China's first F1 driver captures consumer brands' attention
After a five-year hiatus, Formula 1 returned to the Shanghai International Circuit in April 2024. As the first Chinese driver to compete in an F1 race, Zhou Guanyu finally made his home debut. In the weeks leading up to the race, massive advertisements featuring Zhou Guanyu could be seen throughout Shanghai, on office buildings, subways, malls, and restaurants.
Advertisements endorsed by Zhou Guanyu are visible everywhere in Shanghai. Images are from RED
Formula 1 is recognised by Chinese consumers as representing the advanced level of the global automotive manufacturing industry - something China is increasingly present in - and often compared to the World Cup and the Olympics. It has now finally welcomed the first Chinese face in its history. This has not only ignited the enthusiasm of car enthusiasts but also propelled Zhou Guanyu's commercial value to new heights.
Today, Formula 1 is no longer just a celebration for car manufacturers, an increasing number of consumer brands are also getting involved. First, Lululemon announced Zhou Guanyu as a brand ambassador, followed by McDonald's announcing him as a spokesperson for their new product. In addition, consumer brands such as PUMA, Dior, and Chivas have all engaged in commercial partnerships with Zhou Guanyu. It is not unlike the Eileen Gu frenzy during the Winter Olympics.
Products endorsed by Zhou Guanyu. Images are from RED
Consumer brands are eyeing Zhou Guanyu, perhaps due to the high value of his male fans behind him. Zhou Guanyu's Douyin account has a total of 668,000 followers, with males accounting for 88%. Around 35% of the followers are aged between 31 and 40, with approximately 25% from first-tier cities, 21% from ‘new first-tier’ cities, and 20% from second-tier cities. Among them, over 50% of users use iPhones.
Often, the results of competitions and the size of fan bases do not necessarily determine the commercial value of sports stars. The most crucial question is "who is watching them?" Zhou Guanyu currently has a scarce presence in the market. In 48 races since 2022, he’s yet to reach the podium, placing 12th for Alfa Romeo in Shanghai. His achievement is not to be sniffed at though - the performance of what car you drive is a limiting factor, and Zhou’s is towards the bottom of the grid. Most importantly only the top 20 drivers globally can enter Formula 1, and he is the only Chinese face among them. That is what has appealed to Chinese consumers and brands, more-so than his results on the track.
Sports like skiing and Formula 1 racing, once considered "games for the wealthy" and niche activities, are slowly breaking barriers after Eileen Gu and Zhou Guanyu represented Chinese people on the world stage. Time will tell if his presence in F1 continues and brand value remains strong.
Zhou Guanyu and Eileen Gu exchange words before the start of the F1 race. Image from RED
It's a lot cheaper to retain a customer than acquire a new one, so the old adage says. Many marketers in China don't seem to have got that memo, with marketing plans based around increasingly expensive livestreams and KOLs for sales, with limited initiatives to retain those customers once they've transacted.We track many loyalty initiatives at China Skinny, but one of the most exciting we've seen lately is from Chinese EV brand, Nio. Car sales have been one of the brightest categories in China's retail sphere, last month growing 17% year-on-year. As we noted in July, Beijing has been strategic in putting its weight behind car sales - it takes a lot of packaged goods or shoe sales to match that of a single car in making retail sales look rosy.