AJPark

So what happens when there are no familiar brands to guide us?

Vietnam is a country full of culture, beautiful people and delicious food.  But what struck me was the absence of global brands.  There wasn’t a McDonald’s or a Starbucks in sight. Apart from one KFC restaurant, I didn’t see any familiar global brands in Hanoi, all the way to Saigon!  Now I realise that I am very brand-conscious because I work with them every day.  But I have to admit, I found the lack of familiar brands a little disconcerting.  I had no reference point!  In a country where English is definitely a second, or even third, language, I initially found it difficult to find a cup of coffee or a store that stocked the clothes I was looking for.  For a while I was lost in a daze of local brands, none of which I could relate to.  I won’t tell you how overjoyed I was to find a Gloria Jeans café — I can still taste that flat white. 

Once I realised I just was out of my comfort zone, I started looking and found there were many retailers selling products displaying familiar brands (some genuine and some not).

Hong Kong, on the other hand, is a global brand paradise.  There are big name brands at every turn — for food, clothing, electronics and more.  The familiarity is great — I was surrounded by brands that I recognised and loved. 

When it comes to adopting global brands, the difference between the two countries is huge. Neither approach is right or wrong.  In fact, both approaches have their advantages and disadvantages from a consumer and business perspective. 

What the contrast did highlight to me, was just how effective branding is —particularly when travelling — and how reassuring it is to see a familiar brand when everything else is unfamiliar (although exciting, stimulating and challenging!).

It is easy to see how effective a brand can be when launching new ventures in emerging markets. With Vietnam poised for development and growth, it will be interesting to visit again in maybe 10 years and see whether anything has changed.   In some ways, I hope it doesn’t.

Competing in a global marketplace is challenging, but has become increasingly commonplace as technology has made the world smaller.  Some companies have broadened their horizons by choice, others by need.

Whatever the motivation, brand-related issues surface as one of the major challenges. The biggest challenge to emerge from global marketing is finding the right balance between standardisation and localisation. For example, Coca-Cola is a successful worldwide brand. At the same time, the company wants consumers in each market to feel that the brand fits their local market. Therefore, the brand is localised to fit with the customs and habits of each market without risking the brand’s core values. 

A business wanting to compete globally, needs to understand how vital a brand can be,  and also recognise the challenges of developing that brand for each local market.

We often talk about the value of branding and how important it is to business. 

Consumer recognition of a brand cannot be underestimated.  Similarly, the allure of a brand should not be undervalued.  As a consumer we may not understand fully how attached we are to the familiarity of a brand until we are confronted with a situation where that familiarity is non-existent.  As a business, it is important your brand has profile, is unique and has easily understood brand values.  After all, your brand is the face of your business. 

An edited version of this article was published in Her Business, March 2010.

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  Corinne Blumsky

  Partner