Tax evasion scandal of Chinese actress Fan Bingbing ended after her official apology in October. But, did it damage her role as a luxury brand ambassador and key opinion leader (KOL) for the likes of Montblanc, Guerlain, as well as Louis Vuitton? Hong Kong-based marketing platform ParkLu analyzed how this tax scandal creates an impact on the actress's reputation now.
The analysis aims to understand the changing image of Fan among influencers after the scandal, and the consequences it made for these brands, according to the South China Morning Post. Chinese television host Cui Yongyuan accused Fan of tax evasion in May, sparking heated public discussions.
In July, rumors spread that the Chinese government reportedly detained Fan for investigation as she had been absent from public view for almost two months. Speculations continue until she publicly apologized on Weibo, and the government confirmed the actress was convicted of tax evasion.
One of the long-lasting luxury partners of Fan was Louis Vuitton, but the tax scandal did not make any negative impact on the brand. Elijah Whaley, chief marketing officer of ParkLu, said Fan generated no conclusive buzz among KOLs for Louis Vuitton. He added that Louis Vuitton's popularity with KOLs and the actress being an ambassador the brand isn't interesting to the KOL community.
Meanwhile, Australian brand Swisse raises awareness among Chinese KOL community, but their sentiments to towards the brand decreased following Fan's tax scandal. This negative impact prompted the brand to drop the actress as brand ambassador in mid-September. Montblanc, on the other hand, named Fan as the brand ambassador in April 2018. It was highly reliant on her creating social media buzz, followed by ReFa, Guerlain, L'Oreal, and Adidas.
But, the report noted Fan was super expensive, wherein she received a total of US$290 million in sponsorship fees over the past two years. So, is it worth the cost having Fan as brand ambassador despite the risk she has brought? The result of the report seems to be positive as the actress' ability to sell and celebrity status is irrefutable.
These are common among brands to hike prices, but will Fan return to the market and will continue to big sales for luxury brands? The report didn't reveal the answer but noted some of her sponsored brands likely missed the opportunity to stick by her during hard times.
