The best local brands that went global
The world’s largest brands are facing a dual threat from slowing growth in developed economies and the rising popularity of homegrown brands. As getting more sales from existing customers becomes increasingly difficult, and costly, brands are turning their attention to the places where they can attract new customers – emerging markets. According to Kantar Worldpanel’s fifth annual Brand Footprint study, emerging markets now account for 51% of global spend on fast-moving-consumer-goods (FMCG), up from 48% just three years ago. Emerging countries added $34 billion to the global industry throughout the year, a gain of more than 6% over last year, while sales in developed markets were flat. This year’s ranking analyzed 15,300 brands and 1 billion households in 43 countries across five continents in the 12 months to November 2016.
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“The underlying theme of this year’s report is disruption,” said Josep Montserrat, chief executive officer of Kantar Worldpanel. “This not only relates to the political and economic climate of today, but also to the increasing number of disruptor brands and trends which are upsetting the status quo.”
While global brands remain dominant, local brands are achieving faster growth. Local brands grew by 3.9% in 2016, compared with 2.6% growth for global brands.
“In 2016, the price gap between global and local brands has narrowed to the point of disappearing,” said the report. “No longer does being a global brand automatically command a price premium. Global brand owners are having to work harder to convince consumer that a global choice offers the additional reassurance of quality and confers prestige.”
Local brands claimed the top spot in more than half of the countries studied by Brand Footprint. Some of these brands represent a more affordable option in struggling economies like Brazil and Argentina. However, in developed markets consumers have shown they are willing to pay a premium for homegrown products. Local brands are seeing the strongest performance in the food and beverage categories, while health and beauty brands continue to be driven by global brands.
Becoming a successful global brand requires an understanding of local cultures, lifestyles and ideologies, according to two industry figures. In a WARC Best Practice paper, How global brands resonate across cultures, Sue Mizera and Alessandra Cotugno, senior executives at Young & Rubicam, observe that the standardization of brand name, logo, image, packaging and brand positioning simply enables brand recognition in multiple markets. Moreover, different brand values emerge as more important in different countries: Germans like the notion of directness, for example, while Indonesians prefer kindness and South Koreans favor energetic brands.
Here are five great local brands that are worldwide global successes:
- IKEA
In the 1980s, IKEA expands dramatically into new markets such as USA, Italy, France and the UK., the brand beginning to take the form of today’s modern IKEA. In the 2000s, IKEA expands into even more markets such as Japan and Russia. This period also sees the successes of several partnerships regarding social and environmental projects. Today is a major retail experience in 40 countries/territories around the world.
Marcus and Sam commissioned a fleet of steamers to carry oil in bulk, using for the first time the Suez Canal. They also set up bulk oil storage at ports in the Far East and contracted with Bnito, a Russian group of producers controlled by the Rothschilds, for the long-term supply of kerosene.
Their strategy was high-risk: if news of their operations got out they would be squeezed out by Rockefeller’s dominant Standard Oil. With the maiden voyage of the first bulk tanker, the “Murex”, through the Suez Canal in 1892 the Samuels had achieved a revolution in oil transportation. Bulk transport substantially cut the cost of oil by enormously increasing the volume that could be carried. The Samuel brothers initially called their company The Tank Syndicate but in 1897 renamed it the Shell Transport and Trading Company.
In 1907 the company merged with Royal Dutch Petroleum Company, becoming The Royal Dutch Shell Group. There were two separate holding companies with Royal Dutch taking 60% of earnings and Shell Transport taking 40%. The business was run by a variety of operating companies. The merger transformed the fortunes of both companies. Under the management of Henry Deterding they turned from struggling entities to successful enterprises within twelve months.
The Group rapidly expanded across the world. Marketing companies were formed throughout Europe and in many parts of Asia. Exploration and production began in Russia, Romania, Venezuela, Mexico and the United States. The first twelve years also provided many exciting opportunities to demonstrate the quality of the products in the new, fast-developing market for gasoline. These included record-breaking races, flights and journeys of exploration.
More on the history you can read here.
