A Balenciaga Case Study: An Analysis of Balenciaga's Business Innovation Strategy

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A Balenciaga Case Study: An Analysis of Balenciaga’s Business Innovation Strategy

Emily Freund – 18007210

MSc Strategic Fashion Management – Year 4

Strategy, Innovation, and Disruption

Unit Leader: Shuyu Lin

Word Count: 5,224

Date Submitted: December 13, 2022

I, Emily Freund, certify that this is an original piece of work. I have acknowledged all sources and citations. No section of this report has been plagiarized

1 Table of Contents Table of Contents 1 - 2 List of Images 2 List of Figures 2 1. Introduction 3 - 4 1.1. Context and Rationale 3 - 4 1.2. Aims and Objectives 4 1.3. Research Methodology 4 2. Innovation Strategy 5 - 6 2.1. Business Strategy 5 - 6 3. Social Innovation 7 - 11 3.1. Business Problem 7 - 8 3.2. Strategy Review 9 - 11 4. Environmental Innovation 12 - 15 4.1. Business Problem 12 - 13 4.2. Strategy Review 14 - 15 5. Strategy Recommendation 16 - 17 5.1. Conclusion 16 5.2. Recommendations 16 - 17 6. Action Plan Informed by Reflection 18 - 21 6.1. Reflection 18 - 19 6.2. Action Plan 20 - 21 7. References 22 - 26 7.1. Information References 22 - 24 7.2. Image References 25 7.3. Figure References 26 8. Appendices 27 - 54 8.1. Business Model Canvas 27 8.2. Balenciaga Online Comparative Shop 28 - 41 8.3. Competitor’s Analysis 42 8.4. Interview #1 43 - 47 8.5. Interview #2 48 - 53 8.6. Interview Topic Guide 54
2 List of Images Image 3.1. Balenciaga’s Paris Sneakers 7 Image 3.2. Balenciaga’s Qixi Festival Campaign 8 Image 3.3. @Balenciaga Instagram Post #1 10 Image 3.4. @HypeBae Instagram Post #1 10 Image 3.5. @Balenciaga Instagram Post #2 11 Image 3.6. @HypeBae Instagram Post #2 11 Image 4.1. Kim Kardashian for Balenciaga 15 List of Figures Figure 2.1. Innovation Strategies 5 Figure 2.2. The Shift from Web 1.0 to Web 3.0 6 Figure 2.3. The Paradox of Luxury-Goods Marketing 6 Figure 5.1. The Cornerstones of Good Marketing Communications 17 Figure 6.1. Gibbs Reflective Model 19 Figure 6.2. Gantt Chart on Career Development Journey 21

1. Introduction

1.1. Context and Rationale

Cristóbal Balenciaga founded his couture house, Balenciaga, in 1936. His silhouettes defied the fashion standards at the time, debuting loose-fitted pieces that became social statements (Threaducation, 2021). With Cristóbal setting the house’s standards for innovative and disruptive designs, these principles are still achieved in Balenciaga’s current environment. Balenciaga is reinventing the luxury industry to incorporate the hype-inducing ideals and experimental strategies of streetwear, while also reviving the classic tradition of haute couture collections in 2021 Since his appointment as Creative Director, Demna Gvasalia has revolutionized the luxury house through digitalization of their runway shows, clothing items, and advertisements. In addition, his unique, oversized silhouettes blended with a tailored construction ‘kickstarted a global renaissance’ that is still reverberating throughout the fashion industry (Cavanagh, 2020; Cartner-Morley, 2021). With a strategy to collaborate and partner with retailers (i.e., Farfetch), other brands (i.e., Gucci, Adidas, Crocs), gaming platforms (i.e., Fortnite), celebrities (i.e., Kanye West, RuPaul), and other forms of media (i.e., the Simpsons), the house has created a unique selling point amongst consumers, creating a competitive advantage in the market (Tratten, 2019; Larsen, 2021). Balenciaga creates value for consumers through their use of innovative technologies and unique product and experience offerings. However, with such a disruptive strategy, comes a multitude of controversies.

Demna Gvasalia’s influence on Balenciaga gained hype for the brand, but his pieces constantly receive backlash from consumers claiming appropriation of artists’ works, of black and Chinese culture, glorifying homelessness, in addition to promoting child abuse, in most recent controversy. Gvasalia’s response to backlash on his ‘trash pouch’ was “I couldn’t miss an opportunity to make the most expensive trash bag in the world, because who doesn’t love a fashion scandal” (Krishnasai, 2022). However, the scandal inducing designs and campaigns have possibly gone too far, with consumers losing trust in the label. Balenciaga continuously proves to lack social and cultural intelligence, showing little responsibility and actionability for change regarding the multitude of controversies they spark. Key issues lie in Balenciaga’s main innovation strategy of technology and design driven, rather than a market pull strategy, or user centered. A user-centered strategy is determined by consumer needs and demands (Verganti, 2008). If Balenciaga were to consider their consumers and the market, the brand could reduce the amount of backlash they receive

With the fashion industry moving towards more environmentally conscious ideals, luxury brands are innovating their product offerings. While Balenciaga has partnered with some brands to establish sustainable offerings, their marketing strategies do not communicate

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these schemes. But rather, the brand is using marketing tactics to promote campaigns, then soon deleting such social media posts, making the message temporary to consumers. Establishing meaningful connections with consumers between the ’functional and aesthetics of the physical object’ is something Balenciaga needs to capitalize on, to continue being a successful label in the luxury industry (Clark, 1985)

In the current environment, brands are experimenting with digitalization and Web 3.0 strategies, however the market calls for brands to be transparent and authentic in their communications, committing ‘to do better and create more human relationships with customers’ (Napoli, 2022). With consumers demanding more social and environmental responsibility and accountability from the brands they shop from; it is imperative for brands to transform their business models to incorporate such innovations in these sectors. Analyzing Balenciaga’s current innovation strategies and main business problems is crucial to providing recommendations for further growth and success amongst customers and the market.

1.2. Aims & Objectives

To critically analyze Balenciaga’s current innovation strategies and evaluate the current issues faced by the business, this case study aims to:

à Examine Balenciaga’s general business strategy on digital innovation

à Analyze key business problems regarding social and environmental innovation

à Critically review the effectiveness of Balenciaga’s response to such business problems

à Propose recommendations to implement for a successful and viable business for the future

à Reflect on personal attributes developed during this unit and create an action plan for future learning and career opportunities

1.3. Research Methodology

To effectively analyze Balenciaga’s innovation strategies and evaluate the business problems associated with them, secondary research is undertaken. Academic and business sources, such as WGSN, Vogue Business, Mintel, and various academic publications, provide key insights into successful business strategies in the current fashion environment and specifically Balenciaga’s approach to innovation. Primary research, such as two interviews with a luxury consumer and a temporary Balenciaga employee, a comparative shop, and a competitor’s analysis, yield crucial evidence to supplement the secondary research

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2. Innovation Strategy

2.1. Business Strategy

Balenciaga redefines modern luxury with ‘hype-inducing and disruptive strategies common among streetwear brands’ and a mission to honor its history ‘while paving a path for its future’ (Larsen, 2021). With their virtual fashion and technology-based marketing, Balenciaga’s strategy is considered to focus on technology-push innovation (See Figure 2.1.). Verganti (2008) explains that the overlap of design-driven and technology push innovation ‘highlights that breakthrough technological changes are often associated with radical changes in product meaning.’ The generation of a new definition of fashion, regarding digital fashion, pushes technology to create innovations like 3D fashion through virtual and augmented reality.

Figure 2.1. Innovation Strategies

Balenciaga has implemented innovation strategies that allow the brand to continue to transform with the everchanging market. The luxury brand is at the forefront of these key digital transformations, accelerated by the Covid-19 pandemic and ‘evolving consumer appetites for messaging’ (Napoli, 2022). The house applies a complementarities-centered business model design, with the blending of activities and exchanges to create value for consumers between products and services, online and offline assets, and technologies (Zott and Amit, 2010) While Balenciaga is not the first to market with such strategies, the luxury brand has still taken a leadership role, capitalizing on digital fashion and 3D advertising for their collaboration with Fortnite. This partnership aimed to blend ‘IRL and URL experiences,’ launching ‘virtual skins for avatars inside the platform’ and physical merch in boutiques around the world, where in some stores, the ‘collection unlocked ingame goods with each IRL purchase’ (Larsen, 2021).

With a shift in the fashion industry towards Web 3.0 design, luxury brands need to transform to create a more consumer-centric approach for an experiential and digital shopping experience (See Figure 2.2). Napoli (2022) explains that ‘the brands of

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tomorrow will experiment with digital creativity, commit to do better and create more human relationships with customers,’ further driving the need for brand strategy transformations. Balenciaga creates an immersive experience through their digital innovations, however an employee recounts that “they haven't really stuck out digitalization wise, as opposed to other brands that are similar to them. Even within the Kering Group, Gucci is clearly doing so much more digitally. And Balenciaga really does have that modern, streetwear, innovative vibe that could very well translate into digital technologies, but I haven't really seen any marketing about it” (See Appendix 8.4). While the brand is executing innovations in the technology sphere, consumer knowledge of such strategies is not as apparent as competitors, like Gucci (See Appendix 8.3).

Digital transformations drive brands to innovate the classic business model of luxury brands and their marketing tactics (See Figure 2.3) Balenciaga as a luxury house needs to create a strategy that continues the ideals of luxury marketing while also imposing Web 1.0, 2.0, and 3.0 strategies

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Figure 2 Goods Marketing

3. Social Innovation

3.1. Business Problem

Balenciaga has a successful digital innovation strategy, yet still must develop a more user-centered approach. Verganti (2008) explains that market pull innovation relies on ‘users to directly or indirectly identify directions for innovation.’ Balenciaga’s social innovation is continuously revealed to be lacking, with cultural intelligence playing a role in the recurring backlash amongst their products. Luxury consumers gain value through the product quality, experiences offered, and exclusivity that luxury allows (Smith, 2022a). Balenciaga articulates their business model through their value proposition (See Appendix 8.1) yet struggles with relationships amongst consumers.

