China is home to over 150 million people who live on less than $1 a day, a fact that has led to the implementation of Beijing’s new luxury advertising law.
Designed to cut down on the country’s burgeoning wealth gap, Beijing’s new luxury advertising law makes it illegal for public advertisements within the city to use words like "supreme," "luxury," "high class" or "royal" in their marketing copy, or to use imagery that is suggestive of lavish wealth or opulence. Failing to meet this regulation comes with a 30,000 yuan penalty.
As China’s consumer class and its subsequent appetite for luxury goods continues to grow, this new advertising ban is a dramatic example of how the country’s government is attempting to juggle its political and social principles with its unmistakable economic prosperity. It will be interesting to see how advertisers rise to the challenge posed by this new ban, and whether or not it will lead to similar laws being passed in other major Chinese cities.
Luxury Branding Bans
Beijing's New Luxury Advertising Law Aims to Hide Economic Inequality
Trend Themes
1. Luxury Advertisements Banned - The new law banning luxury advertising in Beijing presents an opportunity for companies to explore alternative marketing strategies.
2. Anti-wealth Gap Regulations - The implementation of more regulations targeting economic inequality in China could lead to further innovation in marketing and advertising.
3. Rising Consumer Class - As China's consumer class continues to grow, there will be a need for companies to adjust their marketing strategies to comply with new regulations and appeal to a wider audience.
Industry Implications
1. Luxury Goods - The luxury goods industry in China will need to adapt its marketing strategies to comply with the new advertising regulations and appeal to a wider audience.
2. Marketing and Advertising - With the implementation of new advertising regulations in China, there is room for innovative marketing and advertising solutions to comply with the new rules and promote products effectively.
3. Government Regulation - The government regulation industry in China will likely see an increase in demand for services related to implementing and enforcing regulations targeting economic inequality.