China Brands, Marketing & Consumers
NIKE vs ERKE: Two Sportswear Brands Trending on Weibo for Totally Different Reasons
While domestic brand Erke is all the hype, Nike is growing increasingly unpopular.
American sportswear brand Nike and Chinese domestic sportswear brand Erke (鸿星尔克) both popped up in the Weibo trending lists this week, but for two totally different reasons.
While Nike got caught up in controversy, Erke was praised. The stark contrast between how the two brands are represented on social media today is telling of their recent position in the Chinese market.
Nike Store Employee vs Chinese Migrant Worker
The trending incident involving Nike this week was about a bad shopping experience at the Nike store in Kunming, Yunnan province. On August 13, the 44-year old migrant worker Mao Zhigao (毛治高) took his three kids out shopping in the Nike store to reward them for their good school results.
What was supposed to be a fun family occasion turned into an awful afternoon when a female employee at the store reportedly snatched Nike clothes out of the hands of the youngest son and put them back on the hangers again.
When the boy tearfully told his parents about what happened, the incident soon escalated. The boy’s father, Mr. Mao, believed that the Nike employees were treating the family badly based on their appearance. As a migrant worker working on a construction site, Mao had just returned from work and was in his work clothes.
When the young boy’s mother confronted the employee about what had happened, the altercation apparently turned physical when the Nike employee started scratching and hair-pulling. Local police officers eventually stepped in to mediate.
Although the Mao family demanded an apology from the Nike staff and also filed a complaint to Nike, they did not receive any reply. After six days, local media got involved and the story went trending.
Nike then responded to the issue with an apology and statement that the female employee was dismissed.
By Monday, August 23rd, some hashtags related to the incident received millions of views on Weibo:
- “Nike’s Kunming Store Responds to Suspected Discrimination of 9-Year-Old Boy” (#昆明耐克店回应男孩疑遭歧视#）- 8.29 million views.
- “Discriminated Rural Migrant Work Wants a Public Apology from Nike” (#遭歧视民工希望耐克公开道歉#) – 100 million views.
- “Employee Who Discriminated Rural Migrant Worker is Sacked” (#歧视农民工耐克店员被开除#) – 160 million views.
- “Female Employee Involved in Nike’s Kunming Store Incident Fired” (#昆明耐克店涉事女员工已被辞退#) – 140 million views.
On social media, the Nike incident was mostly viewed through the angle of unfair treatment and the international brand discriminating against a Chinese migrant worker.
Erke as ‘Patriotic Brand’
While Nike is being criticized, Erke, the Chinese sportswear brand by Hongxing Erke Group (鸿星尔克), is praised because it announced to donate one million yuan ($153,800) to Henan Museum to support the museum’s rebuilding project after the devastating flood.
A picture posted by Henan Museum on its Weibo account (@河南博物院) shows that Erke put the donation in the name of “national netizens.”
The picture soon went viral on Weibo, with the hashtag “ERKE Donates One Million Yuan to Henan Museum” (#鸿星尔克向河南博物院捐赠一百万元#) receiving 450 million views, and “ERKE Together With National Netizens” (#鸿星尔克 携全国网友#) receiving 140 million views.
This is the second time that Erke made a donation to help Henan in light of the floods. Its first donation in late July of this year is actually what helped the brand back into the limelight.
The domestic sportswear brand then donated 50 million yuan ($7.7 million) to the Henan flood. This attracted a lot of attention on Chinese social media since Erke was known as a relatively low-profile brand that seemingly has not been doing too well over the past years.
After people found out that the company donated such a high amount of money to help the people in Henan despite its own losses, its online sales went through the roof – everyone wanted to support this generous ‘patriotic brand.’ While netizens rushed to the online shops selling Erke, the brand’s physical shops also ran out of products with so many people coming to buy their sportswear. One female sales assistant was moved to tears when the store suddenly filled up with so many customers.
Image via Ellemen.
Lei Jun, the founder of the electronics company Xiaomi, also joined the Erke hype. He published a picture of him wearing Erke shoes on Weibo, the hashtag dedicated to this topic then received about 200 million views (#雷军晒鸿星尔克鞋#).
