Smartphone companies’ strategy to overcome the Coronavirus economic blow will also leave a major impact on cricket sponsorships, which gets a lion’s share from the Vivo and Oppo partnerships with the Indian Premier League and the International Cricket Council.
Smartphone companies, according to an Economic Times report, can cut down their marketing budgets by up to 70% to minimise the impact of a drastic fall in their business. Sales in their stores and online orders have fallen considerably and business will suffer further when supplies will be affected in wake of the complete lockdown in the companies.
In Indian sports single largest sponsorship deal, Vivo is paying ₹ 440 crore per annum for the Indian Premier League title sponsorship as part of its ₹ 2,200 crore five-year commitment. Sister concern Oppo, another mega brand from Chinese BBK Electronics, also spend an impactful chunk of its marketing budgets on cricket. Though Oppo had shifted its Indian national cricket team jersey sponsorship deal to e-education brand Byju’s, it has been an on-air presenting partner for the IPL and one of the sponsors of international cricket council.
Market experts were of the opinion that telecom companies marketing budgets may plunge by up to 70%.
Coronavirus will not just impact the production of non-essential commodities like smartphones, but will also reduce the buying capacity of consumers for the next few years. In such a scenario, high end expensive smartphone brands which heavily rely on the middle class society will suffer the most.
Marketing and sponsorships will become the least priority for the brands as new launches and expected to come to a halt for some time.
Massive smartphone business empire of Chinese conglomerate BBK Electronics will enable its brands Vivo, Oppo, OnePlus and Realme survive the scare; but other smaller brands may also face fight to stay afloat.