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Balenciaga Bloodbath: No End in Sight

December 7, 2022
One of LikeFolio’s strongest indicators for predicting the health of a company or brand is Consumer Sentiment.

Balenciaga brand sentiment levels are getting really ugly, really fast:
A 40-point fall from grace…and counting. 

Balenciaga's happiness levels have plunged dramatically since November 20th --- from around 70% positive to new lows nearing just 30%. 

In case you’ve been living under a rock, the major fashion house is being publicly scrutinized for recent ad campaigns that opened a LARGE can of worms. 

The can of worms in question? Child pornography, children holding teddy bears in bondage, pedophilia, and child exploitation…
Disgusting, indeed.

Hashtags like #BalenciagaGate and #BalenciagaPedos have been consistently trending since the ads were released to the public on Nov. 16th. 
Kering, the parent company of Balenciaga and also parent to luxury brands like Gucci, Saint Laurent, and Alexander McQueen has a serious problem on its hands. 

Though Balenciaga isn’t the top breadwinner for Kering (PPRUY), it does contribute a significant amount of revenue. 

Last quarter, Balenciaga was cited as a growth driver in Kering’s “other house” segment…something that will likely reverse in the current quarter.
At LikeFolio, we are constantly monitoring companies in crisis. 

You may remember the impact of the Kanye West drama for Adidas just last month. 

In many cases when companies encounter scandal, sentiment normalizes rather speedily. 

Adidas (ADDYY) sentiment is already +27 points higher from crisis lows.

However, sometimes the scandal is so unacceptable that the public won’t forget so easily.

This seems to be the case for Balenciaga.

A nail in the coffin for a major brand…and rightfully so!

So far this brand outrage hasn’t trickled into sentiment mentions for Kering's “sister” brands.

We’ll continue to monitor for updates, and as always – LikeFolio members will be the first to know when we spot an actionable opportunity.

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LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.

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