3. Nestlé
The company history begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk Company. Henri Nestlé develops a breakthrough infant food in 1867 and in 1905 the company he founded merges with Anglo-Swiss, to form what is now known as the Nestlé Group. During this period cities grow and railways and steamships bring down commodity costs, spurring international trade in consumer goods. In 1904, Nestlé begins selling chocolate for the first time when it takes over export sales for Peter & Kohler. Henri Nestlé himself plays a key role in the development of milk chocolate from 1875, when he supplies his Vevey neighbour Daniel Peter with condensed milk, which Peter uses to develop the first such commercial product in the 1880s.
In 1960, with increasing numbers of households buying freezers, demand for ice cream is rising. Nestlé buys German producer Jopa and French manufacture Heudebert-Gervais to capitalise on this growth, and adds Swiss brand Frisco in 1962. The company also buys UK canned foods company Crosse & Blackwell. In 1961, Nestlé buys the Findus frozen food brand from Swedish manufacturer Marabou, and extends the brand to international markets. Findus is one of the first companies to sell frozen foods in Europe, from 1945. As chilled dairy products are increasingly popular, Nestlé buys French yogurt producer Chambourcy. In the early 1970s the latter launches the Sveltesse range of yoghurts, aimed at health- and weight-conscious consumers.
Moreover, 1969 is the year the company enters on the mineral waters market by buying a stake in French waters brand Vittel.
In 1974, for the first time, Nestlé diversifies beyond food and drink, becoming a minority shareholder in global cosmetics company L’Oréal. Three years later,the renamed Nestlé S.A continues its diversification strategy by buying US pharmaceutical and ophthalmic products manufacturer Alcon Laboratories.
More on the company’s expansion you can read here.
4. Carlsberg
The brand was born in 1847, but the international approval came just 21 years later when the first Carlsberg beer was exported to Great Britain. Carlsberg was founded by J. C. Jacobsen, a philanthropist and avid art collector. With his fortune he amassed an impressive art collection which is now housed in the Ny Carlsberg Glyptotek in central Copenhagen. The first brew was finished on 10 November 1847, and the export of Carlsberg beer began in 1868 with the export of one barrel to Edinburgh, Scotland.
The first overseas license for brewing was given to the Photos Photiades Breweries, and in 1966 Carlsberg glass and beer was brewed for the first time outside Denmark at the Photiades breweries in Cyprus. The first brewery to be built outside Denmark was in Blantyre, Malawi in 1968.
Carlsberg merged with Tuborg breweries in 1970 forming the United Breweries AS, and merged with Tetley in 1992. Carlsberg became the sole owner of Carlsberg-Tetley in 1997. In 2008, together with Heineken, it bought Scottish & Newcastle, the largest brewer in the UK, for £7.8bn ($15.3bn). In November 2014, Carlsberg agreed to take over Greece’s third largest brewery, the Olympic Brewery, adding to its operations in the country already and effectively transforming the firm into the second biggest market player in Greece.
More about the company’s growth you can read here and here.
5. Mercedes
The brand is known for luxury vehicles, buses, coaches, and trucks. The headquarters is in Stuttgart, Baden-Württemberg. The name first appeared in 1926 under Daimler-Benz. Mercedes-Benz traces its origins to Daimler-Motoren-Gesellschaft‘s 1901 Mercedes and Karl Benz’s 1886 Benz Patent-Motorwagen, which is widely regarded as the first gasoline-powered automobile.
Mercedes-Benz traces its origins to Karl Benz‘s creation of the first petrol-powered car, the Benz Patent Motorwagen, financed by Bertha Benz and patented in January 1886, [3] and Gottlieb Daimler and engineer Wilhelm Maybach’s conversion of a stagecoach by the addition of a petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-Motoren-Gesellschaft. (Daimler Motors Corporation).
Emil Jellinek, an Austrian automobile entrepreneur who worked with DMG created the trademark in 1902, naming the 1901 Mercedes 35 hp after his daughter Mercedes Jellinek. The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benz’s and Gottlieb Daimler’s companies into the Daimler-Benz company. On 28 June 1926, Mercedes Benz was formed with the merger of Karl Benz and Gottlieb Daimler’s two companies.Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular during Germany’s Nazi period. Adolf Hitler was known to have driven these cars during his time in power, with bulletproof windshields. The pontiff’s Popemobile has often been sourced from Mercedes-Benz.
