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FMCG E-commerce Sales Decline Amidst Israeli Boycott Issue

Adi Ahdiat 27/06/2024 12:20 WIB

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According to Compas' findings, the majority of FMCG brands experienced a decline in e-commerce sales volume in early June 2024 due to the impact of the pro-Israel product boycott issue.

Proportion of FMCG Brands Experiencing Sales Volume Decreases/Increases in Indonesian E-commerce (June 2nd-15th, 2024)*

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Proportion of FMCG Brands Experiencing Sales Volume Decreases/Increases in Indonesian E-commerce (June 2nd-15th, 2024)*

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Most fast-moving consumer goods (FMCG) companies experienced a decline in e-commerce sales in early June 2024 due to the impact of the pro-Israel product boycott issue.

This is recorded in a report by Compas, a Jakarta-based online market research company.

Compas conducted online data crawling on sales volume of products from approximately 200 FMCG brands on Shopee and Tokopedia during the period of May 19 - June 15, 2024.

The search covered local and multinational FMCG brands, including those listed on BDnaash.com as supporting Israel and therefore subject to the boycott.

The results showed that, of the 37 researched baby and maternal product brands, 92% experienced a decrease in sales volume from June 2-15, 2024, compared to the previous two weeks.

Of the 29 health product brands, 74% experienced a similar decline.

Of the 75 food and beverage brands, 73% saw a drop in sales. Meanwhile, 62% of the 85 beauty product brands experienced a sales decrease.

"This decrease in product sales is actually due to brands affected by the boycott action following the virality of 'Eyes on Rafah'," said Compas Co-founder & CEO, Hanindia Narendrata, in a press release (June 26, 2024).

However, amidst this boycott trend, a small number of FMCG brands saw increased sales, as shown in the graph.

According to Compas, the sales increase was generally experienced by local brands, such as Wings Group, Mayora, Paragon Technology, Kinocare Era Kosmetindo, and Tempo Scan.

"Consumers participating in the boycott tended to replace products with brands not affiliated with Israel, and preferred local brands as substitutes," said Narendrata.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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FMCG E-commerce Sales Decline Amidst Israeli Boycott Issue

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FMCG E-commerce Sales Decline Amidst Israeli Boycott Issue

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