Did Local Brands Seize the Boycott Opportunity?

Given the recent developments in the Middle East, the looming question is whether there will be another surge among Pakistani consumers favouring a boycott of foreign brands. And, if there is, will local brands be able to capitalise on it long-term or will they squander the opportunity again?

The war on Gaza, which started in October 2023, reignited the Boycott, Divestment, Sanctions (BDS) Movement across the Muslim world. The boycotts galvanised Pakistani consumers, who responded emotionally to the distressing images emerging from Gaza, thereby significantly affecting the consumption of multinational brands.Tracking sentiments from November 2023 to September 2024 reveals an ebb and flow in consumer attitude and behaviour. It also highlighted how local brands missed their opportunity to seize long-term market share.

In early November 2023, 83% of Pakistani consumers agreed with the boycott campaign, strongly influenced by social media and the international political climate. However, these sentiments fluctuated, and by September 2024, the percentage of consumers who agreed with the boycott had fallen to 68%; a 15% decline compared to the initial surge of anger and frustration.

Interestingly, after continuous decline, in April 2024 (after Ramzan), a peak of five percent was observed, with 65% of consumers favouring the boycott of foreign brands. With a slight increment of three percent, this sentiment is almost sustained at 68% in September 2024.

Even more telling was the claimed practical impact of these sentiments. In November 2023, 79% of respondents claimed they did boycott foreign brands. This dropped by 10% in the subsequent two waves. However, this practical boycott claim peaked at 84% in April 2024 before falling to 74% by September 2024.

The decline in practical participation suggests that while ideological support for the boycott remained relatively high, real-life actions often diverged due to factors related to convenience, availability and product quality concerns.

Although both genders reflected their anger about the war on Gaza and favoured the boycott, the contribution of females is relatively higher than males.

However, over time, in terms of practical action, males favoured the boycott more than females.

Socio-economically, boycott sentiments were more prevalent among the upper classes with children and younger demographics – and the reason why the impact of BDS affected modern trade more than general trade.

The most affected categories were CSD, fast food, chips, juices, personal care products (soap, toothpaste and shampoo) and household products (tea, tea whiteners, packaged milk, cooking oil, biscuits and chocolates).

Because of more efficient marketing strategies, quality maintenance and effective distribution, Pakistani brands have many impressive success stories; cases in point are EBM, Bona Papa, National Foods, Shan Foods, Shangrila, and Young’s Food – the boycott provided an unprecedented opportunity for local brands to capitalise on nationalist sentiments and increase market penetration.

In this respect, Kababjees is a good example. It took advantage of the boycott and spread its branches like anything. They also focused on creating an impressive and modern ambience, accompanied by quality offerings. Conversely, many local brands failed to rise to the occasion. An example of this was a local soft drink brand that initially captured a significant market share but neglected basic infrastructure issues, including providing its own chillers and relying on those provided by competitors. This ended up sending mixed signals to retailers and consumers about the brand’s capacity to scale and offer a viable long-term alternative. Adding to the complexity of the situation, modern trade chains raised their shelf occupation charges and introduced private-label products, so that rather than rallying behind local brands, they seized the opportunity to expand their product offerings, thereby complicating efforts by local brands to establish a strong market position. This lack of cohesion between retailers and local manufacturers further impeded the growth of domestic alternatives.

Consumer disillusionment with local brands became increasingly apparent as the boycott movement progressed. Many local brands failed to deliver on the promise of consistent supply, quality and competitive pricing, thereby driving consumers back to multinational brands despite their initial support for the boycott.

The situation has changed and multinational companies have developed patriotic platforms, adopted a local cultural outlook in their campaigns and changed their packaging. If local brands are to maintain the momentum gained from the BDS Movement, they will have to invest significantly in brand perception, quality improvement and consumer insights. Unlike the short-term boost in sales they experienced at the height of BDS, long-term success will require deep strategic investments in supply chain improvements, retail relationships and consumer loyalty programmes. Brands like EBM, National Foods, Shan Foods, Shangrila and Young’s Food have demonstrated that with the right approach, local players can thrive, but they are the exception rather than the rule. The lesson for most local brands is clear. Public sentiment can open doors, but sustained success requires more than short-term emotional responses.

The BDS Movement of 2023-2024 was an excellent opportunity for local brands to generate awareness and trial. Pakistani consumers were willing to change their purchasing habits in response to global events. However, such changes will remain temporary without significant local investment in branding, availability and product quality. Local brands must rethink their strategies to create lasting relationships rather than rely on sentiment alone.

• The information in this article is based on five surveys conducted byPulse Consultants that ran from November 5-11, 2023 (sample size:1,224), November 20-25, 2023 (sample size: 1,206), December 8-14,2023 (sample size: 1,199), April 19-30, 2024 (sample size: 1,177) andSeptember 2-22, 2024 (sample size: 2,272).

• The first four surveys were done via Computer-Assisted Telephonic
Interviews (CATI) in the top 12 cities, and the last one was done
through face-to-face interviews in the top 24 cities. Respondents
were divided into males and females, aged between 16 and 55 from SECs A-D.

• The sources from which consumers learn about boycott movements show clear gender distinctions. Males primarily cited digital platforms,with 35% obtaining information from Facebook, 27% from WhatsApp, and 25% from YouTube. Social circles also play a role: 26% learnt fromrelatives and 25% from friends; 17% relied on Google, 17% obtainedinformation from a mosque’s imam, 16% heard from shops, and 12% read pamphlets. Twelve percent said their children influencedawareness of the boycott.

• Females showed a different pattern, with 34% obtaining informationfrom relatives and 27% from friends, reflecting the impact of socialnetworks. Digital platforms were significant; 23% cited WhatsApp, 22%YouTube and 20% Facebook. Thirteen percent used Google, 12% heardfrom shops and 10% from pamphlets. Children influenced 9% of females,while 6% heard about the boycott from a mosque’s imam.

Kashif Hafeez Siddiqui is CEO, Pulse Consultants. kashif.hafeez@pulseconsultant.com