Wednesday, July 16, 2008

‘Country of Origin’ impacts on brand preferences

A brand’s ‘country of origin’ can have a profound effect on the perception of a brand, particularly in the case of consumer products.

It can differentiate a brand and create strong and enduring relationships. ‘Made in Japan’ remains a strong guarantee of quality and innovation, harking back to the huge inroads made by the likes of Sony in the 1960s which helped put post-war Japan firmly on the map as a world leader in electronics, and Honda as it started to cripple the innovation-shy British motorcycle industry. It represented a firm stab in the back for the traditional qualities associated with ‘Made in England’ from the 1960s to the 1990s - the heyday of brands like Robertson, the epitome of British transistor radios, and so many British auto brands - Alvis, Austin, Hillman, Lagonda, Morris, Riley, Sunbeam, Wolseley and so many more.

Sadly like most product offerings ‘Made in Japan’ seems to now be increasingly replaced by ‘Made in China’, with automobile brands like Toyota, Honda and Mazda perhaps the only unbreakable aspect of Japanese automobile design, technology and manufacturing superiority... but for how long?

The ‘Made in Japan’ brand has very definite and very positive associations. ‘Made in England' (or is it 'Made in the United Kingdom'?) has no definite associations any more – perhaps it all got lost somewhere ‘midst the EEC confusion. Some brands however will always be strongly associated with England - Purdey shotguns, Barbour outdoor clothing, and Dunhill. They maintain an unbreakable and exclusive perception of tradition and quality, in the same way that Glenffidich will never be matched by any Japanese or Chinese whisky brand. I was going to include Jaguar but that now resides in Indian hands at Tata after a period of ownership with those gents at Ford in good old US of A, now in deep financial distress. So who knows what that has done for buyers’ perception of the once quintessentially English Jaguar brand!

‘Made in Germany’ symbolises precision and reliability. Products from German auto manufacturers Mercedes Benz, Audi, BMW and Porsche benefit from these positive perceptions. They seem unbreakable and have withstood the onslaught of the Japanese engineers, designers and technologists.

Having been born in England where the majority of the nation still seems to harbour some mistrust, bordering on dislike, for the French (something to do with Napoleon, Trafalgar and France’s inability to play decent football) I recollect no strong perceptions of ‘Made in France’. Brilliant Citroens DS19s and rubbish Renaults were the only products I remember from the 1960s until the introduction of fashionable and filthy smelling cigarettes and the bizarre suggestion that the French are good lovers! Not exactly cut through stuff. Even the wines are not that great (thank you Australian wine industry).

Brand Italy seems to score better. Luxury goods brands like Armani and Prada, sublime supercars like Ferrari and Maserati, ace soccer teams, designers and the beauty of Italian architecture and countryside conjure up very positive impressions of Italy, the Italian people and their enviable lifestyle. So, here’s a question. Does the country brand influence its product brands or vice versa? Was Italy such a great place until Enzo Ferrari and Giorgio Armani came along?

With the advent of global media, it can take only one incident to capture the minds of global audiences and reduce centuries of brand goodwill to nought. China’s recent exploits in Tibet are a PR nightmare. The lead paint on Chinese toys succeeded in crashing their exports and instilled a hard-to-shift perception of ‘cheap, nasty and dangerous’. The US interference in Iraq, aggravated by the global economic downturn, has severely dented perceptions of its standing as an economic power house and global peace keeper. Zimbabwe is no longer perceived as a viable holiday destination.

As ambassadors of their ‘country of origin’, airlines can gain very definite benefits by aligning their brand strategy with that of the nation. Good examples of this are Alitalia which just flew in the Pope to Australia, British Airways, Swiss Airlines etc. Airlines do not have to have the country of origin’s name present, as in Qantas which is undeniably the airline of Australia.

‘Country of origin’ can have a very definite impact on consumer perceptions and buying decisions. It should be considered however as only one component of a brand’s ability to achieve and sustain long term success.

Tony Heywood is a Fellow of the Design Institute of Australia, founder of Heywood Innovation in Sydney Australia and joint founder of BrandSynergy in Singapore.

View some of Heywood’s work on www.heywood.com.au

Share on Facebook