For many years, the well-known luxury fashion label Balenciaga has stood for creativity and exclusivity. However, crisis communication can have an impact on even the most well-known brands. In this piece, we'll look at how a string of communication blunders harmed Balenciaga's financial situation and examine the tactics the company used to lessen the harm and repair its image.
Balenciaga released a marketing campaign in 2021 that many people found offensive and disrespectful. Models in the advertisement wore what appeared to be worn-out attire, prompting criticism that the campaign glamorised poverty and downplayed the difficulties of marginalised groups. Backlash ensued on social media, harming the brand's reputation.
Balenciaga's economy: Sales Decline: As a result of the inflammatory marketing campaign and supply chain controversy, Balenciaga's sales significantly decreased. consumers boycotted the company in large numbers, while prospective consumers switched to rivals with higher moral and ethical standards. Balenciaga's reputation suffered greatly as a result of the widespread perception that the brand put profits before morality. With its reputation damaged, the business found it difficult to draw both investors and socially responsible customers.
The corporation found it difficult to draw in investors and consumers who were socially concerned because of its image.
shares Price Volatility: As a result of the unfavourable press surrounding its subsidiary, Kering, the parent company of Balenciaga, experienced changes in the value of its shares. Investors began to have doubts about the company's capacity to survive the crisis and continue to be profitable.
A string of crisis communication blunders, including provocative marketing campaigns, supply chain crises, and contentious CEO pronouncements, had a substantial negative impact on Balenciaga's financial situation. However, the company has been able to gradually repair its reputation and recover financially thanks to its dedication to transparency, ethical improvements, and a change in leadership. Companies can learn a lot from this case about the value of ethical behavior and responsible communication in today's socially sensitive consumer environment.
Bibliography:
The Fashion Law Article:
Title: Balenciaga Ad Controversy: A Case Study in Communication in a Crisis, ndhttps://www.thefashionlaw.com/balenciaga-ad-controversy-a-case-study-in-communication-in-a-crisis/
New York Post Article:
Title: Balenciaga Seeks Crisis Management Expert After BDSM Ad Scandal, nd
https://nypost.com/2023/03/01/balenciaga-seeks-crisis-management-expert-after-bdsm-ad-scandal/
"Crisis Communication: Theory and Practice" by W. Timothy Coombs is a comprehensive resource on crisis communication strategies.
"Public Relations: Strategies and Tactics" by Dennis L. Wilcox and Glen T. Cameron covers crisis communication in the context of public relations.
Comments