Consumer Nationalism and Sportswear Brands
It is not just Nike that has seemingly become less popular in China. Earlier this month, one hashtag about another global sports brand, Adidas, also went viral on Weibo. The trending hashtag was about the brand’s revenue growth of Q2 in China dropping by 16% (#阿迪达斯在华收入下跌16%#), receiving more than 110 million views.
During its Q2 2021 conference call, in response to a question about the current consumer demands regarding global brands vs domestic brands in China, CEO of Adidas Group Kasper Rorsted said: “We continue to see a strong demand for products in China, [but] we believe right now that demand has been scooted towards Chinese local brands more than global brands.”
On August 24, news about the online sales of the Chinese Anta Sportswear brand topping those of Nike and Adidas received over 200 million views on Weibo alone (#安踏线上首超耐克阿迪#).
It seems that international sports brands have to look for new ways of winning over consumers in the Chinese market. This shift partly relates to two issues.
The first major issue that has impacted the popularity of brands such as Nike and Adidas has to do with the fact that they are members of the BCI (Better Cotton Initiative), which came under fire in China earlier this year after it had announced it would cease all field-level activities in the Xinjiang region with immediate effect due to concerns over the alleged use of forced labor.
The BCI ‘Xinjiang Cotton Ban’ led to an online ‘Xinjiang Cotton Support’ campaign in China. The BCI member brands boycotting Xinjiang cotton were soon labeled as being ‘anti-China.’ Chinese staff members at Nike and Adidas stores were scolded during live streams, and photos of people burning their Nike shoes soon started circulating on social media.
Another trend that has impacted the influence of foreign sportswear brands in China relates to the rise in popularity of local, Chinese sportswear brands. Domestic brands such as Anta Sports and Lining have been active in Chinese since the 1990s and are now profiting from changing consumer sentiments in a new era that is all about “proudly made in China.”
Besides incorporating more Chinese elements into their product design, Chinese celebrities also play a crucial role in the marketing of these domestic brands. Chinese actor and singer Xiao Zhan (肖战) was praised on social media for becoming the new brand ambassador of the Chinese sportswear brand Lining. When celebrity Wang Yibo became the spokesperson for the domestic brand Anta Sports, one Weibo hashtag page on the topic received over one billion views (#王一博代言安踏#) in late April of 2021. The promotional poster featuring Wang Yibo shows him wearing a t-shirt with “China” on it, including the national flag – profiling Anta as a ‘nation-loving brand.
On social media, it already became clear earlier this year that a distinction was being made between foreign, ‘anti-Chinese’ brands, and domestic, ‘patriotic’ brands (read more here).
Erke indirectly profited from these existing consumer sentiments when, as a relatively smaller domestic brand, it was hyped as the no 1 patriotic sportswear brand for donating so much money to help out during the Henan floods.
Although Nike and Adidas each also contributed 20 million yuan ($3 million) toward Henan floods relief efforts, their donations barely received online attention. In fact, Nike was even condemned online for donating “zero yuan” at a time when it had already announced donating 20 million (more about that here).
The Erke hype even went so far that Chinese livestream sellers of Nike and Adidas notified their viewers that they actually supported the domestic Erke brand.
Adidas livestream sellers supporting Erke.
These nationalistic consumer sentiments also surfaced during the Olympics, when Chinese sport shooter Yang Qian was criticized for her collection of Nike shoes. One Beijing Television journalist wrote on social media: “Chinese athletes, why would you want to collect Nike shoes, shouldn’t you take the lead in boycotting Nike? Aren’t our domestic brands such as Erke, Li Ning, and Anta good enough [for you]?”
During the Tokyo Olympics, Team China’s podium uniform was designed by Chinese sportswear brand Anta, which will also be the Official Sportswear Uniform Supplier for the 2022 Winter Olympics.
Anta x Olympics.
In light of everything that happened during the past few months, it is likely that for the time to come, domestic brands such as Erke will continue to flourish while foreign brands might see their China sales slump.
Meanwhile, on social media, netizens continue to express their support for domestic brands while denouncing Nike.
