Brand Ambassadors and their Sales

This post will be a little different, as I will not be showing a network this time.

A random thought came to me: why not look into whether brand ambassadors actually help boost sales? In the K-pop world, there is a fascinating concept called parasocial relationships, the idea that fans feel personally connected to their favorite idols (celebrities). From what I understand, it is kinda like a one-sided relationship that, when viewed positively, can even seem endearing. In K-pop, fans collect photocards (like sports trading cards), buy albums, and load up on merch (it is all part of the fun). Many idols also become brand ambassadors, with the idea being that if fans see their favorite star wearing or promoting a brand, fans will be more likely to buy it too.

So I did SOME digging! I was curious about Versace, mainly because over the past summer I went and saw Stray Kids and! Hyunjin is the Prince of Versace (as he should). Looking at the Versace site it contained mostly their campaign ads, with some listed as the Global ambassadors. So, yes I googled and checked the Wiki to get some sort of list on who is or was an ambassador. (Also, I tried reading those Final Annual Reports on Capri LTD…no information on previous or current brand ambassadors). The GitHub that contains the code that I used and data can be found here.

Brand Ambassadors

What are brand ambassadors? Simply put, they basically advertise the brand. For instance, Hyunjin will be seen wearing Versace clothes while performing at Stray Kids concerts. Others like Bai Jingting, Channing Tatum, and Pond Naravit, would most like be seen doing photoshoots with the fragrance. In fact, most brand ambassadors do photoshoots or are the face of the brand for specific lines of accessories, clothes, and various other products produced by the brand.

Ambassador	Ambassador Type	Region	Active	Date
Yang Mi	Chinese Ambassador	Asia	No	2019
Hyunjin	Global	Asia	Yes	2023
Chris Lee (Li Yuchun)	Global	Asia	Yes	2023
Anne Hathaway	Global	Americas	Yes	2023
Bai Jingting	Global Fragrance	Asia	Yes	2024
Cai Xukun	Global	Asia	Yes	2024
Ningning	Global	Asia	Yes	2024
Cillian Murphy	Global	EMEA	Yes	2024
Sabrina Carpenter	Sunglasses	Americas	Yes	2024
Channing Tatum	Fragrance	Americas	Yes	2024
Dwyane Wade	Eyewear	Americas	Yes	2024
Pond Naravit	Fragrance	Asia	Yes	2025
Zhao Lusi (Rosy Zhao)	Global	Asia	Yes	2025

Table 1. Displays the current list of Global Ambassadors in Versace.

From what I could find, Yang Mi was the first Chinese ambassador, but it did not last long because of a T-shirt controversy. (I do not completely get all the details, but it had something to do with Hong Kong and Macau, some details can be found here). Just to be clear, I have no connection to any controversies involving these artists/celebrities nor am I promoting any of them. This is purely about looking at whether ambassadors like them seem to help boost sales.

Sales Report

Versace’s sales are divided across three main regions:

• Asia (which includes all countries in Asia and Oceania)
• EMEA (Europe, Middle East and Africa)
• The Americas (United States, Canada, and Latin America)

The following graph shows the sales trend for Versace from 2019-2025, both overall (the dotted line), and by region. It also depicts the number of ambassadors appointed during this time frame.

From a quick look, there is a noticeable dip around 2020, which likely reflects the global impact of COVID-19. The world shut down thus, luxury shopping took a back seat for most people. Afterwards the sales gradually recover, and each region has its own story.

Asia, despite having the most ambassadors, maintains fairly steady sales that is, no dramatic spikes nor sharp declines. Versace’s presence in Asia appears strong and consistent, perhaps reflecting a loyal customer base that values the brand without wild fluctuations.

Meanwhile, the Americas start off as the lowest-performing region, but after the 2020 dip, sales gradually rise, eventually becoming the second-highest after EMEA. Suggesting that maybe the Americas found value in Versace thus, Versace found its rhythm within the Americas.

Lastly, looking at the EMEA region, the clear leader throughout the period. They stayed the highest overall (except in the 2020 period), which makes sense. Versace is an Italian brand, and EMEA has both the heritage and access to drive consistent sales. In many ways, it’s the brand’s home turf.

