Eric Block On Responsible Branding

Photo: Investopedia

From Global Data • Reposted: March 16, 2024

Consumers are purchasing more ethical products because they align with a set of values they believe in, including social causes, human and animal welfare, fair trade, and health awareness. With companies being held to a higher level of accountability regarding their position on social issues, failing to take proactive measures puts brands at risk of being boycotted, given the rising activism and consumer-facing messaging,  says  GlobalData, a leading data and analytics company.

Meenakshi Haran, Lead Consumer Analyst at GlobalData, comments: “Consumers are increasingly making decisions based on responsibility towards ethical and social issues, driving the need for companies and brands to continually set measures to create and develop genuinely responsible products and services. As many as 31% of Middle East & African^ consumers and 29% of Asian consumers admitted that they find it essential for products to be ethical or support social causes^*.”

The Israel–Palestine conflict, for instance, has led to leading global brands facing blowback, especially from Muslim-majority nations in Southeast Asia as well as across West Asia. According to UNRWA, the United Nations agency for Palestinian refugees, the conflict has displaced over 1.9 million Palestinian civilians following Hamas’ attack on Israel in October 2023.  While Unilever acknowledged its fourth-quarter sales declined by 15% in Indonesia, McDonald’s admitted that the backlash was stronger in the Middle East with the company putting off any expansion plans.

Isha Varma, Middle East Business Development Manager at GlobalData, adds: “By being heavily influenced to buy a product and its attributes, consumers are sending a clear message to manufacturers and producers about what they are looking for and what their priorities look like.”

Haran continues: “The Middle East with its high spending ability and Asia with its surging population offer formidable growth potential for food & beverage companies. As such, brands operating in this market need to send a clear and transparent message about their commitment to ethical and social responsibility to mitigate any loss of reputation and revenues.”

Varma concludes: “Amid the evolving geopolitical landscape, brands are faced with tough market conditions, especially around nuanced social and economic issues, which threaten their ability to do business if left unaddressed.”

^GlobalData 2023 Q4 Consumer Survey – Middle East and Africa, published in December 2023, 2000, respondents

*GlobalData 2023 Q4 Consumer Survey – Asia & Australasia, published in December 2023, 6,000 respondents

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