Many companies know the risk of poor communication which can ignite social networks and tarnish their image. However, it is possible to get out of this impasse.
Information travels at high speed and an unfortunate statement can quickly lead to a negative viral reaction, a phenomenon often referred to as “bad buzz”. The latter refers to a reputational crisis caused by an action, statement or campaign by a brand or public figure. Amplified by social networks and the media, bad buzz can seriously damage a company’s image, sometimes in the space of a few hours.
Often, this situation results from a perceived inconsistency between the values displayed by a brand and its actions or words. In this case, Lululemon, the famous yoga clothing brand, experienced a similar situation in 2013, after a controversial statement from its founder, Chip Wilson. This case highlights the risks posed to the public image of leaders and underlines the importance of crisis management to preserve a brand.
A misstep on the question of morphology?
In 2013, Chip Wilson sparked a heated controversy during an interview. He states that the transparency and wear problems of certain leggings are due to body shapes that are “incompatible” with the product.
He clarified that these clothes “simply don’t suit every body shape.” This remark, perceived as grossophobic, goes against the values of well-being and inclusiveness that Lululemon was supposed to embody. Within hours, social networks were flooded with criticism and calls for boycotts.
A crisis of confidence and a tarnished image
The public, shocked, began to perceive the brand as a symbol of exclusion. Lululemon’s reputation, once associated with positive and community values, is seriously damaged. Sales fell, consumer confidence eroded and investors began to express their concerns.
Media pressure intensified, pushing Chip Wilson to step down as chairman in 2013. He then retired from the board of directors in 2015, while remaining the majority shareholder of the company with approximately 8.4% of shares.
The first attempts to manage the crisis were clumsy. For example, one video shows Chip Wilson apologizing only to his employees, without directly addressing the customers targeted by his remarks.
This lack of consideration for the victims of the controversy worsens the situation. Managing bad buzz doesn’t happen out of the blue.
Repair damage and restore image
To regain public trust, Lululemon decides to distance itself from its founder. He left the board of directors permanently in 2015, while the brand initiated several actions to restore its image. Among the measures taken:
- an overhaul of the brand’s image with campaigns highlighting the diversity of body types;
- the launch of the IDEA (Inclusion, Diversity, Equity and Action) program, an inclusive program;
- the introduction of more varied sizes into the product range;
- the organization of community events aimed at recreating a bond of trust with consumers.
Lululemon has established a customer relations committee, made up of senior executives.
Its aim is to ensure that inclusiveness remains at the heart of the customer experience, both in-store and online.
Lessons to remember
In 2023, Lululemon was recognized as one of the “Best Workplaces for Disability Inclusion,” achieving a perfect score on the Disability Equality Index. This turnaround demonstrates the brand’s efforts to rectify its image.
First, this underlines the importance of consistency between values and actions: a contradiction between displayed values and real practices can harm the brand’s image. However, transparency and adaptability can restore trust.
Next, proactive risk management and team preparation is recommended. To limit the impact of crises, anticipatory management and good preparation are essential.
Finally, a crisis can be a catalyst for transformation: effective crisis management can lead to real transformation. Lululemon has been able to reinvent itself by reaffirming its commitments and regaining the trust of its customers. The brand has also increased the diversity of its products and representation.
In conclusion, the story of Lululemon demonstrates that although brand reputations can be quickly undermined in the digital age, every crisis also offers an opportunity for renewal. Brands must not only avoid mistakes, but also know how to evolve, learn from their failures and become more anchored in their deep values to survive and prosper.
