Surviving scandal in China’s luxury market

For international brands large and small, expanding into and operating in the People’s Republic of China means coming to grips with the possibility of encountering — or, more accurately, being pulled into — scandals and controversies that can threaten the bottom line, make for bad PR, and in rare cases, necessitate a partial or complete exit from the market. This has become particularly true over the past decade, as global brands have experienced a much more tightly regulated business environment in mainland China.

In Jing Daily’s latest Insight Report, we take a look at China’s evolving “cancel culture,” examining the nature of corporate scandal in China, the types of controversies brands need to be aware of, and ways to navigate scandals if and when they do occur.

Table of Contents:

• Executive Summary
• Introduction: Scandal and Cancellation in China’s Business World
• Defining China’s Cancel Culture
• • • Scandals That Stick
    • The Role of Geopolitics
    • A Xinjiang Problem For International Brands
    • What Does “Common Prosperity” Mean For Luxury?
  • Spotlight Interview: Mae (Qianru) Mei, Business Director and Head of Lifestyle and Corporate Advisory at Gusto Luxe
• Breaking Down Recent Scandals
• • • Bottom-Up Scandals
    • Digging For Dirt
    • Wrong Place, Wrong Time
    • Manufactured Outrage and Celebrity Cancellations
• How to Survive Scandal in China: Best Practices
• • • Apologize, Wait, and Donate
    • Active Response
    • Rapid Termination and Replacement
• Conclusion: What Could Be Next