12/14/2023–|Last updated: 12/14/202304:28 PM (Mecca time)
Major international companies showed bias towards Israel in its war on the Gaza Strip after the Palestinian resistance launched Operation Al-Aqsa Flood, in what appeared to be a violation of the principles of the market economy, and led to some of them losing more than half of their sales in some Arab countries and the Islamic world.
Pictures on social media showed parcels and fast food sent as a gift with expressions of solidarity to Israeli occupation soldiers, while Ariel, a company that produces laundry detergents, sent laundry to Israeli army camps.
On the other hand, consumption patterns and tendencies in large sectors around the world confirmed the rejection of what companies and governments expressed in support of Israel in its continued aggression against the besieged sector, which has created humanitarian crises, according to the expressions of UN officials, which was not hidden by opinion polls on the policies of major countries.
In this context, a poll conducted by Reuters and Ipsos in mid-November showed that about 32% of participants said that the United States should support Israel, compared to 41% last October 12 and 13.
The percentage of those who said that the United States should be a neutral mediator rose to 39% from 27% last October, and 4% said that their country should support the Palestinians, and 15% said that it should not interfere at all.
Among the international companies and brands rushing to show their full support for the Israeli army are McDonald’s, Papa John’s, Burger King, the French company Carrefour, which owns the grocery store chain, Starbucks cafes, and pharmaceutical and detergent companies, which led to a decline in the sales of these companies in many Islamic countries.
Boycott and losses
On the other hand, Reuters quoted an unnamed source in McDonald’s management in Egypt that sales of the Egyptian franchise declined by at least 70% in the past months of October and November, on an annual basis.
Sameh Sadat, an Egyptian politician and co-founder of TBS Holding, a supplier of Starbucks and McDonald’s, said that he noticed a decrease or slowdown of about 50% in the orders of the two customers.
In a report entitled “Boycott campaigns linked to the Gaza war harm Western brands in Arab countries,” broadcast last month, the agency stated that Western brands are feeling the brunt of the boycott in Egypt, Jordan, Kuwait and Morocco.
In Jordan, residents who support the boycott sometimes enter McDonald’s and Starbucks branches to encourage the few customers not to buy, and to move elsewhere.
In Kuwait City, Reuters monitored 7 branches of Starbucks, McDonald’s, and Kentucky Fried Chicken almost completely empty of visitors, and a worker in one of the Starbucks branches – who declined to reveal his identity – said that there were other American brands that were also affected.
In the Moroccan capital, Rabat, a worker at a Starbucks branch said that the number of customers had decreased significantly this week, and neither the worker nor the company provided any numbers.
Outside the Islamic world, specifically in the United States, Starbucks lost more than $10 billion, after its stock fell to $98.11 at the end of trading yesterday, Wednesday, from $107.21 on November 16.
The company found itself in trouble after a tweet from the group’s workers’ union expressing its solidarity with the Palestinians, but the company initiated legal action against it, which led to strikes and a boycott campaign against the company and its products. This was added to the failure of marketing to increase sales in the winter holiday season in The United States, which led to an overall decline in the stock.
Highly sensitive situation
In this context, the fashion company Zara said two days ago that it regrets the “misunderstanding” sparked by an advertising campaign in which statues appeared wrapped in white fabrics, which sparked calls for a boycott launched by activists supporting the Palestinians.
The company later deleted the campaign images, which included images resembling images of bodies wrapped in white shrouds in Gaza.
According to Reuters, Zara’s announcement reflects the challenge faced by international brands in dealing with the highly sensitive situation regarding the war in Gaza.
Zara is the first major Western brand to take such a step against what some observers considered an insensitive advertising campaign.
The German sportswear company Puma said that it would end its sponsorship of the Israeli national football team next year, but it said that the step comes within the framework of its new strategy, and before the Al-Aqsa Flood operation on October 7 last year.
Palestinians had issued calls to boycott the sports clothing company before the Al-Aqsa Flood operation. Because of its sponsorship of the Israeli national team.
