HK study offers grim news for marketers

The 2004 Hong Kong Brand Admiration Survey found as much as 71 per cent of the 84 brands from 18 industries surveyed were not admired by the majority of consumers. The Brand Company polled 500 respondents, mainly executives, managers and senior managers, for this English-language online study, and found that Hong Kong consumers have lost patience with companies that over-promise and under-deliver. "(In 2004), HK$35 billion (US$4.5 billion) was spent on advertising in Hong Kong -- that leaves us with brands, seven out of 10 of which are not admired by the majority of respondents," the company stated. "Our overall out-take is that the whole brand-building industry needs a seismic shift of focus if it is going to be able to create the kind of powerful brands it aspires to create." James Stuart, partner at The Brand Company, believes the responses reflect the numerous tactical, contradictory approaches, which confuse consumers. Despite heavy spending on advertising, telco brands emerged as the least admired. A possible reason, according to Stewart, is that telco brands have traditionally been functional in nature and consumers did not need to have too much contact with the brand itself. He added that price wars between the local companies, who are all generally driving the same basic functions and services, have also overshadowed effective branding. Travel brands such as Cathay Pacific and The Peninsula fared strongly in the survey as did one of the city's upscale shopping malls, IFC. The survey asked participants to rank attributes that contribute to brand admiration. Top ranked attributes were: "quality of product and services", "delivering on promises" and "staff that are sensitive to customers' needs". Lowest ranked attributes included "effective marketing" and a "distinctive and appealing personality", an indication that Hong Kong consumers are seeing through marketing hype. The Hong Kong Government was ranked seventh from bottom and 50 per cent of respondents said that none of the positive brand attributes applied to it. Retailer Baleno, the Bank of China and department store Sincere also fared poorly. To make the estimated $35 billion spent on advertising work harder, Stewart said brands must develop a more consistent strategy. He also recommended that CEOs lead the brand effort. The Brand Company Brand Dialogues, the first in a series of seminars, is scheduled to be held at the China Tee Club on January 27. Speakers will include Chris Jaques, CEO Asia-Pacific, Young & Rubicam and Wunderman; and David Ketchum, CEO Upstream Asia. Registration forms can be obtained from shadow@thebrandco.com.