What brands can learn from 2024’s biggest scandals

Each year, luxury and fashion brands — even those deeply established in China — find themselves grappling with new scandals, prompting everything from marketing adjustments to full-scale strategic overhauls. In 2024, while no major luxury brand faced nationwide boycotts like those that previously rattled Japanese or South Korean brands, several controversies still offer valuable lessons for those preparing for a potentially revitalized Chinese luxury market in 2025. Clashes with Chinese customers With millions of Chinese consumers traveling both domestically and internationally this year, brands have had to navigate heightened expectations around customer service. Many Chinese shoppers, empowered by their spending power, now expect top-tier treatment — a trend that has occasionally sparked widely shared social media clashes. In October, blogger Annie Datouzai reported feeling disrespected at a Fendi store in Tokyo when a sales associate abruptly took a shawl she was trying on to give to another customer. After a lengthy complaint process, Fendi staff apologized by kneeling, a gesture carrying cultural significance in Japan. This incident, widely discussed on Chinese social media, ignited debate over consumer rights and service standards abroad. Such incidents aren’t isolated. Reports of tensions between Chinese customers and luxury brand staff have surfaced from Tokyo to Paris. In one case, a shopper in Chongqing made Louis Vuitton staff count cash for hours after allegedly receiving rude treatment months earlier, only to leave without making a purchase. This underscores a clear message from Chinese consumers: luxury brands must recognize their value and provide consistent, respectful service. Platforms like Xiaohongshu amplify these stories, enabling consumers to share grievances and hold brands accountable. Influencers like Annie Datouzai help voice these concerns, building communities that advocate for improved service standards abroad. Celebrity controversies In addition to brands, some top foreign celebrities found themselves on the receiving end of criticism in the Greater China market this year. The year’s most publicized scandal involved Lionel Messi, who issued an apology on Weibo after his no-show at a Hong Kong friendly match in February. Fans had paid steep ticket prices to see the soccer icon, only to be disappointed. Amid rising backlash, Messi’s video apology stressed that he had no political motives, countering rumors that his absence was linked to diplomatic tensions. The incident, however, cast a shadow over his partnerships with brands like Louis Vuitton and Mengniu, with some social media users calling for terminations of these lucrative deals. Another major controversy featured Lisa from Blackpink, who was accused of wearing an outfit that allegedly copied a design by Chinese fashion designer Yue Yang this past July. Yang publicly criticized Lisa’s stylists for replicating her star-shaped top, which had been worn by other celebrities. The hashtag “Lisa’s team copied” trended on Weibo, garnering millions of views and inflaming debate over intellectual property in the fashion industry. Lisa’s fans, however, defended her, blaming the styling team instead. In light of these incidents, luxury brands are becoming more cautious in selecting local and international ambassadors, aware that celebrity missteps can jeopardize brand integrity. With an increasingly vocal consumer base, navigating the Chinese market demands not only cultural sensitivity but also the agility to address challenges, issue apologies, or pivot strategies at the drop of a hat. Luxury shaming and sensitive authorities Over the past decade, Chinese authorities have intermittently cracked down on conspicuous wealth, pressuring brands, especially those in luxury categories, to rethink their marketing tactics. In 2024, however, the concept of “luxury shaming” — criticizing overt displays of wealth amid economic hardship — gained traction among millennials and Gen Z rather than government officials. In March, Balenciaga’s $3,300 packing tape-inspired bracelet drew mixed responses on Chinese social media. Users on Xiaohongshu and Douyin humorously shared photos of regular tape labeled “Balenciaga,” poking fun at the high price tag by highlighting the simplicity of the design. While the luxury brand thrives on meme-worthy designs, the reactions highlight the delicate balance between bold creativity and cultural awareness. Even high-profile designers have faced backlash over perceived cultural insensitivity. In October, American designer Rick Owens, his wife Michèle Lamy, and the design duo behind the brand Fecal Matter were denied entry to Beijing’s Forbidden City due to their “dark and strange” attire. Chinese media and netizens largely supported the decision, emphasizing the importance of respecting historical and cultural sites. The incident, which took place at Beijing’s imperial palace on October 15, became a flashpoint on social media, where users compared it to dress codes expected at Western cultural landmarks. Owens’ experience also highlights China’s legislative efforts to ban “offensive” attire, a measure that, if enacted, could affect both domestic and foreign brands in China. Controversies in 2024 weren’t limited to luxury brands. In June, Nike faced backlash after a promotional video showed an Asian athlete licking a table tennis racket — an action many viewers found disrespectful given the sport’s cultural significance in China. The hashtag “Nike promotional video licking table tennis rackets” (#Nike宣传片舔乒乓球拍引热议) went viral, drawing attention to the sport brand’s portrayal of Chinese athletes. Legal ramifications Volkswagen encountered an even more serious issue when Jochen Sengpiehl, its chief marketing officer in China, was deported after testing positive for drug use following a trip to Thailand. In the highly competitive automotive market, this incident underscores the importance of strict adherence to local laws and standards. For brands operating in China, staying abreast of regulatory changes is essential. Halloween celebrations, for instance, have faced tighter restrictions in cities like Shanghai due to public safety concerns following the 2022 Itaewon tragedy. Regulations on attire deemed “offensive” are also evolving, requiring brands to adapt quickly to avoid public or legal repercussions. Despite these challenges, China’s legal environment hasn’t been entirely unforgiving to foreign brands. Last year, Lacoste won a trademark lawsuit, defending its iconic crocodile logo against Cartelo, a Chinese brand with a similar design. The Beijing Higher People’s Court ruled in Lacoste’s favor, ordering Cartelo to pay more than $2 million in damages, a win for brand protection in a competitive market.

What brands can learn from 2024’s biggest scandals

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Published December 30, 2024

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What brands can learn from 2024’s biggest scandals