Global Politics Impacting Brand Reputation: Insights from Edelman Survey and Pew Research Center

In a recent survey conducted by Edelman, it was found that nearly 80% of consumers are willing to boycott a brand based on its country of origin. This highlights the increasing link between corporate decisions and geopolitical matters with brand reputation.

Consumers in countries like South Korea, Japan, China, and France are most likely to boycott brands based on their country of origin. Interestingly, consumers in Saudi Arabia have seen a significant increase in favoritism towards local brands, jumping 20% in the past year.

Furthermore, the survey revealed that roughly half of those surveyed believe that supporting a foreign brand signals approval of that country’s government. This has significant implications for American brands, as global audiences have shown more confidence in President Biden over former President Trump, according to a recent Pew Research Center survey.

Overall, the survey found that 60% of consumers globally make purchasing decisions based on personal politics. Consumers in different countries prioritize brands that are committed to various social issues, such as climate change, racial inequality, and access to healthcare.

According to Edelman CEO Richard Edelman, politics has become a crucial aspect of brand marketing considerations. Everything from supply chains to advertising campaigns is now viewed through a political lens, making it essential for brands to have a political sense in their operations.

As high-stakes elections take place in more than 50 countries this year, brands must navigate the complex intersection of business and politics. The biggest mistake a brand can make is to assume immunity to political currents, as consumer sentiment is increasingly influenced by political factors.

Companies are now faced with the challenge of communicating around business-related issues that are intertwined with politics, such as inflation in the U.S. It is clear that politics has become an integral part of marketing, and brands must adapt to this new reality to maintain consumer loyalty and reputation.