The Influence of Social Media and the Power of Netizens in Damaging the Brand Like Balenciaga

The French luxury brand Balenciaga recently experienced its most significant communication crisis on November 16, 2022.The brand unveiled its holiday gifting campaign with children surrounded by teddy bears and handbags inspired by sadomasochism, the public immediately reacted negatively, accusing the brand of sexualizing children and encouraging pedophilia. This was the brand's most significant communication crisis to date. The hashtags #burnbalenciaga and #cancelbalenciaga went viral on social media, primarily on Tiktok, and have received over 300 million views. Due to a widespread online boycott and the vandalism of two flagship stores, Balenciaga's reputation was irreparably damaged. By examining the chronology of events, the brand's statements and response, the boycott's social media viral impact, and the final effects the brand experienced as a result of the crisis, this investigation adheres to the case study methodology. The findings show that, on the one hand, slow, ambiguous, and unaccountable responses make for a terrible crisis management strategy, and that, on the other hand, the power of consumers on social media has grown sufficiently to harm brands like Balenciaga. On the other hand, there are some social and ethical boundaries that not even well-positioned and beloved brands can afford to cross.