More you can read here.
Some of Romania’s most successful and famous brands at an international level are: Dacia, Aqua Carpatica, ROM, Ursus, Bitdifender, Farmec, etc.
Failure is not the end
We are not used to talk about it, to consider it part of the process, to give it its big importance, to learn from it and understand that it might, or might not, take us to the success. What is sure ids that we mustn’t be afraid of it, try to hide it underneath the carpet and pretend like it never happened. The most successful people in the world lived through it, surpassed it and pushed through. Many entrepreneurs that we know and appreciate nowadays have failed with other previous business or fail daily in more or less important parts of their jobs or activities. Failure makes them stronger, teaches them the values and the importance of appreciating every step of the business track and, more than anything, the success, when and if it comes.
“We all have different definitions of failure, simply because we all have different benchmarks, values, and belief systems. A failure to one person might simply be a great learning experience for someone else. Many of us are afraid of failing, at least some of the time. But fear of failure (also called “atychiphobia”) is when we allow that fear to stop us doing the things that can move us forward to achieve our goals,” believes the team of www.mindtools.com.
The fear of failure may have various causes and goes back, most of the times, in our childhood, just like it happens with most of the things that define our lives and whom we are meant to be. Not having the right support, being undermined or humiliated in childhood, those are some causes that will most definitely carry negative feelings into adulthood.
As the editors of edutopia say, failure is an inevitable part of life, but it’s often accompanied by shame — most people do everything in their power to avoid it. As educational philosopher John Dewey said, a true thinker learns as much from failures as from successes. What if educators worked to take some of the sting (and the stigma) out of failing, and encouraged reflection and revision to build upon the lessons learned? “Perhaps there’s a goldmine of opportunities if we can re-frame failure as a valuable learning experience, an essential step along the path to discovery and innovation,” they added.
“Not talking about it is the worst thing you can do, as it means you’re not helping the rest of the organization learn from it,” said Jill Vialet, who runs the nonprofit Playworks. “It gives [the failure] a power and a weight that’s not only unnecessary, but damaging.” Vialet added, referring to the fact that the people involved in the failure should speak about it openly and work to prevent history from repeating itself.
This idea is already ingrained in the cultures of some for-profit industries. For example, in Silicon Valley, failure is a rite of passage. “If you’re not failing, you’re not considered to be innovating enough. Silicon Valley investors, in turn, regularly reward entrepreneurs’ risk-taking behavior, though they know the venture may fail and they will lose their capital,” it’s shown in an article on opinionator.com. In addition, Jill Vialet of Playworks emphasizes the importance of “failing fast and cheap” (as opposed to slow and expensive). She sets aside a budget for new programs that intentionally have unpredictable outcomes. They limit the scope of these programs, clearly define failure and success at the outset, and decide when to measure the new program’s merits. “It’s about being disciplined and rigorous,” said Vialet, since human nature normally prevents us from recognizing our mistakes while they are occurring, quoted by opinionator.com. A great article on the subject one also can find on guardian.com.
It all depends on how the organization and the people that run it see failure and its importance in business. Just as some organizations encourage employees to talk about failure in office events that are closed to the public, others publish their failures for the world to see. Engineers Without Borders Canada, which creates engineering solutions to international development problems, publishes a “ failure report” every year alongside its annual report. “I only let the best failures into the report,” said Ashley Good, its editor. The examples that are published, she said, show people who are “taking risks to be innovative.”
Moreover, Good also started a Web site, Admitting Failure, to encourage people working in international development to share their stories of failure. The site includes stories about arriving unprepared to an emergency medical situation in the Middle East, the theft of an expensive and underused water filter, and more.
In addition to nurturing a culture of innovation and reflection, talking about failure helps build a canon of knowledge of what not to do in the future.
Still, change doesn’t come over night and building a culture of openness to failure takes time and consistent effort. In the majority of cases, however, failure in the social change world does not involve as many dollars or stakeholders, and admitting it can have a net positive impact on an organization. Doing so can build institutional knowledge and create a culture where people are more open to taking risks.
Often, valuable insights come only after a failure. Accepting and learning from those insights is key to succeeding in life.
