LA denim brand ’7 For All Mankind’ recently launched a new Beijing boutique and with plans for another 3 stores to open within the year, Seven is set to make waves amongst China’s socialites and fashion-forward alike.

7FAM, part of the VF brand family, recently held a party to preview their Spring/Summer 2010 collection which attracted the attention of over 300 pop stars, models, business elite and socialites. The event was capped with famous Taiwanese actress Lin Zhiling (the face of China Airlines) posing a pair of custom designed jeans, which were not only handmade but emblazoned with over 8000 Swarovski crystals!

As the brand is famed for its limited edition jeans, the one off creation of the ‘Zhiling special edition’ not only still caters to the brand image but gives it a localized prestige. Chinese consumers in Tier One cities are ridiculously brand savvy. A wide knowledge of Western and Japanese brands, plus a rising desire to set oneself apart from the (fake) LV/Gucci set means that new prestige brands have an opportunity to do well in this fashion focused market. However, these brands should be wary not to carry any sense of entitlement into the Chinese market.

In America and Europe the 7FAM has often relied heavily on its official and unofficial celebrity endorsements. Our boy Jermaine explains why he thinks 7FAM will do well in China, “7 for all mankind gives people an impression of luxury. This is quite different from the image of other jeans brands, which are causal and popular. Thus, the product distinctiveness can be a competitive power. Furthermore, Chinese youth are quite keen on pursuing western celebrities as their idols.”

However, 7 FAM have done well not to simply rely on their endorsement from US celebrities and their partnership with Lin Zhiling certainly seems the perfect fit. Her looks and figure emphasis the fitting nature of the jeans but also her star power is strong enough to be judged on the level of the American celebrities.

Levi’s have long since pushed their ‘Traditional American’ denim but offset it with endorsements from a whole host of Asian superstars, from HK bad boy Edison Chen to Korean J-pop sensation BOA.

A quick poll of popular denim brands on Kaixin conducted by enovate busy bee, Yuki, shows that the traditional American brands Levi’s & Lee remain pervasive and popular with young Chinese for “not only being as a classic denim brand, but also stand[ing] for American spirit, that of independence, freedom, adventure and sexiness”.

However, dissimilar to Levi’s and similar to American Apparel 7FAM has forgone cheaper production costs in using Chinese factories to uphold a luxury brand image of being a true American (see LA) export.

Furthermore while we may expect Levi’s to be the staple for younger groups who frequent fashion sites such as 1626 or MCC, one can expect 7FAM to be snapped on the profiles for those who use more exclusive fashion networking sites like P1.cn or Moko.cc.

7FAM will have to work hard to keep their name on people’s lips and not fall victim to the fickle fashionistas changing tastes but as of right now they are red hot.

Which models do you prefer in your heart, Chinese models or Western models? The answer is obvious.

It’s akin to a Western guy having a preference to Chinese women with the single-edged eyelid; Chinese fashion icons who look like their European and American counterparts will make Chinese youth glance twice.

Take a look at Renren and Kaixin. What are the most popular topics on these websites?

• “ European style , come on!”
• “Fashion fairy—Agyness Deyn”
• “The most feminine of the 100 male models”

There are too many examples to describe.

It’s also easy to see how crazy Chinese young people are trending towards the European and American styles, based on the types of models being used.

After UNIQLO employed Angess Deyn to model their unique style of Japanese clothing and saw great success, the old brand in China, Metersbonwe and its high-end brands, Me&City hired Agyness Deyn and Cole Mohr to promote its brand. What happened next? Many people started to pay attention and visit Me&City because of Agyness Deyn and Cole Mohr’s unique charm. Otherwise, Chinese youth only feel that Me&City is just a second brand of Metersbonwe. However, relying on Agyness Deyn and Cole Mohr ‘s popularity, Me&City currently compare with H&M and Zara.

Some people may say that China also has a lot of famous models. It’s a pity that such a large country like China cannot find a unique person to use as a clothes rack. Du Juan, Liu Wen, Pei Bei, these three models are the first choice for the most recent Paris and Milan Fashion Week Shows. However, submerged in the other hundreds of models from Europe and the United States , they are easily overlooked. They may be mentioned briefly in magazines, but they are not on the cover of a European Vogue or a United States Cosmo.

You will find that many Chinese young people study how to dress like Kate Moss, study how to smoke like Agyness Deyn and also discuss the freaky tattoos of Cole Mohr. But Du Juan, Liu Wen, and Pei Bei represent the spiritual nature of China rather than an attitude of life for all of its people.

Ah, maybe one day when there are more Chinese faces in the four major fashion weeks, then Chinese young people will begin to pay more attention to local models. But now, Chinese models have very little market attraction.

