Matthew Miller
Oct 21, 2014

Brands still failing at value exchange: Edelman

ASIA-PACIFIC - In its second-annual Brandshare study, Edelman finds that brands globally and in the four APAC countries studied still have a lot of work to do when it comes to nurturing mutually beneficial relationships with their customers.

Brands still failing at value exchange: Edelman

Brands share mainly out of the profit motive rather than any sincere commitment to customers. They mostly fail to respond in a timely manner to complaints and concerns. They don't do a good enough job communicating about how products are sourced and made. And they largely lack any core purpose or desire to better society.

So finds Edelman's second-annual Brandshare study, which surveyed 15,000 people in 12 countries including four in Asia-Pacific (Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico, Netherlands, UK and US). The 30-minute online survey asked a series of questions about 199 specific brands (a mix of multinationals and local outfits) across 11 industry sectors. The findings presented here are averages.  

Other key findings include:

  • More than half (54 per cent) of those surveyed in Australia, China, India and Japan consider relationships with brands to be one-sided with limited value
  • A majority (60 per cent) believe the only reason brands share with them is a self-centered desire to increase profits
  • Australia’s consumers showed the highest dissatisfaction among the 12 countries surveyed with the current value exchange (79 per cent)
  • 86 per cent of people across the four markets in APAC want meaningful interactions with brands, but only 19 percent think brands do it well.

Edelman argues that brands have to think beyond rational and emotional needs and strive to meet societal needs as well. Satisfying all three sets of needs has a quantifiable impact: a "compound lift" for consumer actions such as purchase (7 per cent), defend (9 per cent), recommend (11 per cent), sharing personal information (9 per cent) and sharing branded content (9 per cent), according to the company.

The following table compares the global averages with country-specific APAC findings that Edelman shared with Campaign Asia-Pacific.  

Percentage who agree that… Global Aust. China India Japann
Brands that ask people to share with them (ie personal information, stories, etc.) successfully share in return (versus a more one-sided relationship) 66 79 42 43 51
Brands are motivated to share because they have a self-centered desire to increase profits (as opposed to a sincere commitment to customers) 70 81 49 44 65
People want a more meaningful relationship with brands 87 92 84 73 94
 - Brands actually deliver on the above 17 12 24 30 11
Brands should respond quickly to people's concerns and complaints 78 85  63 79  61
 - Brands actually deliver on the above 17 12 22 30 21
Brands should communicate openly and transparently about how products are sourced and made 68 73 57 72 49 
 - Brands actually deliver on the above 15 11 19 30 11
Brands should invite people to be part of development and refinement process 52 43 61 65 39
 - Brands actually deliver on the above 16 10 25 33 11
Brands should have a clear mission and purpose at their core  58 53 68 72 38
 - Brands actually deliver on the above 21 17 24 34 13
Brands should use their resources to drive change in the world 52 43  57  65  39 
 - Brands actually deliver on the above 15 10 23 29 13

 

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