The European luxury industry, especially fashion, is booming in China. Chinese consumers are willing to buy exclusive, one-of-a-kind products regardless of price as a way of asserting their social status. That’s why major European brands are betting on this market and building strategies to win it over. Consumers look for brands that best reflect their style, taste and personality. For Asian consumers, European means quality.
Many social platforms are used to enter the Chinese market and build an online reputation. This is where brands must work hard to have an optimal presence. Defining a solid strategy on these platforms, and working on them before entering the Asian market, is one of the most effective ways for brands to generate engagement and become top of mind for consumers.
Dolce&Gabbana: not a success story in China
One luxury fashion brand that had positioned itself very well in China until now is Dolce&Gabbana. But this week the Italian fashion house was forced to cancel a planned runway show in Shanghai after the controversy it found itself in over some advertising videos considered racist.
It’s a series of videos posted on its social media about using chopsticks. Under the title “Tribute to China, eating with chopsticks”, an Asian woman tries to eat Italian dishes such as pizza or spaghetti with chopsticks. She doesn’t seem to manage very well, and the narrator explains how to do it.
So instead of paying tribute to China, Dolce&Gabbana achieved the exact opposite: offending the entire Chinese community with one of the most widely labeled racist ads of its history. The campaign was heavily criticized for “trivializing” Chinese culture and portraying Chinese women in a stereotyped and even racist way.
What was the problem with this campaign?
The main criticism concerns the use of a false stereotype of a people lacking the culture to understand how to eat foreign food. Who is the ad aimed at? Chinese consumers, but with a parody of their culture that caricatures their customs, a strategy that didn’t work. As expected, the backlash was swift.
What have the consequences been for the brand?
The Italian fashion house Dolce&Gabbana was forced to cancel its planned Shanghai show after the video controversy, on top of the resulting loss of sales the brand is suffering these days. Amid the uproar, Dolce&Gabbana’s founders, Domenico Dolce and Stefano Gabbana, have released a video apologizing. Will it be enough?
If we want to sell online in China or internationally, we need to take into account a range of cultural, legal and tax issues.
In an increasingly global world with great growth opportunities, it’s essential to find partners with extensive local experience to ensure the success of every action carried out internationally.
