Should brands ‘abandon’ controversial celebrities to secure customer loyalty?

Should brands ‘abandon’ controversial celebrities to secure customer loyalty?

Chinese actor Li Yifeng dominated headlines again in September as worldwide brands reduce ties with him after he was reportedly accused of soliciting prostitutes. Global brands comparable to Prada, Honma, Chinese natural model King To Nin Jiom and 蒙牛真果粒 have put out statements concerning the termination of their partnerships with Li. Most of the brands didn’t go into element on the explanations behind the choice, however the statements got here shortly after Beijing police reportedly detained Chinese actor Li Yifeng, as he was accused of visiting prostitutes quite a few instances.
Li wasn’t the one controversial superstar that was boycotted by brands. Back in August final yr, Chinese actor Zhang Zhehan was boycotted by brands and the China Association of Performing Arts (CAPA) after posting image at Japan’s Yasukuni Shrine as it’s regarded by the Chinese authority as a logo of militarism. More than 20 corporations have reportedly reduce ties with Zhang, together with beverage model Wahaha, meals firm Hsu Fu Chi had, jewelry producer and retailer Pandora and materials model Shanghai Mercury Home Textile. 
It is not shocking to see brands have a tendency to instantly distance themselves with their ambassadors or superstar companions are all of the sudden caught in scandals and controversies. Likely, it’s to take away the model from coming throughout as one in help of those adverse actions within the eyes of shoppers. 
However, not many shoppers are vastly affected by controversial celebrities in actuality and this does not typically taint a model. A examine by YouGov revealed that when a star is within the information for controversial causes, 52% of shoppers are neither extra nor much less doubtless to devour their work, whereas solely 14% of Millennials, Gen X and Baby Boomers; and 18% Gen Z mentioned they’re much less doubtless to devour superstar’s work due to controversies. Conversely, 26% of Gen Z appeared to proceed their help regardless of superstar controversies.

Xen Chia, strategic advertising director of XGATE, identified that younger Millennials & Gen Z are extra reliant on social media as their supply for information in contrast to Gen X & Baby Boomers who belief conventional information for being extra impartial of their reporting. “Hence, Millennials & Gen Z are extra doubtless to take both supportive or disproving positions,” he mentioned. XGATE is a digital company which gives companies throughout the digital spectrum, and it received Silver award and Local Hero for the Influencer Agency of the Year at this yr’s Agency Of The Year Awards. Xen was additionally advisory committee member of Hong Kong Productivity Council (HKPC), delivering comparable digital advertising, social media, martech matters for HKTDC and finance corporations.
The Gen Z inhabitants reveals essentially the most polarisation in response to superstar controversies as a result of it is a era raised on social media, in accordance to David Ko, managing director of RFI Asia . “They are extra doubtless to take sides on any controversy and act on it, however they’re additionally the era that may transfer on and overlook rapidly. Sadly, that will come too late for a lot of celebrities already deserted by brands,” Ko added.
Agreeing with Ko is Terry Tsang, director of Narrow Door, which mentioned: “For Gen Z, they are going to establish the persona of a star on a extra private stage, so it’s not laborious to discover their model choice shifted promptly by an inappropriate motion brought on by the superstar. Their social circle will intensify this extremely polarised ‘love and hate’ mentality.”  
Tsang additionally believed that the adverse impression on the model related to the controversial superstar is proscribed, “If the model or product is of superior high quality, a misbehaved superstar would largely set off some unhealthy PR for a brief time frame. As lengthy because the model house owners take the daring step to reduce off the connection with the superstar, the adverse impression on the model or buy intent may very well be swiftly managed.”
How might celebrities get better from a scandal?
With celebrities and brands so carefully tied collectively, the very first thing is to assess when a scandal arises is whether or not there’s a substantial felony cost, in accordance to Chia. “If you may’t get out of it within the case of Li Yifeng, you may solely do injury management measures. First, apologise publicly earlier than the information get uncontrolled. Second, ask for public forgiveness with out giving excuses. Many celebrities attempt to give excuse for his or her motion; that may solely make issues worse on this trendy age of social media the place haters will spin off extra adverse tales to nail the celebrities,” Chia added.  
Meanwhile, Narrow Door’s Tsang mentioned that full honesty is the simplest instrument to remedy the case. “Deny, protection or telling the half-truth are the silliest of responses and most hated ways in a fact-finding period. Audiences are basically extra receptive to an imperfect superstar than a mendacity star. An open apology to the model and its shoppers will win again the respect and a second likelihood,” Tsang added.
On the PR entrance, RFI Asia’s Ko mentioned that there was a little bit of reckoning in influencer advertising, as brands are taking a really stringent strategy to measuring success past eyeballs and engagement, it’s all about high quality of followers, attributable buy intent and conversion, and most significantly, model security.
“Five years in the past the reply can be ‘possibly’, however nowadays of Cancel tradition and #MeToo, even in Asian markets comparable to China, brands transfer on rapidly. There’s no scarcity of potential KOLs,” he added.
Desmond Ku, founder and director of The Bridge Agency mentioned it’s higher to let the incident die down if the accusations aren’t substantiated, “If there may be sufficient proof, there isn’t any manner you may get away with it. Otherwise, simply do nothing and let the social conversations die down.”
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About the Author: Amanda