The Japanese corporates that have invested in the Tokyo Olympics as sponsors are in a huge dilemma. They are not sure whether to go ahead with their marketing plans around Tokyo Olympics or not. As reported by Financial Times most of the Japanese sponsors are afraid that the event can damage their brands. According to the report, to assess any potential damage, sponsors have now hired consulting companies.
According to FT’s report, Sponsors have hired consulting firms to advise them on whether to push ahead with Olympic-themed marketing plans or limit their association with an event that could damage their brands. The consultants include Kantar Group from Britain and two Japan-based firms, Macromill Inc and Intage Holdings, the FT said, citing unidentified people.
More than 60 Japanese companies, such as Toyota Motor Corp and beverage maker Asahi Holdings, have together paid more than $3 billion to sponsor the Tokyo Olympics 2020. Many Japanese citizens want the games cancelled or delayed again, amid concern that tens of thousands of foreign athletes and Olympic officials could bring new COVID-19 variants and further pressure on an already stretched medical system.
The Japanese government and the organisers are under heavy criticism for hosting the event in such circumstances. An online petition calling for the Tokyo Olympics to be cancelled has gained tens of thousands of signatures after it was launched.
A year-long delay in Tokyo Olympics has led to financial losses worth $5.42 billion to $6.32 billion. The impact would apply both to the nations, which have invested heavily in making the Olympics a national showcase, and companies that have poured an estimated $3 billion into sponsorships. If the event is postponed again Japan will have to face further losses. Moreover, many sponsors could pull out in the coming days as it could harm the image and Japan could face further losses.