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A The first major step for any brand looking for success in a particular market is to know this market. Between the US-China trade war and anti-government protests in Hong Kong that fuel tensions between Beijing and the city, companies seeking to attract buyers to the continent's burgeoning luxury goods market must be particularly vigilant. It's now a very bad time to stumble.
Yet in recent months, luxury brands that have dominated the landscape of designers for decades have fallen to the first hurdle regarding China, shaking diplomatic feathers in Beijing and upsetting its potential customers. & Nbsp;
That was & nbsp;the wrong step& nbsp; of the Italian fashion house Dolce & amp; Gabbana in November, which sank into a public relations crisis after its & nbsp;"Tribute to China"& nbsp; The social media marketing campaign (top) features model Zuo Ye who struggles to eat pizzas, spaghetti and cannoli with chopsticks. The concept was short of research and cultural sensitivity, and it & nbsp;triggered a boycott& nbsp; Chinese consumers who have seen Alibaba and JD.com remove the brand from its sites and department stores in mainland China are getting rid of D & G shares; The fiasco & nbsp;almost ruined Ye's career. & nbsp;
Not to mention the fact that Stefano Gabbana plunged the brand into a deeper controversy by appearing to carry out a racist rant on Instagram, which, according to the company, resulted from the creation of his account & nbsp;pirate. The brand then canceled its highly anticipated show in Shanghai. Nine months later and despite& nbsp; excuses, Dolce & amp; Gabbana still struggles to get out of & nbsp;damage to reputation. It was not the first brand to be launched on Chinese social media –Balenciaga felt the boot& nbsp; The footage of a security guard during a fight with a Chinese client in Paris last April became viral.
What's a mark to make, then, when one seeks to repair one's wrongs? "To recover from these episodes is very difficult. It is true that things come and go very quickly on social media and on the Internet, that what makes the headlines today is an old story of tomorrow. Make excuses, drop down a bit, then come back slowly and try to win back those consumers, "said Alessia Grassi, a senior lecturer in marketing at Huddersfield University.Forbes.
One after the other
It turned out that D & G was a big fan of PR mistakes, leading the way as many other designers came across a portal of marketing nightmares. Burberry followed weeks later with his deaf and deaf lunar New Year campaign, a dark, family-style photo shoot that Weibo users compared to scenes from & nbsp;Asian horror movie, according to & nbsp;Jing Daily. "It's a group of people who are planning to kill this ultra-big grandmother and fight hard to get her inheritance," wrote a user. & Nbsp;
This month, Versace, Coach and Givenchy stood in line to apologize to their Chinese customers for selling t-shirts, implying that Hong Kong, Macao and Taiwan were independent of the continent, in a move perceived as a threat to China's sovereignty. The shirts were removed from the sale and, in the case of Versace, destroyed. But the damage was done: Chinese ambassadors Liu Wen, Yang Mi and Jackson Yee broke their ties with the brands, damaging their local reputation. Meanwhile, Swarovski was caught off guard when he hinted that Hong Kong was a & nbsp;independent country on its website.
A market too precious to lose
D & G was the example that no one should have followed. After all, designers have injected more dollars into marketing on the lucrative Chinese market. Young Chinese consumers & nbsp;who are happy to spend& nbsp; are& nbsp; too precious to lose, while Chinese consumer spending represents globally& nbsp; a third of the global luxury shopping sector. Despite the general slowdown in its economy over the last 27 years, the luxury goods market in mainland China has grown 20% for the second consecutive year in 2018, reaching a turnover of $ 25 billion. (23 billion euros), driven by growing demand. The scale of the & nbsp;the industry is growing,& nbsp; stop the trend of slowing global economic growth.& nbsp;
Major luxury brands are increasingly using social media for & nbsp;attract young buyersbut the relationship goes both ways, as clever buyers can quickly become the referees to follow. They are not only told what to buy; they decide and encourage others to do the same. & nbsp;
"Today, with the power of social media and influencers, a small faux pas can quickly have huge consequences for businesses very quickly",& nbsp;Sarah Willersdorf, Head of BCG's Luxury, Fashion and Beauty Activities, tells & nbsp;Forbes.& nbsp;"This is especially true in China, where social media and influencers are the main driver of luxury shopping." So why are luxury brands so wrong about the market in which they are trying to grow? & Nbsp;
A strong sense of patriotism and national pride makes consumers attentive to anything that seems to weaken it. Athena Chen, editor-in-chief of the WGSN trend forecasting company, tells & nbsp;Forbes"Chinese consumers, especially younger generations, are digital savvy and knowledgeable and proud of their country. They do not like the exoticization of Chinese culture and brands must be careful not to appear condescending towards Chinese consumers in their marketing messages. "
"Brands have to remember that when they enter their market they are guests," says Grassi. "They must behave and respect the country, regardless of their personal convictions." & Nbsp;
Understand the political situation
The tension between Beijing and Hong Kong is at its height as anti-government demonstrators in the city hold a three-month protest, initially in response to an extradition bill now suspended. Separately, a trade battle between the United States and China does not seem to have an end in sight, as negotiations between Donald Trump and Xi Jinping remain deadlocked.
