By Joyu Wang and Chuin-Wei Yap
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 18, 2019).
A broad stripe of businesses from global titan Nike Inc. to a
local bakery is finding that taking sides, or even appearing to, in
Hong Kong's protests against China's growing reach can spur
popularity -- or trigger an angry backlash.
In recent weeks, companies have had to quickly recalibrate
marketing decisions after getting entangled in local politics.
Companies in China halted sales of a new Nike sneaker after its
designer posted on social media expressing support for the biggest
rallies in Hong Kong's history. A Japanese sports beverage got a
marketing bounce as the protesters' drink of choice when it cut
advertising with a local broadcaster over perceived pro-government
bias, only to distance itself amid calls in China for a boycott. A
local cake maker, meanwhile, reported a big bump in sales -- and
profanity-laced threats -- when she began making protest-themed
pastry.
As Hong Kongers take to the streets by the millions to protest
legislation that would have allowed extradition to China along with
other grievances, businesses are getting a reminder that behind the
polarizing loyalties of the protests lies the more complex task of
accommodating the sensitivities of the world's second-largest
economy.
At rallies in Hong Kong, protesters often brandish Pocari Sweat,
an energy drink from Japan, and its empty bottles cover the
aftermath of clashes with police. The company that makes the drink,
Otsuka Pharmaceutical Co., earned favor among protesters after
pulling its ads from Television Broadcasts Ltd., the dominant Hong
Kong broadcaster, which protesters accuse of being pro-Beijing. A
Hong Kong-based Otsuka social-media post at the time hinted at
sympathies for the protests. Otsuka's corporate headquarters in
Tokyo hastened to disagree.
"The decision to withdraw commercials from TVB was made based on
marketing strategy and wasn't aimed at sending any political
message," an Otsuka spokeswoman said in a phone interview.
TVB said Otsuka's decision was "deeply regrettable."
In mainland China, some social-media users called for a boycott
of the Japanese drink. In Hong Kong, protesters continue to provide
Pocari free marketing, in one case by making the drink the
unofficial mascot of a night mass run to show support for the
movement.
"It shows that we don't like the extradition bill, and we think
that it should be withdrawn." said John Ellis, a 41-year-old trail
runner who works in the investment industry.
Otsuka's predicament is similar to the quandary Nike found
itself in weeks earlier. Nike's Japanese collaborator, Undercover,
provoked an outcry on Chinese social media after posting a photo of
Hong Kong protesters, since deleted, with the words "no extradition
to China." Undercover and Nike were poised at the time to launch a
new sneaker in markets including China.
Days later, Chinese retailers including sportswear giant Pou
Sheng International Ltd., which owns China's popular YYSports
brand, said on social media that they received an "urgent notice"
from Nike to halt sales of the Undercover sneakers. Nike and
YYSports didn't immediately respond to requests for comment.
Nike has been embroiled in U.S. political disputes too. The
company withdrew a line of shoes featuring an early version of the
American flag after NFL star-turned-activist Colin Kaepernick
objected to the design.
China has a range of sensitivities that global businesses must
learn to negotiate. Last year, U.S. hotel giant Marriott
International Inc. had to briefly shut its website and mobile app
in China after circulating an online guest survey that listed Hong
Kong, Taiwan, Tibet and Macau -- all claimed by China -- as
separate countries. Marriott said it was a mistake.
The Italian fashion house Dolce & Gabbana last year had to
scrap a Shanghai fashion show and remains unwelcome on Chinese
e-commerce websites after some Chinese viewers felt a promotional
video was racist. The couturier apologized.
In Hong Kong, where police conduct has been a focus of some
protests, the local operator of Japanese fast-food chain Yoshinoya
Holdings Co. raced to limit damage after a post appeared on its
Facebook page last week making fun of the city's police.
After the franchise owner, a pro-Beijing businessman, took to
local media to publicly express his support for the Hong Kong
government, protesters covered at least one Yoshinoya storefront
with hundreds of sticky notes demanding a boycott of the
restaurant.
"Yoshinoya should be ashamed of pleasing commies," one note
said. Yoshinoya didn't respond to requests for comment.
One local bakery is profiting from riding on protester
sentiment.
Naomi Suen, who runs the 35-year-old Wah Yee Tang bakery, began
carving protest messages on traditional seasonal pastries, called
mooncakes, to boost the morale of protesters.
"It was just for fun, and I want to make them happy," she
said.
Ms. Suen said sales at her bakery have risen 20% from two weeks
earlier, when she started selling the political mooncakes.
Not everyone is buying the confection. Ms. Suen said she got
profane phone calls as a result.
"They are never my patrons anyway," Ms. Suen said. "It won't
affect my business."
She has faced a backlash of sorts. Ms. Suen's pastry molds are
made in mainland China. When she tried to get a new set of
protest-themed molds made recently, her vendor declined to make
them, she said.
--Megumi Fujikawa, Natasha Khan and Ese Erheriene contributed to
this article.
Write to Chuin-Wei Yap at chuin-wei.yap@wsj.com
(END) Dow Jones Newswires
July 18, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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