Double trouble for JD.com over stand-up comedian endorsement

JD.com entered Singles' Day 2024, China's largest shopping festival, walking a tightrope. Despite record H1 revenue surpassing rivals like Alibaba, Huawei, and Tencent, the e-commerce giant found its success overshadowed by a backlash stemming from a promotional campaign featuring controversial stand-up comedian Yang Li.

Just one day after the official Singles' Day launch, industry publication Adquan questioned the rationale of using stand-up comedians in campaigns by both JD.com and Tmall. The question proved particularly prescient for JD.com.

A promotional video released on October 14th, featuring comedian Yang promoting JD.com's pharmaceutical business, ignited a firestorm of criticism. Yang is known for her pointed jokes about men, and her use of the term "普信男" (ordinary yet overly confident men), a phrase she coined, has historically sparked controversy and polarised audiences.

Yang rose to fame after coining the Chinese word 普信男" (ordinary yet overly confident men)

The backlash was swift and substantial.

According to reports, some Weibo users documented closing their JD.com accounts, with some questioning the company's decision to partner with a "feminist," seemingly jeopardising its predominantly male customer base (approximately 60%, according to QuestMobile). This demographic skew, stemming from JD.com's origins in electronics retail, makes it particularly vulnerable to a male boycott.

The widespread reaction to Yang’s participation in JD.com’s Singles’ Day marketing efforts shows that the firm underestimated how she has been constantly targeted over the years by repeated boycotts of male internet users.

JD.com deleted posts with Yang Li

JD.com responded was swift with a public apology. The e-commerce major acknowledged the "negative experiences" caused by the campaign and announced termination of its collaboration with Yang and confirmed there are no future projects in the pipeline. The company also removed online content related to the standup comedian and has increased Singles' Day subsidies, a move that can be interpreted as a conciliatory gesture. 

JD.com statement

This incident isn't Yang's first brush with controversy. Her previous endorsements for Intel, Mercedes-Benz, and Shede Spirits all faced similar backlashes, leading to content removal and, in Shede Spirits' case, a negative impact on share price. This history raises questions about JD.com’s due diligence in choosing a spokesperson with such a polarising image and their quick abandonment at the first sign of controversy.

Elisa Harca, co-founder and CEO of Red Ant Asia, offered a nuanced perspective on the situation: "The JD case shows how over-the-top Chinese netizens can be and the riskiness of using celebrities. However, it could be an opportunity – many people are citing how ‘bored’ of 11.11 and constant sales consumers in China are. They are truly fatigued… so at least this is something topical, albeit divisive…[There] might [be] a positive backlash from fans of the celebrity and less ignorant people.” Harca also noted the share price upturn, suggesting a potential positive impact on sales.

Adding to JD.com's woes are unsubstantiated rumours regarding JD Finance and alleged mass withdrawals. While denied by the company, these rumours, coupled with reports of users withdrawing funds from JD Finance's wealth management products while closing their accounts, further fueled consumer uncertainty.

Prior to the current missteps, JD Logistics announced an integration with Taobao and Tmall, offering integrated supply chain solutions across China's leading e-commerce platforms. This bold move could mitigate the negative fallout from the comedian controversy.

JD Logistics integrated into Tmall ecosystem

While initial Singles' Day sales in Hong Kong and Macau saw a threefold year-on-year increase in the first four hours, the final results will be the litmus test for the reputational damage. 

Meanwhile, JD's main competitor, Taobao, has started offering free shipping on orders above 99 RMB ($14) in Hong Kong this October. Additionally, in September, Alibaba Group integrated Tencent-owned WeChat Pay with its e-commerce platforms, Taobao and Tmall.

Campaign Asia-Pacific contacted JD.com but had not received a response by the time of publication.