Taking Cues from the Past: Evolution of Celebrity Endorsement Regulations in China

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In recent years, celebrity endorsement has become one of the most popular and remunerative marketing strategies in the world of marketing. Brands often want to be identified with famous celebrities and use their status to attract customers. By associating their names with famous actors, models, sports personalities or other public figures, companies aim to improve their brand image and build customer loyalty.

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No More Money for You! China’s Proposed Restriction on Actor Compensations

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At a recent review session of the Film Industry Promotion Law (2nd Discussion Draft), a number of NPC Standing Committee (the “Committee”) members called for an upper limit on compensations for actors in movies and TV shows.[1]  To combat what is known as “sky-high film compensations,” the Committee proposes that the total payments to all actors in a film should not exceed 30% of the total production cost.[2]

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Chinese Companies and Sports Sponsorships: Trends and Guidelines

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Football fans might have noticed Hisense billboards featured in all the UEFA EURO 2016 matches. The Chinese electronic giant joined other top brands, including Adidas, Carlsberg, Coca-Cola, Continental, Hyundai-Kia, McDonald’s, Orange, SOCAR and Turkish Airlines, as a partner of the EURO 2016 tournament.[i] Although the official sponsorship fee has not been disclosed, Hisense is said to have invested a sum of 370 million yuan to appear in this European soccer event. Despite the fact that this amount corresponds to 25% of the company’s 2015 net profit, the board was confident to recoup the investment after only the group stage of the tournament.[ii]

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Ban on Sports Betting – China’s Lose-Lose Solution

 

sports betting article picThe Communist government in China has long had an uncomfortable relationship with gambling, but the mounting interest in sports betting may make the country’s leaders rethink some of its policies.  Gambling has been outlawed since the establishment of the “new China” by Mao Zedong.  Despite the government’s effort to quash nearly all forms of wagering, people’s love for gambling only seems to grow as the average income rises.  Lately, this trend has been aided by President Xi Jinping’s promotion of the sports industry, especially in the sport of soccer.  During the UEFA Euro 2016 tournament, police seized tens of millions of dollars and arrested over 500 people in crackdowns on illegal gambling operations.

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A Top-Down Approach: Tax Incentives and Their Effect on the Chinese Movie Industry

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The overall Chinese economy seems to be slowing down. Certain aspects of the economy, however, are growing fast. Fueled by an expanding middle class and the State government’s effort to transition from a manufacturing economy to a service one, the movie industry is growing at an extraordinary pace despite the downward pressure of the overall economy.

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Which Smash Bros?

 

super-mario-1508624_960_720A brand “new” mobile video game for smartphones has just been released in China. The name of this game sure sounds familiar to any video gamer’s ears – Pocket All-Stars Smash Bros. This name reminds us of the beloved and famous Nintendo Super Smash Bros. multiplayer fighting game franchise, which allows players to brawl using their favorite Nintendo characters in epic matches.  However, the characters used in the Chinese Pocket All-Stars version are identical to the ones in the Nintendo game.

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Under Armour v. Uncle Martian

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We all thought that Uncle Martian, the low-end Chinese copycat of Under Armour, would back off after getting some free media coverage and receiving serious warnings from Under Armour.  Apparently, we were wrong.  On June 27, 2016, Under Armour announced that it had initiated legal proceedings against two companies related to the Uncle Martian brand in the High People’s Court of Fujing Province.

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