From WAGs to watches: luxury's soccer pitch

By Katie Reid and Francois Schott

ZURICH (Reuters) - Hosted by Switzerland and Austria, the Euro 2008 soccer tournament lacks the bling of previous events, as Victoria Beckham and her posse of footballers' wives and girlfriends aren't expected.

But even if Beckham and the WAGs stay at home with an unsuccessful England side, the makers of luxury goods still see the three-week tournament as a boon for glamour.

Beyond the marketing power of top players' zealously groomed companions, luxury has seen the global fanbase for football evolve with increasing television rights, and now some brands find soccer an attractive vehicle.

Around 234.7 million people follow football in Europe alone, according to Sport + Markt, a research and consultancy company in international sports business. With matches showing in China and India, companies' sights are set there and beyond.

"Football is acting as a shop window for the luxury brands through the WAGs," said Ron Cregan, business strategy head at brand communications agency Navyblue.

Many players themselves have also embraced the desire to look good, encouraging luxury brands to seek a bigger share of the huge publicity associated with what Brazilian player Pele called the "beautiful game".

Names such as Armani and Dolce & Gabbana have designed clothing for national teams as well as top-flight clubs across Europe and now top Swiss watchmakers Hublot and Ebel are getting in on the act.

"The thing most guys can spend money on is a luxury watch," Cregan said.

Hublot, bought this year by the world's largest luxury group LVMH, will act as official timekeeper during Euro 2008, whose main sponsors include mass brands such as Coca Cola, Carlsberg and McDonald's.

"It would have been a scandal if this event, which is probably the biggest event Switzerland ever got, would have been timed by a non-Swiss watchmaker, especially as Switzerland is known as the reference for watches," Hublot Chief Executive Jean-Claude Biver told Reuters.

Hublot has produced 2,008 special-edition watches, each costing 15,000 Swiss francs ($14,550) and they have all sold out, Biver said.

"We know that in luxury goods and in particular in watches, the more limited they are, the better they tend to do," said Landsbanki Kepler analyst Jon Cox.

"If you can find a peg for a limited edition...then there is obviously a market opportunity there," Cox said.

EMERGING MARKETS

The global luxury watch market is worth 18 billion euros, according to an estimate from Swiss bank Vontobel.