Would you be willing to give up your favorite brand if you learn that it has maintained its market share in Russia given the current geopolitical context? According to a survey by the company GlobalData, 41% of consumers would not hesitate.
Ecology, animal welfare, origin and composition of products… Consumers are increasingly aware of the practices and values of companies. And according to a study by British data analytics firm GlobalData, the war in Ukraine could be added to the list of consumer demands. Indeed, 41% say they are willing to boycott a brand if it doesn’t adopt “a solid position” with regard to its market shares in Russia.
From the first weeks after the invasion of Ukraine by Vladimir Putin’s forces, certain brands quickly decided to withdraw from the Russian market. This is especially the case for Amazon, Netflix, Spotify, Adidas and Ikea. Others have frozen their investments without stopping production, such as Danone.
A matter of image
If these actions are primarily aimed at avoiding the economic consequences of the European Union’s sanctions against Russia, then it is also an image issue at stake for these companies. Aware that consumers are waiting for them at the exit at this particular point, they are conveying a clear message of support to the Ukrainian people through these advertisements.
For example, the LVMH group withdrew its products from the Russian market after the country declared war on Ukraine. In 2020, Russian market share accounted for 6.6% of sales of cosmetics and toiletries in 2020, equivalent to more than $300 million, according to estimates by GlobalData.
“This is a drastic but necessary step, given not only the evolving complications of doing business in the marketplace, but also the potential repercussions for consumers around the world if this decision were not made.”said Lia Neophytou, senior health and beauty analyst at GlobalData.
However, this does not prevent certain brands from “cause wash”† For example, the restaurant chains McDonald’s and KFC have both announced the closure of their restaurants in Russia…with the exception of franchised establishments, which remain open.
(ETX Daily Up)