Chinese Firm Loses Millions After France’s World Cup Victory

Chinese Firm Loses Millions After France’s World Cup Victory

France’s triumph will cost up to 29 million yuan in refunds to Vatti, a Chinese company which makes electric ovens and gas stoves which has launched a venturous marketing campaign ahead of the tournament

In May, Vatti, a Guangdong-based kitchen appliance maker and an official sponsor of Les Bleus, promised a full refund to those who bought its set of “championship products” during the promotional period, from June 1 to July 3, should France win the 2018 World Cup. The full set, which costs up to 4,999 yuan (nearly $750), includes a gas cooktop, extractor hood and water heater.

However, Vatti’s top management have apparently prepared for the worst-case scenario. On Monday, shortly after France won the World Cup, Vatti posted a banner on its website, congratulating the team and launching the refunding process.

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“If the team does indeed win, the refunds will amount to a considerable sum, but it will be well within our annual marketing budget — and it won’t have a material impact on our results,” Vatti spokesman Wang Zhaozhao said, as quoted by the South China Morning Post (SCMP).

While total losses from reimbursements would stand at nearly 79 million yuan (over $11.5 million), the company said it would refund the 29 million yuan ($4.3 million) of online sales made during the promotional period, while regional distributors would have to refund the remaining 50 million.

France claimed its second World Cup title on Sunday, beating Croatia 4-2.

Source: sputniknews.com

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