Dealing With Brand Boycotts

THE BOYCOTT IS REAL AND HERE TO STAY

AMPERSAND ADVISORY AND INSIGHTZCLUB UNEARTH THE SENTIMENT AROUND BRAND BOYCOTTS IN MALAYSIA

1. The boycott is Half of our country is boycotting brands, as per the survey. In the wake of the Israel-Hamas conflict, over half (52%) of the respondents had boycotted brands that they believed were doing business with Israel.
2. The boycott is continuing, despite talks of ceasefire etc
3. The top boycotted brand was Starbucks, followed by MacDonald’s, KFC and Coca-Cola.
4. More people are boycotting MacDonald’s compared to KFC and Domino’s.
5. The boycott is physical (not buying the brand) but also social (online advocacy of boycotts). A majority of brand-boycotters (90% of those who are boycotting) have actually stopped using the brand as a way of But nearly a third (had shared posts encouraging boycotts through social media, while a fifth created their own posts.
6. Religious sensitivity and poor health outcomes are the top 2 reasons to boycott a brand.
7. Even though 42% of consumers boycotting a brand know that it is hurting the job security of the employees of the boycotted brand, they are still willing to boycott.
8. Consumers don’t see the boycott as affecting other consumers (only 6% say it affects others)
9. Home-grown coffee chains and eateries have seen increased patronage as Malaysians seek alternatives to the brands they are boycotting: 71% of the respondents are now buying more from local coffee and restaurant
10. Foreign owned chains from Indonesia and China are also being preferred (70%)
11. With 44% of the respondents saying that in the future, they might boycott a brand coming from a country that is indulging in unfair trade practices – the stage is set for a possible consumer-led backlash against tariffs.

“We conducted this research to see how prevalent the boycott was, even if the Israel-Gaza conflict seems to be getting lesser headlines nowadays.

Clearly, the issue is still looming large in the minds of many, and brands need to be sensitive and work hard to overcome this sentiment.

Perhaps more worrying, for the brands being boycotted, is the fact that once consumers get into the habit of not using a brand for a year or more, will they ever go back to that brand? From our survey, at least, it seems unlikely that they will. At the same time, this creates more opportunity for local brands to flourish,“ said Sandeep Joseph, CEO and co-founder of Ampersand Advisory.

“For many Malaysians, the boycott is most powerful at the checkout counter, with 9 in 10 choosing to protest through their wallets rather than on the streets.

While physical activism is limited, online sharing and conversations show a growing preference for digital solidarity and consumer-driven change,” said Mritunjay Kumar, CEO of InsightzClub.

Kunal Sinha, Chief Knowledge Officer, Ampersand Advisory observed, “Our study reveals that Malaysian consumers are extremely conscious about brand behaviour, and will scrutinize that from various perspectives: religious and cultural sensitivity, the behaviour of influencers, labour practices, health, trade practices (tariffs have now entered the fray), and racism.”