Chen deals under threat

HONG KONG - The scandal engulfing local celebrity Edison Chen is expected to threaten the endorsements of the starlets who have allegedly appeared in the leaked photos, after it was confirmed that several of Edison's brand relationships are at risk.

Samsung is currently reassessing its relationship with Chen, who has been the face of the company’s digital cameras in Hong Kong since 2006, with Samsung MD Byung Wook Kim saying that the company would potentially sever ties with Chen.

The scandal also threatens to taint the public perception of Chen’s former girlfriends such as Gillian Chung of pop duo Twins, a spokesperson for adidas in Hong Kong who also recently appeared in a Chinese New Year promotion for Disneyland.

Georgeana Fung, EVP of consumer marketing practice at Weber Shandwick, noted that it would be understandable for brands targeting families to shy away from association with any celebrities involved in the scandal.

Pepsi and Standard Chartered Bank’s Manhattan Titanium card are among other brands contemplating their future with Chen. While Pepsi has not decided to drop Chen from its promotions at this stage, it is reportedly monitoring the situation closely.

Chen recently spearheaded the launch of the Manhattan Titanium card with a TV and print campaign last month. A spokesperson for Standard Chartered Bank said that with the initial TV push featuring Chen over, it was unclear what the next step would be.

Rachel Catanach, SVP and GM of Fleishman Hillard Hong Kong, said that it was important for brands to assess Chen’s appeal as an endorser. “He trades on being sexy,” she said. “If sex appeal aligns with the brand, (the incident) shouldn’t do any long-term damage.”

Indeed, Levi’s has already renewed its 2008 contract with the beleaguered star.

Meanwhile a spokesperson for EPS, an electronic payment system, explained that abandoning Chen was not a consideration as the new advertising was in its final stages.

The scandal has provided a welcome fillip for Hong Kong’s flagging newspaper industry, helping to sell thousands of extra copies. “It has caused a sizeable bump,” said Mark Simon, director of corporate accounts at Apple Daily. “Thanks to Edison, a usually quiet Chinese New Year has been pretty active.”