The drive is an effort to minimise the potential damage of a vigorous online and SMS campaign by Chinese nationalists urging consumers to boycott the company’s operations in the mainland.
The anti-Carrefour campaign followed efforts by French protestors to sabotage the Olympic Torch Relay as it passed through Paris recently, and allegations that Bernard Arnault, chairman of French luxury goods group LVMH and holder of a 10 per cent stake in the chain, was a Dalai Lama supporter.
The anti-Carrefour campaign followed efforts by French protestors to sabotage the Olympic Torch Relay as it passed through Paris recently, and allegations that Bernard Arnault, chairman of French luxury goods group LVMH and holder of a 10 per cent stake in the chain, was a Dalai Lama supporter.
Although Arnault refuted the accusations, an initial SMS blast called on Chinese to stop shopping at Carrefour stores for 17 days - the duration of the Games. An online element demanded a boycott of all French retailers in China, with emphasis on Carrefour, The Body Shop (owned by L’Oréal), and Louis Vuitton.
The Chinese have responded vociferously, with over 95 per cent of the 44,000 canvassed on domestic portal NetEase in favour of boycotting all French goods - and pressure groups harassing Carrefour patrons.
The chain’s initial response - the introduction of a promotional discount system - was derided online as an attempt to buy the people’s forgiveness.
The company also posted notices in the Xinmin Evening News, the Shanghai Morning Post and the Oriental Morning Post, in which CEO Jose-Luis Duran denied involvement with any political or religious causes, and acknowledged the role China’s development had played in Carrefour’s own expansion.
But some observers say Carrefour was slow to address the issue. Clement Yip, MD of Agenda, noted that three weeks had passed since the initial protests and suggested that Carrefour should concentrate on its contributions to city planning and charity.
“Their PR effort is a bit late, as the public anger and nationalist sentiment has already peaked,” he said.
The delay has allowed rivals, such as Wal-Mart, Trust-Mart and an array of local players to benefit, Anna Fan, director of media planning at Guangdong Advertising, said.
Scott Kronick, president of Ogilvy Public Relations Worldwide in China, countered that although the situation required careful management, it would subside.
Another source added that with a long history as a major employer and retailer of local produce in China, Carrefour remained in a strong position.
Additional reporting by Benjamin Li
