The Origin Index is the newest part of our annual Best Countries Report, the world’s largest study of nations as brands. Through our Origin Index analysis, we explore the connection between a nation’s brand power and the companies that call it home.
1. A Study on The Power of Nation Brands in Global Markets
2. For over 25 years, BAV Group has worked to understand and celebrate the power of brands. The
ability of brands to influence and, ultimately, become part of culture often results in financial
success, and a country’s trade performance is also affected by how it is perceived around the world.
The Origin Index is the newest part of our annual Best Countries Report, the world’s largest study of
nations as brands. Through our Origin Index analysis, we explore the connection between a
nation’s brand power and the companies that call it home.
We surveyed over 21,000 global consumers to understand how much a brand’s nation of origin can
influence the purchase preferences of consumers, and what marketers can do to tap into a
country’s strengths.
2
3. Source: 2019 Best Countries Report
The Best Countries Origin Index (OI) explores how a
country’s reputation is a direct driver of its success as an
exporter in select industries. 77% of the respondents in
the 2019 Best Countries Report say they prefer to know
where the products they buy come from.
The power of a nation’s brand can have enormous halo
effects on its key industries and the brands within them.
How a country is perceived is inextricably linked to
consumer desire to engage with its products, and we
observe this connection across industries and
geographies.
—Michael Sussman, CEO, BAV Group
3
4. Source: 2019 Best Countries Report; Export Figures: UN Trade Statistics, 2017
The OI is based on consumer perception and
preference — not actual purchasing habits or a
country’s record of exports. Our study shows,
however, that consumer perceptions of countries
can track closely with real-world export figures.
The connection between these two metrics yields
two important insights:
1. Country of origin branding has an important
effect on the ability of nations to compete in
global markets.
2. There is room for a country to overperform if it
leverages its brand strategically, and
underperform if it doesn’t take advantage of
its brand strengths.
Germany
Japan
Italy
United Kingdom
France
Canada
Sweden
United States
South Korea
Belgium
NetherlandsChina
Hungary
Czech Republic
Mexico
India
Slovakia
Morocco
Myanmar
R² = 0.56
4
5. Source: 2019 Best Countries Report
Germany Germany Germany France Japan Italy Italy France
Japan Switzerland France Italy Germany France France United States
Italy Canada United Kingdom United Kingdom United States United Kingdom Spain Germany
United Kingdom France Canada United States United Kingdom Germany Portugal United Kingdom
France United Kingdom Switzerland Spain Switzerland Switzerland Germany Italy
Canada Japan United States Canada Canada Spain Australia Switzerland
Sweden Sweden Sweden Germany Sweden Australia United States Sweden
United States Italy Denmark Switzerland France Canada Argentina Canada
Switzerland Denmark Netherlands Sweden Netherlands Sweden Switzerland Spain
Denmark United States Japan Netherlands South Korea Netherlands Greece Japan
Out of 80 countries measured, these are the top-ranking nations driving consumer preference across key industries.
The United States is a top 10 brand globally in most categories, but does not lead the list in any sector.
RANK
5
6. Source: 2019 Best Countries Report; Export figures: UN Trade Statistics, World Bank; BAV Global Studies 2015-2018
America was once the indisputable economic leader of the world. Not only
did the United States hold the largest GDP in the world for 80 years, it also
enjoyed the largest share of global exports—17% of all goods circulating
around the world in 1960 came out of America’s factories and American
land.
According to the Best Countries OI, many American brands are still some of
the most desired globally. Global BrandAsset Valuator® data proves how
much consumers value brands like IBM, Google, and Apple—America’s
leading technology brands—which are among the top 50 most powerful
consumer brands in the world. Prominent cosmetics brands like Maybelline,
Revlon and Clinique have also grown in brand equity globally in the last few
years.
Brands in sectors like Automobiles, Healthcare and Food, however, are not
as valued around the world, ranking outside the top 5. This means that while
emerging American tech and beauty brands can act as brand ambassadors
when entering new markets—creating a competitive advantage—other
industries must be more strategic in how they leverage Brand USA’s imagery.
USA OI RANKING
HIGHER GLOBAL RANK
LOWER GLOBAL RANK
TECH/ELECTRONICS
COSMETICS
AUTOMOBILES
FOOD
PHARMACEUTICALS
FASHION
HEALTHCARE
WINE
6
7. Source: 2019 Best Countries Report
American consumers see the US as the leader in every category except
medical (Pharmaceuticals, Healthcare). For local companies marketing to
an American audience, communicating an American heritage can drive
brand power and engagement.
