Six-in-ten UK consumers say a brand's country of origin is as important, or more important, to them than other factors such as price, quality and product benefits.
This is according to the Global Brand-Origin Survey by Nielsen, which asked consumers if they prefer multinational brands over home brands, in various categories.
The findings show that more often than not country of origin is the deciding factor for UK consumers when choosing a brand. For example, some 59% of respondents said the origin was at least as important as the product benefits. Also, 56% said it was at least as important as taste, and 58% said it was at least as important as price.
The reasons cited as to why consumers purchase local brands were that they support local businesses (55% said this was the reason they choose local), they are more trustworthy (41%) and they are more attuned to their personal needs and tastes (36%).
“In an increasingly borderless world, the ‘made in…’ moniker still matters,” says Nielsen UK innovation leader Ben Schubert. “One of the more surprising findings is that a brand’s country of origin is at least as important as other purchasing criteria, such as price and quality.
"Factors such as price, deals, familiarity and variety are more important to consumers when choosing global brands, whereas product benefits, environmentally-friendly considerations and, of course, national pride are bigger factors for them when deciding to buy local brands.”
Breaking down the results by product category, there is a notable difference in the product categories that are the most impacted by brand origin. Consumers mostly prefer local brands when it comes to food, but prefer global brands when for technologies such as cars, computers and mobile phones. The origin of products such as air fresheners, jewellery and clothing are considered unimportant.
“[This shows that] there are three distinct product classes when it comes to global-versus-local preference,” concludes Schubert. "In a crowded retail environment, it’s important that marketers understand how big a role brand origin plays in consumer decision-making and adapt their messaging appropriately.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by John Golden. To subscribe to ESM: The European Supermarket Magazine, click here.
