New research has revealed Australian consumers’ preference for local
over global brands when choosing new products is higher than any other
region in the world.
According Nielsen’s Global Survey of New
Product Purchase Sentiment, one in two Australian consumers said they
preferred to purchase local products over large, global brands.
This
was compared with just 38 per cent for the wider Asia Pacific – the lowest of
any region – 41 per cent for Europe, 42 per cent for Latin America, 44 per cent for Africa and
the Middle East and 47 per cent for North America.
The study also painted
a picture of a highly adventurous Australian consumer, with 56 per cent saying
they were willing to try new brands, compared with just 44 per cent for the
wider Asia Pacific.
Nielsen Pacific vice president innovation
practice Andrew McQuillan said: “Australian consumers have a greater
propensity to purchase local brands over large global ones and are more
likely than Asia Pacific consumers to switch to a new brand.
“This
is good news for Australian manufacturers to drive successful new
product development, as the majority of consumers are prepared to try
something new.”
However, the other key finding of the study was
the unwillingness of Australians to pay a premium for innovation. Less
than one third said they were prepared to pay a premium for innovative
new products, compared with almost half in the wider Asia Pacific.
“This
may be an indication that the ongoing focus on price by the retailers
is driving cost-conscious consumers who are resistant to higher prices,”
McQuillan said.
“We repeatedly see new premium product
initiatives in Australia failing on the value metric, where the consumer
has not been convinced that the initiative is worth a premium over the
standard version of the brand.
“Brand owners need to ensure that
they have a good handle on the value equation, otherwise their products
will languish on the shelf.”
McQuillan said “true innovation”,
where the new product was clearly differentiated from current offers,
was key to speeding up the purchase consideration cycle. “There is no
shortcut to successful new product development,” he said.
“Successful
innovation or new product development must be a distinct solution to an
unmet need or desire which over-delivers at a realistic price.”
In
terms of the most effective channels for convincing consumers to
purchase new products, 76 per cent said word-of-mouth was the most persuasive,
followed by seeing a product in-store at 72 per cent.
Only 54 per cent of Australians said TV advertising was likely
to persuade them to purchase new products, compared with 60 per cent in Asia
Pacific.
“Consumers find out and connect with new product
offerings in a variety of ways. Brands need to accurately develop
strategies and execute diverse communication plans incorporating online
and social media coupled with traditional media,” McQuillan said.
The
Nielsen survey polled more than 29,000 online consumers in 58 countries
across Asia Pacific, Europe, Latin America, the Middle East, Africa and
North America.
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