However, in the global marketplace, Brand USA trails behind players like
Germany and the UK across a variety of industries. We see the biggest
gaps in Brand USA’s power within the Automobile and Food sectors.
While Americans overwhelmingly prefer American-sourced cars and
food, the rest of the world does not hold them in such high regard.
How can Brand USA close the gap? A key starting point is to focus on
perceptual strengths in innovation and technical expertise, regardless of
category.
TECH/ELECTRONICS
COSMETICS
THE WORLD
sees the USA as
AMERICANS
see the USA as
AUTOMOBILES
HEALTHCARE
PHARMACEUTICALS
FASHION
FOOD
WINE
When it comes to Made In USA brands, American consumers and
global consumers diverge.
7
8. Source: 2019 Best Countries Report; Export figures: UN Trade Statistics, 2017. Healthcare sector information is missing due to lack of comparable export data.
While the United States is a major exporter across a variety of
industries today, Brand USA’s performance on the OI
translates into lower predicted demand for American goods
than we see in actual 2017 data—a warning sign for future
export numbers.
This is especially prominent in the industries in which Made In
USA ranked lowest (Automobiles at #8 and Food at #11).
Despite being the indisputable global leader in Food exports
and #3 in Auto exports by value, people across the world
don’t indicate a preference for American-branded goods.
American brands working together to drive positive
perceptions of their country of origin can help Brand USA’s
rank on the OI—and their bottom lines, too.
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Automobiles Pharma Fashion Tech/Electronics Food Wine Cosmetics
Actual US Exports
Predicted US Exports based on OI Rankings
8
9. Food is one of the biggest discrepancies in how Americans perceive their
market, compared to how the rest of the world sees it. The United States is
the largest exporter of food products in the world, but consumers around
the world don’t necessarily prefer American food over other countries’.
What is the world’s perception of American food? In the Best Countries
Report, the US ranks #19 out of 80 countries in being “health conscious”
(the leaders include the Nordic countries, Netherlands, Canada, Japan and
Australia) and ranks even lower in having “great food” (the top 5 countries
are Italy, Spain, Mexico, Greece and France).
Still, there are opportunities to leverage perceptions of the US in the Food
industry. The US is seen as innovative, trendy and fun—qualities that are
ripe for food-brand competition.
In the United States, Kraft’s high brand equity is similar to the likes of
Google and Nike on our PowerGrid®. It’s just one example of how much
Americans value their food brands. In the rest of the world, the meaning of
Kraft does not translate and results in much lower brand equity globally.
USA
South Africa
China
Germany
Italy
Brazil
Spain
Mexico
India
Source: 2019 Best Countries Report; Export figures: UN Trade Statistics, 2017; BAV Global Studies 2015-2018
9
Esteem & Knowledge
Differentiation&Relevance
10. Source: 2019 Best Countries Report; BAV Global Studies 2015-2018
Unlike Germany and Japan, where the actual auto export numbers align
with their #1 and #2 spots in the Auto OI ranking, Brand USA is the third
biggest exporter of cars, but is ranked #8 on the OI.
American car companies can have significant ammunition when it comes to
driving their global brands if they lean into the right strengths of Brand
USA. Global prowess, innovation and technological expertise are powerful
drivers of brand identity for the auto industry, and are areas where the
American brand excels globally.
As sustainability becomes more important in the auto industry, this is an
area that Brand USA can improve significantly. Today, it is ranked #34 in the
world for “caring about the environment,” leaving US auto brands with
much opportunity to improve.
Germany—#1 in Auto—is the source of many powerful global car brands. BMW is
an example. While BMW is more powerful than most car brands around the
world, Americans, who see American brands as #1, don’t see it that way.
Esteem & Knowledge
Differentiation&Relevance10
BMW USA
BMW UK
BMW France
BMW China
BMW Japan
BMW Mexico
USA
UK
France
China
Japan
Mexico
BMW Automobile Category Average
12. Source: 2019 Best Countries Report
German brands have a distinct advantage in industries requiring technical know-how. With the
German “seal of approval,” communications centered around German heritage can elevate
brands’ reputations for being innovative, high quality and high performance. While cultural
brands—like wine or fashion—will not be able to lean into their “German-ness” in the same way,
positioning centered on innovation and quality will certainly provide differentiation in the space.
Germany is ranked #4 in the overall Best Countries Report.
While it is not seen as #1 in any of the key Best Countries
rankings, it is #2 in prestige, having a skilled labor force and
in having a well-developed infrastructure. It is #3 globally for
having a well-educated population and strong international
alliances.
