In a recent online survey conducted by Nielsen, a leading provider of information and insights, respondents say a brand’s country of origin is more important than other purchasing drivers, including selection/choice, price, function and quality, but sentiment varies by category.
The majority of Egyptian respondents prefer local brands when it comes to fresh produce [fruits (59%) and vegetables (60%)] and dairy [yoghurt (57%) and milk (56%)]; but when it comes to products for personal hygiene [toothpastes (57%), shampoos/conditioners (64%), and technology [mobile phones (76%), computers/laptops (74%), and TV sets (63%)] global brands are preferred by majority.
Despite the fact that 81% of respondents believe that global brands are generally more expensive than local brands, 78% perceive global brands to offer a better quality product.
An interesting point to note is that national pride is the only selection factor for which there is notable difference between local and global brands. One fifth of global respondents say that national pride is the most important reason they buy local products, with sentiments highest in the Africa/Middle East region.
“It is important to note that 55% of respondents also feel that local brands are attuned with their tastes,” noted Tamer ElAraby, Managing Director, Nielsen North Africa & Levant. “Egyptian consumers, while in line with global trends, have discerning needs and requirements from their purchased items, and winning brands have a deep understanding of those needs.”
The Nielsen Global Brand-Origin Survey polled more than 30,000 online respondents in 61 countries to understand consumer sentiment about product origin across 40 categories, from consumables to durables. We 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). While respondents were asked to consider these definitions in their selections, preexisting notions about brand origin could prevail—a global brand might be so pervasive in a local market that a respondent may think it is a dominant local brand. We also explored the factors driving brand preference and the role of the Internet in purchasing decisions for local and global companies. Finally, we examined what local and global players can learn from each other, so we can offer insights into how each can succeed in the changing retail landscape.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90 percent of the world’s population. For more information, visit www.nielsen.com.