How can luxury manufacturers stay away from scandal in China? | Jing Everyday, #Luxurious #Manufacturers #Stay Away From #Scandal #China #Jing #Everyday Welcome to BLOGThis is the latest stream of breaking information and trends that we have acquired for you today: :
The following is an excerpt from Jing Every Day’s most recent insight report, “Surviving Scandal in China’s Luxury Market.” Packed with market analysis, best practices and case evaluations, the report is a must-read for anyone involved in avoiding or limiting the consequences of disputes as soon as they arise. Get your copy of the report HERE immediately.
The sensitivities and particularities of the Chinese market do not mean that a global model should simply fly under the radar and keep its mouth shut to avoid controversy, nor should it compromise its core values to work in mainland China. Precisely, a brand should only have the awareness of the market to know recommendations on how to adapt its sales method and avoid making important cultural or linguistic mistakes that could be the ones that are likely to end in controversy and cancellation.
While each scandal is totally different, the three most conspicuous practices in China are repeatedly used by producers, with the common thread being an acknowledgment of the protest, some kind of apology, and proactive actions to regain consumer awareness.
1. Apologize, wait and donate
The coach’s August 2019 “shirt controversy” illustrates how a model can deal with cancellation and ultimately deal with a little long-term damage. That categorical cycle of scandal and boycott was comparatively short-term, with the coach taking swift and decisive action that limited the impact of the controversy on the bottom line.
The story of the scandal follows a familiar pattern. In 2019, Chinese netizens saw a Coach t-shirt, originally designed in 2018 but cut ahead of production, that listed Hong Kong and Taiwan as distinct from China, listed individually. As mentioned above, this type of fake pass is specific to generating an outraged response from the central government in Beijing that does not allow any wiggle room in its definitions of national sovereignty. Backlash online in China was swift, with netizens criticizing and calling for boycotts of American model and movie star ambassadors Liu Wen 刘雯 and Guan Xiaotong 关晓彤 who resigned in protest.
However, this scandal quickly faded and customers continued to buy Coach products. According to the 2020 annual financial report of Coach’s guardian company Tapestry, gross product sales in Higher China reached $600.8 million regardless of the scandal, which is equal to 17% of the gross sales of Higher China. Coach’s total worldwide products, down just 1% from 2019.
In part, Coach was able to jump ahead of the controversy by making deliberate decisions that demonstrated an understanding of the market gained after more than a decade in mainland China. Notably, Coach immediately issued an apology when the scandal broke, then remained virtually silent, going dark on Chinese social platforms for weeks before posting a simple announcement that it might take part in a government-sponsored trade show.
Shortly after, Coach made a large donation to the city of Wuhan as COVID-19 began to spread through the city. The brand also moved quickly to swap out its former big-name model ambassadors with a few smaller, more curious influencers in an effort to remain comparatively low-key as wearers abandoned the t-shirt scandal.
Doing the bare minimum is sometimes a prudent methodology for producers through geopolitical or politically charged scandals. China’s frosty relationship with the Western world means that some of those controversies are likely to become more contained in coming years, and international producers in China can’t afford to turn away consumers in many parts of the world, regardless of The growing size of the China market.
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