Counter the Ukraine Crisis: Dunelm’s Positive Response
Impact on the furniture industry
With the recent escalation of the situation in Russia and Ukraine, a chain reaction has begun to occur in the global economy, and the international market has also fluctuated.
The terrain of Ukraine is flat, with superior natural conditions and abundant water resources. Ukraine is also one of the 10 countries with the richest forest resources in continental Europe, with a forest coverage rate of 43% and rich natural wood products such as pine, spruce and oak. Most of Ukraine’s timber is exported to the European Union, the United States and neighboring countries. Although Ukraine has abundant timber resources, the import of timber from Ukraine is limited due to the continuous development and escalation of the Russian-Ukrainian problem.
Not only that, the surge in crude oil prices, shipping companies are also charging large emergency bunker surcharges. The shortage of lumber and the increase in shipping costs have increased the cost of raw materials for furniture companies, which has a considerable impact on the company’s earnings.
Although the furniture industry has been affected by the crisis in Ukraine, company likes Dunelm has taken positive actions in response to the crisis in Ukraine.
Positive response from Dunelm
Dunelm, the UK’s largest home furnishing retailer, stopped shipping furniture to Russia and Belarus immediately after the Ukraine crisis. Not only that, Dunelm was one of the first furniture companies to stop buying Russian wood.
Dunelm’s boycott of Russia reflects the company’s condemnation of Russia for waging war. The prompt response not only demonstrated Dunelm’s stance on the Ukraine crisis, but also established a positive image in the minds of consumers, with many of Dunelm’s loyal customers expressing their support for Dunelm’s decision on social media.
In addition to acting swiftly and forcefully against Russia, Dunelm also provides humanitarian care to people affected by the war. In order to solve the living problems of Ukrainian refugees, Dunelm works with its clients to make financial donations and to send blankets, quilts and pillows to Poland, which are much needed living items for the displaced people. Dunelm’s donation action not only provides a channel of help for people who care about Ukraine, but also warms the hearts of people suffering from the war.
Dunelm’s positive actions in response to the Ukraine crisis increased the trust of old customers, and attracted the attention of many new customers. Since the actions were taken, there has been an overall increase in new customer visits to Dunelm’s official website, and customer lost has fallen considerably since before the Ukraine crisis. This shows that Dunelm’s actions have helped people while enhancing its own brand image, leaving more and more consumers with a positive image of Dunelm and stimulating their desire to buy.
When the crisis comes, economic losses are inevitable, but how to maintain and enhance the brand image in the crisis is crucial for the company. In my opinion, Dunelm is arguably a positive example of a business responding to crisis. It not only considers the economic problems of the company in the crisis, but also pays attention to the problem of “people” and can resonate with its customers. Dunelm’s positive response reflects the company’s strong sense of social responsibility, which will also increase people’s trust in it.
Therefore, when a crisis arises, companies have to customize internal response plans, and also focus on interacting with people during the crisis. Even in the midst of a crisis, don’t forget that social responsibility is not just an expense on the books, but an investment for the future.
