Research Watch: Colloquy Gauges Global Outlook for Brand Loyalty

A new study from loyalty marketing company LoyaltyOne's Colloquy arm, sponsored by Epsilon, sheds light on current consumer attitudes toward brand loyalty in the context of current global economic challenges. The study looks at consumer attitudes in two sectors: emerging economies (Brazil, China and India) and developed economies (Australia, Canada and the U.S.). 

The study reveals how consumers in emerging markets respond differently to new brands and product opportunities than do their counterparts in developed nations. In emerging economies, 35 percent of shoppers welcome foreign brands, while only about 7 percent of consumers in developed countries felt that foreign competition was positive. In fact, 90 percent of Chinese consumers trust foreign brands over their own brands.

Consumers in Brazil and India were happier with their own domestic brands than the Chinese, but not nearly as much as consumers in developed economies. In Australia, Canada and the U.S., consumers are over twice as likely to trust their own brands versus ones from other countries.

Obviously, this presents an opportunity for well-established brands from developed nations to make significant inroads with consumers in emerging countries. This could explain why so many American brands, for example, have pursued an expansion strategy in such countries as Brazil, China and India, even as the same brands pull back and regroup in other sectors.Continue reading...