Brand Trust in Indonesia: Yakult Indonesia's Challenge Amid Misinformation and Boycotts

22 February 2024

In Indonesia, the relationship between consumers and brands hinges significantly on trust. This trust, once built, can either be resilient or fragile, subject to the influence of various factors, including misinformation and global events impacting brand perception.

Yakult Indonesia, a renowned probiotic beverage brand under the umbrella of Yakult Honsha Co. Ltd., has been confronting a unique challenge in maintaining its reputation amid misconceptions about its corporate ties and calls for boycotts. The issue stems from misinformation circulating about its association with Danone, a connection that ceased in 2020, yet continues to influence consumer sentiment.

The Yakult Indonesia-Danone Misconception

The misconception regarding Yakult Indonesia's affiliation with Danone has persisted despite the companies severing their ties in 2020. Danone had been a stakeholder in Yakult Indonesia for several years, leading to the assumption of a continuous relationship. However, Yakult Indonesia's independence from Danone since 2020 is a critical point often overlooked or misinformed.

Yakult Indonesia's official Instagram account released a statement emphasizing that Danone had released all their shares in their parent company, Yakult Honsha Co. Ltd., since October 7, 2020. This clear declaration highlights the complete absence of any current association between Yakult Indonesia and Danone.

This misinformation surrounding the corporate association between Yakult Indonesia and Danone has impacted consumer perception and trust in the brand, leading to misunderstandings about its ownership and business operations.

Navigating Boycotts Amid Global Unrest

Additionally, Yakult Indonesia found itself entangled in a different sphere of controversy related to the Gaza conflict. Calls for a boycott emerged in some quarters, urging consumers to refrain from purchasing Yakult Indonesia due to purported connections to the conflict.

Such calls often stem from a desire among some consumers to align their purchasing decisions with their ethical or political beliefs. Despite Yakult Indonesia's detachment from the conflict or any involvement, such sentiments can significantly impact brand trust and consumer behavior.

Yakult Indonesia's Response: Addressing Misinformation and Upholding Transparency

Yakult Indonesia has taken proactive measures to counter misinformation and reinforce its commitment to transparency. Despite these efforts, questions have arisen regarding the timing of their response. Some individuals have questioned why Yakult Indonesia addressed these matters months after the boycotting issue started. This delay has raised queries about whether Yakult Indonesia underestimated the impact or mishandled the situation, especially considering their longstanding reputable presence of 32 years in Indonesia.

Through various communication channels, including social media, press releases, and direct consumer engagement, Yakult Indonesia has reiterated its independent status from Danone since 2020. Moreover, the company has emphasized its dedication to providing quality products while staying uninvolved in geopolitical issues.

The Road Ahead: Rebuilding Trust and Fostering Clarity

Rebuilding trust takes time and requires consistent efforts in dispelling misconceptions while reaffirming the brand's values and commitments. Yakult Indonesia's challenge lies not only in navigating misinformation but also in demonstrating its integrity, quality, and dedication to consumers in Indonesia.

In a market where trust is paramount, Yakult Indonesia's commitment to transparency and communication, including their clear statements on social media, will be pivotal in reinstating confidence among consumers.

 

Fanny Sekar Parentya
Business Development of prasmul-eli

In Indonesia, the relationship between consumers and brands hinges significantly on trust. This trust, once built, can either be resilient or fragile, subject to the influence of various factors, including misinformation and global events impacting brand perception.

Yakult Indonesia, a renowned probiotic beverage brand under the umbrella of Yakult Honsha Co. Ltd., has been confronting a unique challenge in maintaining its reputation amid misconceptions about its corporate ties and calls for boycotts. The issue stems from misinformation circulating about its association with Danone, a connection that ceased in 2020, yet continues to influence consumer sentiment.

The Yakult Indonesia-Danone Misconception

The misconception regarding Yakult Indonesia's affiliation with Danone has persisted despite the companies severing their ties in 2020. Danone had been a stakeholder in Yakult Indonesia for several years, leading to the assumption of a continuous relationship. However, Yakult Indonesia's independence from Danone since 2020 is a critical point often overlooked or misinformed.

Yakult Indonesia's official Instagram account released a statement emphasizing that Danone had released all their shares in their parent company, Yakult Honsha Co. Ltd., since October 7, 2020. This clear declaration highlights the complete absence of any current association between Yakult Indonesia and Danone.

This misinformation surrounding the corporate association between Yakult Indonesia and Danone has impacted consumer perception and trust in the brand, leading to misunderstandings about its ownership and business operations.

Navigating Boycotts Amid Global Unrest

Additionally, Yakult Indonesia found itself entangled in a different sphere of controversy related to the Gaza conflict. Calls for a boycott emerged in some quarters, urging consumers to refrain from purchasing Yakult Indonesia due to purported connections to the conflict.

Such calls often stem from a desire among some consumers to align their purchasing decisions with their ethical or political beliefs. Despite Yakult Indonesia's detachment from the conflict or any involvement, such sentiments can significantly impact brand trust and consumer behavior.

Yakult Indonesia's Response: Addressing Misinformation and Upholding Transparency

Yakult Indonesia has taken proactive measures to counter misinformation and reinforce its commitment to transparency. Despite these efforts, questions have arisen regarding the timing of their response. Some individuals have questioned why Yakult Indonesia addressed these matters months after the boycotting issue started. This delay has raised queries about whether Yakult Indonesia underestimated the impact or mishandled the situation, especially considering their longstanding reputable presence of 32 years in Indonesia.

Through various communication channels, including social media, press releases, and direct consumer engagement, Yakult Indonesia has reiterated its independent status from Danone since 2020. Moreover, the company has emphasized its dedication to providing quality products while staying uninvolved in geopolitical issues.

The Road Ahead: Rebuilding Trust and Fostering Clarity

Rebuilding trust takes time and requires consistent efforts in dispelling misconceptions while reaffirming the brand's values and commitments. Yakult Indonesia's challenge lies not only in navigating misinformation but also in demonstrating its integrity, quality, and dedication to consumers in Indonesia.

In a market where trust is paramount, Yakult Indonesia's commitment to transparency and communication, including their clear statements on social media, will be pivotal in reinstating confidence among consumers.

 

Fanny Sekar Parentya
Business Development of prasmul-eli

Prasetiya Mulya Executive Learning Institute
Prasetiya Mulya Cilandak Campus, Building 2, #2203
Jl. R.A Kartini (TB. Simatupang), Cilandak Barat, Jakarta 12430
Indonesia
Prasetiya Mulya Executive Learning Institute
Prasetiya Mulya Cilandak Campus, Building 2, #2203
Jl. R.A Kartini (TB. Simatupang), Cilandak Barat,
Jakarta 12430
Indonesia