Brands from South Korea, Brazil, Russia, India, and China are still often hidden giants in Europe German consumers are still relatively unfamiliar with champion brands from emerging markets. Only one-third of German consumers can spontaneously name a brand from South Korea, Brazil, Russia, India, or China. Brands from the emerging markets surveyed generally show major weaknesses in the traditional values like quality, reliability, and sustainability. However, German consumers see potential for brands from emerging markets and expect even stronger brands to emerge especially from South Korea and China. Also brands from Brazil can build on untapped positioning potential. Those are the results of globeone’s representative study on the perception of emerging market brands by German consumers. In total, 1,000 German consumers were interviewed in June 2013.

1. Cologne  Shanghai  Beijing  Mumbai  São Paulo  Singapore  Seoul
Emerging Market Brands Survey
How German consumers perceive brands from Brazil,
Russia, India, China, and South Korea
August 2013

2. 2
Agenda
• Executive summary
• Survey approach
• Survey results
• Strategic implications and recommendations
• About globeone

3. 3
Key findings (1/2)
STILL LOW AWARENESS LEVELS FOR EMERGING MARKET BRANDS
Only 36% of German consumers can spontaneously recall at least one brand from China, India, Brazil, Russia, or
South Korea. Brazilian brands in particular are almost unknown to German consumers – only 6% can name at least
one brand. Brands from Russia and South Korea are spontaneously recalled by 36% and 32%, respectively.
LOW PREFERENCE AND PARTLY NEGATIVE PERCEPTION
Most respondents (69%) do not prefer brands from emerging markets. Brazil tops the list, with an indifference
rating of 86% due to very limited availability. China and Russia even have a strongly negative perception: 32% have
a negative opinion of Chinese brands, and 24% of Russian brands.
PARTNER VS. COMPETITOR: CHINA AND SOUTH KOREA SEEN AS BIGGEST THREAT FOR GERMAN INDUSTRY
Consumers are particularly suspicious of China (68%) and South Korea (42%) – these countries are considered
major competitors of Germany. Despite these concerns, South Korean products still enjoy the strongest positive
image in comparison to the BRIC countries: 24% hold a positive image of South Korean brands.
CLEAR LEAD INDUSTRIES ASSOCIATED WITH EACH COUNTRY
China (19%) and South Korea (20%) are most strongly associated with home appliances and electronics. In
addition, South Korea ranks high in automotive (20%), China in textiles (17%). Brazil ranks highest in tourism (23%),
Russia is linked to raw materials and energy (33%), while India is known for textiles (23%) and IT (16%).
SHORTCOMINGS IN TRADITIONAL VALUES – CHINA PUTS PRESSURE ON SOUTH KOREA
Brands from all countries show relatively low levels of “quality” perception and other traditional values. Compared
to BRIC, South Korea is perceived as clear quality leader (25%). However, China is already pushing for leadership in
“innovation” (2% pp. behind leader South Korea), and is already the leader in “good value for money”.
Note: pp. = percentage points

4. 4
Key findings (2/2)
BRAND ORIGIN – GERMAN CONSUMERS MIX IT UP
When asked to spontaneously name an emerging market brand, German consumers often name brands that
actually have different origins than consumers assume. Many vodka brands are falsely associated with Russia,
trendy fashion brands are assumed to be Brazilian, and many Korean technology brands are seen as Japanese.
AWARENESS RANKING LED BY SOUTH KOREAN AND ACQUIRED WESTERN BRANDS
South Korean brands lead the brand awareness ranking. Four brands have an aided awareness rate of over 90%
(Samsung, Kia, Hyundai, LG). Acquired Western brands Volvo, Jaguar and Land Rover have similar results (96-
94%), leaving the next genuine emerging market brand, Lada (Russia), clearly behind with 77%.
“MADE IN SOUTH KOREA” – A BRAND ASSET AND BENCHMARK FOR OTHER EMERGING MARKETS
Korean brands already have the strongest positive image even though their champion brands do not emphasize
their origin (yet). Although Chinese and Russian brands have to overcome a COO-barrier, Chinese brands are
challenging the Korean benchmark. Brazilian brands have the most favorable positioning potential.
SHARED BRAND CHALLENGES
German consumers see similar improvement potential for brands from all emerging markets. Product quality
(more than 50%), image (more than 39%), and eco-friendliness (more than 46%) are considered the most critical
aspects that need further improvement.
EMERGING MARKET BRANDS ON THE ADVANCE – CHINESE BRANDS FOLLOWING THE KOREAN STRATEGY
German consumers see most potential for emerging market brands in industries that are already associated with
these markets. Chinese brands are expected to become much more important in the automotive industry as well
as in home appliances and electronics – further challenging South Korea’s benchmark.