The creative director of Balenciaga, Demna Gvasalia, explains that old “luxury used to be so exclusive that it would sell a dream to the people who could afford it, and to others who couldn’t afford it to still dream about” (WWD, 2019). However, the brand has come under fire with their new Paris shoe style, ‘customized to look annihilated, shredded, stained, and graffitied…,’ where Livia Firth remarked, “To buy something so destroyed is beyond offensive towards people I actually met who wore shoes like this because they couldn’t afford even basic meals (Fury, 2022). Explaining her opinion on Balenciaga’s social strategies, one employee divulges on the positives and negatives, “…the tribute that Demna wrote a letter when the war in Ukraine broke, but at the same time, they do some stuff that is just annoying, for example, those hobo-ish, beat-up sneakers, those I found very controversial and just simply unnecessary, as well as the trash bag. That's so expensive, and it is literally trash bag.” (See Appendix 8.4). The irony and lack of social consideration lies in the fact that Gvasalia explained that old luxury sold a dream to people who could not afford luxury, and yet created a designer shoe, retailing for £1290, that mimics homelessness (See Image 3.1).

While destructed fashion is not a new concept, like the punk sub-culture, the public reaction emphasized the difference between distressed and mimicking the clothes worn by the homeless or impoverished. Gvasalia says, “For me, fashion has to be inclusive

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and cannot be exclusive any longer to survive. It no longer sells a dream, but it sells an identity to people” (WWD, 2019). So, it bares the question, what kind of identity are you selling with the Paris sneakers?

Demna Gvasalia explains that consumers are interested in fashion brands for the designs and the look it gives them, but also for “the values it upholds and promotes,” as he strives for Balenciaga to be socially involved and use “garments as a tool of communicati (WWD, 2019). While Balenciaga creates interesting and edgy silhouettes for the modern luxury consumer, the brand’s designs often get lost in translation. Balenciaga was under fire after the release of the limited-edition collection for China’s Qixi Festival (Chinese Valentine’s Day). The bag itself was deemed ‘unsophisticated’ compared to other Qixi themed items released by other luxury brands, and the advertising campaign was seen as tacky, dated, and tasteless (See Image 3.2; James, 2020). Many international fashion brands feel the need to use elements that they think are representative of Chinese aesthetics, but these efforts are often seen as stereotyping Chinese culture or Chinese people in a disrespectful way (James, 2020). Balenciaga received backlash about the Trompe-L’Oeil Sweatpants, with comments about the cultural appropriation of black culture. Marquita Gammage, an associate professor of Africana Studies, explains that sagging pants with “boxer underwear exposed at the top of the waistline has been popularized in hip hop culture”, but also this style has “been used to criminalize Blacks, especially Black males as thugs and a threat to American society” (Alfonso III, 2021).

Social value refers to relationships concerning individual and societal wellbeing, as well as community, social cohesion, and inclusion (Bourdieu, 1986). Gvasalia mentioned that the values a brand holds are what draws consumers in. And the consumer reactions to numerous products and campaigns clarify the brand’s value proposition around creative value, and how this lacks social awareness.

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Balenciaga (n.d.) Image 3.2. Balenciaga’s Qixi Festival Campaign

3.2. Strategy Review

Balenciaga’s pieces that receive backlash are often greatly misinterpreted by the public and require the brand to issue a statement explaining the design Many of their controversial products, most recently the ‘Paris’ sneaker, the ‘Trompe-L’oeil’ sweatpants, have prompted press releases as a response. Balenciaga’s press-release regarding the ‘Paris’ trainers ‘suggested that the bashed-up shoes are meant to look as if they will be worn for a lifetime’ (Fury, 2022). Ludivine Pont, Chief Marketing Officer at Balenciaga, stated "…in many of our collections, we combine different wardrobe pieces into a single garment, such as denim jeans layered over tracksuit pants, cargo shorts merged with jeans and button-up shirts layered over t-shirts," regarding the sweatpants backlash calling out appropriation of black culture (Alfonso III, 2021). Demna Gvasalia, Creative Director at Balenciaga, ‘acknowledges that he borrows and/or references obvious pieces of popular consumer,’ but says appropriation is “…a big word everyone is throwing around left and right, but nobody really knows where it actually comes from and why. And that it’s not Demna who started this” (Hargrove, 2019). Balenciaga’s strategy in the instances of appropriation was to publish a press-release explaining the meaning behind the item, but not necessarily apologize for how the item was interpreted and affected by consumers. A Balenciaga temp employee exclaims, “I feel that it's easy not to get why Balenciaga puts out some designs. I think there's a fine line between making a statement through a piece that is more of a work of art than a fashion commercial product and then if something being offensive, for example the homeless people shoes. Those even I believe were offensive because I don't see anything artistic in them necessarily. Or the bag that is made out of the chips packet is so expensive for no reason that's not an art piece that's just making something commercial even more commercial and I get why consumers are mad at this but at the same time, I feel like the people that get angry at this aren’t the typical Balenciaga customer.” (See Appendix 8.4).

The brand’s strategy at solving issues of appropriation seem dismissive to consumer demands. Gvasalia announced that he will no longer be explaining the motivations behind his work, “I hate boxes and I hate labels and I hate being labelled and placed in a box. Society, the internet, and the world in general loves doing that, because it feels safe that way. Fashion in its best-case scenario should not need a story to be sold to someone. You either like it or you don’t” (Rodgers, 2022). The creative director even says, “I just wanted to point out that appropriation didn’t start as a concept in fashion with me. I’ve just maybe modernized it in a way that’s understandable for my generation of consumers who I talk to. Because we grew up with the same values, the same interests, and I would call this the first internet generation” (Hargrove, 2019). He claims that his version of appropriation is understandable for his generation of consumers, but the market response from his designs often stirs up claims that Balenciaga lacks cultural intelligence and social innovation.

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Most recently, Balenciaga has gone under fire for a series of campaigns regarding their Adidas collaboration and holiday campaign and child protection The house’s response was posted to their Instagram account, as the brand deleted their Twitter following Elon Musk’s takeover, addressing the controversies (See Image and pursuing a lawsuit against its production company (See Image 3.4).

However lot of push-back from the community on the lawsuit, a statement made by édric Charbit, President and CEO, was published on their Instagram deciding not to pursue litigation and steps forward for the luxury house (See Image 3.5) as well as a personal statement made by Demna (See Image 3.6) Following this controversy, a lot of consumers have lost trust in the brand and feel as though Balenciaga induced marketing has gone too far (See Appendix 8.5).

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Image 3. Image 3. #1
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Image 3. Image 3. @Hypebae Instagram Post #2

4. Environmental Innovation

4.1. Business Problem

The environment is becoming increasingly important to consumers in the fashion industry, especially after the Covid-19 pandemic, with heightened attention due to social media (Smith, 2022b). Luis Bravo Martins, chief marketer at KIT-AR, describes that a Chief Marketing Officer “of the future will probably be one-third marketer, one-third technologist and one-third activist, but hopefully and above all else, 100% human-centered” (Napoli, 2022). With Balenciaga creating digitally innovative marketing campaigns that gain recognition amongst consumers, the luxury brand needs to develop environmental awareness into their communications.

Gvasalia shares his definition of “new luxury,” which seeks to be inclusive, sustainable, involved in society and the community, and maintains the avant-garde DNA of Balenciaga (WWD, 2019). Balenciaga has previously released collections with sustainable properties, like their collaboration with Farfetch in 2019, created without leather, fur, or down materials (Tratten, 2019). Balenciaga’s website has a sustainability page (See Appendix 8.2), that delves into the brand’s strategy of not using fur or exotic leathers, but the bags are mainly made from calfskin leather, which is not an animal-free alternative. The brand claims to use more responsible, recycled, and upcycled materials. However, the products pages on the website do not show any recycled or upcycled materials being used (See Appendix 8.2). It is important for brands to reinforce their statements with actionable approaches, to create an authentic and transparent strategy. One interview participant discussed the importance of transparency in brands, “but overall, admitting that they're not sustainable would be the first step because faking sustainability when you literally sell leather goods as your main category is just dumb” and explaining that brands should exhibit an action plan for the future to be more eco-conscious (See Appendix 8.4).

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Balenciaga (n.d.)

Balenciaga uses collaborations to create a unique selling point amongst their competitors (See Appendix 8.3), but many of these partnerships do not align with the environment. Efforts like partnering with ‘Kiss the Ground’, regenerative agriculture advocates, for Earth Day and ‘Reflaunt’, for their new resell program, are not as apparent as their competitors’ efforts (See Appendix 8.3). Their attempts at sustainable fashion are clouded with the news of the house’s latest designs, like a designer trash bag (Marain, 2022). Through Balenciaga’s new resale program, customers can resell Balenciaga clothing, shoes, and accessories through the website or in Balenciaga stores (Weston, 2022). One interviewee acknowledges that this is a good business strategy as it keeps the process of reselling items in-house. However, she only found out about this by working in the store, saying “I feel like it’s not publicized enough in the general public” (See Appendix 8.4). Another participant admitted that they had not heard about any Balenciaga’s environmental strategies explaining that “…if they are doing something sustainable, it's not something that is at the forefront of their communication… And if they're not that means, maybe there isn't a lot of strategies that exist in itself” (See Appendix 8.5). A key issue of the house’s eco-conscious ideals is that they are not the leading strategies of the business model (See Appendix 8.1).

