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How much do you care about brand origin?
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How much do you care about brand origin?

The short answer: You care – a lot.

Seventy-six percent of Hong Kong respondents, on average, say a brand’s country of origin is as important as or more important than different purchasing drivers, including selection/choice, price, function and quality, according to findings from the Nielsen Global Brand-Origin Survey.

LOCAL VS GLOBAL: THE WHY BEHIND THE BUY

When asked to select the top three decision factors for choosing a global brand and for choosing a local brand, respondents offered similar response patterns across all regions—emphasizing the factors that typically are top rated in consumer surveys. Better price/value is the top-selected reason for choosing global (47%) and local (48%) brands. A sale or promotion on the brand (30% for global brands, 34% for local), positive experience with the brand (29%, 28%), better product benefits (28%, 23%), safer ingredients and processing (26%, 23%) and an organic/ all-natural options offering (19%, 16%) also are among the top-selected reasons for selecting a product.

LOCAL BRANDS HAVE ADVANTAGE IN FRESH FOOD CATEGORIES

For fresh foods, local brands are the clear preference. The majority of Hong Kong respondents who have purchased the category say they prefer local brands to global ones for vegetables (42% vs. 22%), meat (38% vs. 25%), seafood (38% vs. 26%) and fruit (33% vs. 31%). The preference for local brands holds for nearly every fresh category in every region. On the other hand, for beverage categories such as juice and milk, global/ multinational brands are more preferable, except for water (32% for local brands, 24% for global).

In a crowded retail environment, brand origin can be an important differentiator between brands. For Hong Kong, leveraging a powerful brand presence needs to be managed carefully regardless of whether it is from global or local. Ultimately, the brands that deliver on a strong value proposition and connect personally to consumers’ needs will have the advantage in any given market.

Nielsen Global Brand-Origin Survey 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), based on responses from more than 30,000 online respondents in 61 countries spanning 40 categories.