The boycott of Coke over US support for Israel's attack on Gaza highlights the tricky balancing act some brands must play between their Western ties and their Muslim consumers.
Spurred on, in part, by social media, 100 US brands, including Starbucks, Colgate and McDonald’s, became embroiled in the row, as 2,000 restaurants and establishments urged Malaysians to boycott US products. Michael Maedel, global president of JWT, points to the rapid growth from Indonesia to Egypt. “They are becoming increasingly consumer-driven, offering huge potential for marketers. Currently estimated at US$2.7 trillion, this market is expected to grow to a staggering $30 trillion by 2050.”
Spurred on, in part, by social media, 100 US brands, including Starbucks, Colgate and McDonald’s, became embroiled in the row, as 2,000 restaurants and establishments urged Malaysians to boycott US products. Michael Maedel, global president of JWT, points to the rapid growth from Indonesia to Egypt. “They are becoming increasingly consumer-driven, offering huge potential for marketers. Currently estimated at US$2.7 trillion, this market is expected to grow to a staggering $30 trillion by 2050.”
Yet, MNCs that invest heavily in Muslim-populated countries, such as Malaysia and Indonesia, must be wary that events such as the ‘war on terror’ or Israel’s foreign policy can cause hostility. For brands which have leaned on their US origins, that can raise difficult questions. Brand experts say MNCs now need a deeper understanding of the social, cultural, political and economic factors influencing Muslim consumers.
Ismael Ibnoulouafi, CEO of The Brand Union Southeast Asia believes brands need to be seen as local operations. He calls for Coke to take a longer-term approach to markets such as Malaysia than it has so far adopted. “Brands, like governments, need to tread the path of diplomacy and openness, rather than continue with the 'shock and awe' tactics of brand hegemony. It’s better to listen and adapt brands to fit local social and cultural nuances and trends, in the way that McDonald’s has learned to reflect local flavour and global health concerns.”
Global brands would also do well to understand Muslim consumers better. According to a study by JWT and AMRB last November, common themes that link Muslims include religion, family-ties and personal development. However, there are clear divides within that group too.
The greatest segmentation is seen through their values and attitudes. The study divided Muslims into the following groups: religious conservatives, new age Muslims, social conformists, pragmatic strivers and liberals. How do MNCs begin to reach out to such a diverse crowd?
According to Joseph Tan, Lowe Indonesia’s country advisor, a lot of on-the-ground work is needed. “In Indonesia, you have to tighten your messaging. There’s a lot of ground to be covered and MNCs would do well to avoid a cookie-cutter approach. With the Bataks [an ethnic group in North Sumatra], you can be more straightforward, but with the Javanese, you need to be more polite. You have to rely on savvy local partners to understand all the various cultural backgrounds.”
Tan further advises MNCs to have strong, well-informed “local talent pools”. “Doing work on the ground means more activation and BTL campaigns,” he says. “But seemingly innocuous promotions such as ‘lucky draws’ and giveaways can be considered gambling to some communities”.
It is intricacies such as these that MNCs need to understand if they are truly to tap into the rise of the Muslim consumer.
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