It is no wonder, then, that consumers around the globe are
preferring German goods when it comes to technical
products, admiring Germany’s auto craftsmanship and
trusting German medical products. Germany’s #2 OI rank in
Tech/Electronics, behind Japan, aligns with its #2
Entrepreneurship sub-ranking behind Japan in the Best
Countries Report.
AUTOMOBILES
HEALTHCARE
PHARMACEUTICALS
FASHIONTECH/ELECTRONICS
FOOD
WINE
COSMETICS
12
13. Source: 2019 Best Countries Report; BAV Global Studies 2016-2018
BrandAsset® Valuator, the world’s largest and
longest-running study of brand perceptions,
tracks consumer perceptions of over 50,000
brands in more than 50 countries. This includes
German brands. BAV’s PowerGrid® of Brand
Equity is a tool for visualizing the power of
brands across a variety of categories in both a
category-agnostic and a geographically-
agnostic fashion.
Esteem & Knowledge
Differentiation&Relevance
Siemens
Braun
BMW
Volkswagen
Porsche
Mercedes
Hugo Boss
DHL
Adidas
Bosch
Bayer
Nivea
Audi
13
14. Source: BAV Global Studies 2016-2018
BrandAsset® Valuator data shows that the more
“German” Opel’s image is, in various European
markets, the more powerful the brand.
Just as Opel is using its German identity to get
credit for the country’s positive qualities, other
brands need to understand the perceptual
strengths they can borrow from their country of
origin.
R² = 0.758
Brand Strength vs. Levels of “German-ness”* by Market
*Un-leveraged Germanic Traits = Leader, Prestigious, Dynamic, Best Brand, High Quality,
Stylish, High Performance, Innovative, Visionary, Progressive, Intelligent, Up-to-Date
Poland
Turkey
Hungary
Netherlands
Germany
Italy
Spain
France
Belgium Austria
UK
14
15. Source: 2019 Best Countries Report
TECH/ELECTRONICS
AUTOMOBILES
HEALTHCARE
WINEPHARMACEUTICALS
FASHION
FOOD
COSMETICS
Japan is the #2 Best Country according to the 2019 report,
standing out especially—as #1 globally—in Entrepreneurship,
having an educated population and skilled labor force, being
innovative and having technological expertise. Additionally,
Japan is credited for being trendy (#4) and health conscious
(#8).
This reputation for technical know-how—similar to that of
Germany—means that technology from Japan is coveted. It is no
surprise then that consumers would prefer to buy
Tech/Electronics from Japan (#1 in this OI category). Japan’s
Automobile industry also scores highly (#2). While still in the top
15 in all categories except Wine, Japan has an opportunity to
use its positive Nation Brand perceptions to improve the
standing of some of its industries on a global scale.
Brand Japan is powerful, with many positive associations to technical expertise and innovation.
Japanese brands might not be taking as much advantage of this reputation as they could be.
While Tech/Electronic brands and Automobile brands from Japan exude power and influence,
Japanese brands in other categories can also lean into these strengths.
15
16. Source: 2019 Best Countries Report
A top 10 Best Country, France’s brand image is about culture,
luxury and modern global connection. Ranked #2 in the Best
Countries Report for being fashionable and trendy, and #3 in
prestige and modernity, it is also seen as “connected to the rest
of the world” (#3). It is among the top 5 countries for having
strong international alliances, being culturally accessible, having
great food and an educated population.
With strong associations in the areas of culture and luxury—and
the credibility to be among the top power players on the global
stage—France’s dominance in the Fashion, Cosmetics, Food and
Wine categories (and even Pharma) shows that French brands
have been able to use their country’s image to their advantage.
French brands can lean on their country’s powerful image in culture and luxury to position themselves
in the global marketplace, or at least get credit in those areas much more readily. But it’s not just the
strength of their country that can provide a powerful foundation; look to fellow French brands (that
have been dominating the global marketplace for decades, and have played a major role in
developing what Brand France has become) as beacons.
FASHION
COSMETICS
PHARMACEUTICALS
TECH/ELECTRONICSWINE
HEALTHCARE
AUTOMOBILES
FOOD
16
17. Source: 2019 Best Countries Report
The UK is a powerful global brand, but not a dominant player in
any one category, both in terms of its overall brand image and
the OI rankings. In the Best Countries Report, the UK is ranked
#5 (just ahead of Sweden and behind Germany), and is most
known for its global connections and international alliances (#2).
Beyond this reputation, it stands out in Entrepreneurship, Power
and Cultural Influence—three Best Countries sub-rankings in
which the UK is also ranked #5. Additionally, it is ranked #5 in
leadership, as well as being prestigious and fashionable.
