What brands can learn from the Woolworths Australia Day debacle
Peter Dutton’s proposed Woolworths boycott is a timely reminder that Australian brands and communities continue to struggle to navigate what has become a divisive national holiday. Karen Dunnicliff, communications director at Salterbaxter Australia, explains more.
Peter Dutton’s proposed Woolworths boycott is a timely reminder that Australian brands and communities continue to struggle to navigate what has become a divisive national holiday.
How often do we see high-ranking politicians calling for a boycott of retail businesses which choose not to stock products that have declining sales?
Especially when these products are in no way critical to the health, or quality of life of citizens?
I can’t think of a single example.
But brands can learn a lot from Woolworths’ decision to remove Australia Day merch from shelves, and Peter Dutton’s response.
Should corporates engage on social issues when there’s no way to avoid criticism?
After the Voice referendum was unsuccessful, commentators questioned whether businesses should be engaging on social issues of this nature at all.
Being a socially-conscious business makes sense – at least in the numbers. Data suggests Australian consumers are becoming more values-driven and prefer brands that reflect the social issues important to them.
Unfortunately, we live in an increasingly polarised society. There is no position, opinion or action that is universally approved in this world. And people will take advantage of that.
If brands have clearly articulated values, that are informed by stakeholder views, including their customers’ values, they might not be universally popular, but they will demonstrate integrity and transparency. Of course, in a divisive world, they may still need to prepare for the inevitable backlash and have strategies in place to manage it.
Can you make a smart business move while doing good?
A smart business strategy and a responsible business strategy are not mutually exclusive, they should be one and the same. Being clear on your purpose, why you exist, and the value that you deliver will help you make smart, responsible business decisions.
We are seeing businesses around the world attempting to do it by rethinking and innovating their whole business models to become more sustainable.
And like Peter Dutton says, “it’s up to the customers whether they want to buy the product or not.” In this scenario, Woolworths is just responding to what many Australians have already decided, for a range of reasons.
In years to come the question of whether products are good for our communities (from a social or environmental perspective) will hold even greater weight in business decision making.
How do brands and businesses navigate the complexity?
This particular debate continues to be complex, nuanced and highly charged.
Navigating it is not easy. Brands need to do the work, be authentic and be consistent with their actions and words.
Woolworths appears to have been consistent on Indigenous affairs. One of five guiding principles in the organisation’s sustainability strategy is to “act like a leader and speak up on issues that matter”. The business has remained committed to reconciliation through public support of the Indigenous Voice to Parliament and the Uluru Statement from the Heart.
In the context of the divisive and often hurtful nature of debate around Australia Day, it’s no surprise Woolworths tried to quietly remove merchandise from shelves. Their messaging leads with the business rationale but unsurprisingly that’s not what dominates the news articles and social media feeds of Australians today.
But in amongst all the noise, I’d wager the business will gain more than they’ve lost, because they’re making informed business decisions aligned to their values and actions.
Or maybe Woolies and Aldi got tired of importing tat that took up valuable shelf space yet made little profit.
A greater travesty is that Woolies no longer stock my favourite Rosemary crackers. I hope Mr Dutton is keeping a keen eye on that “woke” political football as I flounce off to Coles.
But that’s the problem isn’t it… they didn’t quietly pull the products from their shelf. At a time when Western self loathing is at an all time high, they really didn’t need to say anything if they do in fact sell Australian flags all-year-round. They really didn’t need to add to the obvious divisiveness on a topic that is so highly charged. If they’re selling Australian flags all year round, add the Aboriginal flag and be done with it. No need to virtue signal to create more division in a nation currently so severely at odds with itself.
Woolworths stopped selling the products as they weren’t being bought by customers. It’s not a “woke” decision. I don’t understand why that is so hard for people to grasp.
Anyone who has worked in FMCG knows it is cut-throat. Products get deleted if they don’t perform. For some reason people seem to think it should be different for Australia Day products.
Just concentrate on delivering for your customers and shareholders. Holding a minority opinion, only serves to create unacceptable risk for shareholders and a polarised customer base who WILL remember and vote with their wallets. Good luck woolies. The woke wont be enough to fill your sales void from this.
I couldn’t agree more. You echoed my sentiments.
Ditto on the Voice, whether one personally agrees or not (not, in the case of the ad and media industry bubble), the majority of Australian’s did not support it, so why are brands no reflecting a no position?
Better yet, should brands not stick to doing what they do best and avoid engaging in divisive socio-political matters?
This is insightful but misses the point – there is an obvious strategic reason for Australia Day merchandise being pulled from the shelves at the same time that the government considers an inquiry into price gouging. To think that it’s because Woolies wants to be more socially conscious is wildly forgiving.
Rosemary crackers are being sold at Harris Farm. I’m doing the Lords work here.
Is stocking items that don’t sell particularly well ”delivering’ for shareholders though? Or would that shelf space be better used selling items that generate higher profit? From what Woolies have said, it was purely a business decision based on sales results.
Did they remove Australia Day merch, or simply not stock it to begin with?
“Being a socially-conscious business makes sense – at least in the numbers. Data suggests Australian consumers are becoming more values-driven and prefer brands that reflect the social issues important to them.”
The comment above, in the context of this article, implies that being anti-Australia Day is “socially conscious”
That is incorrect. The majority of Australians, or to put it another way, the social conscious of Australia, continues to support celebrating the Australia Day on the 26th January.
Your mistake is made because the advertising/communications industry bubble is anti-Australia Day. The bubble is out of step with real Australia on Australia Day just as they were on the Voice.
Corporates should stop wading into politics and stick to their knitting. Australians don’t like to be lectured to.
“In this scenario, Woolworths is just responding to what many Australians have already decided, for a range of reasons.”
And it is very annoying. I shop at Woolworths every day. I loath Australia-shaming politics, eg inferring that there is something wrong with celebrating Australia Day.
Let me return the sanctimony to Woolworths: in line “with the broader conversation in the community” about lung cancer, please stop selling cigarettes.
I know exactly the ones you mean and they are truly the greatest accompaniment to cheese. I feel your pain, brother/sister.
The Rosemary crackers!! I have been hunting for them. This is the travesty missed by all media.
They should not be weighing in on social issues. Their purpose is solely to generate superior shareholder returns. They got caught out on this stupidity and have rightly been lambasted (whilst happily pursuing Chinese New Year sales promotions…). The Voice result needs to be recalled at the boardroom table when these clowns are making niche decisions
Stakeholder capitalism doesn’t work. This statement “Data suggests Australian consumers are becoming more values-driven and prefer brands that reflect the social issues important to them.”, if true, suggests the opposite of what the article is saying, and should be a strong warning to any company seeking to pander. Since ‘mainstream’ social issues are more often than not a reflection of a vocal minority, and not the majority of people, when companies pander to that vocal minority which is what’s been happening for years with left-wing social views, then the silent majority will vote with their wallet and go elsewhere.
What can brands learn from Woolies? Or Gillette? Or Bud Light? Or the countless other examples of brands having massive financial backlash for getting involved in social and ideological issues? Don’t get involved. Focus on providing great products and services, without the lecture. Despite what a quantitative survey may suggest, as people often answer surveys based on what they want to believe they’d do and not what they’d actually do, people don’t want to be preached to by a company that’s selling you a product. The data also proves that.
This this this … /\ spot on
I’m happy shopping at coles, woollies would be better if sticking to selling and not preaching
What next is on the hit list, Easter bunny, Christmas??
It’s not complex at all 26th of January is Australia day
The only people having a problem and seeing it as complex is the Media
I think you’d wager wrong …