Local loyalty, global appeal

Home-grown brands maintain a powerful hold over local consumers, with a brand’s country of origin cited as equally important, or even more important, than other purchasing criteria such as price and quality.

That’s the top line from the latest Nielsen Global Brand-Origin report on local versus global brands.

While most South Africans prefer buying global brands of the latest innovation (67%) and higher-quality global products (56%), this is offset by global brands being perceived as more expensive (74%). Nielsen Africa marketing & communications director Ailsa Wingfield says: “In a crowded retail environment, brand origin can be an important differentiator between brands, making it an extremely valuable asset for both global and local companies.”

The report notes that consumers choose to buy local brands over global brands in the categories of food and home products because they want to support local businesses and the local economy.

However, when it comes to durable and electronic goods, there is a clear preference for global brands, which are perceived to offer innovation and superior quality.

Of the people who took part in the survey, 57% say they prefer local juice brands, while 10% prefer global brands. Similar preferences (52% versus 8%) were seen in the water category.