- Business consultancy globeone analyses image of German brands in BRIC
- German brands enjoy high awareness among consumers in key growth markets
- Great potential to further exploit the strengths of the German brand origin
Cologne, 19 September 2011 –The majority of urban consumers in Brazil, Russia, India and China is highly aware of a multitude of German brands. This is the key finding of an extensive, first-of-its-kind survey conducted by German business consultancy globeone. In total, more than 4,000 consumers in the 20 most important cities in BRIC were interviewed throughout the first half of 2011 about their awareness, preference and purchase frequency of German brands.
72% of the consumers could spontaneously name one or more German brands. In particular, the German automotive producers BMW, Mercedes Benz, Volkswagen and Audi enjoy great publicity, only sharing the top five ranking with Adidas as non-automotive brand. Further good news: in many categories German brands are perceived more positively than competitors from the US, Japan and BRIC. In first line, interviewed consumers rate German brands highly particularly in the attributes of quality, reliability and performance. German brands are also considered as leading in proximity to customer needs, prestige and durability.
However, also some weaknesses appear: On average, only 66% of consumers recognize the origin of a German brand. Mainly brands from the automotive and engine manufacturing sector are named here. In contrast, in other sectors, German branding is either weak or the association of brands with German origin is not recognized by consumers. One posits that enhancements in either of these parameters could expand popular preference for German brands in wider categories.
The new consumers in emerging economies see also space for improvement of “German engineering” regarding innovative characteristics. Despite the positive image and popular preference for German brands, in many categories they are purchased rather infrequently by consumers in BRIC. This is attributed to relatively high prices and in many cases, to the strong focus of German brands on premium segments only.
“In comparison to global brand champions German brands act very conservatively. Especially in communications, the seal ‘Made in Germany’ has to be used more effectively as driver for preferences and price acceptance”, says Niklas Schaffmeister, Group Managing Director of globeone.