“The ability to grow and keep trying when you don’t succeed — resilience and grit — are key to cultivating a growth mindset, in academics and in life. I like how the business world has coined the term “failing forward” to mean using mistakes as stepping stones along the road towards achieving your goals”, says edutopia.org.
We can choose to see failure as “the end of the world,” or as proof of just how inadequate we are. Or, we can look at failure as the incredible learning experience that it often is. Every time we fail at something, we can choose to look for the lesson we’re meant to learn. These lessons are very important, they’re how we grow, and how we keep from making that same mistake again. Failures stop us only if we let them.
“Maybe failure doesn’t always lead to success but is simply the price of doing the right thing. Or sometimes tragedy strikes for no reason and without any apparent benefit. Maybe success in the broader sense comes in the form of failure itself when success’s definition is no longer limited to our individual lives,” says Anthony Sabarillo for medium.com
Instead of conclusion, we leave you with a very interesting article on lifehack.com, showing you six reasons it’s ok to fail.
How to have the best brand storytelling on Instagram
As storytelling is the latest trend in communication, all the agencies and companies trying to bring the concept to life in their campaigns and social media presence, Instagram is one of the latest powerful social media tools to try and capitalize on this trend.
According to Social Media Week, since Instagram launched a couple of years ago, over 300 million people have used this platform as a visual place to share their lives. With more than 20 billion images shared on the app to date–this app has become a creative space & community for people to share their story in innovative ways using photography and short videos.
It’s no wonder the stories on Instagram are catching up people’s attention and likeness as so many of them spending so much time on their mobile devices. What it does now for its users is allowing them to share their stories to the world in a quick and easy fashion. It has become a simple, yet powerful tool that has allowed people and brands to develop their own voice visually.
How can a brand take advantage of this trend and make himself even more noticeable on Instagram? Just take a pick here at our short pieces of advice:
- Identifying your niche & developing your own unique voice.
The way you position yourself is always the key. The more different, unique, special your brand is, the better. Make sure that your stories are always capturing that essence of the brand and special approach. By giving your audience something they know they can expect from you, it will be easier to grow a stronger and more dedicated community around your work.
- Utilizing your captions to add more depth to your photos.
Captions may become a vital part of your storytelling process, if you know how to put accent on them and use the right hashtags and words. The story behind the story is always important and should be relevant. Putting your own spin on the story, emphasizing on a certain aspect that makes your brand YOURS is helping bring the story where it should. Your story ultimately, makes a huge difference.
- Choosing and using different angles
The same places or the same ideas, presented in your brand’s way, are creating the differentiation that you are looking for. Instead of shooting something from the same angle as everyone else, try looking for new spots to take the same photo. Maybe you want to get closer to the ground for a different angle, pose a person in a different place, or shoot a photo through the branches of a tree to provide a more natural frame. There are always ways to put a new spin on the same place, and try to make sure you try a bunch of different angles.
- Highlight your brand’s versatility
People want the brands to be playful, to interact, engage and entertain them. They get bored really easy and you must make sure you always bring something fresh to the table. Don’t be afraid to try, to mix and match, to always have in handy a special new app or filter that is trendy. Make it count while is still fresh and not used by a lot of other brands present on Instagram. Your followers will be looking for powerful, original, content. Find ways to expand your current niche creatively to develop a strong brand voice.
- Using video and gifs
Always be present. Be fast and up-to-date. A video speaks more than a picture. A gif makes one laugh and entertains. In other words, powerful tools for your story.
- Making sure you have user-generated content
Getting your followers involved is extremely important for a TODAY brand. Get your audience to do some of the heavy lifting for you by creating a user-generated hashtag for your brand tribe. Then you can post the content of your biggest fans directly on your Instagram account.
- Showing your happy employees
There’s a global war for talent today and the best brands are showing off the fresh faces on their team and all the fun they are having at work. Showcasing yourself at work or your company’s employees in action is great for putting a human face on your brand, which makes what you share on Instagram more interesting to your followers.
- Introducing them behind-the-scenes
Each one of us loves to feel special and shown that they are important. Make sure your brand does that for its followers. You can start by taking them inside the stories of your company, showing them some never-seen before images, actions, activities, etc. Take them where nobody has been before!