Multiple commenters wrote: “Erke is like ‘I’ve gotten wet, so I want to give others an umbrella too.’ Nike is like ‘Put down those clothes, your dad looks dirty, how you can afford to buy?'”
“I’ll support domestically produced products,” many others write: “Brands that are not patriotic should get out of the country.”
By Wendy Huang & Manya Koetse
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China Brands, Marketing & Consumers
China’s ‘Chanel’? Chinese Beauty Brand Florasis Is Raising Eyebrows on Weibo
Some netizens wonder if the Florasis PR team might have lost their marbles, as their strategy appears to have taken an unusual turn, featuring emotionally charged replies on Weibo.
In the world of Chinese cosmetic brands, all eyes are on Florasis (花西子) recently. This Chinese make-up brand gained significant attention earlier this month when the popular beauty influencer ‘Lipstick King’ Li Jiaqi promoted one of their eyebrow pencils during a livestream.
After some viewers questioned whether a single eyebrow pencil costing 79 yuan ($10.8) was perhaps too expensive, Li lashed out and suggested viewers should instead ask themselves if they worked hard enough to deserve a raise.
That moment triggered a social media storm (read here), and suddenly everyone knew about Florasis, which is known as Huāxīzǐ (花西子) in China.
“Huaxi Coins” and Public Mockery
The incident sparked a series of memes and discussions, and among them, the question of what one can buy with 79 yuan in China today was a big one.
While some suggested they could feed an entire family for one day with 79 yuan, others said that it would buy their office lunches for a week. This humorous situation gave rise to the term ‘Huaxi Coins’ or ‘Floracash’ (花西币), with netizens playfully using the price of one Florasis eyebrow pencil’s price as a new currency unit (one ‘Huaxi Coin’ equals 79 yuan/$10.8).
Although Li Jiaqi apologized to his viewers soon after his controversy, it took some time for Florasis to respond the controversy the brand found itself embroiled in.
Florasis, a brand established in Hangzhou in 2017, is deeply connected to Li Jiaqi, as he has been the chief brand ambassador since 2019 and has actively participated in their product development.
Li Jiaqi x Huaxizi/Florasis.
The entire social media storm prompted a heightened focus on why Florasis products are perceived as relatively expensive.
As reported by Qing Na at Dao Insights, one post that gained significant traction on September 12 revealed that a five-piece Jade Makeup Brush set from Florasis, priced at 919 RMB ($126.28), was, in fact, made by using synthetic fiber bristles, considered cheap and of lower quality. This revelation garnered over 240 million views in just a few hours, adding to the public mockery of the national beauty brand.
The Florasis Dream: Becoming a Leading International Luxury Brand
On September 19, Florasis/Huaxizi finally apologized on social media for its late response to the controversy, and the brand stated that the incident provided an opportunity for them to listen to “the voice of their consumers,” although they did not delve deeper into the price of their products.
Florasis apology on Weibo, screenshot.
Although people criticized the letter posted by Florasis and the words they used in it, their decision to release a statement initially seemed fruitful: they gained 20,000 new followers in a single night.
Chinese netizens picking apart the apology letter posted by Huaxizi/Florasis. Via Xiaohongshu user @边际平衡術.
While the entire situation drew more attention to the Chinese make-up brand, it also seems to have prompted Florasis to reconsider its own position in the cosmetics industry, both in China and globally. Because on September 26th, the brand publicly and somewhat suddenly declared its ambition of becoming a leading international luxury cosmetics brand.
“Me, Florasis, I’m 6,5 years old,” the post read: “I have a dream: to be a high-end brand, rooted in China, going global.”
Florasis announces its ambition to become a globally recognized make-up brand.
In their post, Florasis used a quote saying “A Positive Mindset Shapes Huaxizi’s Lifetime,” which is derived from the title of a well-known Chinese self-help book from 2012 called “A Positive Mindset Shapes a Woman’s Lifetime” (好心态决定女人一生).
One of the main ideas presented in this book, authored by Li Jin (李津), is that success can never come from a negative or pessimistic mindset; if you see yourself as a failure, you’re likely to fail, but if you envision success, you’re more likely to achieve it.
