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PRESS ROOM

Asia Pacific Consumers The Most Label-conscious In The World

02-07-2013
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  • Three in five Asia Pacific consumers willing to pay more for designer products – higher than any other region globally
  • More than half like to buy products of famous brands
  • Advertising influences brand preference for two thirds of consumers
  • Two in three say product image created by ads will affect their purchase decision

SINGAPORE, 2 JULY 2013: Asia Pacific consumers are the most likely to be won over by designer brands with around three in five (61%) willing to pay more for designer products, higher than any other region, according to a new online study from leading global information and insights provider, Nielsen.

The Nielsen survey of more than 29,000 Internet respondents in 58 countries revealed that a staggering three in four (74%) Chinese consumers would spend more on designer goods, the highest globally, with India (59%) and Vietnam (56%) rounding out the world’s top three.

Asia Pacific consumers are also drawn to high profile brands, with more than half (55%) saying they like to buy products of famous brands, compared to the global average of 47 percent.

“The economic boom in a number of Asian countries coupled with growing middle class populations has seen the emergence of a new breed of consumers with higher disposable incomes,” said David Webb, Managing Director, Advertising Solutions, Nielsen.

“Cashed up and ready to spend, these consumers are seeking out designer and well-known brands to project their new-found social status. The rapid expansion of the internet and other media channels has given rise to more exposure, awareness and desire for brands and products than ever before.”

The Nielsen report also brings to light the consequential role advertising has on influencing consumers’ purchasing decisions. Two thirds (67%) of Asia Pacific consumers say that advertising influences their preference for a brand – the highest in the world and 12 points above the global average of 55 percent.

This was especially pronounced in Korea and the Philippines, where around four in five consumers (79% and 78% respectively) said commercials increased their brand preference, followed by Indonesia (74%), India (74%) and China (72%). In markets such as Australia, Japan and New Zealand, however, consumers took a more cynical view, with just one third saying advertising influenced their brand preference (32% in Australia and New Zealand, and 34% in Japan).

Close to two-thirds (64%) of Asia Pacific consumers agreed the image created by advertising influenced their decision to buy a product, 10 points higher than the global average of 54 percent, and more than half (51%) said they would buy a product because they liked its commercial.

“Brands are presented with a huge opportunity to win over consumers in emerging Asian markets with clever and relevant advertising that establishes an emotional connection,” observed Webb. “Our research has found that ads work best if they entertain the consumer rather than focus on product features. Humour, relatable and iconic characters and an engaging storyline are common creative characteristics of high performing ads.”

Webb continued: “Targeted advertising certainly has a growing role to play when it comes to delivering brand messages, particularly in more developed markets where consumers are less-easily influenced to buy a product because of an ad. New and emerging media platforms are enabling greater targeting, and to succeed brands must leverage these opportunities. There is no silver bullet to budget reallocation, but all analysis so far shows that advertisers could, and should, go further with their digital investments.”

About the Nielsen Global Survey

The Nielsen Global Consumer Survey was conducted between August 10 and September 7, 2012, and polled more than 29,000 online consumers in 58 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa, and North America. The sample has quotas based on age and sex for each country based on their Internet users, is weighted to be representative of Internet consumers, and has a maximum margin of error of ±0.6%.

This Nielsen survey is based on the behaviour of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60-percent Internet penetration or 10M online population for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television, and other media measurement, online intelligence, mobile measurement, trade shows, and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA, and Diemen, the Netherlands. For more information, visit www.nielsen.com.

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Deanie Sultana, +61 431 483 176, [email protected]

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