Tourists walk past a Louis Vuitton shop in downtown Ho Chi Minh City. A recent survey reveals that Vietnamese shoppers are among the most label-conscious in the world.
Asia Pacific consumers are the most likely to be won over by designer brands with around three in five willing to pay more for them, according to a new online study by Nielsen, a global information and insights provider.
The Nielsen survey of more than 29,000 Internet respondents in 58 countries revealed that 56 percent of Vietnamese consumers would spend more on designer goods, the third highest globally.
China ranked first with 74 percent, followed by India with 59 percent.
Asia Pacific consumers are also drawn to high profile brands, with 55 percent saying they would like to buy products of famous brands, compared to the global average of 47 percent.
"The economic boom in a number of Asian countries coupled with growing middle class populations has seen the emergence of a new breed of consumers with higher disposable incomes," David Webb, Nielsen's managing director of advertising solutions, said in a press release published by the Asia Media Journal.
"Cashed up and ready to spend, these consumers are seeking out designer and well-known brands to project their new-found social status. The rapid expansion of the internet and other media channels has given rise to more exposure, awareness and desire for brands and products than ever before."
The report also reveals the strong influence advertising has on consumers' purchasing decisions.
About two-thirds of Asia Pacific consumers said advertising influences their preference for a brand, the highest in the world and 12 points above the global average of 55 percent.
Nearly two-thirds of Asia Pacific consumers said images in advertisements influenced their decision to buy a product, 10 points higher than the global average of 54 percent, and more than half said they would buy a product because they liked its commercial.
"Brands are presented with a huge opportunity to win over consumers in emerging Asian markets with clever and relevant advertising that establishes an emotional connection," Webb said.
He said new and emerging media platforms are enabling greater targeting and brands must leverage these opportunities for success.
"There is no silver bullet to budget reallocation, but all analysis so far shows that advertisers could, and should, go further with their digital investments."
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