Balenciaga has an approach that is technology and design driven, yet Gen Z and Millennial consumers prioritize the environment and sustainable shopping habits when buying fashion (Shepherd, 2022). Developing a more customer-centric business model, the environment should influence the designs of Balenciaga’s items, like using mushroom or pineapple leather, instead of animal leather in general. This barrier is caused by the luxury industry’s position amongst other retailers; that using real leathers and bio-fabrics, like silk, creates a higher quality product. Stella McCartney is constantly transforming the luxury industry with sustainable innovation, as the brand debuted the first-ever mushroom leather bag in July 2022 (Webb, 2022). During an interview, the participant rationalized “ With luxury brands, it's more difficult, because they do use materials like leather and fur, but from my research, what I found is that it is better to buy real leather I'd rather buy real leather from a luxury brand, which I know number one has not exploited their workers, number two is far better quality and is going to last me years on end, and third, at the end of the day real leather will decompose into the soil, it can go back into the earth and not cause a negative impact” (See Appendix 8.5) While real leather can decompose more than alternative leathers, 90% of leather is tanned using chemicals harmful to humans and can hinder the biodegradability of the leather itself, in addition to the copious amounts of water used in the leather-making process (Håkansson, 2022). This further proves that real leather is not a more sustainable option, and Balenciaga should employ innovative alternative materials.

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4.2. Strategy Review

Luxury products are sold at high-price points because of the quality of product and services, as well as status of the brand. Balenciaga has been described as “charging luxury prices for anti-luxury goods” selling “working class brands and motifs to rich consumers” (Hargrove, 2019). The luxury brand’s new Autumn/Winter collection features a calf-skin leather trash bag, selling for $1,790, with the aim to store/collect trash (Krishnasai, 2022). One customer reacted, “this is absolutely idiotic. To kill an animal to make this ridiculous and disgusting overpriced bag is just what’s wrong with this world. We don’t deserve this planet or its animals” and Gvasalia’s response was, “I couldn’t miss an opportunity to make the most expensive trash bag in the world, because who doesn’t love a fashion scandal” (Krishnasai, 2022). The design of Gvasalia’s avant-garde products using animal leathers is regarded as unsustainable, as his designs are often misinterpreted and do not justify the allocation of materials.

The luxury house has recently partnered with Reflaunt for the new resale program (See Appendix 8.1), where the products can be sold back to the brand in exchange for store credit or customers can choose to be paid by bank transfer (Weston, 2022). This is a great option for brands to be sustainable and create a more circular economy. However, a temporary employee of Balenciaga explains the lack of market knowledge of this program through their marketing techniques, specifically Instagram, “ … they'll delete everything once they have a new thing dropping for example now, they have their holiday pieces collection and they've deleted all the pictures of the previous thing they were promoting… maybe they did post about the this resell program, they've probably deleted so a lot of people don't even know about it” (See Appendix 8.4). This marketing strategy acts a form of hype-induced traffic, as consumers know when something is going to be dropped from the brand, following the deletion of previous posts (See Appendix 8.5). On the other hand, it hinders their ability to efficiently promote activities they are currently engaging in, like the resale program and other sustainable schemes, as few as they are. Interviewees both explained that the brand does not have many environmental strategies and do not promote this as their main strategy, but rather Balenciaga’s focus is on shockfactor and hype-induced marketing (See Appendices 8.4 & 8.5).

Other than product design sustainability, Balenciaga does not engage in environmental forums and events, like COP27, and invests in influencers, like Kim Kardashian, that are not particularly environmentally conscious (See Image 4.1; Appendix 8.5). Compared to the label’s competitors, such as Fendi, making strides to become more sustainable, Balenciaga

has little actionability on

their plans

to be a more eco-conscious business

The luxury house’s current strategies are not enough to be considered a positive of their business model and should employ the same innovative ideals for digitalization towards the environment.

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Image 4.1. Kim Kardashian for Balenciaga

5. Strategic Recommendation

5.1. Conclusion

Balenciaga has innovated its business model to create value through technology and blending online and offline experiences. With a reinforced concept of creating modern luxury fashion goods, the linkage between the core concept and the components of luxury fashion (i.e., materials, services offered) have been transformed by the creative director’s vision for innovation. Analysis of Balenciaga’s innovation approach underpinned the house’s technological and design-driven strategies, through digital fashion and augmented/virtual reality, with a focus on key partnerships. However, the brand needs to develop a more user-centered approach to fulfill the social and environmental strategies that are lacking within their innovation approach. Cultural intelligence and demands for eco-friendly products are dictated by consumer needs to build meaningful relationships from the brands they shop. In order to gain competitive advantage and truly capture the market, Balenciaga has to focus on social and environmental sustainability, while also continuing their digital innovation efforts.

5.2. Recommendations

Balenciaga already implements a technology and design-driven approach to innovation but creating a more consumer-centric approach to their business model will create a competitive advantage. “Brands need to support [consumers] in new holistic ways, offering co-creation, part ownership and commitments to people and planet to redirect those attitudes” (Napoli, 2022). Smith (2022b) illustrates that luxury brands are targeting Gen Z through customization. One of Balenciaga’s competitors, Louis Vuitton, has implemented co-creation and customization with the ‘Run Away’ trainers, allowing customers to choose the color, material, and having the option to add initials to the shoe (See Appendix 8.3; Smith, 2022b). Product development wise, co-creation involves consumers in the brand and their products, while also creating a unique piece. Balenciaga’s brand image is considered as edgy streetwear and references styles from people in historical fashion culture who created streetwear. Co-creation still aligns with the image of the brand, especially as the label takes references from popular culture, like creating Lays chip purses and Ikea-inspired tote bags.

Regarding their design-driven approach, Balenciaga constantly receives backlash from their products and marketing campaigns Specifically, to product design, one interviewee recommends differentiating and “drawing a line” between their commercial products and their avant-garde, artistic pieces, by having the brand explain “this is a couture piece, it's meant to be appreciated as an art form, as opposed to sold and bought by customers will make things clearer overall” (Appendix 8.4) In their most recent controversy concerning

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child abuse and the two campaigns aligned with that issue, one luxury consumer divulged into the composition of the team that allowed for these campaigns to be published, “I think a more diverse team would help having focus groups could help in situations like this, that 'we've come up with a design, we cannot decide whether it's controversial and socially acceptable, let's ask a group that are from that community and see how their feelings are about that” (See Appendix 8.5). Aligning with the recommendation of formulating a user-centered approach, listening to consumers and the market on past issues, and making a conscious effort to be more socially and culturally aware is the best course of action for this brand that continues to be spark controversy. As Balenciaga was going to sue the production company that created these campaigns, consumers were more enraged as the brand did not accept responsibility for this campaign and rather deflected the blame onto a third-party. So, accepting responsibility and having the willingness to change is a business model transformation Balenciaga needs to make, to further the viability and success of the business.

On an environmental note, the label needs to employ more environmental strategies, as their innovation is lacking in this sector and consumers do not see Balenciaga as “sustainable.” The brand practices innovative strategies in digitalization and are one of the leading brands in this shift to a Web 3.0 industry. Executing the same ideal environmental innovation would create more of a competitive advantage, as competitors are leading the eco-conscious luxury industr

The Cornerstones of Good Marketing Communications (See Figure 5.1) is a tool Balenciaga should implement into their marketing strategies, through unifying their brand narrative with their consumers and use technology to their advantage in order to do so. Integrating better marketing communications and corporate culture will ensure the brand positions itself better amongst the amount of controversy Balenciaga receives from its campaigns. While the brand profits from their hype and shock value through the products and editorials, employing a more thoughtful and transparent marketing strategy could possibly reduce the backlash of appropriation and insensitivity they often receive.

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Figure 5.1. Cornerstones of Good Marketing Communications

6. Action Plan Informed by Reflection

6.1. Reflection

Approaching this assessment, I employed my previous knowledge of Balenciaga as starting point for researching more into the brand. Firstly, conducting secondary research from the internet helped me gain insight into the brand’s strategy, whether it was positive or negative. I continued to apply the concepts and models from weekly lectures and make connections between the secondary research, to conclude the focus of this case study as social and environmental innovation. From this preliminary research, I applied knowledge from this unit as well as my previous units in university and started to conduct primary research, such as an online comparative shop and the application of the business model canvas to Balenciaga.

Where I struggled the most in this assessment was writing enough content of the strategy review section, as Balenciaga’s main approach to customer reactions is to make a public statement. After speaking with the unit leader, I decided to change the layout to create a more cohesive flow of this case study; breaking up the sections into innovation strategies and within those sections discuss the business problem and strategy review. This helped me visualize Balenciaga’s issues better and understand where there was a gap in my research that I could fill with primary research.

Reflecting on the problem I was facing, I felt that my initial primary research was not in depth enough, although helpful for background knowledge (See Figure 6.1). My next step was to conduct primary research that helped underpin the claims from the secondary research and provide extra insight into the problems discussed. To truly understand how Balenciaga’s social and environmental innovation affected consumer’s perception of the brand, I needed to conduct an interview without leading the interviewee. I created a topic guide, clarifying what I wanted to ask my interviewees which I learned from a previous unit, Researching Consumer Behavior (See Appendix 8.6). After creating an outline for the interviews, I chose to use a temporary employee of Balenciaga and a luxury consumer for my two interviewees as they would have different perspectives on the brand. Following these interviews, I was more confident in writing and the word count was not a main issue anymore. The key takeaway from this issue I faced is that it is okay to struggle, admitting so, and then asking for help, and I plan on continuing these ideals throughout the rest of my time at university and in my future career opportunities (See Figure 6.1).

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Figure 6.1. Gibbs Reflective Model Description

The case study analysis was too secondary research heavy and primary research was going to be difficult to conduct without adding bias to the questions. I initially wrote my sections with all the secondary research I did, then wanted to implement primary research to underpin these sentiments in the secondary research. I asked my tutor and other students in my class for advice and help on how to ask questions without leading the respondent to discuss only negative things about Balenciaga, especially with all the current backlash swirling about the brand

Feelings I was feeling really stuck on how to write enough in each section and felt that a lot of the questions I wanted to ask would create bias in the answers, considering I wanted to mainly discuss controversies of Balenciaga. A lot of my peers were also feeling like 5,000 words was a lot to write about one brand and their strategies.

