Reference no: EM133247683

Case: Dolce and Gabbana: Racism, Stereotypes or Being Funny? On November 21, 2018, in Shanghai, China, millions of dollars and 500 viewers were at stake in a one-hour fashion show featuring the major fashion brand Dolce & Gabbana (D&G). However, the brand instead canceled the show only hours before it was scheduled to begin after controversial video advertisements and private Instagram messages, allegedly sent by Stefano Gabbana himself, went viral. The predominant accusation-that the videos were racist-was seen as justification for subsequent boycotts by Chinese celebrities and models. In fact, the Chinese, saw the public viewing the videos as an insult to their national identity, and the series had other severe consequences. Chinese e-platforms, stopped carrying D& G. How could D&G repair the damage done to its reputation, especially in China? The Controversial Video The three 40-second videos were released on D&G's Instagram, Twitter, and Facebook profiles, as well as its Weibo account, to promote their fashion show, "The Great Show," which was intended to serve as a "tribute to China." The designer denied being the author of the messages in question: he and the brand posted messages alleging that their Instagram accounts had been hacked, with Gabbana writing "not me" over the screen captures. The videos were eventually removed from D&G's official Instagram account but were later posted to YouTube. D&G subsequently released an official apology video, which the Chinese claimed was not an apology. The videos showed an Asian model using chopsticks and struggling to consume Italian food. In the first episode, the model is trying to eat an entire pizza, prodding it with her chopsticks(see video clip) as a narrator asks whether it is too huge for her and offers advice to use the chopsticks as pliers. These comments were largely perceived as patronizing. The second and third episodes saw the model attempting to eat cannoli and spaghetti, respectively. This controversial video was not the first time a major brand had needed to apologize for offending a large market of consumers-and it would likely not be the last. For example, Gabbana body-shamed Lady Gaga over her Super Bowl half-time outfit- and later apologized. Boycott From Chinese Customers Chinese-French model Estelle Chen, who ultimately withdrew from D&G's planned show in Shanghai, called D&G's actions racist, and wrote that the designers loved money rather than China. Chen acknowledged China's wealth but asserted that the country was also rich in its values, culture, and people. Western models, including Lucky Blue Smith, also announced their support of the boycott and pulled out of the show. In addition, previous customers and fans posted videos of their D&G products in flames. One writer and director, Xiang Kai, said he was willing to waste tens of thousands of dollars for his nation's dignity and to "awaken" the Chinese people.

Question 1. What might have led D&G to make these controversial videos?

Question 2. Moving forward, what can D&G do to repair its brand reputation?

Question 3. What lessons can business organizations learn from this event to avoid similar failures in a global economy?

Question 4. Why did Chinese customers and ethnic Chinese people across the globe respond so negatively to D&G's controversial video advertisements?

Question 5. How can Cultural Intelligence be used as a practical tool for embracing cultural differences and improving business performance?