Consumers in Australia and New Zealand aren't swayed by high-end branding, with less than one quarter willing to pay more for designer products compared to unbranded products with the same function, according to a new study.
Nielsen's Global Consumer Survey has found that while 74% of Chinese consumers would spend more on designer goods – the highest globally – that figure was just 26% for Australians and 17% for New Zealanders.
The study also looked at the role advertising plays in influencing purchasing decisions. While globally 55% of consumers said commercials increased their preference for buying a brand, only 32% of Australian and New Zealand consumers agreed.
At the same time, just 32% of Australians and 31% of New Zealanders said they liked to buy products from famous brands, compared with the global average of 47% and well below India, the highest at 74%.
Dom Walsh, managing director Landor Associates Sydney, told AdNews he wasn't surprised by the finding. “Australia is a very egalitarian society and the way status is conveyed is quite different to in Asia, where often having a luxury brand is very important in the way you convey yourself,” he said.
“Australians tend to 'keep it real' and look for value-based brands. Luxury needs to have more substance behind it – it's not enough to simply have an expensive brand that says it's expensive, it needs to provide more than that.
Walsh said it was also result of Australia being a more developed market. "In Australia there was a time when it was just enough to be premium. In Asia it's an indication of where they're at in terms of consumer cycles. The bottom line is we're not as easily hoodwinked anymore."
Suzie Dale, head of brand practice for Nielsen Pacific, said in a statement: "Aussies and Kiwis have a real sense of needing to obtain value when buying goods. We tend to have a cynical side when it comes to advertising and branding, and like to see ourselves as 'intelligent shoppers'.
"The rise of private label goods in our supermarkets underpins this requirement – we generally need to believe a more expensive product will offer a tangible quality that makes it better, otherwise we’re often unwilling to pay more for it.
"This also means that marketers in Australasia really need to understand what motivates purchasers to buy their goods, and hone in on these qualities in all aspects of brand promotion. Status cues alone will fall short and instead premium brands need to communicate deep insight into purchaser’s lives.
Dale said a product needed to show it would "enhance a consumer's life" and was the "intelligent choice". She said while brands in Australia and New Zealand may need to work harder to sway shoppers, it could also result in increased loyalty if a product meets expectations and satisfies the customer's need.
"The key is for most Aussie and Kiwi consumers, a brand needs to be more than just the external packaging and promise. Premium brands need to work harder and not rely on just their 'premium status'."
The Nielsen Global Consumer Survey was conducted between August and September 2012 and polled more than 29,000 online consumers in 58 countries across Asia Pacific, Europe, Latin America, the Middle East, Africa and North America.
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at frankchung@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.