The Paris Olympics will open on July 26, and this is the first Olympics to shake off the shadow of the pandemic. The Olympics is not only a sports event, but also brings economic opportunities. Companies can take this opportunity to aggressively promote products to a global audience and attract more customers.
Which companies are Olympic sponsors?
This Olympic Games has attracted a total of 79 Olympic sponsors, with expected sponsorship revenue of $1.3 billion. Among them, the sponsors of this Paris Olympic Games are mainly composed of two parts. The first part is global partners, namely 15 International Olympic Committee TOP program sponsors. This includes Sanofi and internet-related giants, as well as China's dairy industry giant. The other type of sponsor is national partners, which are mainly local companies in the host country, and their sponsorship agreements only cover this Olympic Games, with relatively low capital costs. They include 7 high-level partners, 13 official partners, and 44 official suppliers.
The first part is global partners, namely 15 International Olympic Committee TOP program sponsors. This includes Sanofi and internet-related giants, as well as China's dairy industry giant.coca-cola (KO.US) ,$Intel (INTC.US)$Broadcom$Procter & Gamble (PG.US)$Such as...$MENGNIU DAIRY (02319.HK)$and internet-related giants$Alibaba (BABA.US)$.
The other type of sponsor is national partners, which are mainly local companies in the host country, and their sponsorship agreements only cover this Olympic Games, with relatively low capital costs. They include 7 high-level partners, 13 official partners, and 44 official suppliers.
The 7 high-level partners are the largest contributors of domestic sponsorship income for this Olympic Games, including Orange SA, global leading hotel management group Accor, financial services company Groupe BPCE, supermarket chain Carrefour, electrical utilities, biopharmaceutical company Sanofi, and other companies.$Orange SA (ORAN.US)$Global leading hotel management group Accor$ACCOR SA SPON ADR EA REPR 0.2 ORD SHS (ACCYY.US)$,$LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$Supermarket chain Carrefour$CARREFOUR S DRC (CRRFY.US)$Biopharmaceutical company Sanofi$Sanofi (SNY.US)$.
The 13 official partners include Paris Airport Group, Air France, steel company ArcelorMittal, dairy industry giant Danone, marine transportation group CMA CGM, and PwC, etc. These companies will also provide support for the Olympics in important areas such as transportation, infrastructure, and networks.$Cisco (CSCO.US)$CMA CGM$DANONE SPONS ADR (DANOY.US)$The 44 official suppliers include ABEO, Airweave, DXC Technology, and other companies.
The 44 official supporters include ABEO, Airweave, DXC Technology and...$DXC Technology (DXC.US)$They provide support for infrastructure construction, sports equipment, food safety, security and inspection for the Paris Olympics in their respective business fields.
Which stocks are expected to benefit from the Olympic boom?
Olympic stocks refer to the stocks of listed companies that are deeply involved in the Olympics and obtain significant commercial benefits through advertising, cooperation, or sponsorship. These companies can significantly enhance their brand awareness and market influence with the global exposure of the Olympic Games, which can promote product sales growth and achieve performance leap.
Sports & Fashion
Sports and fashion brands are actively using the Olympics, a global event, to achieve unprecedented brand exposure, which is expected to significantly enhance their market attention and short-term sales performance. For example,$adidas AG (ADDYY.US)$,$Nike (NKE.US)$,$Under Armour-A (UAA.US)$They are poised to showcase their brand's charm on the Olympic stage and attract global attention.
Facing siege from a group of emerging consumer brands, Nike, which falls every time it releases a financial report over the past few quarters, revealed that the company's spending on this Olympic Games has hit a historic high, hopeful of reviving its revenue. As one of the world's largest advertisers, Procter & Gamble's focus on promotions this year will also shift from the 'Procter & Gamble' brand to Pampers, Gillette razors, and Ariel laundry detergents.
Of particular note, it is LVMH Group, which sponsors this Olympics for a sky-high price of 0.15 billion euros, demonstrating extraordinary market ambitions. Not only does the LVMH-owned brand participate in many key aspects of the Olympics, from Olympic medals to torch suitcases, to uniforms for the French Olympic team and volunteers, but the ubiquitous LVMH elements will undoubtedly become one of the most beautiful scenery lines at the Olympics, greatly enhancing the brand's global awareness and reputation.$LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$Culture & Media
According to official reports, the U.S. media giant Comcast, as the exclusive broadcaster of Olympic copyright, announced in April this year an important adjustment: from July 18th, the price of its premium subscription project on its streaming platform Peacock will be increased by $2 per month.
According to official reports, the US media giant$Comcast (CMCSA.US)$as the exclusive broadcaster of the Olympic Games, the company announced an important adjustment in April this year: from July 18th, the price of its Peacock streaming platform's premium subscription will be raised by $2/month.
