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TOKYO, January 30: Japan’s Olympic sponsors are cutting back on ad campaigns and delaying marketing events for this year’s Summer Games, concerned that public sentiment toward the event is turning sour amid a new wave of COVID-19.
Sponsors are also concerned that the organizers have not told them what contingency plans are in place in case the pandemic derails the Games again this year.
That uncertainty about the Olympics marks a new blow for national sponsors, including many of Japan’s biggest companies, such as
Canon Inc and Japan Airlines Co Ltd, who have collectively contributed more than $ 3 billion to support the event.
Assurances from the Japanese government and the International Olympic Committee this month that the Games would begin on July 23 as scheduled have not allayed concerns.
In interviews with two dozen sponsors, organizers and officials, sources described increased uncertainty and frustration as national infection numbers hit record highs in January, causing the public to turn against the event.
Nearly 80% of the public now believe the Games should be canceled or further delayed, according to a January Kyodo poll.
The fear that a protracted emergency declaration could further erode public confidence in the Games is also cause for concern, at least 11 of the sources said.
“We asked ourselves, ‘Are we really going to do this?'” Said a person seconded by his company to the Olympic organizing committee. The person, who, like most of those interviewed, refused to be identified because he could not speak to the media, said that even raising the issue of a “Plan B” is discouraged.
Canon’s CFO Toshizo Tanaka told reporters on Thursday that the company was working on the assumption that the event would go ahead as planned. “But we are internally considering how to respond in case it cannot be celebrated,” he said.
In response to questions from Reuters about sponsors altering its advertising and marketing strategy, the Tokyo organizing committee said it was working closely with all its stakeholders for the success of the Games and said it was receiving their full support. .
The committee also said it expects a series of measures implemented by the government of Japan, Tokyo and other prefectural authorities to improve the virus situation.
Braking
For some local sponsors, the benefits of supporting the Tokyo Olympics have long since faded. Six sources from the sponsoring companies said they were still awaiting details from the organizers so they could finalize preparations and launch advertising campaigns. Several said they had cracked down for fear of alienating the public.
“It’s a bit difficult to say ‘we support Tokyo 2021’ when the government is under so much criticism,” said a source who works for a financial institution that also sponsors games.
Although Japan has contained the spread of the virus better than many other countries, hospitals are still besieged by patients and the public has been advised to stay indoors as much as possible.
Prime Minister Yoshihide Suga, who has pledged to host the Olympics this year, has seen his support drop in recent weeks over handling the pandemic.
Asahi Group Holdings, the holding company for beer maker Asahi Breweries, a top-tier partner in the Olympics, has postponed some of the announcements it had planned to run last year after the Games were delayed, a company official said. on condition of anonymity, as he expects more clarity on the schedule.
A spokesperson for Asahi confirmed that it postponed some of its announcements after the Games were delayed.
Five sources from independent sponsoring companies said they were also delaying announcements and reconsidering marketing events. But many sources said they saw the Olympics as a “national project” that they should support.
“Staff would never say the words ‘cancellation’ or ‘delay,'” said a source from a corporate sponsor, who regularly attends meetings with Olympic organizers.
The source, whose company also sponsors the torch relay, said Japan’s 68 national sponsors had no choice but to extend their contracts last year. Corporate sponsors contributed an additional $ 200 million to cover delays.
“Of course we cannot ask them ‘what will happen to our money if it is canceled or delayed?'” Because the issue is very sensitive, added the source.
“Restricted event”
The uncertainty extends to the Olympic torch relay, scheduled for March 25 and intended to kick off the celebrations before the inauguration. But instead of planning parties for clients, sponsors are struggling because they don’t know if spectators will be allowed.
“We have not officially heard how ‘moderate’ the event will be this year,” said the source who works for the relay sponsor, adding that preparations for the relay were already underway at this time last year.
His company quietly abandoned plans to line the relay route with corporate stands and logos last year, he said, in part due to deteriorating profits during the pandemic.
Another person on the organizing committee was concerned that the torchbearers would appear “lonely” running through the streets without lines, leading to poor-quality content in the media.
“It’s a sad image and it doesn’t seem exciting at all,” the person said.
In a statement to Reuters, the Tokyo organizing committee said it was considering what countermeasures against the virus to take during the event, but said the relay will begin on the scheduled date.
For Motoji Kawasaki, an official in the city of Higashimurayama in Tokyo, an immediate priority is finding a replacement for Ken Shimura, a famous racer who died of COVID-19 last year.
“There is usually an air of excitement before the Olympics,” he said. But it is too naive to think about that this year. Now, it’s about coronavirus. “ Reuters
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