Nearly half of consumers worldwide (41%) say they would boycott a brand if it does not align with their personal beliefs or values, especially in relation to the Russia-Ukraine conflict, according to GlobalData, a data analysis firm, which advises that this should be done as soon as possible.
Several Western cosmetics players have already withdrawn from Russia due to the current conflict with Ukraine, although it is a key market. Other brands are expected to follow suit, driven by consumer expectations and an increasingly difficult and uncertain environment.
According to GlobalData, brands that take a strong stance will be favoured by consumers ready to boycott those that do not align with their values. LVMH, for example, is pulling out of the Russian market despite providing 6.6% of its cosmetics and toiletries sales in 2020, equivalent to more than $300 million, according to the analyst firm.
“This is a drastic but necessary step considering not only the evolving complications of doing business in the market, but also the potential backlash from consumers around the world if this decision is not taken,” said Lia Neophytou, senior health and beauty analyst at GlobalData.
The analyst firm estimates that 5.3% of Henkel’s cosmetics sales, for example, or the equivalent of almost $400 million, were made in Russia in 2020. The group announced that it was freezing all future investment plans in the market, ceasing advertising and sponsorship activities and offering financial assistance to Ukraine. However, various companies, including Henkel, will continue to …
