Data Tracker: Nationalism via brands

The 2017 annual Nielsen Global Brand-Origin Survey indicates that there is a growing shift toward global brands across the majority of categories in many countries. The only categories which saw a strong swing in favour of local brands were dairy and fresh foods. For the most part, consumers around the world prefer to source perishable goods as close to the place of origin as possible, due to concerns over freshness and quality

• Consumer preference is shifting away from local products, most notably in coffee and tea and bottled water

• Preference does not always translate into sales. Across Asia and Latin America local brands outperform global brands in sales, indicating that local brands are executing better on-the-ground on price or addressing local palate preferences, while global brands are winning the battle for consumers’ minds and hearts.

• The majority of global respondents (66 per cent) say they prefer to shop locally for produce such as fresh fruit and vegetables rather than at a supermarket or hypermarket

• Preference for local outlets becomes less pronounced when it comes to fresh meat, seafood and eggs (49 per cent), bakery products (48 per cent), rice, grains and pulses (43 per cent), chilled or frozen fruits and vegetables (27 per cent) and chilled or frozen meat and seafood (23 per cent)

• For local fresh fruits and vegetables (71 per cent), rice, grains and pulses (65 per cent) and fresh meat, seafood and eggs (56 per cent) South East Asian consumers choose more local than global over other markets

Despite the shifting preference towards global brands, in Asia and Latin America, sales of local brands are higher. This could be on account of cultural issues or because of better distribution and smarter pricing by local producers

• Preference for local brands is strongest in the biscuits, chips, snacks and cookies category (50 per cent); followed by instant noodles (39 per cent); chocolates and confectionery (34 per cent); breakfast cereals (31 per cent) sauces and condiments (29 per cent) 

• Conversely, North American consumers are less likely than global respondents to prefer local brands across all packaged food categories

• South East Asian consumers bucked the global trend, displaying stronger local brand preference in tea/coffee (49 per cent), bottled water (42 per cent), carbonated soft drinks (25 per cent), and energy/sports drinks (19 per cent). For alcohol, preference sits firmly with the global brands 

• Within the home care category, consumers around the world prefer global brands 

• Globalisation, clever marketing and global brands’ longevity in a market can all influence consumers’ perception of what is local and what is global. 

• In many instances consumers are confused about the brand’s origins, mistaking global brands for local given the wide availability of these labels at local stores

Source: “Made in” matters… or does it? How consumer perceptions about country of origin are translating to purchasing behaviors around the world, Nielsen