Ukraine: towards a boycott of brands still present in Russia

Ukraine: towards a boycott of brands still present in Russia

The Swedish chain IKEA is still in operation on Russian soil.

Would you be ready to give up your favorite brand if you learned that it has maintained its market share in Russia, given the current geopolitical context? According to a survey by GlobalData, 41% of consumers would not hesitate. 

Ecology, animal welfare, origin and composition of products… Consumers are increasingly attentive to corporate practices and values. And according to a survey by British data analytics firm GlobalData, the war in Ukraine could be added to the list of consumer demands. Indeed, 41% say they are ready to boycott a brand if the latter does not adopt “a firm position” regarding its market share in Russia. 

From the first weeks following the invasion of Ukraine by the armed forces of Vladimir Putin, certain brands quickly decided to withdraw from the Russian market. This is particularly the case for Amazon, Netflix, Spotify, Adidas and even Ikea. Others have frozen their investments, without however stopping their production, like Danone.

While these actions are mainly intended to escape the economic consequences of the sanctions imposed by the European Union against Russia is also a question of image that is at stake for these companies. Aware that consumers are waiting for them at the turn on this specific point, they convey through these ads a clear message of support for the Ukrainian people.

For example, the LVMH group withdrew its products from the Russian market after the country declared war on Ukraine. In 2020, Russia's market share accounted for 6.6% of its 2020 cosmetics and toiletries sales, equivalent to over $300 million, according to GlobalData estimates.

“This is a drastic but necessary step considering not only the evolving complications of doing business in the marketplace, but also the potential backlash to consumers around the world if this decision is not made. wasn’t taken,” comments Lia Neophytou, senior health and beauty analyst at GlobalData. 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.

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