Presented at the second China branding roundtable organised by The Economist in Shanghai, the study noted that when it comes to luxury labels -- such as Chanel, Mercedes-Benz, Armani and BMW -- localisation should be minimal and no more than just a translation of communications.
"Quality briefs about these brands are usually rooted in a cultural myth that provides credibility and authority," the report stated. "Mercedes' quality perceptions are underpinned by beliefs about German design and engineering excellence. Prestige brands are nearly always in strong display categories with high aspirational value."
The report added that BMW's advertising in Japan and Singapore, for example, would usually avoid the use of local Chinese or Japanese drivers as they are not considered sufficiently aspirational.
Brands such as Dove, Danone and Nescafé, on the other hand, have a weak aspirational role, although it can be more pronounced in developing countries. Affinity to these brands is based on authority (trust and heritage) and identification (nostalgia and caring), according to the report's findings.
"Prestige brands do not require any localisation as they will lose their global appeal and aspirational appeal. But brands in the personal care, food, retail categories, which are part of day-to-day use, must be localised if they are to succeed," said Bruno Boton, global director branding and communications, Research International.
Boton added that the degree of localisation varied by country, with a market such as China, which is culturally sensitive, requires a high degree of localisation. "There is a lot of pride. They want global brands to respect the collectivism culture. In comparison, for Singapore, overseas ads can be imported with no problem."
