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China's Latest Crackdown Targets Its Entertainment Industry


China's entertainment industry is the latest sector put on edge by increased regulatory scrutiny, in an environment already stifled by the pandemic and the country's overall slowing economy.To get more breaking entertainment news, you can visit shine news official website.

Authorities have previously exerted control over its multibillion-dollar celebrity and entertainment sectors, from banning broadcasters from showing tattooed music artists to requiring programmers to air more patriotic-themed content.

But the recent crackdown comes as a bigger swell. In early August, the official Xinhua News Agency-largely a press-release forum for the government-published a series of articles on the unhealthy phenomenon of fan groups that use their massive online presence to drive traffic to celebrities and products they hawk.

Since then, the internet regulator has removed thousands of fan groups and hashtags from social media. Even China's antigraft agency got into the mix, publishing a statement titled, "Bringing Under Control ‘Fan Club' Madness." Hours later, Twitter-like Weibo (ticker: WB) took down its tremendously influential Star Power List, a sort of Billboard chart for trending celebrities, at the behest of regulators.

Weibo said publicly some fan groups had become "irrational" and "unhealthy" and that it would devise a "new scoring mechanism to curb fan fundraising, encourage fans to chase stars rationally, and encourage stars to interact with fans through charity."

Leading video-streaming platform iQiyi (IQ)-often dubbed the Netflix (NFLX) of China-last week announced it would cease airing its super popular idol talent shows, which often require viewers to purchase products in order to vote for their contestants of choice.

The company, owned by search giant Baidu (BIDU), said in a social media statement it needed to be "responsible as a platform, resist bad influences, and maintain a healthy and clean internet for users."That crackdown came just after numerous A-list celebrities were named, shamed, and then essentially erased from China's social platforms for various indiscretions. Two top Chinese actresses had their likenesses disappear from China's internet in August following scandals. And after Canadian singer Kris Wu, a megastar in China, was recently arrested on charges of rape in Beijing, his fan groups attempted a public relations pushback and a fundraising campaign for his defense. Wu denies the charges.

One question that emerges is what this all means for the troves of traffic and money that have been channeled to products within this ecosystem. Social media advertising revenue alone in China is estimated to hit 107 billion yuan ($17 billion) this year, according to iResearch.

"Brands who are heavily invested in ambassadors whose fan clubs have been purged are likely to get less ROI from their endorsements. This will be the result of less online buzz created for idols, as much of this is often generated by fan club members," Mark Tanner, managing director of Shanghai-based marketing research firm China Skinny, told Barron's.

"It may also be a rude awakening that the ambassadors don't have as widespread appeal as they thought, as this is often inflated by calculated initiatives from club members."This week, China's television regulator also banned "effeminate men" from appearing on programs, and reminded broadcasters to promote communist ideology. The regulator's public statement used the Chinese term for "sissies" to describe the now-prohibited male types.

The constant government bombardment of sector after sector has left companies and investors confounded. Tech, education, housing, and entertainment are just the more visible industries that have been ordered to "rectify" various alleged misconduct.

Gaming, too, has faced sporadic restrictions, mostly to curtail "addiction" of minors to popular games. On Monday, perhaps the most draconian new rule was issued by the gaming regulator, which now restricts playing time for minors to merely one hour on Fridays and on weekends. Barron's has previously spoken to parents who say their children spend up to eight hours a day playing videogames.

Brands tap into Chinese culture for e-commerce success

Cultural heritage is becoming a bigger driver in the Chinese market. Consumers are showing more national pride in their own heritage and stories. Brands that engage with these pieces of culture are reaping the rewards.To get more chinese culture news, you can visit shine news official website.

Brands across all categories rolled out campaigns for China's Qixi (七夕) Festival on 14 August. The day celebrates an ancient mythological love story between a cow-herder and a weaver. In modern times, the annual festival has become a Chinese Valentine's Day.

Luxury brands were typically active. Jing Daily reported on 8 luxury brands that won over Qixi Festival shoppers. Valentino, for example, crafted content around modern Chinese romance - in karaoke booths, aquariums and game centres.

Food and beverage brands also got involved. Coca-Cola launched limited-edition flavours around the theme of love, such as chocolate and rose.Florasis is a popular beauty brand in China. Its successful Qixi campaign boosted sales of the brand's eyebrow pencil range.

Florasis' campaign used the story of Zhang Chang, from the historical Chinese Book of Han. The story tells of a notable scholar who often drew his wife's eyebrows for her. Florasis made a short animation based on the story. It then used the hashtag #QixiDrawEyebrows across social platforms. The campaign also invited couples to share pictures and videos to echo the story.

All the while, Florasis widely promoted its eyebrow pencil range. Consumers clicked through to sales touchpoints from social platforms like Weibo, Douyin and Kuaishou.

Tmall data shows that sales from the eyebrow pencil range totalled A$2.35 million in the first 15 days of August. That figure exceeded the total sales for July (A$2.28 million).Australian brands need to study Chinese culture if they are to tap into this success. Chinese consumers have fewer opportunities to experience Australian brands in their home market. As travel restrictions continue, it will be important to engage consumers in relevant, localised ways.