Leading sports live TV streaming platform FuboTV has also reached an agreement with NBCUniversal to provide multi-platform content for the 33rd Olympic Games held in Paris from July 26th to August 11th.
Food & Beverage$FuboTV (FUBO.US)$has taken the lead as the first beer producer to partner with the Olympics in history and promoted its non-alcoholic beer Corona Cero to balance sports passion with healthy consumption concepts, which not only responds to controversies about its beer producer identity sponsoring the Olympics but also demonstrates the brand's social responsibility.
In addition,$Alphabet-C (GOOG.US)$The Olympics are also a stage for sportswear and fast-moving consumer goods companies to compete.
Which stocks are expected to benefit from the Olympic boom?
Food safety$Anheuser-Busch Inbev (BUD.US)$They provide support for infrastructure construction, sports equipment, food safety, security and inspection for the Paris Olympics in their respective business fields.
At the same time,coca-cola (KO.US) Even soft drink giants are not willing to be left behind, announcing a series of activities in more than 70 cities around the world surrounding the Paris Olympics, attracting consumers' attention through innovative forms such as pop-up shops, further consolidating their leading position in the fast-moving consumer goods market. Nike, Procter & Gamble and other sportswear and fast-moving consumer goods giants see the Olympics as an important marketing battlefield and compete with each other.
Technical support.
In global sports events like the Olympics, technology support companies have attracted much attention due to the high demand for security and information technology services. As a global partner who has been deeply engaged in Olympic cooperation since 2017, based on its Aliyun intelligent platform, it has built an advanced, stable cloud infrastructure and service system for the Olympics, ensuring the efficient and safe operation of the event.$Alibaba (BABA.US)$As a long-term global partner of the Olympic Games since 2017 and the exclusive payment technology provider, it not only showcases its leading position in the financial payment field, but also works together.
At the same time,$Visa (V.US)$Its subsidiary JPMorgan Chase Bank has crafted a floating rest lounge for high-end credit card holders on the banks of the Seine River.$JPMorgan (JPM.US)$This innovative initiative not only brings unprecedented exclusive experience to cardholders, but also successfully attracts more potential users to pay attention and apply for its credit card product with an annual fee of up to $550 through the widely spread "Parisian treatment" on social media, further enhancing its brand influence and market penetration.
It said that the company's supply in the Paris market has increased by 40% and has seen a sharp increase in bookings during the summer Olympics. Ride-hailing platform Uber has partnered with boats on the Seine river to launch a"call-a-boat" service in response to the traffic pressure during matches. Users can also book a one-day tour activity that includes champagne tasting on the Uber Bubbles platform.
The home-sharing platform Airbnb said its supply in the Paris market has increased by 40% and it has seen a sharp increase in bookings during the Summer Olympics. To cope with the traffic pressure during the competition, Uber Technologies cooperates with boats on the Seine to launch a “call-the-boat” service. Users can also book a one-day trip with champagne tasting on the “Uber Boats” platform. $Airbnb (ABNB.US)$Although the "Olympic effect" is often viewed as a factor that stimulates tourism, aviation and hotel industries, the unique concept and external factors of this year's Paris Olympics have challenged this traditional pattern.
Not all concepts related to the Olympics can benefit.
Paris has deeply integrated the Olympics into its city strategy, aiming to promote urban vitality, but it has also raised concerns among international tourists about traffic congestion and rising prices, thereby weakening their enthusiasm for watching the matches. According to the Paris Tourism Bureau's forecast, although the total number of visitors is expected to reach 11.3 million, international tourists account for only one-tenth of them.
This trend has had a direct impact on the aviation industry. Air France-KLM Group expects to face revenue losses of 1.6 to 0.18 billion euros in the June to August quarter due to tourists actively adjusting their itineraries and reducing their trips to Paris, but it is expected that this negative impact will quickly dissipate after the Olympics. The U.S.
has expressed similar concerns, believing that "tourists are avoiding Paris" may lead to the company suffering losses of up to $0.1 billion.$Delta Air Lines (DAL.US)$The hotel industry has also felt this chill. Although STR data shows that the revenue per room of high-end hotels in Paris is expected to increase by 45% year-on-year from July to August, the occupancy rate is not optimistic. According to the global travel data provider,
predictions, the hotel occupancy rate during the Paris Olympics may only reach 80%, far lower than the 90% in London in 2012 and the 94% in Rio in 2016, highlighting the low enthusiasm of international tourists for the Paris Olympics.$CoStar (CSGP.US)$As a long-term global partner and the official timing and measurement provider of the Olympics since 1932, Omega has developed various new technologies and equipment for the event, creating precise timing and measurement systems and providing accurate and fair results for the athletes.
Editor/ping