Middle East Monitor / June 14, 2024
A global survey has found that over one-third of consumers are boycotting brands due to perceived stances on Israel’s war against Gaza, using their purchasing power to express political views.
Edelman’s latest Trust Barometer surveyed 15,000 consumers worldwide, including in the UAE, Saudi Arabia, the UK, US and India.
In Saudi Arabia, 72 per cent of respondents are avoiding brands they believe support one side of the Israeli war on Gaza. Similarly, 57 per cent of respondents in the UAE said they would not purchase from a brand perceived to support a side.
US-based companies like Starbucks, McDonald’s and Coca-Cola are facing significant challenges due to these boycotts in the Middle East, despite many corporations stating they do not support any particular side in the Israeli war on Gaza.
McDonald’s recently reported a decline in first-quarter sales due to the boycott. This followed an announcement by McDonald’s franchise in Israel, Alonyal, that he would provide free or discounted meals to members of the Israeli Occupation forces following the start of the war on Gaza. In response, human rights defenders worldwide called for a boycott of the fast-food chain, leading to reported losses, especially in the Middle East.
In March, Starbucks announced it would lay off thousands of employees in the Middle East due to the impact of boycotts related to Israel’s war on Gaza.
The survey also revealed that geopolitics significantly influences brand choice, with 78 per cent of customers avoiding brands based on their country of origin.
Overall, 60 per cent of consumers worldwide are choosing brands based on their political stance, a 2 per cent increase from last year.
The report further highlighted that everyday brand actions are perceived as political.
Most respondents indicated that trust is more important than customer service, reputation and convenience when selecting a brand’s product.
