The boycott of products perceived by consumers as supporting or affiliated with Israel has impacted the sales of several Fast-Moving Consumer Goods (FMCG) categories in Indonesia.
Recent research by Compas.co.id shows that food and beverage, health, and mother and baby products were the most affected categories. Conversely, the beauty care category was unaffected by the boycott of Israeli products.
Compas.co.id's research was conducted on e-commerce platforms using a crawling method between October 25th and November 7th, 2023, and November 8th and 21st, 2023. A total of 96 multinational FMCG brands were identified as being boycotted by consumers due to their perceived support for Israel.
The team found a 12% decrease in transactions in the food and beverage category compared to the same period previously. A similar trend was observed in the health category, which experienced a 15% decrease in transactions.
The most significantly impacted category was mother and baby products, which saw a 16% drop in transactions.
"We found that 60 brands, or 62%, experienced a decrease in transactions totaling 240,000 transactions," said Compas.co.id CEO Hanindia Narendrata (Drata) in a press release on Friday, December 1st, 2023.
On the other hand, Drata continued, 36 other brands, or 38%, showed positive performance in terms of transaction volume. "The beauty care category actually saw a 7% increase in transactions compared to the period before the boycott," said Drata.
Drata stated that the increase in transactions in the beauty care category amounted to 159,000 transactions. This, according to him, indicates that the boycott had no impact on this category.
Drata also detailed that the boycott contributed to a decrease of 27,700 transactions in the mother and baby category, 46,000 in the health category, and 46,000 in the food and beverage category compared to the previous period.
According to Drata, this boycott movement significantly influenced product preferences, particularly towards brands perceived by consumers as supporting or having ties to Israel.