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Crisis Management in Fashion
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Flashcards
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Negative Social Media Buzz
Case Example: Viral tweet damaging a brand's reputation. Management Strategy: Engaging promptly on social media, correcting misinformation, and presenting factual statements.
Accusations of Plagiarism
Case Example: Designer accused of copying another's work. Management Strategy: Conducting an internal investigation and issuing a public statement upholding originality or crediting sources.
Cultural Insensitivity
Case Example: Dolce & Gabbana's offensive ad in China. Management Strategy: Issuing a sincere apology, withdrawing the ad, and engaging in cultural etiquette training for staff.
Labor Dispute
Case Example: Nike's sweatshop allegations. Management Strategy: Enforcing a Code of Conduct for manufacturers, conducting audits for compliance.
Supply Chain Disruption
Case Example: COVID-19 impact on global fashion supply chains. Management Strategy: Diversifying suppliers and investing in local sourcing to mitigate risks.
Financial Mismanagement
Case Example: Retailer files for bankruptcy due to poor financial decisions. Management Strategy: Restructuring operations, transparent financial reporting, and effective communication with stakeholders.
Product Recall
Case Example: Lululemon sheer yoga pants recall. Management Strategy: Hastily withdrawing faulty products and issuing a public apology to maintain brand integrity.
Legal Scandal
Case Example: Fashion brand caught in trademark litigation. Management Strategy: Engaging legal experts to navigate the court process and fostering positive PR in parallel to legal proceedings.
Counterfeit Products
Case Example: Luxury brands fighting fake goods. Management Strategy: Aggressive legal action against counterfeiters and educating customers on authentic products.
Executive Misconduct
Case Example: CEO's personal scandal affecting the fashion brand image. Management Strategy: Immediate addressing of the issue, potential stepping down of involved personnel, and reaffirmation of brand ethics.
Data Breach
Case Example: Fashion retailer data hack. Management Strategy: Strengthening cybersecurity measures, notifying all affected parties, and offering support to customers.
Environmental Scandal
Case Example: H&M accused of environmental damage. Management Strategy: Implementing sustainable practices and collaborating with environmental organizations to rebuild reputation.
Celebrity Endorsement Gone Wrong
Case Example: H&M and celebrity partnership backlash. Management Strategy: Publicly addressing the issue, possibly ending the endorsement, and reaffirming brand values.
Discrimination Lawsuit
Case Example: Luxury brand sued for discriminatory practices. Management Strategy: Audit of company policies, diversity and inclusion training, and settlement if necessary.
False Advertising Claims
Case Example: Skincare line in fashion retail accused of misleading customers. Management Strategy: Correcting advertising, possibly compensating customers, and rebuilding trust through authentic marketing.
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