With such a dynamic, wide-ranging identity, the UK’s OI rankings
are also strong across a variety of categories, even without
dominance in a particular one. A top 5 OI brand in every
category except Wine, its brand strength as an exporter is
generally reflected in its actual trade numbers.
Without a dominant brand image in any one category—and a powerful identity overall—UK brands
can lean into their identity in versatile ways, strategically choosing to take on elements of the
brand’s powerful characteristics that might be harder to develop independently (for example, a
reputation for quality, globality or fashionableness).
PHARMACEUTICALS
FOOD
FASHION
WINETECH/ELECTRONICS
COSMETICS
HEALTHCARE
AUTOMOBILES
17
18. Italy’s brand reputation, according to the Best Countries Report, is
centered around its culture and heritage (ranked #1 in the Cultural
Influence and Heritage sub-rankings, and #2 in Adventure). It is also
#1 for having great food, fashion, being culturally accessible and
trendy. Its friendliness (#2) and rich history (#3) also contribute to
this image.
This cultural credibility has helped Italy secure top OI rankings in
Food, Wine and Fashion. This aligns closely with the country’s
current profile of exports. However, Italy also stands out for its OI
rank in the Automobile category, where it comes in at #3 (much
higher than its export numbers, but these are growing rapidly).
Brands like Ferrari and Lamborghini are examples of Automobile
brands leaning into Italy’s strengths in cultural clout, fashion and
trendiness beyond just their reputation for performance.
While cultural brands in categories like Food, Wine, and Fashion can most easily use their Italian
heritage to create a competitive advantage, categories like Automobiles, Cosmetics and Healthcare
(also top 10 Italian OI sectors) could also take advantage of Brand Italy. Italy is still developing its
reputation in technology and Italian tech companies have an opportunity to shift perceptions of their
home country as they grow on the world stage, ultimately paving the path for even more
development in that area.
FOOD
WINE
FASHION
PHARMACEUTICALSAUTOMOBILES
HEALTHCARE
TECH/ELECTRONICS
COSMETICS
Source: 2019 Best Countries Report
18
19. China’s position in the OI rankings is one of the most misaligned
compared to reality.
China is still developing its global brand identity, and the Best
Countries Report reveals how much of a dichotomy exists
between China’s image and trade power: its three most defining
qualities—where it is ranked #1—are being economically influential,
dynamic and having cheap manufacturing costs. It is also seen as
being entrepreneurial (#2) and a leader (#3). China’s rank as #3 in
having an “influential culture” shows that global consumers
recognize its power as a brand, but have not yet figured out
exactly where it fits in their lives.
While there is still some way to go to bring perception and reality
in line for China, its top 15 rank in Tech/Electronics, and top 25
rank in Automobiles and Fashion, communicates an openness to
the Nation Brand’s growth.
Being associated so strongly with “cheap manufacturing costs” is a challenge many Chinese
brands looking to develop more multi-faceted global personas will need to overcome. They
need to lean into China’s reputation for dynamism and cultural influence while also defining
their brands from within. China’s brands will play a major role in defining its future reputation,
with brands like Huawei and Lenovo elevating China’s Nation Brand similar to the way that
Samsung has helped define South Korea globally in the last few decades.
TECH/ELECTRONICS
AUTOMOBILES
FASHION
WINEHEALTHCARE
COSMETICS
FOOD
PHARMACEUTICALS
Source: 2019 Best Countries Report
19
20. Source: 2019 Best Countries Report; Export figures: UN Trade Statistics, 2017
Mexico’s identity is that of an exciting brand—known for being
fun (#4), sexy (#7), culturally accessible (#9) and for having great
food (#3). It is ranked #5 and #7, respectively, on the Best
Countries' Heritage and Adventure sub-rankings. While these
characteristics make Mexico a top destination for cultural travel,
this does not translate into wanting to buy Mexican goods. Even
when it comes to its OI rank for Food, Mexico is #23—twenty
spots behind its Best Countries ranking.
There is also a disconnect between perception and reality when
it comes to Mexico’s exports. Mexico is a top producer of
automobiles in North America, yet ranks #30 in the OI
Automobile ranking. Similarly, Mexico is the 7th largest exporter
of Tech/Electronics in the world. However, in the OI ranking,
Mexico ranks #38.
A wide disparity between perception and reality is an obstacle for Mexican brands looking to
make their mark on the global marketplace. While leaning into positive qualities around
Mexico’s exciting personality can create a competitive advantage in some industries, over-
relying on its heritage could also be a risk. A campaign to educate global consumers about
Mexico’s capabilities and expertise can positively reflect on all Mexican brands, as can
identifying beacon Mexican brands that can shape the country’s identity and, in turn, positively
influence perceptions of Mexican companies overall.
