In recent times, Western brands have found themselves navigating turbulent waters in several Arab countries, with Egypt and Jordan leading the charge against perceived pro-Israeli stances and financial ties to Israel. What started as localised boycotts has now spread its wings, casting shadows over brands in Kuwait, Morocco, and beyond.
The social media-fuelled boycott campaign has gained traction by listing dozens of targeted companies and products and urging consumers to shift their loyalty to local alternatives.
McDonald’s Corp, responding to the pressure, clarified its position and pledged substantial aid, yet the impact on footfall persists. Similarly, Starbucks reiterated its non-political stance but faced repercussions, including potential job cuts.
Efforts by targeted brands to defend themselves with special offers have faced headwinds as boycott campaigns continue to resonate, transcending borders into Malaysia, Turkey, and Oman.
In Malaysia, McDonald’s witnessed a noticeable customer dip, reflecting the movement’s global reach. Turkey’s parliament took symbolic action by removing Coca-Cola and Nestle products, showcasing the extent of public sentiment.
Shift in preference
The ripple effects of the boycott are palpable, with consumers in Oman opting for local beverages like ‘Kinsa’ over familiar international brands. This shift underscores a preference for homegrown products and a broader sentiment of supporting entities aligned with local values and causes.
“I believe that, for example, because the boycott is more related to the fast food business, it has played to our advantage as we can now see that there are Omani businesses out there in the market that are doing very well,” points out a tax student and an aspiring professional in a finance agency in Muscat.
What seemed like a grim situation is turning out to be a fruitful endeavour for many local entrepreneurs. With a shift towards locally sourced produce, initiatives like “Made in Oman” are making positive strides in hypermarket chains across the Sultanate.
He added: “Yes, we can see that there are a lot of businesses that provide the consumers with their needs, markets sell substitute products, and restaurants have made deals and marketing campaigns to provide advantages for them and substitute consumables for consumers.”
With stalls filled with a plethora of Western products suddenly deemed unnecessary, local produce is thriving. However, the emotional fervour with which local produce is preferred curbs a growing appetite.
“Although it was just fast food and healthcare products, we must realise that fast food isn’t more important than children’s lives,” he added when asked what he preferred now that the boycott has shifted interests.
Shocking state
A local expat named Sheela, who has lived in Oman for over 17 years, pointed out the shocking state of popular malls across the Sultanate. “A few months before the boycott, these malls were packed and buzzing, but now there’s hardly anyone. They even switched off the air conditioners to save energy.”
Amid these challenges, Western brands find themselves at a crossroads, balancing global market strategies with the need to navigate regional sensitivities. The evolving landscape calls for nuanced approaches that acknowledge and respond to local sentiments while upholding corporate values and commitments.
As the campaign continues to evolve and influence consumer behaviour, brands must remain agile, proactive, and sensitive to the diverse perspectives shaping the market. Adaptability, transparency, and genuine community engagement will be key in weathering the storm and building resilient, lasting relationships in the region.
