{"id":97427,"date":"2025-03-10T00:01:00","date_gmt":"2025-03-10T04:01:00","guid":{"rendered":"https:\/\/therobinreport.com\/?p=97427"},"modified":"2025-03-07T12:55:04","modified_gmt":"2025-03-07T17:55:04","slug":"facing-consumer-activism","status":"publish","type":"post","link":"https:\/\/therobinreport.com\/facing-consumer-activism\/","title":{"rendered":"Facing Consumer Activism\u00a0\u00a0"},"content":{"rendered":"\t\t
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We are operating in a climate of consumer activism and empowerment that can unfortunately show up in brand dislike, even hate, both of which make indifference sound like a godsend. Consumers always vote with their pocketbooks. That\u2019s both good and bad news for retailers. And activist consumers have made their voices heard for centuries, with collective movements and boycotts, and on the flip side, as positive grassroots brand builders. Again, good or bad news for retailers depending on where they sit.<\/p>

No one wakes up in the morning wanting to trash a brand. And no one wants to wake up feeling their once-trusted brand has sold them short by not sharing their values. To be fair to retail leaders, resisting the pressure of investor activists takes enormous tenacity and patience. And responding to the needs and whims of all consumer-activist stakeholders, including customers and employees, takes an equal level of stamina.<\/p><\/blockquote>

Although retail leaders are not necessarily trained as political operatives, it is becoming clear that playing to influencers and policymakers might be a good short-term practice to survive in a highly disruptive marketplace. That doesn\u2019t say much for a brand\u2019s integrity when its ethos swings in the wind. Customers want brands they can rely on and trust. On that note, see the end of this report for TRR\u2019s activism checklist for some proactive strategies.<\/p>

Active Activists<\/strong><\/h4>

If you\u2019re paying any attention to the news headlines, you might conclude that the American consumer is reaching an inflection point of frustration. When real income and spending power are diminished, retail is typically the first line of resistance when shoppers pull back. Compound that with principled spending, and you\u2019re on the brink of serious pushback by customers who typically vote with their pocketbooks.<\/p>

America has a long tradition of consumer activism. The Boston Non\u2011Importation Agreement<\/a> and the Montgomery Bus Boycott<\/a> were coordinated consumer actions that forced large policy changes. On the marketing front, the Bud Lite brand positioning disaster has become a brand legend. Backlashes against Target\u2019s LGBT positioning has also become a textbook retail cautionary tale. Now Target is facing a 40-day backlash which began at the start of Lent (those 40 days of retail fasting) because Target made changes to its DEI programs. Other recent examples include the Tesla backlash in Europe<\/a> and Poland\u2019s call for a Tesla boycott<\/a>. The New York Times reports that Tesla sales\u00a0plunged 76 percent last month in Germany<\/a>, part of a wider pan-European slump. The Guardian<\/a> reports that \u201cData from the European Automobile Manufacturers\u2019 Association showed\u00a0sales of new Tesla cars almost halved<\/a>\u00a0in Europe last month. The figures left analysts scrambling to assess how big a factor was customers turning their backs on the brand because of Elon Musk\u2019s foray into EU far-right politics.\u201d<\/p>

Brand Hate<\/strong><\/h4>

The political weaponizing of consumerism is becoming problematic. Our TRR colleague Glyn Atwal reports, \u201cThe online community is a global megaphone. Anyone can share their views, opinions, and experiences about almost anything \u2013 including brands they love or even hate. Emotional sentiment is amplified through social networks. This can drive brand engagement if the narrative is positive. However, the dynamic shifts when online content attacks brands, directly. Social media has become a go-to outlet for consumers to let off steam. Disappointment, anger and even rage directed towards brands is the new normal of the \u2018callout\u2019 culture. Consumers don\u2019t just walk away from brands quietly; they can actively campaign against them and their impact can have a lasting effect in attracting new customers. Likes, product reviews, blogs, TikTok and the spontaneous combustion of social media are consumers\u2019 tools to make or break products and services. And with the proliferation of chatbots and agents, AI is the latest influencer, positive and negative. That said, some people\u2019s hate campaigns are love campaigns for others.\u201d<\/p>

If you accept that the social media megaphone has become the go-to tool to mobilize consumer activist movements, it\u2019s no surprise that the February 28th<\/sup> 24-hour U.S. \u201ceconomic blackout\u201d movement prompted online by The People\u2019s Union gained social media traction as its call to arms was posted, reposted and amplified. Was the boycott successful? That\u2019s in the eye of the beholder. According to an interview in Newsweek<\/a> with John Schwarz, an unknown and with questionable-credibility (with an extensive manifesto of demands) orchestrator of the event, \u201cThe success of the blackout will be determined by the level of participation, which he planned to monitor through website registrations, interactions on social media and the overall visibility of the campaign.\u201d<\/p>

That\u2019s not exactly a data-driven business formula that tracks sales, a measure of sustained rejection of a retail brand or evidence of a change in policies, which seemed to be the intent of the boycott. A one-day blackout against U.S. retail behemoths is, as one retail expert told us, \u201cLike taking a knife to a gunfight.\u201d In this case, the day-long boycott seemed to be more a movement among constellations of friends than a national outcry. On the 28th, anecdotally, it was retail business pretty much as usual.<\/p>

That said, a cascade of new grassroots boycotts is planned by many organizers, and critical mass could reach a groundswell in the future. This is not trivial; retailers need to pay attention and take the consumer\u2019s collective voice seriously.<\/p>

Are Retailers Flying Blind?<\/strong><\/h4>

The fact remains that American consumers are just as confused as the retail industry in how to move forward to stave off inflation and inevitable tariff-based price hikes. As our colleague Mark Cohen<\/a> says, with tariffs used as geopolitical bargaining chips, consumers are left to deal with any fallout by paying higher prices or simply being unable to purchase at all. Leaders of retail operations of all sizes are put into untenable positions to manage their businesses fairly, burdened by external pressures.<\/p>

We are looking at a potential perfect storm fusing trade policies with activism and consumer frustration. In terms of immediate priorities, the potential collateral damage of tariffs is becoming increasingly clear. One dismal outcome could be a rising tide of consumer resistance and rejection transforming geopolitical circumstances into retail brand hate. According to Atwal, \u201c<\/strong>Brand hate is an increasing threat to a brand\u2019s identity and reputation. In an era dominated by hashtag activism, the temptation for brand marketers to hope that negative associations will dissipate is no longer a viable strategy.\u201d<\/p>

Activism Checklist<\/strong><\/h4>

With an increasingly vocal consumer and a growing undercurrent of consumer activism, what should the retail industry do? By no means comprehensive, this checklist has topline activism deterrents and guidance for anticipating the future, not catching up to it.<\/p>