By: Oliver Bayani, Philippines
Published: Jan 24, 2013
LOYALTY WORD-OF-MOUTH NIELSEN
Philippines - Online consumers in the Philippines are among the world's most loyal to brands familiar to them, with only two out of 10 willing to try new products from an alternative, according to a new survey from Nielsen. Eighty percent of online Filipino consumers prefer to buy new products from a familiar brand rather than switch to a new brand, figures from Nielsen's Global Survey of New Product Purchase Sentiment suggests. Global consumers, in comparison, are more open to experiment, with 4 out of 10 respondents with internet access saying they are willing to buy new products from another brand. Globally, 60% of respondents were also reluctant to switch brands. "Consumers are enthusiastic about adopting new product innovations but somewhat there's trepidation about embracing new brands," said Stuart Jamieson, managing director of Nielsen Philippines. Philippine-made
Filipinos were also found to put more faith to local options than any another country in Asia Pacific, with 53% of respondents saying they are partial towards Philippine-made products over global brands. In contrast, only one-fourth (26%) of Asia Pacific respondents say they do not favor local brands. New products are welcome to most of Filipino respondents, with 77% saying they are open, but Nielsen found that proof-of-concept is also important to them. Around 74% said they are willing to wait until a new product has proven itself. Jamieson points out that innovations by trusted brands is a powerful strategy but might not yield rewards immediately. "Introducing innovations on established brands that are already trusted by consumers can be a powerful strategy. Millions of dollars are being spent on new product innovation by manufacturers, yet two out of every three new products will not be on the market within three years." What to do?