The encyclopedia · Advertising & PR · Marketing decision · 2021
More than ten brands dropped Kris Wu in 48 hours — Tencent's $46m drama lost its lead
Within 48 hours of a public accusation, LV, Bulgari, Porsche and seven more brands cut or suspended Kris Wu deals — Tencent's $46m drama lost its lead actor.
Kris Wu · Louis Vuitton · Bulgari · Porsche · Tencent · 2021-07-19
What happened
On 18 July 2021 a 19-year-old student publicly accused Kris Wu — then one of China's biggest stars, with more than 50 million Weibo followers and Forbes-listed income of $23.2 million in 2017 — of misconduct in a long social media post and an interview. Wu denied it the next day, and brands began leaving the same evening.
The exit was near-total within 48 hours. Kans, Libai, Yunting, Master Kong Ice Tea, Tuborg Beer, Kiehl's, Tempo, Bulgari, Porsche China and Vatti all cut or suspended their deals; Tencent Video and the game King of Glory removed him; Lancome let its contract expire. Louis Vuitton, his most visible partner, first suspended posts, then confirmed on 23 July that it would no longer work with its brand ambassador.
The larger bill was a drama, not a contract. Tencent Penguin Pictures, New Classic Media and Fonghong Film had invested 300–600 million yuan ($46.4–$93 million) in 'The Golden Hairpin', a costume drama starring Wu, scheduled for Q3 2021 — and a single lead actor had made the whole investment unshowable. China Literature, part-owner of the production, fell more than 16% from 19 July to a five-month low; Jiangsu Phoenix Publishing & Media dropped nearly 5% on 2 August.
Why it happened
- One star carried the exposure of luxury, fast-moving consumer goods, gaming and streaming at once: he was the face of a dozen product lines, so one accusation hit them all in the same 48 hours.
- No brand could afford to wait for facts: in a marketplace where silence reads as taking sides, the first company to leave sets the speed for the rest, and the exit became a stampede.
- Endorsement contracts could be terminated; an unreleased drama could not. The investors who had bet 300–600 million yuan on one lead actor discovered the risk they had always carried, all at once.
- The star's income was the brand's exposure in miniature: the more brands paid to rent his audience, the more brands were owed a visible response the moment his reputation broke.
The lesson
An endorsement is a lease on a reputation, not a purchase: brands cancel a contract in a day, but the investors who built a $46–93 million production around one actor had no exit clause.
Aftermath
Louis Vuitton confirmed on 23 July 2021 that it would no longer work with Wu as brand ambassador. 'The Golden Hairpin' never aired; its investors were left with a completed production no platform would carry. China Literature's stock fell more than 16% within two weeks and hit a five-month low on 2 August, and Jiangsu Phoenix Publishing & Media fell nearly 5%. The exodus marked a turning point in Chinese brand casting: advertisers moved visibly toward 'de-traffic' choices and away from stars whose fame outran their track record.
Sources
- Chinese-Canadian pop star Kris Wu dumped by brands after allegations — CBC, 20 July 2021
- Louis Vuitton to End Kris Wu Partnership — The Business of Fashion, 23 July 2021
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