After Coach and Versace’s China blunders – how brands can avoid offending, and better engage with, the world’s largest luxury market
Any exchange student could have avoided the epic T-shirt fails made by Versace, Coach and Givenchy – but how can Western brands not just avoid trouble, but better engage with China’s vital customer base
Any China reporter or exchange student would have known not to make this mistake. In July, Versace, Coach and Givenchy released remarkably similar – and flawed – T-shirts, with designs variously implying Hong Kong, Macau and Taiwan were not part of China. A year earlier, China’s central government had warned international airlines against the same mistake. To add to the injury, the garments went on sale at a time when rioters in Hong Kong were calling for “liberation”.
Retribution was swift. Millions of mainland bloggers quickly attacked the luxury trio. The Chinese celebrity ambassadors of all three brands cancelled their contracts. In an online poll, 70 per cent of respondents said that if brands “insulted China” they would “never buy their products, even if I have nothing to wear”.
Like safety engineers sifting through a crash site, industry analysts are now trying to discover what went wrong. But more important is future prevention. The mishaps, everyone agrees, should mark a turning point in the way luxury brands do business in China, although there are divisions on exactly how.
“Luxury brands tend to operate with a centralised marketing strategy to ensure global consistency,” says Athena Chen, of consultants WGSN. “It’s not easy to ensure everyone within the pipeline across countries is aware of sensitivities.”
There is unanimity among experts that local staff need to be consulted more. “I’m seeing more and more luxury brands starting to bring in their China team to verify content before it goes out,” says Ashley Galina Dudarenok, of the consultancy Alarice International.
Another point of agreement is that Versace, Givenchy and Coach all reacted correctly to the outcry by immediately withdrawing the offending products, fully admitting their guilt and offering a heartfelt apology.
This sets the trio apart from other brands that have made similar blunders. A year ago, Dolce & Gabbana caused an uproar with a clumsy “tribute to China” social marketing campaign. Since then, it has closed shops because of falling Chinese sales.
Beyond apologies, the past few months have seen brands vying to declare love for China the same way Chinese pupils are encouraged to do at school. On October 1, a penitent Givenchy handed out a limited-edition red T-shirt, specially designed for the 70th anniversary of the People’s Republic.
A contrite Coach, meanwhile, invited Chinese celebrities to praise their motherland in front of the press at November’s China International Import Expo. In August, Hermès released a special crocodile leather national flag Birkin bag for China. And in October, at the after party for its Shanghai fashion show, Dior played the flag-waving classic Me and Beloved Country.