82 Percent of Americans Think Brands Should Stop Doing Business With Russia

Cutting off business with Russia is a no-brainer for brands at the moment. 

While cynics cite the problems with exchanging valuable goods for an almost worthless currency, on top of the challenge of getting goods or services into the increasingly isolated country already plagued with supply chain issues, consumers are indicating that they are much more likely to support those that stop doing business with Russia than those which do not.  JL

Paul Hiebert reports in AdWeek, image Bloomberg:

82% of U.S. adults feel brands should stop doing business in Russia. Although a brand’s decision to pull out of Russia might be (because) the country’s currency and supply-chain problems are slowing down the exchange of goods, how companies respond to the event has the potential to shape shopper sentiment. 68% of Americans said they’d either be much more or more likely to buy from a brand that promised to give a portion of its revenue to aid humanitarian efforts in Ukraine

Multiple companies, from Apple to WPP, have ceased operations in Russia following the country’s invasion of Ukraine.

And that sits well with the American public.

In total, 82% of U.S. adults feel brands should stop doing business in Russia, according to data analytics firm YouGov, which polled 2,000 people on March 3. Only 10% of participants said companies should not halt operations.

Although a brand’s decision to pull out of Russia might not be as difficult as it sounds, given that the country’s currency and supply-chain problems are slowing down the exchange of goods, how companies respond to the event has the potential to shape shopper sentiment.

Nearly one-third of U.S. consumers, for example, say not issuing a statement concerning Russia’s invasion of Ukraine lowers their opinion of a brand. Meanwhile, more than a quarter of respondents in YouGov’s survey said they have considered boycotting companies that have not made a public statement about the crisis.

Overall, 68% of Americans said they’d either be much more or slightly more likely to buy from a brand that promised to give a portion of its revenue to aid humanitarian efforts in Ukraine.

The numbers line up with other instances suggesting shoppers want companies to get more involved in political issues.

Doing so, however, is not without drawbacks and complications. Last month, Levi Strauss & Co., known for its liberal disposition, parted ways with brand president Jennifer Sey over divergent views on how schools should deal with Covid-19.

Additional YouGov figures show 47% of U.S. adults believe that when a brand takes a stance on international issues, such as the Russia-Ukraine conflict, it does so because it genuinely thinks it is the right thing to do. On the other hand, 28% of people believe the company is using the issue as an opportunity to attract or retain customers.