Evaluation After receiving advice from my tutor and my peers, I started to create a brief topic guide for my interviews I created the topic guide which included wider context questions, general Balenciaga questions, specific questions on the topics I was focusing on, and concluding questions (See Appendix 8.6). After doing so, I went back to my tutor for recommendations on how to improve the topic guide, once approved, I started to conduct the two interviews. Asking for advice really helped in formulating my ideas better and more clearly to be presented in the topic guide

Analysis At first, I felt really stuck on my primary research and adding enough content for a well-rounded case study analysis. However, my time management and organization skills provided an advantage as I had enough time to ask for help, apply this advice, and return to my tutor for confirmation on their suggestions. Overall, this situation was felt by a lot of students, so I felt better about my struggles, knowing I was not alone in feeling this way

Conclusion Overall, I learned that it is okay to feel lost at times and asking for help is not a bad thing. Receiving help from my tutors and other students made this outcome a more positive one, especially since the interviews I conducted asked about positives and negatives about Balenciaga, reducing bias in answers

Action Plan

If I was ever in this situation again feeling stuck, I would continue to reach out to the appropriate people to ask for assistance. If I were to do anything differently, it would be instead of worrying and just feeling stuck, I would make a list of things I need to do and how I can prove my point. From this list I can formulate a way to execute this plan from the help I receive. Developing skills of academic and professional communication is a very important skill that I learned about with this issue. I will continue to develop this for the rest of my time at university and carry out my learnings into my future career endeavors

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6.2. Action Plan

Reflecting on writing this case study and the difficulties I encountered, I plan on executing what I learned throughout the rest of my academic career and my future professional career Through careful consideration of my chosen brand and reflecting on my personal development, I consider myself to be ready for the workforce. Conducting this case study helped me understand different business strategies and to critically analyze them. I will be using this knowledge when applying for jobs and when I get a job after graduation. Analyzing the brand’s business model before entering a job interview, will show resourcefulness and insight into the kind of ambitious worker I am, and hopefully seen as a beneficial and integral part to the team. The review of Balenciaga’s innovation approaches followed by strategic recommendations assisted in my understanding of how a business can strategically overcome their business problems, which I can apply these skills to any business I work for Other skills that I have obtained throughout university and my previous professional endeavors include time management, organization, and communication skills. Technical capabilities I offer to my future employment comprise of basic fashion design skills, which are useful for product development and management opportunities, and Adobe Suite and Microsoft Office certifications, which are imperative for marketing, merchandising, and buying opportunities. I offer an analytical, diligent, yet creative mindset, making me a good candidate for a multitude of disciplines to immerse myself in within the fashion business industry.

After receiving a master’s in science degree in Strategic Fashion Management, I plan on moving to New York to pursue opportunities in the fashion business industry. Entering the workforce as a soon-to-be graduate, my first objective is to conduct a personal assessment on what my values and interests are and then carry out research on available jobs that align with such values and what interests me (See Figure 6.2). This case study report assisted in my knowledge of business strategies and the importance of the values a brand holds, so I want to align my personal morals with the ethics of the future companies I work for. Following creating my job goals, I will conduct an in-depth job search, as I aim to get a job in an associate or mid-level experience post-graduation (See Figure 6.2). Within the fashion industry, making connections is crucial to getting your foot in the door, so I hope to use my current network as a starting point for my preliminary job search. Mapping out my career development journey, in the second half of 2023, I hope to start my professional career, focusing on the transition from university to the full-time workforce and continuing to assess my personal and career goals (See Figure 6.2) Throughout my professional opportunities post-graduation, my goals are to seek out learning opportunities whenever possible and build a professional network in New York I intend to carry out these ideals in my first job and the ones thereafter, while also continuing to assess my individual goals and whether the company I work for, can provide me with the space to grow personally and professionally.

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21
Key Activities 2022 2023 2024 2025 2026 Conduct Personal Assessment (ex: values, interests) Conduct Industry & Occupation Research Prepare for Applications & Interviews Internship or Job Work Create Job Search Goals Conduct a Targeted Job Search Graduate University Deal with Transition & Continue to Evaluate Plan and Goals Seek Out Learning Opportunities Build a Professional Network Assess Job & Opportunities to Grow Conduct Research on Next Level Job
Figure 6.2. Gantt Chart on my Career Development Journey

7. References

7.1. Information References

Alfonso III, F. (2021). Fashion Designer Called out for Cultural Appropriation over Its $1,190 Pants. [online] CNN. Available at: https://edition.cnn.com/style/article/balenciaga-boxersweatpants-racism-tiktok-cultural-appropriation/index.html [Accessed 21 Oct. 2022].

Balenciaga (2022). Balenciaga. [Online Image] Instagram. Available at: https://www.instagram.com/balenciaga/ [Accessed 8 Nov. 2022].

Balenciaga (n.d.). Balenciaga Official Online Boutique GB. [online] www.balenciaga.com. Available at: https://www.balenciaga.com/en-gb [Accessed 7 Nov. 2022].

Bottega Veneta (n.d.). Bottega Veneta® GB | Official Website. [online] www.bottegaveneta.com. Available at: https://www.bottegaveneta.com/en-gb [Accessed 7 Nov. 2022].

Bourdieu, P. (1986). The Forms of Capital. In: Handbook of Theory and Research for Sociology of Education. Connecticut: Greenwood Press, pp.241–258.

Cartner-Morley, J. (2021). Balenciaga Seeks to Reset the Narrative with Haute Couture Revival. [online] The Guardian. Available at:

https://www.theguardian.com/fashion/2021/jul/07/balenciaga-seeks-reset-narrative-hautecouture-revival [Accessed 21 Oct. 2022].

Cavanagh, A. (2020). Balenciaga’s Big Rethink. Financial Times. [online] 4 Dec. Available at: https://www.ft.com/content/17339e18-6039-4fd2-93c6-95fd7c87a191 [Accessed 11 Oct. 2022].

Clark, K.B. (1985). The Interaction of Design Hierarchies and Market Concepts in Technological Evolution. Research Policy, [online] 14(5), pp.235–251. doi:10.1016/0048-7333(85)90007-1.

Dahlén, M., Lange, F. and Smith, T. (2010). Marketing Communications : a Brand Narrative Approach. [online] Chichester, UK: Wiley. Available at: https://books.google.co.uk/books?hl=en&lr=&id=rLt48XwnW1cC&oi=fnd&pg=PR15&dq=Marketi ng+Communications:+a+brand+narrative+approach&ots=QIIygh4gc7&sig=I2tNvp4xD1Vz_LFh m172UmvEtzU&redir_esc=y#v=onepage&q=Marketing%20Communications%3A%20a%20bran d%20narrative%20approach&f=false [Accessed 22 Nov. 2022].

Fendi (2022). Fendi | Creativity, Fun, and Craftsmanship since 1925. [online] Instagram. Available at: https://www.instagram.com/fendi/ [Accessed 8 Nov. 2022].

Fendi (n.d.). FENDI | Official Online Store. [online] Fendi.com. Available at: https://www.fendi.com/gb-en/ [Accessed 7 Nov. 2022].

Fury, A. (2022). Balenciaga’s Trashed Trainers Tap into Fashion Controversy. Financial Times [online] 17 May. Available at: https://www.ft.com/content/436e7efb-6c94-489c-879c6267806da2b5 [Accessed 21 Oct. 2022].

GUCCI (n.d.). Gucci. [online] Gucci.com. Available at: https://www.gucci.com/uk/en_gb/ [Accessed 11 Dec. 2022].

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Gucci (2022). Welcome to the World of Gucci. [online] Instagram.com. Available at: https://www.instagram.com/gucci/ [Accessed 11 Dec. 2022].

Håkansson, E. (2022). The Hidden Costs of Leather. [online] Good On You. Available at: https://goodonyou.eco/the-hidden-costs-of-leather/ [Accessed 8 Dec. 2022].

Hargrove, C. (2019). Balenciaga’s Demna Gvasalia: I Didn’t Start Appropriation. [online] www.refinery29.com. Available at: https://www.refinery29.com/en-us/2019/02/225425/demnagvasalia-balenciaga-vetements-designer-appropriation-interview [Accessed 21 Oct. 2022].

James, G. (2020). Balenciaga Accused of Insulting Chinese People’s Taste with ‘Tacky’ and ‘Offensive’ Ads. [online] The China Project. Available at: https://thechinaproject.com/2020/08/11/balenciaga-accused-of-insulting-chinese-peoples-tastewith-tacky-and-offensive-ads/ [Accessed 11 Oct. 2022].

Krishnasai, C. (2022). Netizens Trash Talk Balenciaga’s Most Expensive Trash Bag Worth $1,790. [online] WION. Available at: https://www.wionews.com/world/netizens-trash-talkbalenciagas-most-expensive-trash-bag-worth-1790-504265 [Accessed 21 Oct. 2022].

Larsen, M. (2021). Brand Case Study: Balenciaga. [online] WGSN. Available at: https://www.wgsn.com/insight/article/92144 [Accessed 11 Oct. 2022].

Louis Vuitton (n.d.). LOUIS VUITTON - Official Website United Kingdom. [online] Louisvuitton.com. Available at: https://uk.louisvuitton.com/eng-gb/homepage [Accessed 7 Nov. 2022].

Louis Vuitton (2022). Louis Vuitton | the Official Instagram Account of Louis Vuitton. [online] Instagram. Available at: https://www.instagram.com/louisvuitton/ [Accessed 8 Nov. 2022].

Marain, A. (2022). Why Is the Latest Balenciaga Bag Causing so Much Buzz? [online] Vogue France. Available at: https://www.vogue.fr/fashion/article/balenciaga-trash-bag [Accessed 21 Oct. 2022].

