PR mistakes that foreign brands made in China: why they occur, how to manage and prevent them

In this article, we will discuss some of the most common types of PR mistakes foreign brands made in China, which include causing a discrimination-based crisis, political crisis, inappropriate behavior of a brand ambassador, and collateral impact on the parent company. Our team has rated these PR mistakes on a five-star scale rating crisis frequency and impact severity of every crisis.

Discrimination-based crisis

Crisis Frequency: 3/5 Impact severity: 5/5

Our team member **Remi explains that a discrimination-based crisis occurs when a foreign brand “underestimates growing national and cultural pride of the Chinese consumers”. This growing pride follows the rapid economic growth of China since the reform and opening up in 1978, which by many has been viewed as a way to catch up with the West and regain their dignity after the [Century of Humiliation](https://nationalinterest.org/blog/buzz/century-humiliation-how-opium-wars-made-china-what-it-today-124086?page=0%2C1). In school, Chinese children are taught that the Century of Humiliation began with the Opium war and ended with Mao’s reunification of China in 1949, thus linking their country’s humiliation to Western imperialists. In China, the current economic boom which puts them on par with the West is referred to 屌丝逆袭 (diaosinixi), which directly translates as [“loser strikes back”.](https://daxueconsulting.com/guochao-cultural-confidence-in-china/)**

An example of a discrimination-based crisis is the **2018 campaign by Dolce and Gabbana (D&G), intended to be a lighthearted comedy highlighting the differences between Chinese and Italian culture. The campaign presented a Chinese woman trying to eat Italian food such as pizza and cannoli with chopsticks. This was offensive for various reasons, for instance, it is considered [offensive in China to play with chopsticks](https://daxueconsulting.com/chopsticks-video-china-social-media/); the model was poking her food with chopsticks when this gesture is also considered extremely rude and disrespectful. In addition, the irony of an Italian person teaching a Chinese woman how to use chopsticks angered audiences. On top of that, the spokesperson’s tone and comments were viewed as sarcastic, patronizing, and belittling. Examples include: “Today we will use these small *sticks to eat this great traditional pizza” and “Is it still too big* for you?”, referring to a Sicilian Cannoli, a tube-shaped pastry.

Source: Youtube. Snippets from the D&G campaign

Political crisis

Crisis frequency: 4/5 Impact severity: 5/5

Sovereignty and territorial integrity are sensitive topics in China due to historical reasons. China, Hong Kong, Macau, and Taiwan have currently united as the “**One country, two systems”** constitutional principle of the PRC since the late 1990s. Foreign brands must not refer to Hong Kong, Macau, or Taiwan as independent countries, since doing so would trigger a long-lasting negative impact on the brand.

Foreign brands that disrespect territorial integrity can expect termination of contracts by brand ambassadors, and delisting of their products from e-commerce sites in addition to dramatically reduced sales. Chinese celebrities have the right to unilaterally terminate contracts, without paying liquidated damages if the brand disrespects Chinese history and culture or interferes with politics. This serves as protection to the celebrities’ public images, which is essentially what makes them a living. Gap, Givenchy, Burberry, The White House, a number of U.S airlines, Disney, Nike, and Ikea are some of the foreign brands which have made political PR mistakes regarding China.

Source: Business of Fashion. Kris Wu in an LV campaign when he was still a brand ambassador

Inappropriate behavior of brand ambassadors

Crisis Frequency: 3/5 Impact Severity: 3/5

Brands must be extra cautious when appointing a brand ambassador as a well-chosen one can bring heaps of exposure and increase sales, however, a badly chosen one can bring financial loss and affect the brand’s image and reputation. Since a brand ambassador is chosen to be the face of the brand, someone who perfectly encapsulates the ideals of the brand and what they mean — one mishap can detrimentally affect a foreign brand.

Kris Wu, A Chinese-Canadian rapper, was **accused** of sexually assaulting over 30 girls, including minors. A post on Weibo backed these claims with photos and screenshots. As a result, Kris Wu immediately lost his sponsorships with Porche, Burberry, McDonald’s, and L’Oréal among many others. LVMH brands that sponsored him including Louis Vuitton and Bvlgari did not drop Kris Wu until a police investigation found him guilty. The postponed reaction angered netizens who called for a boycott of LVMH brands.

Source: Instagram. Zhang Zhehan, posing in front of the Yasukuni shrine

Collateral Impact of the Parent Company

Crisis frequency: 3/5 Impact Severity: 4/5

When a parent company is involved in a PR mistake, Chinese consumers can be quick to boycott all its subsidiaries. Consequently, it is important that a foreign brand does not impulsively or publicly take stances on issues without cautiously thinking of the extent of the consequences that may follow.

The **Xinjiang cotton crisis occurred in Spring 2021 when brands boycotted cotton produced in Xinjiang due to it allegedly being produced through forced labor of Muslim Uyghurs in conversion camps. [H&M](https://www.bloomberg.com/graphics/2022-china-canceled-hm/)** was in the spotlight of this crisis, even being banned from leading Chinese e-commerce platforms.

You can find the extended version of this article about PR mistakes in China on Daxue Consulting’s website. Follow us to stay posted on China market trends.

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