Protesters form a human chain during the 12th weekend of anti-government protests in Hong Kong.
Getty Images
"There is a lot of political instability going on, and you have to be aware of it, respect it and make sure that the words you use are correct, and that the way you describe a part of China does not shock. no one provoke any offense, "Fflur Roberts, an analyst at the Euromonitor market research company, tells & nbsp;Forbes.
Investing in local experts is invaluable to avoid damaging gaffes. Willersdorf: "All brands, including fashion and luxury brands, have to be extremely cautious about cultural sensitivities, and that's all there is to it. Localized products, marketing materials and events must all be, at a minimum, validated and ideally co-created with local teams with in-depth knowledge of the cultural norms of these countries. Multinational companies that take a unique approach. seem to cut the corners. Chen said it was partly "due to global brands working to maintain consistency across all markets, and it can be difficult to make everyone understand what these sensitivities are."
Tod's collaboration in 2018 with Chinese influencer Tao Liang, better known as Mr. Bags, is proof that strategic co-creation can effectively secure the bag. The collection generated 3.24 million RMB ($ 460,000) in 2002.& nbsp; 6 minutes– beat the sales record of the social media star in 12 minutes the year before, during its collaboration with Givenchy, according to & nbsp;Fashion company.
There is hope when brands seem to learn from their mistakes and provide additional training to employees, Chen said. Follow Gucci & nbsp;Scandal of the "blackface pull"Marco Bizzarri, CEO, announced a long-term plan for diversity and inclusion, including a $ 5 million budget & nbsp;"Changemaker", scholarship and volunteer program& nbsp; "It will have an impact on young people and the African-American community." The move was in partnership with fashion designer Dapper Dan. Kering's company subsequently announced that it had hired American lawyer Renee Tirado as & nbsp;world leader of diversity.
"Brands must be credible. If they want to appear attentive to their consumers, they must at least know their consumers. And think about it sometimes, it's just a matter of stopping thinking, "says Grassi.
"The only way to" recover "is to stop making these mistakes."
Get Forbes& # 39; Daily headlines directly in your inbox information on the world's greatest entrepreneurs and superstars, expert career advice and secrets to success. "
CREDIT TOP IMAGE: LDOPE – YOUTUBE
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A The first major step for any brand looking for success in a particular market is to know this market. Between the US-China trade war and anti-government protests in Hong Kong that fuel tensions between Beijing and the city, companies seeking to attract buyers to the continent's burgeoning luxury goods market must be particularly vigilant. It's now a very bad time to stumble.
Yet, in recent months, luxury brands that have dominated the landscape of designers for decades have fallen to the first hurdle regarding China, ruffling diplomatic feathers in Beijing and upsetting potential customers.
That was the deception of the Italian fashion house Dolce & Gabbana in November, which turned into a public relations crisis after its social media marketing campaign "tribute to China" (top): the model introduced, Zuo Ye, struggling to eat pizzas, spaghetti and cannoli with the help of chopsticks. The concept lacked research and cultural sensitivity and led to a boycott of Chinese consumers who saw Alibaba and JD.com remove the brand from its mainland China sites and department stores to get rid of D & G shares. almost ruined Ye's career.
Not to mention the fact that Stefano Gabbana has plunged the brand deeper into the controversy by appearing as a racist incursion on Instagram, which, according to the company, is the result of hacking his account. The brand then canceled its highly anticipated show in Shanghai. Nine months later and despite an apology, Dolce & Gabbana is still struggling to get rid of damage to his reputation. It was not the first brand to be launched on Chinese social media: Balenciaga felt that the photos of a security guard in a fight with a Chinese client in Paris last April had become viral.
What's a mark to make, then, when one seeks to repair one's wrongs? "To recover from these episodes is very difficult. It is true that things come and go very quickly on social media and on the Internet, that what makes the headlines today is an old story of tomorrow. Make excuses, drop down a bit, then come back slowly and try to win back those consumers, "said Alessia Grassi, a senior lecturer in marketing at Huddersfield University. Forbes.
