MUSCAT : US-based companies like McDonald’s and Starbucks are particularly impacted in the Middle East, highlighting how geopolitics are influencing shopping behaviours.
The latest Edelman Trust Barometer, polling 15,000 consumers from countries including the UAE, Saudi Arabia, the UK, the US, and India, has uncovered a significant trend: consumers are increasingly letting their political views dictate their shopping choices. The survey shows that 60% of customers worldwide now select brands based on political stances, marking a 2% increase from the previous year.
In Saudi Arabia, a striking 72% of respondents are boycotting brands they believe support a particular side in the Israel-Gaza conflict. Similarly, 57% of UAE respondents have also ceased buying from such brands. This trend is severely affecting US-based companies like McDonald’s, Starbucks, and Coca-Cola in the Middle East.
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McDonald’s reported a noticeable decline in first-quarter sales, attributing it to the boycotts’ strong impact in the region. Starbucks, facing similar challenges, announced in March that it would lay off thousands of employees in the Middle East due to the boycott’s effects.
The survey underscores that geopolitical issues are significantly shaping brand loyalty. An overwhelming 78% of customers stated they avoid brands based on their country of origin. Furthermore, trust has emerged as the most critical consumer factor, surpassing customer service, reputation, and convenience.
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