Napoli, C. (2022). Marketing Forecast 2022. [online] WGSN. Available at: https://www-wgsncom.arts.idm.oclc.org/insight/article/92811 [Accessed 15 Nov. 2022].

Prada (n.d.). Prada. [online] Prada.com. Available at: https://www.prada.com/gb/en.html [Accessed 7 Nov. 2022].

Prada (2022). Prada | Thinking Fashion since 1913. [online] Instagram. Available at: https://www.instagram.com/prada/ [Accessed 8 Nov. 2022].

Rodgers, D. (2022). Balenciaga’s next Must-have Bag? an Empty Packet of Lays. [online] Dazed. Available at: https://www.dazeddigital.com/fashion/article/57101/1/balenciaga-it-bagss23-lays-crisps-kanye-west-mud-ironic-meme-demna-gvasalia [Accessed 21 Oct. 2022].

Shirley, K. (2022). Bottega Veneta Now Offers a Lifetime Warranty for Its Handbags. [online] Forbes. Available at: https://www.forbes.com/sites/kristenshirley/2022/10/29/bottega-venetanow-offers-a-lifetime-warranty-for-its-handbags/ [Accessed 8 Nov. 2022].

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Smith, F. (2022a). Consumer Attitudes Towards Luxury - UK - 2022. [online] Mintel. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1101831/# [Accessed 10 Nov. 2022].

Smith, F. (2022b). Lifestyles of Generation Z - UK - 2022. [online] Mintel. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1100799/# [Accessed 9 Nov. 2022].

Threaducation (2021). The History of Balenciaga. [online] YouTube. Available at: https://www.youtube.com/watch?v=9kNFJo1-wUc [Accessed 11 Oct. 2022].

Tratten, K. (2019). Farfetch & Balenciaga Launch Exclusive Capsule with Dedicated China Activation. [online] Jing Daily. Available at: https://jingdaily.com/farfetch-balenciaga-china/ [Accessed 11 Oct. 2022].

Verganti, R. (2008). Design, Meanings, and Radical Innovation: a Metamodel and a Research Agenda*. Journal of Product Innovation Management, 25(5), pp.436–456. doi:10.1111/j.15405885.2008.00313.x.

Webb, B. (2022). Stella McCartney to Debut First-ever Mushroom Leather Bag. [online] Vogue Business. Available at: https://www.voguebusiness.com/sustainability/stella-mccartney-to-debutfirst-ever-mushroom-leather-bag [Accessed 10 Nov. 2022].

Weston, S. (2022). Balenciaga launches resale. [online] Drapers. Available at: https://www.drapersonline.com/news/balenciaga-launches-resale [Accessed 11 Oct. 2022].

WWD (2019). Demna Gvasalia on Appropriation, ‘Ugly’ Sneakers and the Curse of Precollections. [online] WWD. Available at: https://wwd.com/fashion-news/fashion-features/demnagvasalia-talks-appropriation-ugly-sneakers-and-the-curse-of-pre-collections-1203001305/ [Accessed 11 Oct. 2022].

Zott, C. and Amit, R. (2010). Business Model Design: an Activity System Perspective. Long Range Planning, 43, pp.216–226.

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7.2. Image References

Image 3.1

Slater, B. (2022). Balenciaga Drop Their Dilapidated Paris Sneaker. [online] Hero. Available at: https://hero-magazine.com/article/212535/balenciaga-drop-their-dilapidated-paris-sneaker [Accessed 2 Nov. 2022].

Image 3.2

Global Times China (2020). New Balenciaga ad, ‘an insult to tastes of Chinese people’ - Global Times. [online] www.globaltimes.cn. Available at: https://www.globaltimes.cn/content/1197364.shtml [Accessed 6 Dec. 2022].

Image 3.3

Balenciaga (2022). Balenciaga. [Online Image] Instagram. Available at: https://www.instagram.com/balenciaga/ [Accessed 28 Nov. 2022].

Image 3.4

Hypebae (2022a). Balenciaga Is Suing Its Production Company for $25 Million USD. [Online Image] Instagram. Available at: https://www.instagram.com/p/ClhDp9ErJ2d/?utm_source=ig_web_copy_link [Accessed 28 Nov. 2022].

Image 3.5

Balenciaga (2022). Balenciaga. [Online Image] Instagram. Available at: https://www.instagram.com/balenciaga/ [Accessed 2 Dec. 2022].

Image 3.6

Hypebae (2022b). Demna Releases Personal Statement Regarding Balenciaga Controversy. [Online Image] Instagram. Available at: https://www.instagram.com/p/Clq8FQnOU_m/ [Accessed 2 Dec. 2022].

Image 4.1

Balenciaga (n.d.). Balenciaga Official Online Boutique GB. [online] www.balenciaga.com. Available at: https://www.balenciaga.com/en-gb [Accessed 7 Nov. 2022].

25

7.3. Figure References

Figure 2.1

Verganti, R. (2008). Design, Meanings, and Radical Innovation: a Metamodel and a Research Agenda*. Journal of Product Innovation Management, 25(5), pp.436–456. doi:10.1111/j.15405885.2008.00313.x.

Figure 2.2

Batat, W. (2019). Digital Luxury: Transforming Brands and Consumer Experiences. [online] Los Angeles: Sage. Available at: https://books.google.com/books?id=jVCIDwAAQBAJ&lr=&source=gbs_navlinks_s [Accessed 6 Dec. 2022].

Figure 2 3

Dubois, B. (1998). The Paradox of Luxury-Goods Marketing. Village Mondial: L’art du Marketing, p.292.

Figure 5.1

Dahlén, M., Lange, F. and Smith, T. (2010). Marketing Communications: A Brand Narrative Approach. [online] Chichester, UK: Wiley. Available at: https://books.google.co.uk/books?hl=en&lr=&id=rLt48XwnW1cC&oi=fnd&pg=PR15&dq=Marketi ng+Communications:+a+brand+narrative+approach&ots=QIIygh4gc7&sig=I2tNvp4xD1Vz_LFh m172UmvEtzU&redir_esc=y#v=onepage&q=Marketing%20Communications%3A%20a%20bran d%20narrative%20approach&f=false [Accessed 22 Nov. 2022].

Figure 6.1

The University of Edinburgh (2020). Gibbs’ Reflective Cycle. [online] The University of Edinburgh. Available at: https://www.ed.ac.uk/reflection/reflectors-toolkit/reflecting-onexperience/gibbs-reflective-cycle [Accessed 9 Dec. 2022].

Figure 6.2

Slide Team (n.d.). Five Yearly Path to Career Planning Process Roadmap for Individual. [online] www.slideteam.net. Available at: https://www.slideteam.net/five-yearly-path-to-career-planningprocess-roadmap-for-individual.html [Accessed 20 Nov. 2022].

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8. Appendices

8.1. Business Model Canvas

27

8.2. Balenciaga Online Comparative Shop

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29
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31
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34
35
36
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40
41

8.3. Competitor’s Analysis

Balenciaga

Products Outerwear, Skirts/Trousers, Dresses, Tops Underwear, Bags, Shoes, Jewelry, Kids, Accessories, Sportswear, Home

Pricing £85 – 8,500

Quality/ Expertise

Unique Features

Outerwear, Skirts/Trousers, Dresses, Tops, Swim, Bags, Accessories, Shoes, Jewelry

Modern luxury streetwear

Oversized silhouettes, edgy designs

Distribution Website, retailer sites, dept. stores, boutiques, gaming platforms

Colorful luxury, handbags

Bright green color, weave design

Website, retailer sites, dept. stores, boutiques

Outerwear, Skirts/Trousers, Dresses, Tops, Bags, Accessories, Shoes, Jewelry, Sportswear, Kids

Colorful patterned luxury, fur

Baguette design, FF logo design

Website, retailer sites, dept. stores, boutiques

Outerwear, Skirts/Trousers, Tops, Underwear, Bags, Shoes, Accessories, Jewelry, Sportswear, Home, Fragrance, Beauty

Modern simple luxury, Re-edition bags

Recycled nylon bags, triangle Prada logo design

Website, retailer sites, dept. stores, boutiques

Outerwear, Skirts/Trousers, Tops, Underwear, Bags, Shoes, Accessories, Jewelry, Swim, Fragrance, Home

Luxury travel luggage, leather goods

LV monogram design on most of their items

Website, retailer sites, dept. stores, boutiques

Outerwear, Skirts/Trousers, Tops, Underwear, Bags, Shoes, Accessories, Jewelry, Swim, Sportswear, Home, Beauty, Fragrance, Kids

– 48,300

Luxury ready to wear, leather goods

GG monogram, green, red, and brown colors

Website, retailer sites, dept. stores, boutiques

Location HQ in Paris, France HQ in Milan, Italy HQ in Rome, Italy HQ in Milan, Italy HQ in Paris, France HQ in Florence, Italy

Reputation Collaborations, partnerships, a part of Kering group

Bag & shoe design, a part of Kering group

Magazine features, news articles, Newsletter

Fur & leather goods, a part of LVMH group

Magazine features, news articles, Instagram (20.1M followers), Facebook, Twitter, TikTok, Newsletter, Fendi Casa, collaborations & partnerships

Strengths

Reputation & unique features, new resell program, innovation strategy

Weaknesses Not much information about sustainability on website

Sources Balenciaga, n.d. Balenciaga, 2022

Reputation & unique features, lifetime warranty on handbags

Consumers mainly buy handbags & accessories, no social media accounts

Bottega Veneta, n.d. Shirley, 2022

Virtual bag experience, information on sustainability, collaboration with Skims

Still uses animal fur, logomania

Chic, modern ready-to-wear, a part of Prada Group

Magazine features, news articles, Instagram (30.5M followers), Twitter, TikTok, LinkedIn, Fondazione Prada, collaborations & partnerships

