Kiwis and Aussies influenced less by branding

A recent report from Nielsen highlights the branding conundrum presented to marketers in the New Zealand and Australian markets. 

While a staggering three in four (74%) Chinese consumers would spend more on designer goods, the highest globally, just one-quarter (26%) of consumers in Australia and 17 percent of those in New Zealand are willing to pay more for designer goods compared to unbranded products with the same function.

The Nielsen survey of more than 29,000 Internet respondents in 58 countries also examined the role advertising has on influencing consumer purchasing decisions. While more than half of global consumers (55%) said that commercials increase their preference for buying a brand, only one-third (32%) of New Zealand and Australian consumers agreed with this statement.

Commenting on the results, Suzie Dale, Head of Nielsen Brand Practice, said: “Kiwis and Aussies 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’ who aren’t won over solely by marketing claims but instead buy a product based on merit and the value it offers. 

“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 – from advertisements to packaging and point-of-sale. Status cues alone will fall short and instead premium brands need to communicate deep insight into purchaser’s lives.  A product needs to show it will enhance a consumer’s life  and is the ‘intelligent choice’ – for example a tastier cake, or a car that is luxurious but also uses less fuel and will look good for longer,” added Ms Dale. 

When asked if they like to buy products from famous brands, just one-third of Australians and New Zealanders agreed (32% and 31% respectively) – lower than the global average of 47 percent and significantly lower than the Asia Pacific average of 55 percent. Instead, India topped the scale globally with a whopping 74 percent of respondents saying they like to buy famous brands.

“While brands in New Zealand and Australia may need to work harder to sway shoppers based on marketing claims, this can also result in increased loyalty if a product meets expectations and really satisfies a customer’s need. These needs can also vary depending on what a consumer is looking for – be it a very fashionable outfit, the best quality materials, organically produced goods or a unique foodstuff. 

“The key is for most Kiwi and Aussie consumers, a brand needs to be more than just the external packaging and promise – the product needs to match customer expectations and fulfil their requirements as an intelligent, savvy and informed shopper,” added Ms Dale.

“Premium brands therefore need to work harder in New Zealand and Australia, and not rely on just their ‘premium’ status as a famous brand. ‘Premium’ has to deliver more authenticity and better quality to entice the majority of our buyers.”