field, and the market scale will usher in a stage of rapid growth.

The fourth main line, leisure food and beverage providers, food consumption of Chinese fans increased significantly during the World Cup, beer companies often take advantage of the opportunity to launch new products, so as to promote product structure upgrading and achieve high-end development.