Boycott: Will celebrity engagement mitigate profit loss?
MANY global corporations are currently grappling with consumer boycotts, resulting in significant financial losses.
Starbucks, for instance, has experienced an estimated $12 billion profit loss due to boycotts related to the ongoing Gaza bloodshed.
The Israeli colonisation of Palestine, which dates back to 1948, has recently garnered increased public attention.
Activists and consumers are labelling the situation as genocide and calling for boycotts against popular brands like Starbucks, McDonald’s, and KFC.
This movement questions the role and responsibility of influencers, celebrities, and politicians during such pressing times.
In South Korea, the situation is unique due to stringent advertising laws.
Major entertainment companies like SM, JYP, and HYBE, managing artists such as Taemin, Twice, and BTS, navigate these laws carefully.
Similarly, US labels like Island Records and Universal Music, associated with artists like Bob Marley and Taylor Swift, must manage their branding strategies cautiously.
A key issue is the involvement of K-pop idols in promoting these controversial brands.
Recent actions by K-idols, previously discreet in brand endorsements, have led to criticism from fans and netizens.
For example, Jeon Somi faced backlash for a social media post featuring Starbucks, which was interpreted as insensitive or supportive of Israel.
This situation has impacted Starbucks' strategies to mitigate profit loss.
The company, known for its challenging labour relations, is speculated to engage celebrities for damage control.
However, these strategies' effectiveness and the boycotts' true impact on Starbucks' profits remain uncertain.
