Byravee Iyer
Jul 2, 2013

Asian consumers most likely to respond to designer labels, ads: Nielsen

ASIA-PACIFIC - Consumers in Asia-Pacific are most likely to be swayed by designer labels, are willing to pay more for branded products and are more influenced by ad campaigns than consumers in other regions, according to a new online survey from Nielsen.

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Three in five Asia Pacific consumers are willing to pay more for designer products—higher than any other region globally

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More than half like to buy products of famous brands

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Advertising influences brand preference for two thirds of consumers

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Two in three say product image created by ads will affect their purchase decision

Sixty-one per cent of consumers in the region said they would pay more for designer products, compared to the global average of 44 per cent. 

Seventy-four per cent of Chinese consumers said they would spend more on designer goods, the highest globally. India (59 per cent) and Vietnam (56 per cent) rounded off the world’s top three.

Asia-Pacific consumers are also drawn to high-profile brands, with more than half (55 per cent) saying they buy products of famous brands, compared to the global average of 47 percent.

David Webb, MD of advertising solutions at Nielsen, attributed this to the economic boom in certain Asian markets, coupled with growing middle-class populations and higher disposable incomes. “Cashed-up and ready to spend, these consumers are seeking out designer and well‐known brands to project their new‐found social status," Webb said. "The rapid expansion of the internet and other media channels has given rise to more exposure, awareness and desire for brands and products than ever before.”

Advertising has had a significant influence on high-ticket purchase decisions, with 67 per cent of Asian consumers saying that advertising influences their preference for a brand, higher than the global average of 55 per cent.

This was particularly pronounced in Korea and the Philippines, where 79 and 78 per cent, respectively, said commercials increased their brand preference, followed by Indonesia (74 per cent), India (74 per cent ) and China (72 per cent).

Sixty-four per cent of Asia-Pacific consumers agreed the image created by advertising influenced their decision to buy a product, 10 points higher than the global average of 54 per cent, and 51 per cent said they would buy a product because they liked its commercials.

“Brands are presented with a huge opportunity to win over consumers in emerging Asian markets with clever and relevant advertising that establishes an emotional connection,” Webb noted. “Our research has found that ads work best if they entertain the consumer, rather than focus on product features. Humour, relatable and iconic characters and an engaging storyline are common creative characteristics of high-performing ads.”

Conversely, in markets such as Australia, Japan and New Zealand, only a third of consumers said advertising influenced their brand preference.

Webb predicted that targeted advertising has a growing role to play when it comes to delivering brand messages, particularly in more developed markets where consumers are less easily influenced by an ad.

Brands must take advantage of new and emerging media platforms, which enable greater targeting, to succeed. "There is no silver bullet to budget reallocation, but all analysis so far shows that advertisers could, and should, go further with their digital investments,” Webb said.

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