The Global Brand
Local Success
An outcome to be avoided: price sensitive shoppers
One of the alarming findings for brand markers from our Global Brand Survey is the fact that consumers in Western, developed economies are more likely to be price sensitive than those in developing economies.
The data from our Global Brand Survey (based on the two packaged goods categories included in the survey) demonstrates that the proportion of people who seek a specific brand is lowest in the United States, the United Kingdom, and Germany.
One contributing factor is the differing retail environment encountered around the world. Though consumers who have never experienced any other form of shopping might not be consciously aware of it, they rely on retailers like Wal-Mart, Carrefour and Mercadora to provide them with a selection of quality brands. As competitive brands in their own right, retailers have a stake in ensuring that shoppers can trust the brands they stock on their shelves.
India, one of the most brand loyal countries mentioned here, has the lowest proportion of modern trade stores among the BRICs. The challenge to global marketers in developing economies is to ensure that consumers continue to believe that brands are worth a premium.