Why are global brands important?

Global brands have a strong presence and recognition across different markets and regions. They are often associated with high quality, innovation, trust and loyalty. But what are the benefits of global brands for the consumer, shopper, category and supermarket? In this article, we will explore some of the value propositions of global brands and how they can help drive growth and profitability. 

Global brands create Consumer value. 

Consumers value global brands for various reasons. One of them is the consistency and reliability of the product or service. Global brands have standardised processes and quality controls that ensure a uniform and satisfying experience for the consumer, regardless of where they buy or consume the product. For example, a consumer who buys Coca-Cola in New York can expect the same taste and quality as a consumer who buys it in Tokyo. 

Another reason is the emotional connection and identity that global brands can create with the consumer. Global brands often have strong stories, values and personalities that resonate with consumers and make them feel part of a larger community or movement. For example, a consumer who wears Nike shoes may feel inspired by the brand’s slogan, “Just Do It” and its endorsement of athletes and celebrities. 

Additionally, global brands can offer more variety and choice for the consumer, as they often have a wide range of products and services that cater to different needs, preferences and occasions. For example, a consumer who likes Starbucks coffee may enjoy trying different flavours, formats and seasonal offerings from the brand. 

Shopper value 

Shoppers value global brands for similar reasons as consumers but also for some additional ones. One of them is the convenience and availability of the product or service. Global brands have extensive distribution networks and supply chains that ensure high accessibility and visibility for the shopper, whether online or offline. For example, a shopper who needs toothpaste can easily find Colgate in most supermarkets, pharmacies or e-commerce platforms. 

Another reason is the credibility and trustworthiness of the product or service. Global brands have established reputations and track records that signal quality and safety to the shopper, reducing their perceived risk and increasing their confidence in their purchase decision. For example, a shopper who wants to buy a smartphone may trust Samsung more than an unknown local brand. 

Additionally, global brands can offer more value for money for the shopper, as they often have economies of scale and scope that allow them to lower their costs and prices or to provide more benefits and features for the same price. For example, a shopper who buys Dove soap may get more moisturizing benefits than a generic soap for a similar price. 

The impact of Global Brands on Category value 

 Categories value global brands for several reasons. One is the innovation and differentiation they bring to the category. Global brands have significant research and development capabilities and resources that enable them to introduce new products and services that meet changing consumer needs and preferences or create new ones. For example, Apple has revolutionised the smartphone category with its iPhone series. 

Another reason is the growth and profitability that they generate for the category. Global brands have strong marketing and sales strategies and tactics that drive awareness, trial, loyalty and advocacy among consumers and shoppers, increasing their demand and consumption. For example, L’Oréal has boosted the beauty category with its diverse cosmetics and personal care product portfolio. 

Additionally, global brands can offer more collaboration and cooperation for the category, as they often have strategic partnerships and alliances with other players in the industry, such as suppliers, distributors or retailers. For example, Nestlé has collaborated with Starbucks to launch a range of coffee products under the Starbucks brand. 

Customer value 

Supermarkets value global brands for many reasons. One of them is the traffic and loyalty they attract to the store. Global brands have loyal customer bases that seek their products or services wherever they shop, increasing their footfall and frequency to the store. For example, a supermarket that sells Ben & Jerry’s ice cream may attract more customers who are fans of the brand. 

Another reason is the margin and revenue that they contribute to the store. Global brands have premium prices and high turnover rates, enhancing the store’s profitability. For example, a supermarket selling Red Bull energy drinks may earn more than a supermarket selling only generic drinks. 

Additionally, global brands can offer more support and assistance to the store, as they often provide merchandising, promotion or training programs that help improve the store’s performance and customer satisfaction. For example, a supermarket that sells Oreo cookies may receive display materials, coupons or samples from the brand. 

Conclusion 

Global brands are valued for themselves and their stakeholders: consumers, shoppers, categories and supermarkets. They offer various benefits such as consistency, reliability, emotional connection, identity, variety, choice, convenience, availability, credibility, trustworthiness, value for money, innovation, and differentiation. These benefits help global brands to create loyal customers, increase sales and profits, enhance reputation and image, and compete effectively in the global market. Therefore, global brands should be nurtured and protected by both the companies that own them and the countries that host them.