More than half (55 per cent) of online Asia Pacific consumers prefer to purchase new products from a familiar brand rather than switch to a new brand, according to a
new study.
The Nielsen Global Survey of New Product Purchase Sentiment surveyed more than 29,000 Internet respondents in 58 countries and shows that brand familiarity resonates strongly with Asia Pacific consumers and the majority won’t purchase a new product until it has been tried and tested in the market.
Almost two-thirds of Asia Pacific respondents (62 per cent) wait until a new product or innovation has proven itself before making a purchase decision, and less than half (44 per cent) of Asia Pacific respondents are willing to switch to a new brand.
Willingness to switch brands to try a new product is particularly low in countries such as Thailand (30 per cent) and Japan (23 per cent).
“Innovating on established brands that are already trusted by consumers in Asia can be a powerful strategy for companies who are shifting their attention to consumers in this growth engine market,” said Therese Glennon, MD, innovation practice, Asia Pacific, Middle East and Africa.
Nielsen’s survey shows that consumers in Asia Pacific are less likely than other global regions to consider local brands versus larger global brands when considering new product purchases. Less than two in five (38 per cent) consumers in Asia Pacific say that they would prefer to purchase local brands over larger global brands, compared to 40 per cent globally and 47 per cent in North America.
“In Asia, the preference for global brands versus local brands is two-fold,” noted Glennon. “Although local brands are increasingly becoming premium, perception around quality remains an issue.”
Glennon said that much of the positive sentiment in Asia towards global brands is rooted in Asian consumers’ perceptions around the status that ownership of global products provides.
“Over time, this is expected to change as local brands match global brands in premium positioning and high quality offerings,” said Glennon.
When measuring the impact of new product and innovation messages, Nielsen’s review of 21 methods to reach consumers across various media and advertising platforms, shows that a mix of word-of-mouth communication, traditional advertising, and Internet activity are the most persuasive ways to drive awareness of new products or innovative executions.
While 81 per cent of Asia Pacific respondents say word-of-mouth advice from family and friends is the most persuasive source of new product information (compared to 77 per cent globally), active Internet searching (71 per cent), ads on frequently visited websites (63 per cent) and traditional television advertising (60 per cent) remain major components of the influencing mix.
“There is no one-size-fits-all approach to successfully developing and marketing a compelling new product,” said Glennon. “Just because we are seeing considerable growth across the Asia Pacific economy and consumer demand is shifting accordingly, this does not provide a guaranteed environment for a winning new product idea to succeed.”
“By focusing on unmet needs, creating a distinct solution, and developing a market-ready offer, marketers and manufacturers will create the best opportunity to succeed with consumers in Asia-Pacific,” Glennon concluded.
GB