Brand Ambassador Impact

Furthermore, in order to see if having a Global Brand Ambassador boosts sales I tested three regression models:

• Simple Model: Examines ambassador count and regional effects to the sales
• Quarterly Model: Includes the quarterly indicators to capture seasonal variation
• Lagged Model: Includes lagged ambassador terms, testing for delayed impacts over one and two quarters

Variable	Simple	Quarterly	Lagged
(Intercept)	59.877*** (5.067)	55.146*** (6.649)	53.927*** (6.881)
Number of Ambassadors	-0.524 (1.783)	-0.557 (1.783)	7.997 (7.419)
Region: EMEA	37.948*** (6.497)	37.905*** (6.487)	38.561*** (6.532)
Region: The Americas	13.043+ (6.634)	12.994+ (6.625)	13.805* (6.684)
Quarter 2		11.167 (7.124)	12.508+ (7.272)
Quarter 3		0.975 (7.125)	2.050 (7.429)
Quarter 4		6.667 (6.876)	6.051 (7.146)
1 Quarter Difference			-8.319 (11.585)
2 Quarter Difference			-1.875 (8.413)
Observations	75	75	75
R²	0.371	0.400	0.413
Adj. R²	0.345	0.347	0.342
AIC	678.3	680.8	683.1
BIC	689.9	699.4	706.3
Log Likelihood	-334.152	-332.405	-331.538
RMSE	20.83	20.35	20.12

Table 2. Regression results examining the relationship between ambassador presence and Versace’s regional and quarterly sales. The baseline category is Asia in Quarter 1, with no active ambassadors.
+ p < 0.1, * p < 0.05, ** p < 0.01, *** p < 0.001

All models have a moderate share of variation in sales, with adjusted R² ranging from 0.34-0.41. This means about 34-41% of sales differences across quarters and regions can be explained by ambassadors, region, and seasonality. Among the three models, the Lagged Model fits best based on variance and prediction accuracy (R² = 0.413, RMSE = 20.12).

Key Findings

Ambassadors. Neither the Simple Model (coefficient: -0.524; standard error: 1.783) nor the Quarterly Model (coefficient: -0.557; standard error: 1.783) indicates a significant relationship between the number of ambassadors and sales. The Lagged Model shows a non-significant positive coefficient (7.997 with standard error 7.419), suggesting that if ambassadors had an effect, it would be on a longer-term or indirect effect.

Regions. Across all models, EMEA has a large and highly significant positive coefficient (37.9-38.6, p < 0.001), confirming that Versace’s strongest sales are in Europe and its surrounding areas. Additionally the Americas show a positive, though smaller, effect (marginally significant for the Simple and Quarterly Models (p < 0.1), and significant in the Lagged Model (p < 0.05)). Thus, the EMEA and the Americas outperform Asia in sales across all models, which mirrors the trends seen in the sales graph.

Seasonality. Quarter 2 shows a marginally significant increase (p < 0.1) in the Lagged Model, which Quarters 3 and 4 show no significant differences. That suggest that sales tend to peak slightly in the second quarter, potentially aligning with product launches or seasonal marketing cycles.

Overall, the analysis found strong and consistent regional effects on sales, with EMEA performing best across all models. However, the number of ambassadors does not show a statistically significant (immediate or lagged) impact on sales. This suggests that ambassador may drive brand awareness or cultural presence, rather than immediate revenue. There is weak evidence of seasonality, with sales peaking modestly in Quarter 2.

Conclusion

Now, does having brand ambassadors truly affect sales in Versace? Based on this dataset? Not really.

But that does not mean ambassadors do not matter. In this case, there is not enough ambassadors to detect a clear effect statistically especially within other regions. Another thing to note is that the goal of the ambassador may not be to up sales, rather to influence the perception of the brand, boosting desirability, prestige, and cultural relevance.

Remember: Versace is a luxury brand, the allure partly comes from exclusivity. Ambassador campaigns might be for maintaining visibility among elite circle rather than boosting sales. Think about it: fast fashion thrives on accessibility (cheap, trendy, mass-produced). Luxury, on the other hand, sells scarcity, craftsmanship, and identity. If everyone could have it, it would not be considered luxury.

So maybe the question is not whether ambassadors boost sales, rather do they sustain the brand’s aura. In that sense, Versace’s steady performance, especially in EMEA and Asia, might actually show that its strategy is working: keep the brand exclusive, visible, and timeless.

With that, til next time!

Josefina <3