ANALYSIS: Downturn fails to dampen Asia's appetite for brands - More brands were elevated to Platinum ranking in '02

An economic slump between one poll and the next appears to have had little impact on Asia's appetite for brands.

If anything, Reader's Digest 2002 SuperBrands poll, a rating on quantitative and qualitative scores, had more brands achieving Platinum ranking - "brand domination of their category - compared with last year.

Against last year's 12 Platinum SuperBrands from 38 categories, this year, there were 18 in all. "In a slowdown, the strong brands just get stronger, says Peter Jeffery, associate publisher of Reader's Digest.

"Asia's appetite for brands has been as strong as ever throughout the slump. In a downturn, consumers are much more conscious of what they are purchasing."

The recession and consumers remaining with "brands they trust aside, the magazine did add another criteria which appears to have helped more brands achieve Platinum rank.

Now in its fourth year, the six-market survey previously only awarded Platinum rank to brands achieving a total score which was three times that of its nearest competitor.

This has been expanded this year to include brands achieving a total score twice that of its nearest rival so long as they also garnered an average rating of four plus across the five qualitative scores - quality, value, trustworthiness, strong image and understanding of consumer needs.

New entrants in the Platinum circle are Shangri-La, Singapore Airlines, Canon for home office equipment, Rolex, National for washing machines, Johnny Walker, Pantene for shampoo/conditioner and Avon for cosmetics.

Nestle (milk/milk products) lost its Platinum rank this year. Ditto for Visa only because Reader's Digest dropped the credit card category as it is compiling a separate brand poll for this segment.

READER'S DIGEST SUPERBRANDS WINNERS - 2002
                         Platinum            Gold
Car                                          BMW, Honda, Mercedes Benz,
                         Toyota
Hotel                    Shangri-La          Hyatt
Airline                  Singapore Airlines  Cathay Pacific
Gas station              Shell               Caltex
Computer                                     Acer, Compaq, IBM
Home office equipment    Canon               Hewlett Packard, Panasonic
Mobile/Cellular phone    Nokia               Ericsson, Motorola
Television               Sony                Panasonic
CD/MD player             Sony                Panasonic
DVD player               Sony                Panasonic, Pioneer
Camera                                       Canon, Nikon,Olympus
Digital camera                               Canon, Sony
Video camera             Sony                Canon, Panasonic
Watch                    Rolex               Seiko
Quality pen                                  Cross, Mont Blanc, Parker
Washing machine          National            Whirlpool
Refrigerator                                 General Electric, National,
                                             Sharp
Air conditioner                              Carrier, Hitachi, National
Water/mineral water                          Evian
Soft drink               Coca-Cola           Pepsi
Tea                      Lipton
Coffee (Instant)         Nescafe             Maxwell House
Milk/milk product                            Nestle
Cereal                                       Kellogg's, Nestle, Quaker
                                             Oats
Soup (Canned of packet)                      Campbell's, Knorr, Maggi
Cooking oil                                  Knife
Seasoning products                           Ajinomoto, Knorr, Lee Kum
                                             Kee, Maggi
Instant noodles                              Maggi, Nissin
Beer                                         Carlsberg, Heineken
Whisky                   Johnnie Walker      Chivas Regal
Brandy/Cognac                                Hennessy, Martell, Remy
Martin
Shampoo/Conditioner      Pantene
Toothpaste                                   Colgate, Darlie
Skin care                                    Johnson & Johnson, Nivea
Cosmetics                Avon                Estee Lauder, Shiseido
Baby food                                    Gerber, Heinz, Nestle
Baby care                Johnson & Johnson   Pampers
Source: Reader's Digest
In place of credit cards, the magazine added air-conditioners in response to industry requests.

"Most middle class homes in Asia have more air-conditioners than television sets or refrigerators, notes Jeffery. "We can see from the responses that it was the right thing to do. National, Carrier and Hitachi have achieved the inaugural Gold rank in air-conditioners. In Malaysia, National achieved Platinum rank as did Hitachi in Taiwan and Mitsubishi Electric in Thailand.

As expected, Sony again emerged as the leading brand region-wide, repeating last year's achievement with Platinum awards in the television, CD/MD player, DVD player and video camera categories.

Interestingly, when it comes to flying, consumer preferences appear to be decidedly patriotic. In all markets, it was the flag carrier that achieved top status, including Platinum honours for Cathay Pacific in Hong Kong, Philippine Airlines in the Philippines, Singapore Airlines in Singapore and Thai Airways in Thailand.

Only respondents in Malaysia and Taiwan were unwilling to go as far as to award Platinum rank to their national carriers.

In the fast-moving consumer goods category, Jeffery said multinationals again performed strongly in most markets bar Taiwan. Taiwanese food conglomerate Uni-President was the clear leader for cooking oil and instant noodles, achieving Platinum rank in both categories, and coming in second to Knorr in the soup segment.

A total of 3,000 respondents participated in the postal survey - in line with targets - although it coincided with last year's anthrax scare, according to Jeffery.