There seems to be no end to the battle that’s ongoing between Russia and Ukraine. Support from across the world is pouring in for Ukraine and its people. There are leaders, artists and sportspeople coming in to lend a hand to Ukrainians who are rendered homeless, courtesy of the war. However, nations are taking a safe stance and opting to go neutral in the current war scenario. What does it mean to businesses around the world? In our previous article, we spoke about how the war has affected several industries and how it has impacted international trade circumstances. In this article, we would focus on how brands are reacting to the situation and coping with the blows.
Ford hits the brakes on Russian JV
Even before the war, Ford had stopped its operations in India due to the losses of around $2 billion and nearly 4,000 employees and factory workers and over 1,000 contract staff were possibly axed. As the outcome of the war, Ford suspended its operations with JV partners in Russia to uphold peace and stability in the region.
However, Ford made a significant donation of $100,000 through their Ford Fund to the Global Giving Ukraine Relief Fund. Ford around the world, continues to support the contingent of Ukrainian nationals working at Ford.
Entertainment takes a back seat in Russia
Major production houses such as Disney, Warner Bros., and Sony Pictures pulled the drapes down on film releases in Russia. Based on what the war has in store in the future, these production houses have decided to make future business decisions accordingly.
Russian Vodka is off the bar menu
It’s quite a natural move to not buy something that fuels the Russian economy to further deteriorate the war situation. If someone said, ‘war’ & ‘vodka’ don’t quite blend well, they’re probably right in this context.
Several American states have pulled Russia-made vodka from shelves, The biggest Russia-made brand – Russia Standard, notes that the value of Russian vodka shipped to the U.S. last year added $21.4 million, which constitutes a 1.5% share of the total $1.42 billion in imported vodka.
There was also some confusion to clear that several marquee vodka brands with Russian heritage, such as Smirnoff and Stolichnaya, were not made in Russia, and therefore would be exempt from the bans.
Smirnoff, owned by Diageo, made a striking statement of “Proudly made in America” to counter the aftermath of war and clarify to the customers that the brand, though is of Russian heritage, is made in America.
Airbnb makes more room for Ukrainian refugees
In a heartrending gesture, the global hospitality brand, Airbnb proved to the world that brands have compassion too. Airbnb offered free short-term housing for up to 100,000 Ukrainian refugees who fled the Russian invasion of their country. The brand is set to work hand-in-hand with neighbouring European countries to provide long-term stays. The brand leaders wrote to the governments of Poland, Romania, Germany and Hungary offering support for housing Ukrainian refugees. While the global crisis is still ongoing, the number of refugees who’ve fled the country is set to cross millions which currently has crossed a whopping 300,000.
There’s a lot happening in the business world that’s yet to take proper shape. We would update you with details on how the marketing and advertising for brands would be affected because of the war. Until then, there’s a lot many other things that we would be talking about in future articles. If you wish to read more about us, visit www.3dotsdesign.in