The Rise of Celebrity Endorsements in China's Competitive Market

As Chinese companies navigate a fiercely competitive market characterized by slim profit margins, there is a notable shift towards brand-building strategies aimed at fostering customer loyalty. This trend has been exemplified by the increasing use of celebrity endorsements, with prominent figures like Mandopop superstar Jay Chou and actress Shu Qi becoming central to various advertising campaigns. Chou's involvement in Meituan's advertising for its express delivery service, which began in December 2025, highlights this strategy. Meituan's closest rival, Taobao Instant Commerce, countered with its own campaign leveraging the Formula One Chinese Grand Prix, showcasing the escalating advertising wars between these platforms.

The Straits TimesCan star power help Chinese brands escape price war trap?

The adoption of celebrity endorsements is not limited to food delivery services. In the electric vehicle (EV) sector, where competition is particularly fierce, over 20 brands have engaged ambassadors in the past year. Xiaomi's decision to recruit Shu Qi and sprinter Su Bingtian to promote its SU7 EV marks a significant shift for the company, which had previously not utilized celebrity endorsements. This strategy aims to "break the circle" and expand the vehicle's appeal beyond niche markets. Other companies, such as Huawei and Nio, have similarly embraced this trend, indicating a broader industry movement towards leveraging star power to enhance brand visibility.

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Despite these branding efforts, the financial landscape remains challenging. Reports indicate that Meituan, Taobao, and JD's food delivery services were unprofitable in 2025, collectively investing approximately 80 billion yuan in consumer subsidies. Industry experts, like Cui Hongbo of Vantbrand, emphasize that customers acquired through subsidies often lack loyalty, making retention of high-value customers a critical competitive factor. This sentiment underscores the necessity for companies to transition from price wars to value creation.

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While companies are investing heavily in celebrity endorsements, consumer responses vary. Many consumers, such as Chen Jing, a travel agency director in Beijing, remain largely indifferent to celebrity endorsements, prioritizing price and reliability over brand loyalty. Chen stated, “For the same product or service, I will simply choose whichever platform is offering it at a lower price,” illustrating the ongoing challenge for brands in shifting consumer focus from price to value.

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As Chinese firms continue to intensify their brand-building efforts, the balance between celebrity endorsements and competitive pricing remains delicate. While the use of star power may enhance brand visibility, the fundamental consumer preference for price and reliability poses ongoing challenges. Companies like BYD are also exploring international markets, as evidenced by their title sponsorship of the Singapore International Marathon, indicating a proactive approach to expanding brand influence beyond domestic borders. The evolving landscape suggests that while celebrity endorsements may play a role in brand strategy, the underlying market dynamics will continue to shape consumer behavior and brand loyalty in China.

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• “Everyone has to move from ‘price wars’ to ‘value (creation) wars’ ,” — Cui Hongbo, Founder and CEO of Vantbrand

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• “The first generation of SU7 was very successful. The new generation is even better. We hope to ‘break the circle’ and let more people know about it.” — Lei Jun, CEO of Xiaomi

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• “I am completely unswayed by Jay Chou’s endorsement,” — Chen Jing, Travel Agency Director

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