In the fashion sector, the selection of an ambassador of the brand is a crucial strategy to strengthen the brand’s identity and connect with consumers. However, when these ambassadors are involved in disputes, the brands they represent can undergo significant consequences.
The chain effect of an obscured image
A brand ambassador is more than a simple promotional figure: they intertwine with the image of the brand. When they face public control, negative advertising does not affect them only personally, but also pours to the brand they represent. For example, in October 2020, Irene of Red Velvet, who was an ambassador for Prada, was accused of mistreating a fashion publisher. The scandal triggered indignation, leading to a wave of criticisms directed to Prada, especially in the Asian market. Although the brand itself has had no involvement in the dispute, its association with the star caused damage to the reputation.
Financial consequences: volatility of sales and the equity market
In addition to the concerns of the image, a scandal that involves an ambassador of the brand can have direct financial consequences. The boycott of consumers, the loss of the credibility of the brand and the media control can lead to a drop in sales and, in some cases, even to learn the prices of the shares. A clear example is the actress Zheng Shuang, who faced a surrogate scandal while acting as an ambassador of Prada. While public sentiment rebelled against her, the price of Prada’s shares decreased by 1.7% in the short period, demonstrating the immediate impact that these disputes may have on the trust of investors.
The cost of the management of crises and marketing adjustments
When an ambassador of the brand becomes the subject of disputes, companies are often forced to make difficult decisions, including ending in partnerships or rotating their marketing strategies. This process is not only expensive in terms of time, but also expensive. Sealing ties with an ambassador means investing in damaging the damage, modifying advertising materials and launching new campaigns to restore the credibility of the brand. In addition, finding a replacement ambassador requires careful planning and significant financial resources.
Kim Soo-Hyun, who was appointed Prada ambassador in September 2023, is facing serious accusations concerning his relationship passed with the deceased actress Kim Sae-Se. While the full extension of the situation remains unclear, the growing attention of the media led to concerns for the potential negative consequences for Prada. Since scandals can spread rapidly, especially in international markets, the brands associated with celebrities who face a public backlash are often captured in the storm, regardless of whether or not they choose to respond.
Erosion of consumer trust and loyalty to the brand
Consumer Trust is one of the most precious resources that a brand can have, but it is also fragile. When an ambassador of celebrities is linked to non -ethical behavior, he can make consumers question the values ​​and decision -making process of the brand. In some cases, customers can believe that the choice of the brand’s ambassador reflects badly on his ethical position, leading them to move on to competitors with a cleaner reputation.
