Chinese firm takes $4.3mn hit after France World Cup win

17 Jul, 2018 11:18
Chinese firm takes $4.3mn hit after France World Cup win
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© Vladimir Pesnya / Sputnik

Chinese kitchen appliance company Vatti is set to pay back 29 million yuan ($4.3 million) after it promised to give full refunds to customers on certain purchases if France won the World Cup in Russia.

Vatti, which was one of the sponsors for Les Bleus at the tournament, launched an advertising campaign before the World Cup promising a full refund to buyers of its ‘Championship Set’ if France lifted the trophy in Moscow.

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After the team’s 4-2 win against Croatia at Luzhniki Stadium on Sunday, the Guangdong-based company announced that consumers who purchased gas cooktops, extractor hoods and water heaters between June 1 and July 3 will be offered refunds. Those who bought the kitchen items online would get their money back in the form of gift cards or vouchers.

The football-related promotional campaign impacted the company’s profit, with sales skyrocketing by 20 percent in that period compared with the previous month.

Despite numerous reports that Vatti would suffer serous losses because of its promotional bet on France, the company said the refunds would tally less than 10 percent of total sales during the World Cup.