Viral ZARA Ad, MAP Group Stocks Plummet

ZAJ
By ZAJ
5 Min Read
Viral ZARA Ad, MAP Group Stocks Plummet
Viral ZARA Ad, MAP Group Stocks Plummet

ZARA claimed the ad wasn’t meant to insult or ridicule anyone but to appreciate the diversity and uniqueness of each individual.

“We respect all religions, cultures, and beliefs. We never intended to offend or mock anyone with our ad. We only wanted to show that everyone has the right to express themselves as they wish without fear or shame. We apologize for the discomfort caused by our ad,” wrote ZARA in its official statement.

Meanwhile, the MAP Group, through VP Investor Relations & Corporate Communications Ratih D. Gianda, released an official statement stating that the MAP Group wasn’t involved in creating the ZARA ad.

Ratih explained that the ZARA ad was part of a global campaign by ZARA’s parent company, Inditex, based in Spain.

“The MAP Group only acts as ZARA’s official distributor in Indonesia. We were not involved in the creative process or production of the ZARA ad. The ad is part of ZARA’s global campaign launched in various countries, including Indonesia. We respect ZARA’s right to create ads in line with their vision and mission, but we also respect Indonesians’ right to express their opinions and aspirations,” said Ratih in the press release.

Impact on MAP Group’s Performance
Despite the apology and clarification, the MAP Group still felt the negative impact of the viral ZARA ad.

Apart from its drastic stock drop, the MAP Group also experienced decreased foot traffic and sales in outlets selling ZARA products. Some outlets even faced protests and vandalism from a group unhappy with the ZARA ad.

This has certainly dealt a blow to the MAP Group, which was striving to recover its performance after significant losses due to the Covid-19 pandemic.

Throughout 2020, the MAP Group recorded a net loss of Rp 605.33 billion, significantly down from a net profit of Rp 642.84 billion in 2019.

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