Vatti refunds consumers after France win World Cup
Shenzhen-listed Vatti surged 4 percent on Monday, despite the Chinese home appliance firm preparing to pay 79 million yuan (US$12 million) in refunds after France won the World Cup.
Vatti promised in June that consumers would be fully refunded for buying related kitchen products if the French soccer team claimed the World Cup crown. The company is an official sponsor of the French soccer team.
France celebrated their second World Cup win 20 years after their maiden triumph on Monday morning, overcoming a passionate Croatia 4-2 in one of the most gripping finals of recent history.
Before that, investors and analysts were worried France may win the World Cup.
The company said the total cost, including refunds and related spending, is 79 million yuan, still “limited” compared with the 1 to 2 billion yuan for official sponsorship of the World Cup, Vatti said.
The share price of Vatti jumped 3.97 percent to close at 15.18 yuan, compared with a 0.10 percent decrease of the Shenzhen stock index today.
For any purchase of a "champion package" in June, Vatti promised a full refund if France won. "If the team of France is the champion, Vatti will give you a total refund" advertising from the company said.
The refund would cover a set of four kitchen appliances with a total value of 16,100 yuan.
The first consumer applying for a refund was in Taiyuan city of Shanxi Province early Monday morning, just after the France-Croatia match ended about 1:00 am.
The whole refund process will last for “several weeks,” with processes covering application, authorization and refunds. Online orders will be easier as consumers can receive automatic refunds to their accounts, Vatti said.
During the whole event, Vatti’s offline sales revenue jumped 20 percent year-on-year to hit 700 million yuan, the company said.
Other Chinese companies like Oppo and Mengniu sponsored stars in Brazil and Argentina. Vatti’s sponsorship seems relatively valuable in terms of brand awareness, analysts said.
More than 1 million people read the refund post of Vatti’s official WeChat account within 30 minutes.