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Report says nearly half of consumers could boycott brands not voicing stance on Ukraine

By Rachel Douglass

Mar 18, 2022

Business

Image: Ivan Shilov via Unsplash

Analytics and consulting company GlobalData has said brands could face a challenging environment if they do not take a strong stand against Russia’s ongoing conflict with Ukraine.

The firm’s report comes as an increasing number of Western brands pull their operations out of Russia, with some also ceasing to stock Russian products in their stores.

According to GlobalData, almost half of global consumers, 41 percent, agreed that they would boycott a brand if it doesn’t align with their personal beliefs or values.

This percentage, the company said, could come into play as pressure from consumers grows in the face of Russia’s invasion, adding that brands that do take a firm stance are more likely to be favoured by consumers.

In its report, GlobalData’s senior health and beauty analyst, Lia Neophytou, said: “This is a drastic but necessary move when considering not only the evolving complications of doing business in the market, but also the potential backlash from consumers around the globe if this decision was not made.”

Highlighting LVMH’s withdrawal from the region, GlobalData noted the luxury group’s move comes despite the Russian market providing an estimated 6.6 percent in cosmetics and toiletries sales in 2020, an equivalent of over 300 million dollars, as calculated by the analytics company.

It suggested the move is one that could win over its consumers, in comparison to those that have opted to continue operating in Russia.

Russia
Ukraine