Bulgari Apologizes to China for Listing Taiwan as a Country After Online Backlash

A man smokes as he walks by the Bulgari store at a high-end shopping mall in Beijing, Wednesday, July 12, 2023. (AP)
A man smokes as he walks by the Bulgari store at a high-end shopping mall in Beijing, Wednesday, July 12, 2023. (AP)
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Bulgari Apologizes to China for Listing Taiwan as a Country After Online Backlash

A man smokes as he walks by the Bulgari store at a high-end shopping mall in Beijing, Wednesday, July 12, 2023. (AP)
A man smokes as he walks by the Bulgari store at a high-end shopping mall in Beijing, Wednesday, July 12, 2023. (AP)

Bulgari has become the latest international brand to apologize to China after listing Taiwan as a country on its website.

China claims self-ruled Taiwan as its territory, and both the government and Chinese internet users have a history of scolding or boycotting international brands that have referred to Taiwan as a separate country. Late Tuesday, Bulgari posted an apology on Weibo, China’s version of Twitter, saying it “steadfastly and always” respected China’s sovereignty and territorial integrity.

“Our brand has immediately corrected the mistakenly marked store addresses and map indications on the overseas official website, which resulted from management negligence,” the Italian luxury brand said in a statement. “We deeply apologize for the mistake.”

Brands also have come under fire for offending Beijing’s other geopolitical sensibilities, including its territorial claims in the South China Sea and the status of the Dalai Lama, the exiled Tibetan leader.

The Bulgari incident was widely discussed on Chinese social media, with some users demanding that the brand distribute its apology on its international social media accounts as well.

“Did you post it on the overseas Internet?” one comment with more than 40,000 likes read. “Don’t be a two-faced person who only wants Chinese people to see (the apology).”

A Weibo topic asking users if they accepted Bulgari’s apology had been viewed more than 12 million times by Wednesday afternoon.

Several Chinese state-run publications joined in the demand that Bulgari apologize on its international platforms as well.

“Bulgari made a mistake on its overseas official website but only issued an apology on its mainland China account,” read a commentary by China Daily. “Such an apology may hardly convince Chinese consumers.”

Brands including Valentino, Calvin Klein, Coach, Zara and Delta Airlines have apologized in recent years for listing Taiwan as a country or region separate from China on their websites.

Mercedes-Benz in 2018 apologized for quoting the Dalai Lama on Instagram, while Gap the same year apologized for selling a T-shirt with a map of China that omitted Taiwan and the South China Sea.



Nike Sinks as Gloomy Sales Forecast Fans Growth Concerns

The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)
The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)
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Nike Sinks as Gloomy Sales Forecast Fans Growth Concerns

The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)
The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)

Nike shares slumped 15% premarket on Friday as a forecast for a surprise drop in annual sales amplified investor concerns about the pace of the sportswear giant's efforts to stem market share losses to upstart brands such as On and Hoka.

The company on Thursday projected a mid-single-digit percentage fall in fiscal 2025 revenue, compared to analysts' estimates of a near 1% rise, dragging shares of rivals and sportswear retailers across Europe, UK and US on Friday, Reuters reported.

British sportswear retailer JD Sports fell as much as 6.6% and Germany's Puma lost 4%, while Adidas was flat after briefly rising nearly 2%.

"Nike shares are headed for a stay in the proverbial penalty box until new product innovations actually start to manifest themselves and management regains investor trust," Wedbush analyst Tom Nikic said in a note.

To be sure, Nike has cut back on oversupplied brands including Air Force 1 to curb a worsening sales decline as part of a $2 billion cost-cutting plan launched late last year.

Nike is set to roll out this year an Air Max version and Pegasus 41 with full-length foam midsole made from ReactX to boost sustainability, responding to concerns over stagnating innovation.

The company was "also accelerating planned reductions for our three largest franchises ... while we have work to do, we are very focused on scaling the newness to offset this planned reduction," CEO John Donahoe said on a post-earnings call.

Newer sporting goods brands, including Hoka, Asics, New Balance and On, accounted for 35% of global market share in 2023 compared to the 20% held over the 2013-2020 period, according to a RBC research report released in June.

"They know where the problems are, but they're having trouble right now generating demand and it is going to be a transition period that is going to take some time in different markets," Morningstar analyst David Swartz said.

Nike's US market share in the sports footwear category fell to 34.97% in 2023 from 35.37% in 2022, and 35.40% in 2021, according to GlobalData.

At least six brokerages downgraded the stock and 15 cut their price targets on Nike.

Nike's shares were trading at 25.13 times profit estimates while On and Deckers were trading at 37.41 and 31.13 times earnings expectations.