ShareKUWAIT: The recent situation in Gaza has sparked widespread concern, leading to a significant response from the Kuwaiti population – the initiation of a boycott. This protest aims to express solidarity with the people of Gaza and register disapproval of the events unfolding in the region. The ongoing boycott has raised questions about its impact on the parent companies supporting the Zionist entity, prompting discussions on its effectiveness. Kuwait Times interviewed experts to delve into the implications.
Fahad Al-Arbash, Head of the Kuwait Union of Restaurants, Cafes, and Catering Companies, highlighted the negative impact of the boycott on franchising, foreseeing future and long-term consequences. According to him, franchise restaurant owners will find it challenging to recover losses during the boycott, as they require 4-6 months to cover monthly running costs. Arbash emphasized the significance of "word of mouth", stating that negative marketing can be potent, especially during a boycott. Trust in family and friends' opinions can significantly affect a business.
Even if a franchise is Kuwaiti-owned, Arbash explained that it still contributes to the parent company’s profit. The parent company provides recipes, employee training, selects decorations and packaging, and even influences marketing strategies. Arbash, drawing from his experience as a former franchise restaurant owner, revealed the financial ties, explaining that a percentage of monthly sales, in this case, 4 percent, goes to the parent company. This financial link raises concerns as part of the profits indirectly supports the enemy.
On the positive side, Arbash confirmed that local restaurants experienced a sales increase of 20-30 percent post-boycott. Customers show a strong tendency to choose local alternatives due to better quality and lower prices.
Economist Mohamed Ramadan added insights, acknowledging the likelihood that franchisees, despite being Arab-owned, maintain a certain relationship with the parent company supporting the Zionist entity. He criticized claims by some franchisees that they don't contribute financially to the supporting parent company as deceptive.
Ramadan stressed the need for business transparency, allowing consumers to make informed choices based on truth. While he believes boycotts can pressure parent companies to reconsider their support for the Zionist entity, he doubts it will entirely sever business relations unless sustained on a global scale.
Assistant Vice President for External Research and Professor Dr Haneen Al-Ghabra noted Kuwait's unique position as one of the few countries in the region that has not normalized relations with the Zionist entity, making the boycott easier. She acknowledged challenges in convincing people, especially in the West, due to media influence. However, she observed a growing counter-voice in media supporting Palestinians.
Ghabra said Kuwaitis have been boycotting any company that shows any support to the Zionist entity in committing the genocide in Gaza. "Kuwaitis are committed to the boycott. We have seen several stores, cafes and restaurants empty,” she said, despite confusion about what products to target. She recommended referring to the Boycott, Divestment, Sanctions (BDS) website for guidance. "The BDS movement has three goals — to put pressure to end the occupation and dismantle the apartheid wall, to achieve full equality for Palestinian citizens, and the right of return for Palestinians,” she explained.
Ghabra highlighted the awakening of the younger generation to the history of occupied Palestine, with students showing increased interest in understanding and questioning the events, especially in light of the recent conflict and the second Nakba. She underscored the importance of educating students about the media's role in controlling narratives, focusing assignments on the genocide to raise awareness.
Research by Edelman has indicated that 64 percent of global consumers make purchasing decisions based on a brand's political or social stance. Brands are now expected to reflect human values and speak out on perceived injustices. Reina El-Khatib, a branding expert, emphasized the significant damage to brands supporting the Zionist entity, with people now associating them with "bloody hands". She cautioned against underestimating the impact of boycotts, as every individual can contribute to making a difference.
Khatib noted the shift in the perception of brands from mere sellers to entities with distinctive psychological features, known as "brand humanization". She highlighted the dilemma faced by brands, forced to reflect their values on social and political issues due to the rise of social media and online debates.
In conclusion, the boycott in Kuwait, while affecting franchises negatively, has boosted local businesses. The debate surrounding the ethical considerations of supporting parent companies indirectly contributing to the Zionist entity remains complex. The global landscape is changing, with consumers expecting brands to take a stance on social and political issues, and the impact of such boycotts, if sustained, can potentially reshape corporate affiliations on a broader scale.
