Unilever's Market Share Erosion Amid Boycotts and Local Competition

Unilever faces a decline in market share in Indonesia due to boycotts stemming from perceived support for Israel and competition from local brands. The company's sales in Indonesia fell significantly as it grapples with rising prices, negative consumer sentiment, and a shrinking middle class demanding cheaper alternatives.

Unilever, a global consumer company, is experiencing a significant decline in market share in Indonesia. The drop is attributed to consumer boycotts over Unilever's perceived support for Israel, alongside fierce competition from local brands offering cheaper alternatives.

In Indonesia, Unilever's market share fell to 34.9% in the third quarter, a drop from 38.5% the previous year. The boycott, largely propelled by pro-Palestine groups, has exacerbated Unilever's challenges in maintaining its position in Southeast Asia's largest economy.

To combat these challenges, Unilever is attempting to revamp its Indonesian product lines, improve pricing strategies, and enhance its online sales efforts. The company faces mounting pressure as the Indonesian middle class shrinks, increasing demand for budget-friendly products.

(With inputs from agencies.)