Avatar's Adventures In China Offer Universal Branding Lessons

China has pulled the smash hit Avatar from screens around the country while the film was at its peak of popularity. The move came just two weeks after the film was released, when there were still long lines for tickets to showings that sold out almost as soon as they went on sale.

Speculation abounds as to why China's film authorities nixed this flick – and the reasons provide a valuable example for anyone planning a product or marketing launch in the nation of 1.3 billion people.

As much as it might resemble one at times, China's market is not a free one. Broader economic and social issues can, and do, have an impact on business in China in ways that they don't in the US.

As a developing country, China has protectionist tendencies towards industries where it sees major growth potential, and will coddle these industries to the detriment of foreign competition. The film industry is an example, and the authorities strictly regulate the number of foreign films allowed into theaters each year -- often by delaying release dates. Avatar's release date in China was postponed until after the New Year holiday for exactly this reason.

Products and ad campaigns can assume an unexpected significance in China that can spontaneously prompt a government crackdown or public backlash. Avatar hit a nerve that James Cameron likely never anticipated: As soon as the film opened, the Chinese started making links between the plot and the countrywide problem of illegal land grabs by greedy property developers -- displacing “nail house” dwellers -- that have led to widespread social unrest, an incredibly unnerving issue for the government.

It also sparked debate as to whether China would ever be able to produce a similar feat of moviemaking, giving rise to a sense of doubt and insecurity about the industry that the authorities likely did not want to spread. As the Wall Street Journal reports:

Major publications and news portals in China were said to have received orders from government authorities to downplay discussion about nail houses related to the movie. Avatar’s success in China has also prompted a fair amount of debate among moviegoers and those in the film industry over whether China will ever produce a similarly spectacular film.”

Avatar conundrum in China underscores the importance of proper, thorough market research conducted by a firm that knows the country well. Though it's not a guarantee that nothing will go wrong, it helps immeasurably when planning a branding and marketing strategy in such a complex culture.