Lots of information on the brand & its strategies

Consumers mainly buy handbags & accessories

Luxury travel goods, a part of LVMH group

Luxury leather goods and ready to wear, a part of the Kering group Marcomms Magazine features, news articles, Instagram (14.3M followers), Facebook, TikTok, YouTube, LinkedIn, Newsletter, collaborations & partnerships

Magazine features, news articles, Instagram (49.1M followers), Facebook, Twitter, LinkedIn, TikTok, YouTube, Snapchat, Pinterest, Newsletters, exhibitions & museums

Reputation, Marcomms, heritage/culture, customization of products- ‘Run Away’ sneaker (Smith, 2022b)

Consumers mainly buy handbags & accessories, logomania

Magazine features, news articles, Instagram (49.7M followers), Facebook, Twitter, YouTube, Pinterest, Newsletters, exhibitions & museums, collaborations & partnerships

Reputation, Marcomms, metaverse experience, Gucci Garden, digital innovation

Logomania, not much information on sustainability

Fendi, n.d. Fendi, 2022

Prada,

Louis Vuitton, n.d. Louis Vuitton, 2022 Smith, 2022b

Gucci, n.d. Gucci, 2022

42
£140
£23
£80
10,800 £170
137,000 £50
– 8,130
- 60,500
-
n.d. Prada, 2022

INVITATION TO PARTICIPATE IN A RESEARCH PROJECT

PARTICIPANT INFORMATION

Project Title: A Balenciaga Case Study: An Analysis of Balenciaga’s Business Innovation

Strategy

Student Lead: Emily Freund

Email address: e.freund0720181@arts.ac.uk

Phone number: 07549258075

Dear Siv Izzo

You are invited to participate in:

A case study report on Balenciaga s business strategies, specifically digital, social, and environmental innovation for a university project

Please read this sheet carefully and be confident that you understand its contents before deciding whether to participate.

Why have you been approached?

As a temporary employee of Balenciaga, you have insight into the business first-hand on a sales strategy basis. You could provide information about their innovation strategies from a consumer perspective as well.

If I agree to participate, what will I be required to do?

You will be required to answer a series of questions in an interview regarding your knowledge and opinion of Balenciaga s digital, social, and environmental strategies In addition, you will also provide a general basis of your shopping experience with the luxury industry

What are the possible risks or disadvantages?

The possible risks could be for your future employment regarding the opinions you may give about the company

What are the benefits associated with participation?

The benefits of your participation will be the presentation of your opinions on such matters discussed in the interview, used as primary research

What will happen to the information I provide?

The information provided will be uploaded via TurnItIn to the London College of Fashion database and my digital portfolio on Issuu for future employment purposes.

What are my rights as a participant?

• The right to withdraw from participation at any time

• The right to request that any recording cease

• The right to have any data withdrawn and destroyed, provided it can be reliably identified, and provided that so doing does not increase the risk for the participant.

• The right to be de-identified in any photographs intended for public publication, before the point of publication

• The right to have any questions answered at any time.

Whom should I contact if I have any questions or want to withdraw my consent?

Emily Freund at e.freund0720181@arts.ac.uk

Monday, November 21st , @6:00 PM

PRIVACY NOTICE

Your personal data will be processed by UAL on its managed systems for research purposes with your explicit consent

As part of this project, your data will be shared with Issuu, a portfolio publication platform, for the same purpose.

Your personal data will be deleted on your request or on December 15, 2022 after the project end date.

You can find more information about UAL and your privacy rights at www.arts.ac.uk/privacyinformation

CONSENT TEMPLATE

1. I have had the project explained to me, and I have read the information sheet

2. I agree to participate in the research project as described

3. I agree to the items checked below: to be interviewed that my voice will be audio recorded identifying information (i.e. name) will be used that information obtained may be published

4. I acknowledge that:

(a) I understand that my participation is voluntary and that I am free to withdraw from the project at any time and to withdraw any unprocessed data previously supplied (unless follow-up is needed for safety).

(b) The project is for the purpose of research. It may not be of direct benefit to me.

(c) The privacy of the personal information I provide will be safeguarded and only disclosed where I have consented to the disclosure or as required by law.

(d) The security of the research data will be protected during and after completion of the study. The data collected during the study may be published

Participant’s Consent

‘I agree to the above as indicated and give my explicit consent under GDPR Art.6(1)(a) and Art.9(2)(a) for my personal data to be processed by UAL as indicated on this form, including any special category data I may choose to provide’

November 21, 2022

Participant: Date: (Signature)

Emily Freund: When was the last time you bought from a luxury brand, if you have at all?

Siv Izzo: I don't think I remember because most designer-ish things I own were either gifts, or hand me downs. So, I wouldn't necessarily say that I've purchased them directly.

Emily: What influences you to look at luxury brands, or to shop, I know you don't buy them yourself

Siv: I guess I'm just very aware of what the industry puts out. I enjoy looking at fashion shows. I enjoy following what brands come up with to promote their things. I like seeing whenever a brand does something like a brand dinner or brand event on social media, follow how they portray it. And I also follow a bunch of influencers that are very fashion based. So, I see what brands are doing, specifically luxury brands.

Emily: And what is your preferred shopping outlet online, offline, both?

Siv: Offline, for sure. Sometimes it's not the most practical because I don't always have time to physically go in store and get things. But I'm not a fan of online shopping.

Emily: What do you value most when choosing brands to shop from?

43
8.4. Interview #1

Siv: I guess, I try to sort of align myself and my values with the ones of brands. But it's not always possible, obviously, as I try, but it's not something that I won't not shop from a brand if it's not entirely in line with my morals.

Emily: How would you describe Balenciaga?

Siv: I'd say it's very not necessarily controversial, just likes to spark controversy by pushing boundaries a lot and creating products that aren't necessarily not even available for purchase, they're more of an art form than a fashion piece.

Emily: Do you shop at Balenciaga?

Siv: I can't say that I have, I've worked there.

Emily: What was your experience when you worked there?

Siv: It was actually very nice. The customer base is a very fashion conscious and fashion aware person that obviously know the brand and quite often will come shop with already something from Balenciaga on. So, it's definitely a very frequent, reoccurring customer and somebody who is very into street wear and edgy things.

Emily: And in the past three months, where have you seen or heard about Balenciaga?

Siv: Obviously social media, you know, with their past controversy with the things they've put out in the last month with the tribute they've done when the [Russian-Ukrainian] war started, that fashion show and the store was very impactful, I'd say.

Emily: Have you used any of Balenciaga's in store technologies?

Siv: I can't say that I have. In store next to the sneakers, Balenciaga has this QR code that customers and people can scan to access, I don't know if it's like Instagram or a Snapchat filter, but when I tried it, it wasn't working. So, I mean, I did try it, but it didn't work. And I can't say that I haven't seen any customers scan the QR code.

Emily: Have you used any of their online technologies?

Siv: No.

Emily: And what do you think of Balenciaga's use of technology, like their AR and VR, or their digital fashion, or the QR codes

Siv: I think the QR code is a good starting point. But then obviously, you need to make sure that people actually activate it. I know that they did some sunglasses with LED lights, cool tech stuff. Which was nice, but I don't really engage with technology and brands in general. It's not just a Balenciaga thing.

Emily: How important are omni channel shopping experiences to you?

Siv: Very important, a lot of brands consider themselves omni channel. But then retail stores aren't connected with the online. So, it's harder to get returns and exchange things. If you buy something online, you need to send it back online and you can't just walk into the store and exchange it there. Which is understandable because of stock take and stuff like that from a retail perspective, but it's annoying from a customer perspective, because then it just makes the experience a bit harder.

44

Emily: What are some positive things about Balenciaga's engagement with digitalization.

Siv: I like that they listen to the consumer quite a lot and seem to engage enough with the consumer to see what they're doing right or wrong and I guess just being open to criticism.

Emily: What are some negative things about their digitalization?

Siv: They haven't really stuck out digitalization wise, as opposed to other brands that are similar to them. Even within like the Kering Group, Gucci is clearly doing so much more digitally. And Balenciaga really does have that modern, streetwear, innovative vibe that could very well translate into digital technologies, but I haven't really seen any marketing about it.

Emily: Do you believe Balenciaga engages in social justice strategies?

Siv: I think they do. Not in the loudest way, which is probably my favorite way of doing it, because it's not in your face. I'm very glad that they decided to drop Kanye. I just feel like that was just a bad business choice on their behalf in general. And it was Yeezy-fying the brand, which I obviously didn't like. That's my personal preference. As I mentioned earlier, the tribute that Demna wrote a letter or something when the war in Ukraine broke, but at the same time, they do some stuff that is just annoying, for example, those hobo-ish, beat-up sneakers, those I found very controversial and just simply unnecessary, as well as the trash bag. That's so expensive, and it is literally trash bag.

Emily: Any other conflicts that you've heard of about their social strategies?

Siv: They recently got off Twitter, which is a positive. A very cool thing to pioneer as far as like brands on social platform goes and decide not to be on a platform anymore because of the owners, it's a good stance to have. That was a really good thing to see

Emily: So where did you see or hear about this information?

Siv: Honestly, Instagram, but that's where I get most of my information. I mean, fashion wise, I don't read the news on Instagram. But every major fashion reporting company like Business of Fashion, Vogue Business, or even directly Balenciaga. They’ve voiced the fact that they were leaving Twitter.

Emily: What are your thoughts on the backlash that Balenciaga has received in the past regarding the shoes and the trash bag and that kind of thing?

Siv: I get it, I think that a lot of people that aren't necessarily people that appreciate fashion as a sense of like art, as opposed to something that's commercial. I feel that it's easy not to get why Balenciaga puts out some designs. I think there's a fine line between making a statement through a piece that is more of a work of art than a fashion commercial product and then if something being offensive, for example the homeless people shoes Those even I believe were offensive because I don't see anything artistic in them necessarily. Or the bag that is made out of the chips packet is so expensive for no reason that's not an art piece that's just making something commercial even more commercial and I get why consumers are mad at this but at the same time, I feel like the people that get angry at this aren’t the typical Balenciaga customer.