Well, I declare that the European and United States models win!

One floor of the mall presents a wealth of brands, European, American, Korean, Japanese and Chinese are all in the mix; for the unaware they are not always easy to separate. European brands, such as Lancome and Estée Lauder, play on their heritage and project an air of wealth and elegance. Japanese brands such as Kanebo and Shishedo, rely on their Japanese aesthitic of quality and a refined nature, whilst American brands, MAC and Benefit, push a more sexy and playful image. Korean and Chinese brands are some what caught in between, but tend to fall toward a sub-European and Japanese aesthetic of natural elegance, particularly Shanghai brand 佰草集 (Herborist), whose use of natural products is perhaps directly influenced by traditional Chinese medicine.

The range of products is utterly overwhelming, the bigger brands break up their skin care section (far and away the largest product catergory in cosmetics) into at least four caterogies of hydration, revitalization , uv protection and whitening. Each of these categories contains products that link to each other and are to be purchased in conjunction with each other.

Interesting to note is the possible growth area of male cosmetics. Some stores such as L’oreal had male products as a small after thought to the larger female section, but brands such as Clarins and particualry Biotherm are now pushing hard to target a skin conscious male market. Biotherm was the only store with a male assisstant and devoted a whole wall to male products. They have also recruited Japanese hearthrob actor Takeshi Kaneshiro to be the face of their campaign.

Aside from the wealth of cream, lotions, oils and facepacks lay a few innovative products. Japanese brand, Fancl, offers a range of skin care products which instead of being spread on the outside are instead ingested, playing well into the Chinese phrase: “以内养外” (the outside is cultivated from within). Similar to this, albeit with a slightly less natural feel, American brand H2O plus offers a skin enhancing drink, “Collagen 8000”, containing seawater, vitamins B6 and C and yes…collagen.

The store sales staff are not just window dressing for the product, their knowledge and customer intreraction at POS is vital to ensuring a good customer experience in a highly, highly competitive market. Many brands offer product literature which shows a complete range of product offerings and product information. But as is often the case, the samples and product information provided by these brands often make it easier for consumers to head online and purchase these products.

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Unlike in the West, celebrity endorsements are not seen as “selling out” but are actually a positive testament to star status–an endorsement or many means you have “made it.” This positive association with brands and celebrity endorsements results in a ton of money being thrown around to celebrities and multiple questions and studies on how to measure the ROI on these investments. In addition, mega celebrities are playing the game well and are becoming saturated with endorsements. Jay Chou alone has, at some point, endorsed the following global brands, let alone the local brands, Pepsi, Panasonic, Motorola, China Mobile, Colgate, World of Warcraft 3, National Geographic, Metersbonwe, Sprite, and Levis.

While I do not believe Chinese consumers are rejecting stars with multiple endorsements, I do believe a brands’ recognition with a certain celebrity becomes diluted unless you are one of the top brands a consumer recalls when asking about a specific celebrity. (click here for a good report on popular brands associations)

So, therefore, if you are Sprite, Coca-cola, Nike, Reebok, or any other global brand, you are doing pretty well with your mega-celebrity endorsements of Jay Chou, Yao Ming, Liu Xiang, Jackie Chan, Jet Li, etc. But what about the rest of us? As reported earlier, what about an up and coming brand like Vancl, how do they develop a strategy for their celebrity endorsement? Here is what I would do.

1. Give up on the mega-star, but if you must…get one that exists across multiple channels
If you haven’t locked one down yet, it is probably too late. Sure they will take your money and be in your commercial but it will take an excessive amount of marketing dollars to build much unsolicited brand recognition. If you can’t fight the urge, however, focus on the mega-stars that can give you more bang for your buck across several channels. Jay Chou’s star power comes largely from the fact it’s spread over numerous industries, he’s a musician, actor, director, desginer, fashion icon etc.

2. Regional stars: Now On Sale, Prices Slashed
As we noted earlier, regional talk show hosts can be very popular and influential in their respective markets. Pick up a few in your major target markets and put all the money you saved into regional advertising. They may not have a national appeal but I can guarantee they are a bargain and resonate well with the provincial population.

3. Missed Connections–Looking for celebrities in the oddest places
Celebrities in China today are dynamic, interesting, and driven by different motives than in previous generations. Celebrities such as Han Han and Xu Jinglei represent the voice of the modern celebrity in China. Crossing a wide range of activities including blogging, racecar driving, charity work, and social activism, these celebrities show that in order to appeal to Chinese youth, simply having a pretty face is not enough to sell products. Also in Chinese society the acceptance of unconventional celebrities suggests a new shift in the definition of a celebrity in China. The recent popularity of Zeng Yike from HappyGirl or fantasy RPG character Ling Er, show that celebrity power can come from non-traditional areas. Online Internet memes also have significant power to give ordinary people their 15 minutes of fame. Recent examples including Xiao Pang, Jia Junpeng, and Furong Jiejie, all have gained celebrity status in ways unbefitting of normal celebrities.

