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Weekly Round-Up ... 22 November 2022

With an average price tag of more than $63 million (€61.3 million), most brands have been 'priced out' of sponsorship of this year's World Cupa study by GlobalData claims. This year's tournament, which kicked off with a 2-0 win for Ecuador over hosts Qatar at the weekend, will see 27 official brand sponsorship partners avail of prime marketing rights, spending around $1.7 billion (€1.66 billion) in the process, GlobalData said in its Business of the FIFA 2022 World Cup report, according to ESMmagazine.com. However, the high price of sponsorship means that 15 of these 27 core sponsors are making their World Cup debut this year, with many longstanding sponsors put off by the high price tag. Seven of the partnerships announced thus far already hold a value worth in excess of $100 million for this tournament cycle, GlobalData said.

Chinese e-commerce giant Alibaba Group Holding Ltd has posted a smaller-than-expected rise in quarterly revenue as COVID-19 curbs and a worsening economic outlook stifled consumer spending. Retail spending in China has sagged this year alongside the government's strict zero-COVID-19 policies that have led to frequent snap lockdowns and hurt economic activity, reports Reuters. Alibaba has also had to contend with stiff competition from the likes of Pinduoduo and ByteDance's Douyin - the Chinese version of Tiktok - which have expanded their e-commerce offerings and taken more market share. The company has also yet to fully recover from a regulatory crackdown on the tech sector that has curtailed growth opportunities. Revenue grew 3% to 207.18 billion yuan (€28.04 billion) in the three months ended 30 September, compared with a Refinitiv consensus estimate of 208.62 billion yuan (€28.2 billion) drawn from 25 analysts.

Russian online retailer Ozon Holdings said on Monday it was opening an office in Shenzhen in China to boost cross-border sales to Russian shoppers on its platform. Russian companies have been rapidly boosting business ties with China as firms grapple with unprecedented Western sanctions. It follows a similar move into Türkiye earlier this year by the e-commerce outfit, and comes at time when the Russian economy is trying to pivot away from Western markets and forge new supply chains with the likes of China, Turkey and Iran. Ozon noted in a statement that it already had 10,000 Chinese sellers offering goods to Russian customers on its marketplace, with China accounting for 95% of sales through its cross-border sales unit, Ozon Global. "Chinese products are in high demand in Russia," Ozon noted, adding that, 'the most popular orders from China are usually electronics - smartphones, laptops and computer parts - as well as small appliances and clothing.'

© 2022 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. For more retail news, click here. Click subscribe to sign up for the Checkout print edition.

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