Emily: What do you think Balenciaga should do to develop their cultural intelligence?

Siv: I think starting to define better and drawing a line and separating their commercial side to their more artistic, statement, and performance pieces is probably best because obviously no fashion brand is going to come without controversy But being able to say, this is a couture piece, it's meant

45

to be appreciated as an art form, as opposed to sold and bought by customers will make things clearer overall.

Emily: What have you seen or heard regarding Balenciaga is environmental strategies?

Siv: Honestly, nothing It's probably all encompassed in the Kering sustainability reports and what they as a conglomerate are trying to do but specific to Balenciaga- Oh, no, actually, that's not true, Balenciaga has a resale program where you can bring your old Balenciaga products and sell them directly on their platform. So, it's keeping the resale program within house instead of having customers relying on third party resellers. That's quite good, but I found out that they had this just by working in the store I feel like it's not publicized enough in the general public.

Emily: And what is your opinion on these strategies that you've heard of or not even heard of?

Siv: I feel like a big reason why it's not very much heard of is for example, their Instagram profile. They'll delete everything once they have a new thing dropping for example now, they have their holiday pieces collection or corporate stuff, and they've deleted all the pictures of the previous thing they were promoting which doesn't make sense to me if you're for example maybe they did post about the this resell program, they've probably deleted so a lot of people don't even know about it.

Emily: How do you think these strategies could be improved?

Siv: I think they should be voiced more, and they should be spread as information and even publicized within the store.

Emily: How important is the environment to you when shopping from brands?

Siv: I definitely take it into consideration by avoiding brands that in my personal opinion are just the worst of the worst. For example, Boohoo, Pretty Little Thing I would never shop there Shein, I would never buy anything from but then again, I have bought and will continue to buy from brands that are probably considered really bad by other people, and I consider fine for example, Zara and H&M H&M is in a big scandal of potential greenwashing. And obviously I'm sure they do greenwash. I know they're not the best but those are what's in my budget range. So, I'm not going to go out of my way to find something that's sustainable because I don't believe anything is

Emily: Okay, what do you think is the greatest barrier for consumers to purchase from Balenciaga?

Siv: I guess it depends on the category. I don't think necessarily there's a massive barrier when wanting to purchase like accessories. Those are obviously this category that sells best for Balenciaga like every other luxury fashion brand. And for example, in the store, they have high stock count of their best sellers, unique pieces, they have a good mix of that, it's not necessarily a barrier Ready to wear is more of a different thing because it's harder to come by; they have less pieces in stock, sizing isn't inclusive, but neither is the sizing of other fashion brands within the price range and Balenciaga Realistically, they only carry four to five sizes: extra small, small, medium, large, and the large is too small anyways, not inclusive at all. So, maybe one limitation they have is the size ranges.

Emily: What do you think should be done to encourage luxury brands to be environmentally and socially sustainable?

Siv: Improving their transparency, but without necessarily giving away corporate secrets so they don't want their competitors to find out which I understand. But overall, admitting that they're not

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sustainable would be the first step because faking sustainability when you literally sell leather goods as your main category is just dumb. So as a starting point saying ‘we know we're not sustainable this is what we're trying to do to get better at it’ is probably the best they could do.

Emily: Do you have any opinions on Balenciaga’s overall business?

Siv: I'm not a massive fan of their concept as a whole. Having worked there now though, I appreciate the product more than I did before. It's obviously a good quality, I get the reasoning behind it. So, I appreciate it but don't necessarily think it's my style.

Emily: And is there anything else you'd like to add?

Siv: I'm glad they dropped Kanye.

Emily: Okay. Thank you very much.

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INVITATION TO PARTICIPATE IN A RESEARCH PROJECT

PARTICIPANT INFORMATION

Project Title: A Balenciaga Case Study: An Analysis of Balenciaga’s Business Innovation

Strategy

Student Lead: Emily Freund

Email address: e.freund0720181@arts.ac.uk

Phone number: 07549258075

Dear Akanksha Goyal

You are invited to participate in:

A case study report on Balenciaga s business strategies, specifically digital, social, and environmental innovation for a university project

Please read this sheet carefully and be confident that you understand its contents before deciding whether to participate.

Why have you been approached?

As a luxury shopper, you have insight into successful luxury businesses. You could provide information about Balenciaga s innovation strategies from a consumer perspective as well.

If I agree to participate, what will I be required to do?

You will be required to answer a series of questions in an interview regarding your knowledge and opinion of Balenciaga s digital, social, and environmental strategies In addition, you will also provide a general basis of your shopping experience with the luxury industry

What are the possible risks or disadvantages?

The possible risks could be for your future employment at Balenciaga regarding the opinions you may give about the company

What are the benefits associated with participation?

The benefits of your participation will be the presentation of your opinions on such matters discussed in the interview, used as primary research

What will happen to the information I provide?

The information provided will be uploaded via TurnItIn to the London College of Fashion database and my digital portfolio on Issuu for future employment purposes.

What are my rights as a participant?

• The right to withdraw from participation at any time

• The right to request that any recording cease

• The right to have any data withdrawn and destroyed, provided it can be reliably identified, and provided that so doing does not increase the risk for the participant.

• The right to be de-identified in any photographs intended for public publication, before the point of publication

• The right to have any questions answered at any time.

Whom should I contact if I have any questions or want to withdraw my consent?

Emily Freund at e.freund0720181@arts.ac.uk

Wednesday, December 7th, @3:00 PM

Emily Freund: When was the last time you bought from a luxury brand? Akanksha Goyal: Two months ago.

Emily: Was it online or in-store?

Akanksha: In-store.

Emily: What did you get, and why did you buy it?

Akanksha: I bought a Rolex because I heard Rolexes are running out of stock now and they're going to stop production and I wanted to get one before it became a hassle to have one.

Emily: What influences you to shop from luxury brands?

Akanksha: Quality, definitely. And I think the following reason would be a little bit of a status symbol. I think the utmost must be quality and design. Because I know I'm buying into something that's going to last me a while and I don't have to worry about buying something again.

Emily: What is your preferred shopping outlet, online, offline, or both?

Akanksha: Definitely in store, so that would be like offline. However, I tend to shop online more just because of prices. You get better sales and discounts online and more stock options than you do in store.

48 8.5. Interview #2

Emily: What do you value the most when choosing brands to shop from?

Akanksha: Again, quality/durability, design, and sustainability. And of course, ethics.

Emily: Do you shop at Balenciaga?

Akanksha: No.

Emily: Why not?

Akanksha: I never resonated with their designs previously. And now due to current controversy, I just feel like I can't morally align myself with a brand like that.

Emily: How would you describe Balenciaga?

Akanksha: In terms of design, I would say they do punk goth is a thing that comes to my mind. Now I would say problematic is a key word. And I would say, kitsch is another thing. I do understand their design philosophy is to be about the shock factor like satire. I just am not someone who likes that style or aesthetic, I'm not fond of that.

Emily: Okay, and in the past three months where have you seen or heard about Balenciaga?

Akanksha: Mostly Instagram. But I'm also seeing a lot of traditional news channels now reporting that stuff just because of all the scandals they've been involved in, and it's socially relevant, and a lot of TikTok videos of them.

Emily: And what have you specifically heard?

Akanksha: So, the most recent must be their campaign where they were promoting child pornography. And they put their kids into BDSM clothing and had papers and certificates of pedophiles. And I think their association with the marketing team or one of the creative directors himself being part of a cult, so that's what has been streaming. Before that I think there was a lot of controversy around their design itself, like them selling those £2000 trash bags or those really, really beaten-up Converse. I think there has been a gradual decline in their design, their quality, and they're corporate culture and images.

Emily: What are some digital strategies you've seen Balenciaga engage in?

Akanksha: I think they were one of the first companies that really experimented with AI and filters, they were dropping face filters, and try on clothes, their digital strategy was very innovative. They also are quite active on social media in terms of using shock factor as a publicity thing, every time they would have a new campaign, they would erase all their content from their Instagram and start fresh, which was sort of marketing in itself that you knew something new was coming. Yeah, I think mostly on Instagram.

Emily: What do you think of these strategies?

Akanksha: I really do like the idea of a clear grid. And you're just putting all the new looks in for each show, so your page is not oversaturated. and everybody knows what's currently happening in your brand. So that's a really good idea. It also almost imitates like a look book, digitally, so from that perspective, as well, it's quite creative. I think they're quite in line with who they want to promote with. Before all the controversy, I would get a lot of advertisements for Balenciaga as a promotion. So, I'm sure they're putting a lot of funding into ads, coming onto people's feeds. I think currently,

49

their strategy is no publicity is bad publicity, which I don't completely agree with. They've just really doused themselves in problems.

Emily: What are some positive things about Balenciaga's engagement with digitalization?

Akanksha: The good thing is there at the forefront of digital marketing. So that allows their target consumer, like Gen Z, to be quite aware of what's happening. They're often partnered up with other online platforms like Highsnobiety, WhoWhatWear, to promote their lines. And I think that cross engagement from other platforms is definitely something that they should keep doing in terms of marketing. They do fun stuff, like having filters, and having other influencers post their clothing, and have that on social media. I haven't particularly seen anything go viral on TikTok that would be something that I would like to see happen in the future.

Emily: Okay, and what are some negative things?

Akanksha: I think the point about TikTok is a negative, but I don't think there's anything particularly negative that they're doing. Again, their digital marketing is quite good, they're very on brand for how luxury companies market themselves. So, there isn't really anything I would change in that area.

Emily: How important are omnichannel shopping experiences to you?