WINE
FOOD
AUTOMOBILES
PHARMACEUTICALSFASHION
TECH/ELECTRONICS
HEALTHCARE
COSMETICS
20
21. Borrow from
your country’s
strengths
Shield yourself from
your country’s
weaknesses
Know which elements
must be developed from
within
Understand the
commonalities that your
brand shares with your
country of origin
21
22. ONKEYATTRIBUTES
ON KEY ATTRIBUTES
The OI Matrix lays out the relative strengths and
weaknesses of a corporate brand and its nation of
origin to create a framework of relative
opportunities.
STEP 1: Identify the most important attributes—i.e.
drivers of brand equity and engagement for a brand
STEP 2: Use the BrandAsset® Valuator and Best
Countries data to rank the corporate and nation
brand on each of those attributes
STEP 3: Map attributes into the matrix to lay out a
strategic communications plan
22
23. Source: BAV USA, All Adults 2018
In looking to make an impact on the American market, Nutella
can take advantage of some of Italy’s reputation for glamour,
charm and being social. The brand should continue to develop its
premium and healthy persona on its own.
High
High
High
High
High
High
Low
Low
Low
Low
Low
Low
High
High
High
Low
Low
Low
High
High
High
Low
Low
Low
Down to Earth
Authentic
Trendy
Glamorous
Social
Charming
Healthy
High Quality
Reliable
Daring
Energetic
Helpful
GLAMOROUS
SOCIAL
CHARMING
DARING
ENERGETIC
HELPFUL
HEALTHY
HIGH QUALITY
RELIABLE
DOWN TO EARTH
AUTHENTIC
TRENDY
Nutella should lean into its Italian-ness for these attributes
Nutella should continue to develop on its own
23
24. The 2019 Best Countries Report is a rankings and analysis project by U.S. News & World
Report, BAV Group and the Wharton School of the University of Pennsylvania. The rankings
evaluate 80 countries across a range of categories, from economic influence and military
might to education and quality of life, to capture how nations are perceived on a global
scale. The methodology was inspired by the BrandAsset® Valuator model of Brand Equity,
the world's largest database of consumer perceptions of brands and the largest and
longest-running study of brands, uniquely tying the Best Countries rankings to a proven
model of measuring perceptions. For more information, please visit the U.S. News & World
Report Best Countries website at www.usnews.com/news/best-countries.
The Best Countries Origin Index is part of the Best Countries Report—now its in
fourth year. The largest study of Nation Brands, Best Countries asks over 21,400
people around the world to rate 80 Nation Brands on social, political, economic,
geographical and cultural dimensions.
We presented respondents with a series of country pairs and asked them to
choose “which country they would prefer to buy products from” in a series of
sectors: Cosmetics, Pharmaceuticals, Healthcare, Automobiles, Wine, Food,
Tech/Electronics and Fashion. For example, would they choose France over Italy
when it came to Fashion? Would they choose China over Australia when it came to
Tech/Electronics?
Comparisons to export data were performed on the 2017 Global Export Values
compiled by the United Nations Trade Statistics Division. For more information,
please visit their website at unstats.un.org/unsd/trade/default.asp.
Countries
Elites, Business Decision
Makers & Citizens
Country
metrics
Rankings Attributes Years of
learning
24
25. For more information, please
contact:
Anna Blender
SVP Account Director
BAV Group
Anna.Blender@bavgroup.com
BAV Group
3 Columbus Circle
New York, NY 11019
www.bavgroup.com
BAV Group is a global consultancy with expertise in consumer insights and brand marketing strategy.
Using BrandAsset® Valuator, a proprietary brand management tool and global database of consumer
perceptions of brands, BAV informs strategic and creative solutions that drive business results. Over 25
years, BAV has captured data and consumer insights on more than 60,000 brands in 50 countries around
the world, evaluating 75 brand image and equity dimensions that matter. BAV Group is a unit of VMLY&R.
CULTURAL TRENDS
& INSIGHTS
CUSTOM RESEARCH
AND TRACKING
BRAND ELASTICITY
ANALYSIS
BRAND EQUITY
AUDIT
BRAND PARTNERSHIP
& SPONSORSHIP
ANALYSIS
DEALS & ACQUISITIONS
EVALUATION
PORTFOLIO
ARCHITECTURE
SOCIAL EQUITY
ANALYTICS
BRAND POSITIONING
& OPTIMIZATION
25