ALL OF WARC
ALL OF WARC
Pinpoint the case evidence you need – search by industry, objective, media and more.
Case summaries showcasing leading brands achieving key marketing objectives.
Creative TV and video executions from the most innovative and market-leading brands.
Browse campaigns from the world's leading advertising and marketing effectiveness awards.
The latest from our annual case study competitions.
Rankings of the world's most effective agencies, advertisers and brands.
Industry Topic Pages
Shortcuts to the latest industry-focused information and insight.
Apparel & Accessories
Government & Non-profit
Household & Domestic
Media & Entertainment
Pharmaceutical & Health
Toiletries & Cosmetics
Travel & Tourism
Subject Topic Pages
Shortcuts to the latest information
and insight by subject area.
Overviews of leading brand owners, and guides to key issues and tasks.
Browse all articles, papers and case studies by subject.
Latest reports from Warc and trusted partners offering unique insights into current trends.
The driving forces behind consumer behaviour.
New developments for industries and sectors.
Strategic insight for the marketing of brands.
Media & Tech
Latest innovations in media and technology.
Insight and intelligence for countries and regions.
Daily coverage of key developments for marketers worldwide.
The Warc Blog
Insights, opinions and fresh new thinking from our team of bloggers around the world.
Advertising expenditure by medium in 80 markets, plus forecasts and media costs for key countries.
Key briefings from major conferences and events in the US, Europe and Asia Pacific.
Plan your schedule of must-attend events with our global calendar of conferences.
Review your contact details and public profile.
Choose and review which topics to follow.
Choose and review which brands to follow.
Your Email Updates
Select and manage the emails you receive.
Contact your dedicated Client Services Manager.
Put our research team at your service.
Today's Top Stories
Today's Top Stories
Mobile video to reach 2bn
Online ad measurement battle heats up
Smartphone sales soar in Southeast Asia
Connectivity brings new opportunities
Automakers adapt strategies for India
Luxury brands look to long term
7 Day Round-Up
The Warc Blog
"Aspirational brands" set for growth
ZURICH: Increasing affluence in emerging markets will boost "aspirational brands" like Coca-Cola, the soft drink, and Nike, the sportswear range, Credit Suisse has suggested.
The financial services group
these operators, as well as Johnnie Walker, the whiskey, and adidas, the sportswear brand, stand to gain ground as incomes "rise to significantly higher levels".
"We can of course identify the genuine global brands that dominate high income luxury categories in areas, such as spirits ... and cars, when a switch from local preferences to global becomes most pronounced," it said.
Local brands can benefit from rising affluence, the study added, if they achieve "critical mass at the low end, but sustain it or increase it up the income scale."
Mengniu and Domik v Derevne, in China and Russia's dairy sectors respectively, and Castle lager in South Africa seem set to attain this status.
Such arguments were based on a poll of 14,000 people in eight markets - Brazil, China, India, Indonesia, Russia, Saudi Arabia, Turkey and South Africa - conducted with Nielsen, the research firm.
This found that greater prosperity does not usually impact household penetration for local brands when discussing consumer staples, but typically exerts a major influence in discretionary categories.
As an example, the share of car purchases taken by local brands in Russia falls from over 75% when households earn below $1,000 a month to under 5% when this surpasses $6,000.
L'Oreal, the French cosmetics brand, also has a 27% penetration in wealthy Chinese homes, versus 11% in less wealthy residences. These totals hit 13% and 24% in turn for Dabao, a local brand now owned by Johnson & Johnson.
However, Natura, a Brazilian eco-friendly cosmetics manufacturer, provides a model for local brands. It has a 69% penetration in affluent homes, and a 44% reach for their lower income counterparts.
By contrast, Dove, made by Unilever, posted 38% and 15% respectively on the same terms, and is lagging behind Natura's growth rate in this area.
Elsewhere, the analysis revealed that only 2.5% of beer sales go to "unbranded" offerings on average in the featured markets, as do 5.3% for soft drinks, some 10.1% for spirits and 13.1% for dairy.
Figures on this metric hit 16.3% for cosmetics and 41% for perfumes. Fully 53.7% of acquisitions in the fashion sector are also attribtuable to unbranded lines, declining to 47.6% for leather goods and 23.3% for sports shoes and apparel.
"Unbranded goods are a key part of consumption at very low income levels, but, as income levels improve, the preference for branded goods picks up," the analysis said.
Data sourced from Credit Suisse; additional content by Warc staff, 25 January 2013
Coke tackles obesity issue
No Olympics boost for Coke
Brands watch for "ghost" ads
Content & Partners
Terms & Conditions
© 2013 Copyright and Database Rights owned by Warc