Brands in times of war
As brands take positions to show where they stand on the Russia-Ukraine situation, will the equation with consumers change?
As I write this, trending words on social media like ‘metaverse’ and ‘Omicron’ have yielded to ‘Ukraine’ and ‘war’. As the situation continues to escalate, brands are under pressure to take positions and communicate exactly what these positions are. This is the paradox of our time. Globalisation, international trade and a complex network of cables and codes makes us inextricably connected and interdependent. Global brands present the reassurance and familiarity of shared consumerism, a sameness across the world – Starbucks, for example, is a cool place to hang out in Mumbai as well as in Beijing. Visa and Mastercard linked to our banks help us navigate international travel with ease because they are accepted everywhere. Until suddenly they aren’t, and the global landscape is no longer the cosy, sharing, consumer-first world it promised to be.
GROUND REALITY
When war became reality, Vogue Ukraine urged the global fashion community to boycott Russian stores. Instead of shutting down or continuing to cover regular beats, editors wrote about their life and personal experiences under shelling and life in bunkers, making a strong political and patriotic statement. But in a sense, this pitted it against itzs own sibling from the Conde Nast stable - Vogue Russia. What should the parent company do? I am sure these are scenarios that are playing out for consideration across corporate boardrooms and in planning communication strategies as consumers demand answers on where they stand.
Brands have a responsibility to their workers; so, safety is an issue when it comes to shutting operations in Ukraine as Carlsberg beer had to, with three large bottling plants. Ukraine is a compulsion, because it is in the line of fire, but announcing you will pull out of Russia even if you do not come under government sanctions and embargoes, signals that you are taking a stand or making a statement. The words have to be couched carefully and it is a communication tightrope many have to walk. But as each day passes, yet another Western company says it will suspend operations in Russia.
IKEA said it would shut all its stores in Russia and would try and provide some safety net to the 15,000 jobs at stake. However, it will not shut its malls which operate under the Mega brand (Source: Live Mint). Could it be because IKEA consumers are different from the ones who go to
Mega malls or is it that the malls are family-centric places with food and pharmacies and are, therefore, essential supplies? Or there are too may partners and jobs at stake? A tough call. Jobs and livelihoods will be lost on both sides of the war and I am not sure shutting operations or stores will actually change the course of the war. However, it may change how your consumers view you.
DOES SILENCE WORK?
Nike has stopped shipments and e-commerce to Russia, besides shutting its stores, but has said that it will pay employees for the moment. Nike knows that its customers will ask these questions. Apple has also suspended sales and shipments to Russia, though in my opinion this will only encourage a brisk black market or buying from bordering countries. Because these brands with large global footprints are taking a stand, it also puts brands who have not made a statement under pressure to do so. If you are silent, you may be seen as complicit. I can imagine the PR companies and internal communication departments working overtime to craft the communication.
These are not government-imposed sanctions or embargoes. These are brands taking it upon themselves to show where they stand on a war that is not even playing out in their countries. This is different from benevolent corporate social responsibility or taking a stand on issues like racism as we saw during the Black Lives Matter protests or gender or climate change. This is geo-politics in an area where even experts can’t predict what will happen next. This is an area where brands have traditionally not stepped into or made public statements about where they stand. Because you may have to take a stand against any unwanted intervention or violation of sovereign borders across the world, are we seeing a difference in how brands will engage with their consumers or will this pass? Eventually, wars do end, but the question is - will it be business as usual for brands? Or will something have changed forever?