Akanksha: I think it's quite important now because of convenience. I think for luxury brands, people are quite apprehensive of ordering stuff online and that is a barrier that would be difficult for people to break. I'm sure upper class who shop regularly in luxury, daily for them, the online experience is much more convenient, because they're familiar with the brand. But as the luxury segment goes, you're not shopping there daily and to make an online transaction of let's say a minimum $500-600 is something that is quite anxiety provoking. So maybe some innovative strategies that allow you to blend online and in store experience and providing good customer service. If I know my package is going to arrive undamaged within the week, and I can return it easily without having to do store drop offs, I think that would encourage people who buy from luxury but not as often to perhaps do it online. I think it's also about making websites easy to navigate, perhaps to match price points on their other stockist. Often, their own websites will never go on sale, but if you're on stockists like Farfetch, MatchesFashion, SSense, they're always on sale. So, people tend to buy from there instead. And they don't get much traffic on their actual website. And to also keep editorial away from shopping because if I am shopping luxury, I want it to be easy. I don't want 1600 pictures of their editorial campaign; I see that on Instagram.

Emily: Do you believe Balenciaga engages in social justice strategies?

Akanksha: Oh, absolutely not. As we've seen, they have no care or ethics for what they're putting out. They are now also taking the line of defense and dodging accusations. I'm not sure how their corporate culture or ladder is built and who's responsible for a lot and as a company, it's often if you're accused of something, it is very important that you accept responsibility and their lack of responsibility for all their scandals, just shows that they don't engage with that.

Emily: And have you heard any positive things about Balenciaga regarding their social strategies?

Akanksha: Unfortunately, there is nothing out there about their social media strategy as much just their general controversy. I haven't really heard anything positive either in the way they've handled matters recently.

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Emily: Where did you see or hear about the negative conflicts that they've been in?

Akanksha: Instagram, mostly meme pages and other fashion pages like Saint Hoax, Diet Prada, they are the first to really promote this and instigate controversy in matters like this. So mostly online and newsletters.

Emily: What are your thoughts on the backlash that Balenciaga has received?

Akanksha: I think it's good because I feel like often, what the creative directors, both for menswear and womenswear did get away with a lot, in just the sake of it being edgy and being design. I didn't think that the whole, for example, that garbage bag thing was 'it's a statement about the social crisis.' I think that was a very pseudo social campaign. At the end of the day, it just wreaked of capitalism to me, how are you selling $2,000 garbage bags and calling it satire? And then saying that they're reflecting on Demna's history of poverty, neither is that money going into any donation to help anybody nor is it helping the crisis in Ukraine, in Eastern Europe. So, I think it's good that people are finally seeing through the sort of mask of creativity of Balenciaga. And they were bound to [mess] up in a bad sense, eventually.

Emily: What do you think Balenciaga should do to develop their cultural intelligence?

Akanksha: I think a more diverse team would help, I feel like often, they would hire a lot of diverse junior designers, but they often don't have a voice in the system or in that company. So, giving voice to the woke people you're hiring is very important. Again, having focus groups could help in situations like this, that 'we've come up with a design, we cannot decide whether it's controversial and socially acceptable, let's ask a group that are from that community and see how their feelings are about that.' I think it's okay to not know everything at all given points. And you shouldn't be canceled just because you had a slightly controversial idea that stems from not learning, but to go ahead with that ignorant idea is then problematic. So again, just more voices, different types of people, and accepting responsibility and actually having the willingness to change. I feel Balenciaga really lacks that specifically, they have showcased that they are okay to keep repeating their past mistakes and not learn from it. So being self-reflective of their actions as a company is very important.

Emily: And what have you seen or heard regarding Balenciaga's environmental strategies?

Akanksha: I'm not sure. Maybe they are also participating to stop using fur but I know they still use exotic leather. So, they're not the most ahead, in terms of environmental sustainability. They don't really promote themselves as a sustainable luxury brand, either. So, I think there is transparency in that at least.

Emily: How do you think these strategies could be improved?

Akanksha: Perhaps coming up with more strategies in the first place and taking initiative to move forward to a more sustainable luxury brand. Even if it is in terms of under producing items, I feel like luxury brands are now so hyped, they're over producing, and it's losing their exclusivity. And I'm sure it is affecting the sustainability and production line as well. So that could be a strategy that they could take in to stop over producing, reduce buying, be associated with influencers who promote a more sustainable ideology. I think their association with Kim Kardashian is also not the best because they don't represent a sustainable and environmentally conscious group as themselves. And also, to attend more fashion forums about sustainability. I've heard stuff from like Fendi, Chanel, Stella

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McCartney is always the first one to sign up for this type of stuff. But I don't think Balenciaga is really, in that sector as of now.

Emily: And how important is the environment to you when shopping from brands?

Akanksha: It's definitely a core belief of mine, to shop sustainably. In my general buying of daily items, I often completely avoid fast fashion itself, I'll try to thrift as much as possible, I would not buy brand new denim ever, I only thrift denim because I'm aware of how much water it takes and cotton it takes to produce just one pair of jeans. With luxury brands, it's more difficult, because they do use materials like leather and fur, but from my research, what I found is that it is better to buy real leather. I know it's said, 'you're hurting animals,' but in a realistic point of view, leather is a production that's never going to stop. And yes, we're moving towards vegan leather, which is good, but a lot of luxury brands don't offer that. I'd rather buy real leather from a luxury brand, which I know number one has not exploited their workers, number two is far better quality and is going to last me years on end, and third, at the end of the day real leather will decompose into the soil, it can go back into the earth and not cause a negative impact. However, buying fake leather, or cheap leather from lower brands has a higher environmental impact because this fake leather is made from petroleum, which is far worse than actual leather in terms of sustainability.

Emily: Have you heard anything positive or negative regarding Balenciaga's environmental strategy?

Akanksha: Not really, I've not heard anything about their environmental strategy, which I think could be something that they should focus on. If they are doing something sustainable, it's not something that is at the forefront of their communication, that is not what they communicate about. And if they're not that means, maybe there isn't a lot of strategies that exist in itself.

Emily: What do you think is the greatest barrier for consumers to purchase from Balenciaga?

Akanksha: Currently, I think it's image for Balenciaga. They have associated themselves with quite a lot of problematic themes like child pornography, child exploitation, and the whole cult satanic thing. I think that right now is the biggest barrier. Currently, people are not buying just for designs, but they're also buying because of the principles and what the company stands for. And if Balenciaga is going to present itself as this avoidant, problematic, controversial brand, I don't think even Gen Z would want to be associated with them.

Emily: And what do you think should be done to encourage luxury brands to be environmentally and socially sustainable?

Akanksha: I think it should be something that's handled on the more government side and law side than just fashion brands holding themselves accountable. In a reverse example, China does not let you sell things that are not tested on animals. So, it's a very good way of differentiating which companies are greenwashing versus not in terms of skincare, because if they are exporting to China, they are testing on animals. And I think laws like this that help protect animals, opposite laws than China, like completely ban the use of exotic leather after a certain point that could protect it. Laws to protect workers, such as having to be transparent about where you're growing your materials, how you're sourcing it, and who you are making work. For example, if you're doing it in Spain, you're not exploiting a minority there, or you're doing it in Turkey and you're not avoiding taxes. I think general laws will hold everyone accountable and make them more transparent in their production.

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Emily: Okay. Do you have any opinions on Balenciaga's overall business strategy?

Akanksha: They were a very cool brand about five, six years ago for me. I thought they were doing quite well in terms of having the shock value and like kitsch designs, but kitsch in a cool way. Demna's start of his career was also very good, I think his menswear was gorgeous. He did couture, I think last year, and it was their first couture show. And it was immaculate, the way they designed it. So, they do have that capability. And I feel they should look back on how they used to work their designs, and perhaps hire a new marketing team and new board members. The decision making is very weak currently.

Emily: Is there anything else you'd like to add?

Akanksha: Despite all of this, I don't ever think I'm going to shop Balenciaga though. It's just not my style.

Emily: Okay, thank you so much.

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8.6. Interview Topic Guide

Interview Topic Guide:

Objective: To assess consumer perceptions towards Balenciaga and the success of the brand’s business strategies

Wider Context Questions:

1. When was the last time you bought from a luxury brand?

a. Was it online or in-store?

2. What influences you to shop from luxury brands?

a. Why do you choose luxury?

3. What is your preferred shopping outlet: online, offline, or both?

a. Why?

4. What do you value the most when choosing brands to shop from?

Sub-objective Questions:

General Brand Questions:

1. How would you describe Balenciaga?

2. Do you shop at Balenciaga?

a. Why or why not?

3. In the past three months where have you seen or heard about Balenciaga?

a. What?

Digital Innovation:

1. What are some digital strategies you’ve seen Balenciaga engage in?

2. What do you think of these strategies?

3. How important are omnichannel shopping experiences to you?

4. What are some positive things about Balenciaga’s engagement with digitalization?

a. Negative?

Social Innovation:

1. Do you believe Balenciaga engages in social justice strategies?

2. What conflicts have you seen or heard about?

3. What are some positive things you’ve heard regarding Balenciaga’s social strategies?

a. Negative?

4. Where did you see or hear about this information?

5. What are your thoughts on backlash Balenciaga has received in the past?

6. What do you think Balenciaga should do to develop their cultural intelligence?

7. How should Balenciaga improve their social engagements?

Environmental Innovation:

1. What have you seen or heard regarding Balenciaga’s environmental strategies?

2. What is your opinion on Balenciaga’s environmental strategies?

3. How do you think these could be improved?

4. How important is the environment to you when shopping from brands?

5. What are some positive things about Balenciaga’s environmental strategies?

a. Negative?

Wrap up Questions

1. What do you think is the greatest barrier for consumers to purchase from Balenciaga?

2. What do you think should be done to encourage luxury brands to be environmentally and socially sustainable?

3. Do you have any opinions on Balenciaga’s overall business strategy?

4. Anything else you’d like to add?

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