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	<title>enovate&#187; Semir</title>
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	<link>http://enovatechina.com/blog</link>
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		<title>Are Celebrity Endorsements in China Even Worth It?</title>
		<link>http://enovatechina.com/blog/are-celebrity-endorsements-in-china-even-worth-it/</link>
		<comments>http://enovatechina.com/blog/are-celebrity-endorsements-in-china-even-worth-it/#comments</comments>
		<pubDate>Thu, 24 Sep 2009 09:10:21 +0000</pubDate>
		<dc:creator>Matt</dc:creator>
				<category><![CDATA[Celebrities in China]]></category>
		<category><![CDATA[Creativity and Design]]></category>
		<category><![CDATA[Semir]]></category>
		<category><![CDATA[Trends and Insights]]></category>
		<category><![CDATA[Barry Bonds]]></category>
		<category><![CDATA[Branding]]></category>
		<category><![CDATA[buick]]></category>
		<category><![CDATA[celebrities]]></category>
		<category><![CDATA[china celebrities]]></category>
		<category><![CDATA[china fame]]></category>
		<category><![CDATA[endorsements]]></category>
		<category><![CDATA[spokespeople]]></category>
		<category><![CDATA[tiger woods]]></category>

		<guid isPermaLink="false">http://enovatechina.com/blog/?p=1061</guid>
		<description><![CDATA[This author has been trying to delve in the economics of celebrity endorsements. It’s one murky world! First and most importantly, celebrity endorsements are as much art as science. While some marketing professors and other thinkers have tinkered with a way to measure the effectiveness of an endorsement on the brand, the majority of materials [...]]]></description>
			<content:encoded><![CDATA[<p>This author has been trying to delve in the economics of celebrity endorsements. It’s one murky world!</p>
<p>First and most importantly, celebrity endorsements are as much art as science. While some marketing professors and other thinkers have tinkered with a way to measure the effectiveness of an endorsement on the brand, the majority of materials out there suggest that this link is almost impossible to measure. Some endorsements clearly drive a company’s sales. Some do not. Others are just plain difficult to analyze.<img class="alignleft size-medium wp-image-1046" title="Pic 1b" src="http://enovatechina.com/blog/wp-content/uploads/2009/09/Pic-1b-233x300.png" alt="Pic 1b" width="189" height="243" /></p>
<p>Sometimes an endorsement clearly affects sales. Let’s take the local clothing brand Semir. In 2003 they chose Nicholas Tse, a Hong Kong star, as their endorser.</p>
<p>A wise decision. Sales of Semir’s clothes jumped in 2003. The brand added 100 franchises in 2003, a number far greater than that of 2002. For the five years that Nicholas was the spokesperson, Semir was averaging 50% increases in sales each year! Customers in stores were reported to say things like “I love Semir because of Nicholas!”</p>
<p>Here is a clear example of an endorsement driving sales. Semir’s clothes weren’t driving the increase: the line that Nicholas endorsed was certainly not too different than previous seasons. Apart from Nicholas, nothing about Semir was new.</p>
<p>But there are also some mismatched partnerships. Many Chinese citizens refuse to believe that Tiger Woods, the world’s greatest golfer, should be driving a buick. Buick is reportedly paying Tiger USD 8mil/yr for this endorsement, but is it fair to assume that he is not creating 8mil in new car sales?</p>
<p>And what is your celebrity isn’t the squeaky clean poster child you paid for? Who remembers Barry Bonds&#8217; inhuman growth and Kate&#8217;s taste for white powder? hm&#8230;.</p>
<p><img class="alignleft size-full wp-image-1053" title="Pic 2b" src="http://enovatechina.com/blog/wp-content/uploads/2009/09/Pic-2b.jpg" alt="Pic 2b" width="334" height="126" /></p>
<p>Brands and their legal teams have figured out how to at least build in an insurance plan with these endorsements. Morality clauses! These legal gems are embedded in endorsements contracts. If an endorser violates this provision, a company has a legal right to end the contract. The prohibitions can include almost anything the company wants to put in, from breaking the law to just talking bad about the brand.</p>
<p>Some believe that celebrity endorsements are a sure way to better a brand. Others vehemently disagree. There are thousands of papers and polls that will prove either point.</p>
<p>So let’s be bipartisan and try to derive something out of this mess. Well, it’s clear that choosing the right celebrity to endorse your brand can, at least, NOT hurt your it. Best case scenario, that celebrity can actually be good enough to drive people to purchase. But a poor choice can certainly hurt your image.</p>
<p>Because there are very few ways to accurately measure the effect of your celebrity (except in a few extreme cases), it&#8217;s also inherently risky to hire an expensive celebrity, a human likely to make mistakes and fumble in the public spotlight, to endorse your product.</p>
<p>But as Semir&#8217;s example proves, a smart choice that matches the brand image and desires of your customers can clearly propel your brand into the stratosphere. China has yet to invent a Q Score (America&#8217;s scoring system for its celebrities and their likability) but here is a partial list that details the going rate for some Chinese celebrities. It&#8217;s anyone&#8217;s guess if any of these expensive talking heads will help your brand, but at least choose someone who fits your image. enoVate hopes to not see Jackie Chan endorsing Nascar.</p>
<p><img class="alignleft size-full wp-image-1058" title="Pic 3b" src="http://enovatechina.com/blog/wp-content/uploads/2009/09/Pic-3b1.png" alt="Pic 3b" width="594" height="357" /></p>
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