On January 15, 2021, Logos president Helio Fred Garcia was quoted in an article in Luxury Daily on the crisis the Trump Organization now faces given the criticism and controversy around the president, particularly after the storming of the U.S. Capitol. The article describes how the Trump Organization’s brands have suffered as a result of the president’s political profile, with partners increasingly moving away from the brand and long-standing contracts being terminated.
“Successful recovery from a crisis depends on how quickly and effectively the expectations of the people who
matter to the organization are met,” said Garcia. “Because all of President Trump’s businesses, including his luxury business, include his name, it is difficult for business partners, customers and other audiences to distinguish the brand from the man. All of Trump’s eponymous businesses are synonymous with Trump the person. It’s virtually impossible at
this point to separate the two, which was by Trump’s design.”
“Those who still support Donald Trump would likely still support the brand should another family member step in,”
Garcia noted. “However, for people who do not support Donald Trump, they are almost certain to avoid any business with the Trump name or that is run by a family member, since the associations are so close.”
This crisis is particularly acute given the criticism of the president following the storming of the US Capitol and his second impeachment in his one-term in office. “Criminal charges brought against a business or its leader almost always present the potential for things to get worse, especially if the charges are of the magnitude and quantity that are likely to be brought against Trump,” Garcia noted. “However, criminal charges are not an immediate death sentence for a business.”
Garcia advice for those in relationship with the struggling brand: “For businesses and leaders that do not support Trump but are still in business with him, time is of the essence to dissolve that relationship. Businesses that are slow to cut ties may suffer backlash as the lack of urgency to sever the relationship could be perceived among those who matter as too little, too late.”
Read the full article here.