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 split between Adidas and 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and CEO Francois-Henri Pinault said there had been “errors of judgment” and the advertisements had immediately been withdrawn.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 Pinault said the outcry over the withdrawn campaign had “a big impact” on Balenciaga sales in Britain, the Middle East and the United States in late November and December.
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