Singaporean consumers prefer imported brands over local ones

3 in 5 try new products from familiar brands.

According to Nielsen, one third of Singaporeans (33%) are partial to local new products, compared to 40 percent globally. Asia Pacific respondents are the least likely to purchase local new products, with around one-quarter (26%) indicating they do not prefer to buy local brands over large global brands.

Nielsen also adds, brand familiarity and proof-of-concept resonate most with consumers in Singapore when thinking about buying new products. Sixty six percent of Singapore consumers with Internet access prefer to buy new products from brands with which they are already familiar. Sixty one percent indicate they will wait until a new innovation has proven itself before making a purchase.

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The Nielsen Global Survey of New Product Purchase Sentiment surveyed more than 29,000 Internet respondents in 58 countries and shows that brand familiarity is one of several key characteristics that resonate strongly with consumers worldwide. 

“What makes a powerful strategy in Singapore is to innovate on established and well trusted brands,” said Joan Koh, Managing Director, Nielsen Singapore and Malaysia.

”Consumers have increasing choices in quality, convenience and value, so new products need to justify their relevance and convey their unique contribution to consumers’ affluent and busy lifestyles here in Singapore.” Singaporeans are generally open to new product innovations, with almost three in five respondents (58%) saying they are willing to consider a new product purchase and 60 percent saying they like it when new product options are offered.

Nielsen’s survey shows that the price value equation remains important when buying new products, with 56 percent of Singapore respondents saying they would purchase a store brand or value option, although this was slightly lower than the global average (64%). Forty four percent of Singapore respondents agreed that economic conditions make them less likely to try a new product. 

“Much of the positive sentiment towards global brands is rooted in consumers’ perceptions around the status and premium quality that comes with ownership of global products. This is expected to change as local brands match global brands in premium positioning and high quality offerings,” said Koh.

A multi-media mix approach Nielsen’s review of 21 methods to reach consumers across various media and advertising platforms shows that a mix of word-of-mouth communication, traditional advertising, and Internet activity are the most persuasive ways to drive awareness. 

While 72 percent of Singaporean respondents say word-of-mouth advice from family and friends is the most persuasive source of new product information, advertising in newspapers/magazines (54%) and television (52%) as well as active Internet searching (50%) remain influential elements (see chart 2). In Singapore, the Internet is an important source when making a new product purchase decision for electronics (83%), appliances (74%) and food and beverages (72%).

“There is no one-size-fits-all approach to successfully developing and marketing a compelling new product,” notes Koh. “With two out of every three new products disappearing from the shelf within the first three years of their introduction, it is essential for marketers and retailers to ensure they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations, and execute an optimal marketing strategy, in order to deliver successful new products.”