One after the other
It turns out that D & G was the dude on the heels of colossal public relations gaffes, leading the way as many other designers had come across a portal of marketing nightmares. Weeks later, Burberry followed with his deaf and deaf lunar New Year campaign, a dark family portrait style shoot that Weibo users compared to scenes from an Asian horror film, according to Jing Daily. "This is a group of people who are planning to kill this ultrariche grandmother and are fighting hard for her legacy," wrote a user.
This month, Versace, Coach and Givenchy stood in line to apologize to their Chinese customers for selling t-shirts, implying that Hong Kong, Macao and Taiwan were independent of the continent, in a move perceived as a threat to China's sovereignty. The shirts were removed from the sale and, in the case of Versace, destroyed. But the damage was done: Chinese ambassadors Liu Wen, Yang Mi and Jackson Yee broke their ties with the brands, damaging their local reputation. Meanwhile, Swarovski was caught off guard when he hinted that Hong Kong was an independent country on his website.
A market too precious to lose
D & G was the example that no one should have followed. After all, designers have injected more dollars into marketing on the lucrative Chinese market. Young Chinese consumers who are happy to spend are too precious to be lost, while Chinese consumer spending globally accounts for one third of the global luxury shopping sector. Despite the general slowdown in its economy over the last 27 years, the luxury goods market in mainland China has grown 20% for the second consecutive year in 2018, reaching a turnover of $ 25 billion. (23 billion euros), driven by growing demand. The size of the industry is only growing, going against the trend of slowing global economic growth.
Big luxury brands are increasingly using social media to attract young buyers, but the relationship goes both ways, as clever buyers can quickly become the referees to follow. They are not only told what to buy; they decide and influence others to do it too.
"Today, with the power of social media and influencers, a small faux pas can quickly have huge consequences for businesses very quickly", Sarah Willersdorf, Head of Luxury, Fashion and Beauty Division at BCG BCG, tells Forbes. "This is especially true in China, where social media and influencers are the main driver of luxury shopping." So why are luxury brands so wrong in the market they are trying to grow?
A strong sense of patriotism and national pride makes consumers attentive to anything that seems to weaken it. Athena Chen, editor of the WGSN trend forecasting company, said Forbes"Chinese consumers, especially younger generations, are digital savvy and knowledgeable and proud of their country. They do not like the exoticization of Chinese culture and brands must be careful not to appear condescending towards Chinese consumers in their marketing messages. "
"Brands have to remember that when they enter their market they are guests," says Grassi. "They should behave and respect the country, regardless of their personal beliefs."
Understand the political situation
The tension between Beijing and Hong Kong is at its height as anti-government demonstrators in the city hold a three-month protest, initially in response to an extradition bill now suspended. Separately, a trade battle between the United States and China does not seem to have an end in sight, as negotiations between Donald Trump and Xi Jinping remain deadlocked.
Protesters form a human chain during the 12th weekend of anti-government protests in Hong Kong.
Getty Images
"There is a lot of political instability going on, and you have to be aware of it, respect it and make sure that the words you use are correct, and that the way you describe a part of China does not shock. nobody any offense, "says Fflur Roberts, an analyst at Euromonitor, a market research firm. Forbes.
Investing in local experts is invaluable to avoid damaging gaffes. Willersdorf: "All brands, including fashion and luxury brands, have to be extremely cautious about cultural sensitivities, and that's all there is to it. Localized products, marketing materials and events must all be, at a minimum, validated and ideally co-created with local teams with in-depth knowledge of the cultural norms of these countries. Multinational companies that take a unique approach. seem to cut the corners. Chen said it was partly "due to global brands working to maintain consistency across all markets, and it can be difficult to make everyone understand what these sensitivities are."
Tod's collaboration in 2018 with Chinese influencer Tao Liang, better known as Mr. Bags, is proof that strategic co-creation can effectively secure the bag. The collection generated 3.28 million RMB ($ 460,000) in 6 minutes – beating the sales record of the social media star in 12 minutes the year before, when it collaborated with Givenchy, according to the same source. Fashion company.
There is hope when brands seem to learn from their mistakes and provide additional training to employees, Chen said. Following the scandal of Gucci's blackface sweater, CEO Marco Bizzarri announced a long-term plan for diversity and inclusion, including a "changemaker" program, scholarships and a $ 5 million volunteer program. dollars "that will have an impact on young people and the African-American community". partnership with fashion designer Dan Dapper. The Kering-owned company subsequently announced that it had hired Renee Tirado, a US lawyer, to become Global Head of Diversity.
"Brands must be credible. If they want to appear attentive to their consumers, they must at least know their consumers. And think about it sometimes, it's just a matter of stopping thinking, "says Grassi.
"The only way to" recover "is to stop making these mistakes."
Get Forbes& # 39; Daily headlines directly in your inbox information on the world's greatest entrepreneurs and superstars, expert career advice and secrets to success. "