Tuesday, 02 January 2024 12:17 GMT

Mbappe Controversy Rattles Sponsors: How China's Consumer Backlash Can Hit Global Brands And Stocks


Date:

(MENAFN- Live Mint) French football star Kylian Mbappé' s perceived insult to the founder of the People's Republic of China, Mao Zedong, has sparked strong reactions in the country, forcing the World Cup winner to apologise publicly.

This episode highlights how carefully international brands have to tread in China, the world's second-largest consumer market. This is a place where an offhand remark against something or someone the Chinese people hold in high regard can lead to massive consumer backlash.

Shares of On Holding AG, Eastroc Beverage Group Co. and China Mengniu Dairy Co., all of which are sponsors of Mbappe, fell on Tuesday as investors weighed the impact of a high-profile endorsement losing value almost overnight in the country.

Quick answers to key questions

.4 QUESTIONS1Why did Chinese brands end their partnerships with Kylian Mbappe?⌵

A comment about a meme featuring Mao Zedong was seen as hurtful to Chinese people. Dongpeng, Mengniu and Milkground said they opposed words or actions that hurt national sentiment and terminated their agreements with Mbappe.

2How can consumer backlash in China affect global brands and their stocks?⌵

Backlash can lead to boycotts, removed promotions and brands ending partnerships. Shares of some Mbappe sponsors, including Eastroc Beverage and Mengniu, fell as investors assessed the impact.

3Which international brands have faced backlash in China?⌵

The article cites Dolce & Gabbana, Swatch, Coach, Givenchy and Mercedes, as well as the NBA. Their controversies involved advertising, product descriptions or public comments viewed as offensive or politically sensitive.

4Did Kylian Mbappe's apology reverse the backlash in China?⌵

Mbappe apologised, saying his comment was ill-judged and that he respected the Chinese people and their history. The article says it remained unclear whether the apology would reverse brand decisions or calm the online reaction.

Also Read | What did Kylian Mbappe say about 'Chinese dictator' meme, why did he apologise? Here are some other companies that have faced similar backlash in China:

1. Dolce & Gabbana: A fashion show in Shanghai had to be cancelled by D&G after it faced backlash from Chinese celebrities over an advertisement that depicted a Chinese woman having a difficult time eating pizza with chopsticks.

2. Swatch: Swiss watchmaker Swatch had to issue an apology in 2025 and take down an ad in which an Asian male model pulled the corners of his eyes up and backwards in a "slanted eye" pose, which was perceived as a racist attack on Asian features.

3. Coach and Givenchy: The brand ambassadors of these two companies in China cut ties with them in 2019 over products they claimed were identifying Taiwan and Hong Kong as countries and not territories of the PRC.

4. Mercedes: The carmaker had to apologise to the Chinese people after it quoted the Dalai Lama in an Instagram post alongside one of its luxury cars.

5. NBA: China is one of the biggest markets of the NBA, and when a Houston Rockets official posted a tweet in 2019 in support of the pro-democracy protests in Hong Kong, Beijing did not take it lightly.

Also Read | Ronaldo earns more than Messi, Mbappe combined: Football's highest-paid players

The NBA had to issue a statement regretting the tweet, which in turn angered some politicians in the US, who said it was censorship of free speech. The incident challenged the decades-long partnership between the NBA and CCTV, China's state broadcaster, causing an 18-month blackout that ended in 2022.

The NBA had previously played pre-season matches in China, but the tour was halted for six years after this incident, resuming only last year.

With Bloomberg, Reuters inputs

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