Islam Newsroom - "News We Need ~ When We Need it"
Boycott Causes $$ Problems
Boycotting brands has both a money and symbolic importance. It is seriously impacting Israel's economy! Money and military are really affected by boycotts. Big major companies have problems due to boycott action hitting where it hurts (in the pocket).
Many multinational corporations facing boycott action are not able to absorb the hit to sales as a resulting from geographic and category spread", their franchise operators in countries with boycotts going on are likely to suffer.
Amarpal Sandhu, chief executive of Americana Restaurants, operating brands as KFC, Pizza Hut and Krispy Kreme Donuts, across the Middle East and Kazakhstan, called the length and intensity of the boycotts "unprecedented".
The company's second-quarter profits were down 40% compared to last year, "in spite of opening over 80 restaurants in the first half of the year".
Snack-maker Mondelez also weighed down their sales growth in the second quarter, and L'Oréal says boycotts had an impact on their sales in the first half of this year.
GOD NEWS - For Local Start-Ups
Boycotts of Western products also present a huge chance for new local brands in the Middle East. As Egypt's Spiro Spathis, an Egyptian soft drink company, is the substitute for Coca-Cola & Pepsi in all Egypt!
It means - little people (like us) can start-up a small company and succeed -
Inshallah!
