Latin Americans are hungry for new product options—more so than others around the world. Eighty percent of survey respondents with Internet access from Latin America say they like when manufacturers offer new products, well above the global average of 63 percent. And more than half (56%) are willing to pay a higher price, which is also above the global average (39%).
New findings from a Nielsen Global Survey of New Product Purchase Sentiment, which surveyed more than 29,000 online respondents from 58 countries, reveal underlying consumer sentiment toward new product innovations.
Europeans and North Americans show the most trepidation when it comes to trying new product innovations. Less than one quarter (23%) of respondents in Europe and 29 percent of respondents in North America say they are open to buying new products when they first come out. Economic uncertainty remains a concern for many in these regions, as respondents claim to be less likely to pay a premium price for innovative new products compared to respondents in other regions. Only about three-in-10 Europeans (28%) and North Americans (31%) say they are willing to pay higher prices, but more than half (56% of Europeans and 57% of North Americans) are willing to switch to a new brand, compared with the global average of 45 percent.
While 62 percent of Asia-Pacific respondents say they are likely to wait until a new innovation has proven itself before buying, they are open, willing and influenced by recommendations. Twenty-six percent of Asia-Pacific respondents say they do not prefer to purchase local brands over large global brands, slightly more than the 23 percent globally. North Americans show the most devotion to local brands, as 47 percent prefer local options over global ones, compared with 40 percent globally.
“In Asia, the preference for global brands versus local brands is two-fold,” said Therese Glennon, managing director, Innovation, Brand & Social Practices, Nielsen Asia-Pacific, Middle East, Africa. “Although local brands are increasingly becoming premium, perception around quality remains an issue. Additionally, much of the positive sentiment in Asia toward global brands is rooted in Asian consumers’ perception around the status that ownership of global products provides. Over time, this is expected to change as local brands match global brands in premium positioning and high quality offerings.”
Middle East/Africa respondents are the most vocal about new product experiences. Sixty-seven percent say they like to tell others about the new products they purchase, compared to 59 percent globally. And more than half (57%) are generally willing to switch to a new brand. Financial factors impact respondents in this region most strongly, with 57 percent saying economic conditions make them less likely to try new products.
For more detail and insight, download Nielsen’s Global New Product Report.