Boycott trends in the consumption of the products of Western companies are observed in several parts of the Middle East and beyond due to the anger of the Arab population against the US and Europe, according to Bloomberg.
And that’s why the US and Europe are not doing more to stop Israel from attacking Gaza. So many consumers in the region, as well as in Muslim nations like Pakistan, are shunning products from major foreign brands, reducing sales for some and creating public relations headaches for others.
In Cairo on a recent weekday, dozens of normally bustling Starbucks and McDonald’s were left completely empty.
In recent weeks, McDonald’s CEO Chris Kempzynski (Chris Kempczinski), warned that his company is seeing “significant business impacts” in the Middle East due to misinformation being spread about his company.
In the meantime, the shares of Americana Restaurants International – the Middle East franchisee for KFC, Pizza Hut, Krispy Kreme and Hardee’s – has fallen as much as 27% on the Saudi stock market in the months since the war began, with some analysts predicting a hit to its profits from the boycotts.
It’s about a reaction that reflects a new era of crisis management for the world’s biggest consumer brands – and especially American ones – as emotionally charged shoppers confuse their businesses with government policies. The companies have issued public statements to emphasize their political neutrality. However, the movement has gained steady momentum in the three months since the war began, with calls for boycotts still spreading.
Amid growing geopolitical turmoil, global brands are increasingly forced to confront polarizing scenarios fueled cross-border by social media.
Over the past two years, dozens of companies, from McDonald’s to Coca-Cola Co., have pulled out of Russia amid global criticism of Vladimir Putin’s invasion of Ukraine.
The Middle East offers brands tens of millions of new consumers to drive growth at a time when developed markets are saturated.
Still, the region has particularly deep political and operational complexities, notes Bloomberg.
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