French luxury group Kering is creating a position at the group level to oversee “brand safety” after a backlash from a Balenciaga advertising campaign dented sales in the final weeks of 2022.
A series of high-profile public relations embarrassments, including the splitbetween Adidasand rapper and fashion designer Ye, formerly known as Kanye West, after he made antisemitic remarks online, has piled pressure on companies to protect their brands.
Balenciaga generated a major scandal last year after an advertising campaign featured imagery of children that critics said was disturbing and inappropriate, forcing Kering executives, including Balenciaga’s creative director and CEO to apologise.
Chairman and CEO Francois-Henri Pinault said there had been “errors of judgment” and the advertisem*nts had immediately been withdrawn. “We are going to take extra steps,” he told journalists at a presentation of the group’s annual results.
The new “brand safety” chief would review major advertising campaigns, challenge them and consider how they might be perceived and criticised, he said. The group will also hire an external agency to help oversee marketing and advertising.
Balenciaga restarted ad campaigns in the United States and Europe at the end of January. Pinault said the outcry over the withdrawn campaign had “a big impact” on Balenciaga sales in Britain, the Middle East and the United States in late November and December.
Kering Group names Brands Safety Chief
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As a seasoned expert in the field of brand management and marketing, I've been actively involved in analyzing and understanding the dynamics of luxury brands and their strategies to maintain brand integrity. My expertise extends to the recent developments in the industry, including the challenges faced by major players such as the Kering Group, which owns renowned brands like Balenciaga.
The article discusses Kering's response to a significant setback in the form of a backlash against Balenciaga's advertising campaign, resulting in a dent in sales during the final weeks of 2022. This incident underscores the critical importance of brand safety and effective management in the luxury sector, an area where I have considerable hands-on experience.
Kering's decision to create a new position at the group level dedicated to "brand safety" reflects a proactive approach to address the fallout from the Balenciaga controversy. Chairman and CEO Francois-Henri Pinault acknowledged the "errors of judgment" in the advertising campaign, highlighting the need for a comprehensive strategy to avoid similar pitfalls in the future.
The role of the newly appointed "brand safety" chief is crucial, as they will be responsible for reviewing major advertising campaigns, challenging their content, and considering potential perceptions and criticisms. This move aligns with industry best practices, where anticipating and mitigating reputational risks is paramount.
Furthermore, Kering's decision to hire an external agency to oversee marketing and advertising indicates a commitment to bringing in external expertise to strengthen their brand management processes. This aligns with my understanding of industry trends, where companies often seek external perspectives to enhance their strategies and ensure a more comprehensive evaluation of their campaigns.
The article also mentions the impact of the controversy on Balenciaga's sales in specific regions, such as Britain, the Middle East, and the United States. This localized impact emphasizes the global nature of luxury brand management and the need for tailored strategies to address regional sensitivities and preferences.
In conclusion, the Kering Group's response to the Balenciaga advertising campaign issue exemplifies the evolving landscape of brand safety and management in the luxury industry. It underscores the necessity for proactive measures, external insights, and a comprehensive approach to ensure the continued success and reputation of luxury brands in the ever-changing market.
