Origin Matters, Say Consumers

Nearly 75% of global respondents, on average, say a brand's country of origin is as important as or more important than nine other purchasing drivers, including selection/choice, price, function and quality, according to findings from the Nielsen Global Brand-Origin Survey released today.
 
The new research examined whether consumers prefer goods produced by global/multinational brands (defined as those that operate in many markets) or by local players (those operating only in a single market—the respondent's home country), based on responses from more than 30,000 online respondents in 61 countries spanning 40 categories.
 
Respondents in Asia-Pacific and Africa/Middle East are likelier to say that origin is more important than the other selection factors (33% and 32% on average, respectively). European, North American and Latin American respondents, in contrast, are likelier to say brand origin is less important than the other selection factors (35%, 32% and 31% on average, respectively).  
 
“One of the more surprising findings from the survey is that country of origin is as important as—or even more important than—other purchasing criteria such as price and quality,” said Patrick Dodd, group president, Nielsen Growth Markets. “In a crowded retail environment, brand origin can be an important differentiator between brands, but sentiment varies by category and by country, and leveraging a powerful brand presence needs to be managed carefully regardless of whether it is global or local. Ultimately, the brands that deliver on a strong value proposition and connect personally to consumers' needs will have the advantage in any given market.”

Why do global consumers choose local brands over global brands or vice versa? When asked to select the top three decision factors for choosing a global brand and for choosing a local brand, respondents offered similar response patterns across all regions—emphasizing the factors that typically are top rated in consumer surveys. Globally, better price/value is the top-selected reason for choosing global (42%) and local (43%) brands. Positive experience with the brand (32% for global brands, 28% for local), safer ingredients and processing (31%, 28%), better product benefits (31%, 25%) and a sale or promotion on the brand (26%, 24%) also are among the top-selected reasons for selecting a product.