Next to Chanel: Confusion about Florasis’ Public Relations Tactics
The company’s ambition, on its own, may not be particularly surprising. As stated in a report published by Paicaijing (派财经), Florasis’ co-founder, Fei Man (飞慢), had previously questioned in an interview why Chinese brands were always associated with being cheap, expressing Florasis’ wish to break the “price ceiling” (价格天花板) and escape the ongoing “low price competition” (低价竞争) in China’s beauty industry by delivering high-quality products at a premium price.
However, the wording and the timing seemed odd, and the post created both banter and confusion about Florasis’ public relations tactics, especially because they did much more than that post alone.
On September 20th, approximately ten days after the ‘eyebrow pencil gate’ controversy, the company’s founder, Hua Mantian (花满天), made an announcement on his WeChat channel. He revealed that the brand would be distributing their premium eyebrow pencils, originally priced at 119 yuan ($16.3), during a livestream promotional event that night. They planned to give away free pencils to hundreds of viewers every ten minutes. By giving out over 10,000 free eyebrow pencils in total, the company allegedly hoped to gain more feedback on their product in order to further improve it. Over 400,000 people tuned in to that livestream.
Since then, Florasis seems to be doing all it can to catch the public’s attention, and some netizens even wonder if the editors at the Florasis PR team might have lost their marbles, as they keep posting a lot of unusual replies, – some emotional and somewhat unhinged, – to their own threads on their Weibo account.
Throughout September 26, the account posted dozens of texts/replies, responding to many netizens’ comments. Florasis not only declared its wish to be China’s ‘Chanel’ when it comes to beauty products, it also praised its own efforts in contributing to women’s mental health, preserving traditional culture, innovating cosmetics, and much more.
Their social media texts included phrases such as: “I’m super awesome,” or writing:
“I’m really becoming a bit emotional. I established my own laboratory at just three years old! We now have over 200 research partners, and their leader is Li Huiliang (李慧良), known as the “Number One in Chinese Cosmetics Research and Development.” He’s like a superstar in the industry. We have five big innovation research and development centers, over 7000 square meters, larger than a football field. Don’t I deserve a gold star sticker for that?”
And:
“As a Chinese brand, every generation has a mission. Our generation’s mission is to fight in the international market with high-end presence! You can mock and ridicule me, it’s ok [sad face emoji] I’m already neighbors with Louis Vuitton and Gucci at the [Hangzhou] West Lake [shopping street]! And I will be next to Chanel at Japan’s top-notch department store Isetan. Next up is France, Dubai, America, see you there!”
Subsequently, the hashtag “Florasis Says It’ll Be Side-to-Side with Chanel” (#花西子称要和香奈儿门对门#) received over 470 million views on Weibo. Another hashtag, “Florasis Wants to Be a High-end Brand” (#花西子称想做高端品牌#), received more than 220 million views.
Mad Marketing
By now, the hashtag “Huaxizi Lost It” (#花西子发疯#) has also gone trending on Chinese social media platform Weibo, where people have different thoughts on what might have triggered Florasis’ social media behavior.
While some people really think that Florasis has gone crazy, others see the entire ordeal as a social media spectacle meant to distract attention from what happened with Li Jiaqi, or as a cheap marketing stunt.
One poll conducted by Sina News asked people about the situation. The majority of respondents believed that the social media editor must have lost their mind, while others considered it just another version of “bad marketing is still marketing” – suggesting that even if the publicity strategy is cheap or questionable, it is still used as a marketing tactic to gain attention.
Another question is: does it even matter what the reason behind this unusual online media approach is?
If Florasis is really letting its PR team run wild, it is doing so at a crucial moment, shortly after a significant controversy that cast the brand in a negative light. This moment calls for careful control rather than unconventional tactics. Furthermore, the social media strategy appears to be at odds with Florasis’ typical marketing image, which emphasizes tradition, glamour, and perfection.
If Florasis is using this strategy to attract and divert attention, it also appears that this approach is not yielding the desired results, as many people express a common sentiment: “I didn’t purchase Florasis before, and I certainly won’t be buying it now.”
By Manya Koetse
With contributions by Miranda Barnes
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