Local brands command global FMCG shopper choices

Local brands are closing in on their multinational competitors, growing value at nearly twice the rate of global brands for the third consecutive year, said a recent report.

Particularly strong in the food and beverage categories, brand choices are dominated by local players in terms of both the number of brands available as well as in the number of times they are chosen, according to the latest Kantar Worldpanel Brand Footprint report.

While the total value of FMCG grew by 4.7 per cent in 2015, local players grew by 6.2 per cent. By comparison, global brands grew by 3.4 per cent.

Local brands are especially prevalent in Asia, Latin America and also parts of Europe including Spain. Most notable is China – where local brands comprise 75 per cent of shopper decisions followed by Indonesia (61 per cent) and India (57 per cent).

Despite this shift, growth is not over for global brands. Within the top 10 brands alone, Lifebuoy, Lay’s and Dove all managed to not only grow CRP, but also move at least one place up the ranking.

The key opportunity area for multinationals is ecommerce, the fastest growing channel, where they currently dominate.

Alison Martin, director at the firm said “For local brands, the world is their country: they look nationwide rather than just tier one or tier two cities. Not only are there significantly more local brands across the world, it is generally the case that they will reach more shoppers in more remote parts of their market, working in closer concert with consumer need.”

“Where budgets are tight, they will adjust price points or pack size. In large emerging markets such as China, India and Indonesia, many consumers see local brands as not only familiar but also more affordable and widely available.”

Analysing one billion households across 44 countries in five continents and 300 billion shopper decisions, the study discovered how many times a brand was chosen by consumers over the course of one year.

Kantar also found that Coca-Cola remains the world’s most chosen brand, and is the number one brand in 10 countries; Maggi is the number one food brand; Colgate is the top health and beauty brand; and Downy is the top home care brand.


Comment Manually