The Power of Consumers on Social Media: A Case Study of Balenciaga’s Crisis Communication

Abstract

The French luxury brand, Balenciaga, recently faced its most important communication crisis. On November 16th 2022, the brand released its holiday gifting campaign featuring children surrounded by sadomasochism-inspired teddy bears/handbags and received immediate backlash from the public, who accused the brand of sexualizing children and promoting pedophilia. The outrage went viral on social media - mainly on Tiktok - with the hashtags #burnbalenciaga and #cancelbalenciaga, which have accumulated more than 300 million views. Balenciaga suffered an incalculable damage on its reputation, having two flagship stores vandalized and a viral online boycott. This investigation follows the case study methodology, by analyzing the timeline of events, the brand’s statements and response, the viral effect of the boycott on social media and the ultimate affectations that the brand underwent due to the crisis. The conclusions reveal that on one hand there are some social anethical boundaries that not even well-positioned and beloved brands can afford to cross, and that slow, unclear and unaccountable answers compose a terrible strategy of crisis management, and on the other hand, the power of consumers on social media has gained enough strength to damage brands like Balenciaga.

The Role of Social Media in Increasing Customer Interaction and Brand Loyalty

“…Moving forward, it's worth noting that social media doesn't solely serve as a communication tool; it also serves as an expansive canvas for companies to craft captivating and highly relevant content that possesses the inherent ability to capture the attention of prospective customers (Gárgoles & Ambás, 2023). Within the vast tapestry of social media, businesses have the creative freedom to curate a diverse array of content, encompassing posts, images, videos, and engaging narratives.…”