Management Seminars: Daniel Hampson (University of Manchester)


30 January 2018, 2.30 PM - 30 January 2018, 4.00 PM

Daniel Hampson (University of Manchester)

G.01, 34 Tyndall's Park Road

Title: The evolving nature of global and local consumption in emerging markets


Constrained by weak consumption growth in their traditional western markets post-Great Recession, global brands have increasingly coveted fast-growing middle class consumer segments in emerging markets (EM). Historically, EM consumers have evaluated global brands as more prestigious, trustworthy and status-enhancing than local alternatives (He et al., 2017). The mutual attraction between global brands and consumers in EM has often led to “chronic disadvantages” for local brands (Heinberg, 2017, p. 514).

However, evidence continues to accrue showing a decline in the aspirational status of global brands in EM (Guo, 2013; Strizhakova and Coulter, 2015; Wang et al., 2017). In 2011, 85% of Chinese consumers preferred foreign brands; that preference has now halved, with similar trends in other EM (Bloomberg, 2017). Today, 72% of value growth in the FMCG sector is driven by local brands (Kantar Worldpanel, 2017). Bartsch et al. (2017) describe the trend towards greater local brand consumption as a “paradigm shift” in international marketing.

In his presentation, Daniel will discuss some of the underlying reasons for greater consumption of local brands in EM. Drawing on data from Brazil and China, Daniel’s presentation looks at changes in consumer socio-political dispositions (e.g., xenocentrism and ethnocentrism) and economic psychology (e.g., consumer confidence). Daniel will discuss the marketing implications of this major consumer trend for global and local branding strategies (e.g., iconicity and global/local positioning).

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