How Boycotting American Brands Can Deliver Economic Punch

With more than 220 million young and active consumers, Pakistan is still a great place for American companies to grow in technology, fashion, franchising, and cars. There are, however, growing anti-American feelings in Pakistan that are linked to geopolitical issues. This is a big risk that should be avoided. It’s possible that the effects on the economy will hurt business balance sheets and jobs back home. Few examples are defined in following subsequent paragraphs:

McDonald’s Fast-food Chain

McDonald’s has more than 50 locations in Pakistan’s biggest towns and makes about $200 million a year. Most of the money made at McDonald’s restaurants goes back to the company as royalties and fees, even though each restaurant is owned by a different company. If they lose the Pakistan market, they could lose about $35 million a year in sales. The impact would certainly put their plans to grow further on hold.

Coca-Cola Company Beverages

Coca-Cola and its main packaging partner make more than $500 million in sales in Pakistan. If people don’t buy Coca-Cola, the company will lose $250 million in sales.

Apple or iPhone

On average, Apple makes more than $800 million a year from phones and tablets sold in Pakistan. If Apple lost just 20% of its sales, it would lose more than $160 million around the world. Moreover, will lose ground to Android rivals in a key developing market.

Impact of Boycotts

Major US brands in fast food, drinks, household goods, and technology could lose more than $3 billion a year in sales if people continue to boycott their products. The fallout from lower sales in Pakistan also threatens American R&D and innovation projects that depend on strong foreign sales to pay for new product development.

Actually, boycotts may only seem like a show of support, but they have real economic effects that are seen in the bottom lines of American companies and the jobs they support. Given the current political unrest, Pakistan’s large consumer base makes it an important test case for businesses trying to decide how to balance their ideals with their business goals.

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Dr. Johan Faust
Dr. Johan Faust

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