So there you have it. A few tips the next time you are given either a blank check or a miniscule budget. Although I have enjoyed digging into the lives of so many celebrities, I do not envy anyone who actually has to pick one.

John Solomon is the co-founder and director of enoVate. In addition to posts throughout the week on various topics, John synthesizes the data and analysis developed by the enoVate Insights and Strategy Team and provides readers with the key trends and future indicators for brands, agencies, and investor to be aware of within the complex and convoluted celebrity industry. For our full brief on the topic, please do not hesitate to contact us.

Streetwear. The Chinese youth know it and love it. In recent years, China has felt the increasing influence of the two traditional homes of streetwear, America and Japan, and has sought to develop its own brands and image. Chinese streetwear labels CLOT, Subcrew and most recently Nic is Coming, all have one thing common, an uber-influential owner. CLOT has the infamous Edison Chen, Subcrew has HK actor, DJ and skateboarder Sam Lee and Nic is coming is the creation of Channel V VJ Nic Li Chen.

Despite only being 2-3 years old, all of the brands boast their own retails spaces. Subcrew’s Unity store has six locations around China and Taiwan, and the brand is stocked throughout Japan and South-East Asia. CLOT have had a tumultuous year with “Edison-gate“, which may or may not have been responsible for them closing their retail store, ACU, in Shanghai. However they have recently come back strong, opening a branch of ‘Juice’ in Kuala Lumpur to compliment the original store in Hong Kong. Nic Li Chen and Taiwanese pop sing Pan Wei Bo have also recently worked together to open a retail space on Shanghai’s trendy Changle Lu(ACU’s old location), called NPC.

The celeb affiliation helps at the beginning but without true creativity and influence we would not have been able to last until now, the consumers nowadays are much more savvy than most think. – Edison Chen

This may be true but as many of these brands are still in their infancy, compared to long standing streetwear brands such as Stussy or Fuct, the star endorsement is still very much tied to the brand. Countless street interviews and talks with Chinese youth, particularly males, has revealed not only the popularity of these brands but the strong connection of the brand and creator. Unlike faceless business owners, these brand owners are seen as trendsetters. They are praised for their individuality and creations, as well as their good looks and charm. One only need look to the aforementioned brands Douban fan pages (Nic is coming, CLOT, Subcrew) to see how praise for brand and (celebrity)proprietor are comepletely intertwined.

The Man,The Myth, The Market...Edison Chen

Much has been said of the ‘fickle Chiense youth consumer’ but if there is one thing that has been proven since Edison’s indiscretion, a loyal fan base can still remain even after a public outcry. These celebrities have built niche markets through their image which they then channel into promoting and creating their own brands, whilst injecting creativity and fashion smarts into their products.

To my eye, Nic is coming is the least aesthetically pleasing of the brands but those in and around Shanghai will know that this is THE brand amongst the nineties generation. The right star can hold the right capital, amongst the right market. The stars themselves know this and aren’t waiting for brands to endorse them.

Citing an “insider” Senior Beijing Ad Executive who made this claim after the tainted milk scandals also tainted the careers of many Chinese celebrities involved, French continues to cite that “Chinese consumers are almost universally rejecting celebrity endorsements.”

Let me say this: celebrity endorsements in China will never go away. I’m sorry Mr. French, but here’s why:

1. Regional celebrities in Tier 2 and 3 cities are beginning to have more of a local impact.

Monstrous national celebrities like Jackie Chan, Yao Ming, Liu Xiang, Jay Chou, Ziyi Zhang all have conquered China. They are known in ever tiered city throughout China. However, their ubiquity has also diluted their influence to sell products. In order to regain influence, regional and local celebrities can be tapped to sell products on a local level. Makes sense right? One needs to only head over to an online poll taking place in Hunan Province that is measuring the popularity of forty-eight (forty-eight!) local Hunanese celebrities. With around 10,000 online votes, 4 out of the top 5 Hunanese celebrities are TV Hosts. The other one? A reality TV show winner.

A recent survey conducted by GroupM states that, “young people dislike ads on TV unless they are endorsed by celebrities or contain relevant music soundtracks.” Brands would be wise to tap into these local celebrities as they have more relevancy and a better connection with key youth demographics.

