Protests by students at elite American institutions against Israel’s slaughter in Gaza are becoming more and more organized in response to the US government’s attempts to quell dissent. At the same time, people in Pakistan and many other Muslim countries are subtly expressing their resentment by refusing to buy goods and services from enterprises associated with tarnished names or traditions.
Protesters who have set up camp on major US campuses are calling on their schools to distance themselves from firms that support Israel and what they see as an unfair war.
Although the majority of these instances have occurred in Pakistan’s smaller towns, there have also been reports of harassment and hooliganism directed toward Western brand personnel, distributors, carriers, and shops from major cities. Some foreign businesses were forced to reduce their operations in the nation due to the rise in threats and the drop in business. This was accomplished by closing locations that were deemed susceptible or delaying plans for expansion.
Market sources state that the main targets of consumer dissatisfaction have emerged to be McDonald’s, Pepsi, Coke, KFC, and Nestle. These businesses and the organizations that represent them admit a discernible drop in business since the start of the armed battle in Gaza in early October 2023, even though they are reluctant to provide precise numbers regarding sales or volume losses.
Over the past six months, anti-Israel sentiment in the public sphere has resulted in a 20–30% drop in sales and the closure of some well-known Western company stores.
Executives of Pakistani department store chains have confirmed in private that consumers are choosing local alternatives over imported soft drinks, juices, bottled water, packaged milk, and dairy products like butter, cheese, creams, and bread spreads, despite their reluctance to make an official statement.
A prominent business representative for international companies in Pakistan made an effort to downplay the importance of the change in customer behavior, blaming the performance drop on things like inflation that suppresses demand and Pakistan’s slowing economy.
Demand is contracting as a result of historically high policy rates, record-high inflation, growing energy prices, and a depreciating currency. This has impacted employment and prosperity rates, which in turn has impacted the success of almost all firms that deal in consumer products, restaurants, and luxury goods like cars,” the anonymous commenter said.
He said, “It’s abundantly evident that the current challenging environment has affected both local and global brands, even though we lack precise data.”
An experienced marketing professional made some fascinating observations that were backed up by anecdotal data, confirming Pakistan’s silent boycott of well-known Western businesses.
Unidentified social media activists appear to have influenced public opinion despite the boycott effort not being led by a major political party, civil rights organization, or religious organization. Their appeals have sparked protests with the intention of imposing financial penalties on those who are thought to be war crime propagandists and their supporters.
He did not downplay the effect on consumer demand of the general bad economy. But he pointed out that it would be impossible to comprehend the increased pressure on well-known Western businesses without taking into account the extent of the nation’s widespread sympathy for the Palestinian cause.
There is evident anger in Gaza at the deaths and devastation caused by Israel’s bombing, which is backed by Western countries.
Determining the cause of the fall in consumer demand is difficult in the absence of hard data. However, I lean towards thinking that anti-Western emotions, stoked by the West’s cooperation in violent Israeli aggression, are mostly responsible for the market’s move towards local goods.
He did, however, express concerns about this trend’s long-term viability. “Pakistani consumers may revert to their prior habits once the conflict ends and things start to normalize again. Human collective memory is often short. People frequently move on and forget,” he observed.
A retail-savvy individual saw an unmistakable trend, noting the closure of about half a dozen locations of well-known Western brands over the previous six months, along with an estimated 20–30% drop in sales.
Local companies like Cola Next and Gourmet Cola have quickly increased their market share to close this gap. Meanwhile, it’s said that failing companies like Master Cola are getting ready to reopen their shuttered operations in an attempt to take advantage of the growing market for regional drinks.
A franchise owner whose business was the target of mob violence regretted that lives and property were being jeopardized in the name of a good cause. Protesting is a right, but it is damaging to follow provocateurs mindlessly who can have hidden agendas. Consider Coca-Cola in Pakistan. It is a division of Coca-Cola Icecek, a Turkish business, not Coca-Cola International, a US corporation. Many businesses that are commonly believed to be American are really listed on the national stock exchange with very little American ownership.
Additionally, Pakistani workers are being harmed by the boycott at every stage of the supply chain. Rich companies can afford to lose money, but Pakistani suppliers and laborers might not be able to,” he said.
The CEO of a different foreign company made clear that his company has been badly harmed not only by the 10 percent demand reduction but also by employee harassment and threats to dedicated outlets. “In order to reduce the risk of vandalism, we had to reduce the visibility of our brand name,” he said.
During background research and interviews with marketers, executives, officials, and experts, it became clear that a common concern was becoming the focus of violent crowds. A lot of people were reluctant to speak up, and those who did refused to be quoted even though their opinions were insightful.
Regarding how the government plans to address developing market trends, officials from economic ministries were unable to provide much information, particularly in light of worries expressed by foreign investors and the necessity of bringing in fresh foreign direct investment to close the investment gap.
The International Court of Justice’s decision that Israel’s security barriers in the West Bank violated international law marked the official start of the boycott, divestment, and sanctions movement 19 years ago, in 2005. The decision sparked a global movement advocating for an end to Israel’s apartheid policies and bringing attention to the Palestinian cause.
It focused on encouraging people to abstain from buying Israeli products and to avoid doing business with Israeli-affiliated companies. Although the campaign has gradually gained traction, anti-Israel sentiment, especially in the Muslim world, intensified after Israel’s despicable conduct in Gaza.
