The ICC Men's Cricket World Cup, which gets underway October 5, is expected to boost consumption in India, with people buying more travel tickets, beverages, sports merchandise and bulking up online food orders, Jefferies has said in a report.
The one-and-a-half-month sporting extravaganza coincides with the festival season, which is also the time when Indians shop in abundance. So for consumer stocks, it could be a double-delight.
"The World Cup event coincides with the seasonally strong 3Q for the hospitality industry and the same is likely to benefit both hotels/airlines industry in 3Q. Further, airlines are reportedly eyeing cap adds to target the traffic rush," it said.
India will play nine group stage matches over the next 45 days, of which six will be held on the weekends, which see high consumption, the report said. Of the 16 weekend days in the next two months, nearly 50 percent will see either an India match or the World Cup semi-finals and the final.
As Indians will binge on cricket, cinemas and brick-mortar retailers would likely take a hit.
Also Read | Indian Hotels, IndiGo, Varun Beverages on frontfoot for cricket World Cup
| Category | Companies | Impact |
| Food Delivery | Zomato | Overall restaurant consumption may go up, likely benefitting delivery channel |
| QSR/Restaurants | Jubilant Food (Domino's), Westlife (McDonald's), Devyani (KFC), Sapphire (Pizza Hut), RBA (Burger King), Barbeque Nation | Restaurant chains to run World Cup-specific promotions, especially on India match days |
| Alcoholic Beverages | United Spirits, United Breweries, Radico Khaitan, Sula Vineyards | Positive for both on-trade and off-trade consumption |
| Movie Theatres | PVR INOX | Footfalls could see a decline, given half of the weekend days have India matches |
| Theme Parks | Wonderla, Imagicaaworld | Negative. Footfalls could drop as half of India's matches are on the weekends |
| Hotels | Indian Hotels, Lemon Tree | Sharp jump in room rates in all cities hosting the World Cup games, along with increased F&B revenue |
| Airlines | InterGlobe Aviation (IndiGo) | A surge in fares, especially around match days |
| Apparel retail/brands | Shoppers Stop, Trent, Aditya Birla Fashion, Page Industries, Reliance Retail | Brick-and-mortar retailers could see weaker footfalls during the crucial festival season. For brands, there is some offset possible as e-commerce volumes go up |
| Jewellery | Titan, Kalyan Jewellers, Senco Gold | Wedding-related purchases may remain unaffected. a Slight adverse impact possible on non-wedding purchases, as consumers will prefer to stay indoors on match days. |
| E-Commerce | Nykaa | Shift from offline shopping to online. Also, consumption would be supported by annual sales for major e-commerce players |
| Media | Increased advertisement spends across categories as companies try to maintain their share of voice | |
| Gaming | Nazara Technologies | Increased usage for cricket games, fantasy leagues, etc. Although limited exposure through listed companies. |
India matches’ boost to food deliveries, but hit to movie theatres
According to Jefferies, on India match days, there could be a negative impact on movie theatres, theme parks, and offline brick-and-mortar retailers. On the other hand, the event would be a tailwind for bars & restaurants, beverages (alcoholic & non-alcoholic), food delivery, media, online gaming, quick commerce and e-commerce platforms, which would also organise their festival events.
Follow our market blog for all the live action
While PVR INOX is expected to see a drop in footfalls on India match days, it is planning to offset it by taking advantage of the cricket craze in India.
"We are in the process of signing a contract (with ICC), and we will screen just about any match that we wish to in the tournament. So we will pick on those important matches, and we will be screening those matches, specifically all the India matches," the company said in its concall.
Surge in brand activity
The World Cup has been a key marketing platform for brands across categories. The first World Cup hosted by India in 1987 was co-branded as “Reliance Cup”, while the 1996 version was called “Wills World Cup” after sponsors Reliance and ITC, respectively.
Several brands have announced World Cup tie-ups this time, too and analysts at Jefferies expect a surge in media activity in the coming days and weeks.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