2. The definition of  a ‘celebrity’ in China is beginning to shift.

A celebrity in China has typically been defined as an actor, actress, singer, or athlete. These four areas dominate the cultural landscape of Chinese media and entertainment. However, celebrities with unique talents and broader interests are beginning to have more of an impact on younger generations of Chinese youth. Celebrities in today’s Chinese society must be involved in a wide range of areas to maintain relevance. One of the most popular bloggers in the world Han Han (韩寒), has crossed over into celebrity status through his controversial blogs and race car driving antics. He has been hailed as the “voice of his generation”.

A celebrity in China also does not have to be an established mega-superstar to qualify as a celebrity. Chinese youth today are just as attracted to reality TV stars such as Zeng Yike (of HappyGirl Fame) and Fantasy RPG celebrities such as Ling Er (灵儿) from Xianjian Legend as they are ‘traditional’ celebrities. It’s through unique endorsement strategies that brands can reach new and untapped markets.

We’re only beginning to see this tactic employed through online marketing campaigns such as Microsoft China’s Bing viral video featuring Internet celebrities Xiao Pang and Furong Jiejie. The video has been watched over 2 million times with thousands of comments. Though Bing (or in Chinese, 必应) currently has a 6% market share in China, further growth is anticipated.

3. Chinese business models are often slow to react to changing attitudes.

Celebrity endorsements in China will not be dying out anytime soon. Business models in China sometimes move at a microscopic pace, and Chinese business managers often minimize risk by using what has worked in the past. Large companies with large budges continue to advertise with huge Chinese celebrities. As recently as Monday, global companies Nike and Amway ran full page ads featuring Chinese track star Liu Xiang, capitalizing on his recent success. Scandals can often dislodge celebrities from their high status, but as our recent street interviews show, Edison Chen is still fresh on the tongues of China’s 90′s and ’80′s generations.

Yao Jing, 21

Who are your favorite celebrities? Why do you like him or her?

1. Cecilia Cheung, she is beautiful

Are you more likely to purchase products from brands with celebrity sponsors? Yes or No?

2. No

Are you more attracted to foreign celebrities or local Chinese celebrities?

3. Chinese celebrities

Please give an example of celebrity advertisements that you remember.

4. Rene Lau, SHARP

Shen Li, 21

Who are your favorite celebrities? Why do you like him or her?

1. Chang Huimei  I like her new style

Are you more likely to purchase products from brands with celebrity sponsors? Yes or No?

2. No

Are you more attracted to foreign celebrities or local Chinese celebrities?

3. Almost the same

Please give an example of celebrity advertisements that you remember.

4. Chang Huimei, Sprit

Zhang Jianxi, 21

Who are your favorite celebrities? Why do you like him or her?

Edison Chen, cool

Are you more likely to purchase products from brands with celebrity sponsors? Yes or No?

2. Yes

Are you more attracted to foreign celebrities or local Chinese celebrities?

3. Both

Please give an example of celebrity advertisements that you remember.

4. Edison Chen, Levi’s

Lǚ Zhiwen, 23

Who are your favorite celebrities? Why do you like him or her?

1. Edison Chen, trendy

Are you more likely to purchase products from brands with celebrity sponsors? Yes or No?

2. No

Are you more attracted to foreign celebrities or local Chinese celebrities?

3. Foreign celebrities

Please give an example of celebrity advertisements that you remember.

4. Sharp mobilephone, the spokesman is foreigner

Benny, 22

Who are your favorite celebrities? Why do you like him or her?

1. Show Luo, cool dancer

Are you more likely to purchase products from brands with celebrity sponsors? Yes or No?

2. Yes

Are you more attracted to foreign celebrities or local Chinese celebrities?

3. Both

Please give an example of celebrity advertisements that you remember.

4. Kimura Takuya, Gatsby

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.

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.

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!”

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.

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?

And what is your celebrity isn’t the squeaky clean poster child you paid for? Who remembers Barry Bonds’ inhuman growth and Kate’s taste for white powder? hm….

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.

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.

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.

Because there are very few ways to accurately measure the effect of your celebrity (except in a few extreme cases), it’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.

But as Semir’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’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’s anyone’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.

• More Trouble for Celebrity Endorsements in China – Wall Steet Journal
• Branding and Celebrity Endorsement – Martin Roll
• Star Power (Luxury Brands and Celebrity Endorsement) – Lab Brand
• All About…Celebrity Endorsement – Brand Republic
• Cool Jay (The Jay Chou Story) – Time Magazine
• Jay Chou Breaks Asian Entertainment Endorsement Fee Record – Zimbio

Feel free to comment on the links or notify us of any other interesting celebrity tidbits from around the web.