China’s national soccer team didn’t make it into the World Cup, but one of its companies scored big-time. Vatti, a little-known oven maker based in the southern city of Zhongshan, raised eyebrows by promising product refunds if the team it sponsored won the tournament.
© Image | Caixin
# Vatti's official website
http://www.vatti-china.com/enterprise-profile.htm
As we all know, France, did just that, beating Croatia 4-2 in the final. But while Vatti must now pay up, the amount owed is negligible in light of the buzz that its unusual pledge generated on Chinese social media, starting from early in the tournament and indeed even before it began.
Why Vatti is the biggest winner
of the World Cup?
The refund promise has garnered some 90,000 discussions just on Weibo, a popular social media platform, alone.
© Image | Weibo
“Vatti is the biggest winner of the World Cup,”wrote one Weibo user.
© Image | Weibo
Vatti announced early on July 16 that customers who purchased a set of “champion products” in June and early July could get a full refund in the following days. The product set, which included a gas stove and ventilator, cost about 5,000 yuan ($747).
“Vatti, your promise has shown me the side where a Chinese firm can keep its promise,” commented one customer under Vatti’s Weibo post about the refund procedure.
© Image | Weibo
The company might need to pay up to $11.8 million in refunds, according to Chinese financial news outlet Caixing. By contrast, Mengniu, a Chinese dairy product company, said it planned to spend about $300 million on World Cup marketing after it became a sponsor of the tournament last December.
© Video | Tencent
Low-budget Stunt
Achieved Great Success
According to Chinese economic news site, Vatti, with its low-budget stunt, achieved a marketing payoff nearly equal to what bigger firms like Mengniu did by paying much more. Seven high-profile Chinese companies signed on as sponsors of this year’s tournament, after other firms pulled out for fear of being tarnished by corruption scandals at FIFA.
Earlier this month Vatti said its campaign had a “substantial elevation effect” on sales and brand awareness, and described the budget for it—even counting possible refunds—as “controllable spending” that wouldn’t have a substantial impact on the bottom line.
© Image | Weibo
The fine print in Vatti’s refund offer helped, too. For instance online shoppers can get a refund only if they did not accept a free gift offered along with the champion product set.
Vatti’s share price ended the day about 4% higher (paywall).
© Image | 财经网
Pressure on Vatti Franchisees
France’s win has put some pressure on Vatti franchisees, which must cover refund costs for products purchased in their outlets. Ones in Beijing and Tianjing disappeared right before the company ended its marketing campaign, but Vatti said in a statement that it would assume their responsibilities.
Share to let your friends know!
Source: Quartz,Weibo
HACOS,Business Services Solutions Master