5. 5
Agenda
• Executive summary
• Survey approach
• Survey results
• Strategic implications and recommendations
• About globeone

6. 6
Relevance of emerging market brands in Germany –
national champions go global
“The next set of big global brands will come from emerging countries.”
David A. Aaker, 2013
“Emerging market brands are more agile, prepared to work harder, and
have the appetite to do what it takes to be number one.”
Prof. Amitava Chattopadhyay, Insead Business School, 2012
Emerging market brands
going global
Country of origin
(COO)
A new wave of Chinese investment is rolling across the world, and Europe
is where much of it’s washing up. Over the past couple of years, Chinese
groups have been snapping up an assortment of manufacturing
companies and consumer brands at a steadily increasing pace. Last year
Chinese investments into Europe totaled $12.6 billion, up 21% over 2011.
Time Magazine, 2013

7. 7
65 brands from 5 countries2:
Over 1,000 interviews among German consumers to
analyze the perception of emerging market brands
1 Most relevant brands for the German market determined via pre-test. 2 A short description of each brand
(“Brand Snapshot”) can be downloaded at http://www.globe-one.com/news-insights/publications/.
Objectives:
• Analyze perceptions of emerging market brands in Germany
• Identify country of origin image (COO image) of emerging market countries in
Europe’s largest economy
• Define strengths and weaknesses of emerging market brands and their strategic
implications
Method/timing:
• Representative survey among German consumers (n ≈ 1,000)
• Include 65 brands from Brazil, Russia, India, China and South Korea1
• Field work conducted: June 2013

8. 8
Agenda
• Executive summary
• Survey approach
• Survey results
• Strategic implications and recommendations
• About globeone

9. 9
Hidden giants: only 1 out of 3 Germans can correctly
recall at least one brand from emerging markets
– Spontaneous recall of at least one brand from one of the countries surveyed –
(Brazil, Russia, India, China, South Korea)
Q.: What brands from … are you familiar with or have you heard of?
64%
36%
0%
20%
40%
60%
80%
Cannot recall at least one
brand
Can recall at least one
brand
% of respondents correctly recalling at least one brand
– Country-specific level –
11%
17%
32%
36%
6%
– Overall –

10. 10
– Unaided awareness of emerging market brands among German consumers –
Consumers mix it up: brands mentioned spontaneously
often have different origins than consumers assume
Q.: What brands from … are you familiar with or have you heard of?
Top 10 – brands mentioned spontaneously per country
= brand from respective country = brand from different country
• VW (do Brasil)
• Pitu
• Guarana
Antárctica
• Desigual
• Embraer
• Petrobras
• Brahma
• Chiquita
• Miezko
• Rio Tinto
• Gazprom
• Lada
• Wodka
Gorbatschow
• Puschkin
Vodka
• Smirnoff
• Wolga
• Lukoil
• Kalashnikov
• Absolut
• Aeroflot
• Tata
• Mittal
• Dacia
• Air India
• Kingfisher
• H&M
• Adidas
• Amit Electricals
• Ashok Leyland
• Asia Motor
Works
• Huawei
• Lenovo
• Toyota
• Air China
• Haier
• Yingli Solar
• Foxconn
• HTC
• Toshiba
• Tsingtao
• Samsung
• Hyundai
• Kia
• LG
• Daewoo
• HTC
• Ssangyong
• Sony
• Suzuki
• Daihatsu
Small flags indicate the correct country of origin

11. 11
Most German consumers do not prefer emerging market
brands
– General attitude towards emerging market brands in Germany – • 18% of respondents
have a positive
attitude towards
emerging market
brands
• More than two thirds
of German
consumers have no
preference when
asked for emerging
market brands
• However, only 13%
dislike emerging
market brands, which
underscores their
positioning potential
1%
12%
69%
11%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
I do not like
emerging
market brands
at all
I do not really
like emerging
market brands
I do not have a
preference
I like emerging
market brands
I like emerging
market brands
very much
Majority
with no
preference!
Q.: Do you like products and services of brands from…?

12. 12
– General attitude towards emerging market brands in Germany –
South Korean brands hold strongest positive image –
Chinese and Russian brands face biggest COO challenge
I do not like brands
from … at all
I do not really like
brands from …
I do not have a
preference
I like brands
from …
I like brands
from … very much
86%
3%
21%
0%
9%
4%
63%
1%
11%
22%
10%
56%75%
1%
10%
7%
7%
67%
1%
8%
0%
14%
10%
1%
8%
0%
2%
3%
24% associate
positive image
!
24% associate
negative image
!
32% associate
negative image
!
Major gap – need for action
Q.: Do you like products and services of brands from…?
!

13. 13
– Perception of country role for Germany’s economic development –
Country level: consumers particularly suspicious towards
China and Korea
Competitor
Neutral
Partner
Q.: With regard to the economic development of Germany, how do you see the role of …?
• China and South Korea have a clear competitor image – especially China is regarded as clear
competitor with respect to Germany’s economic development
• Brazil most often called a partner for Germany’s economic development
• Russia and India share similar roles, with both countries being rather perceived as partners –
however, most respondents see them as neutral
9% 68%
52%
39%
44%
30%
26% 26%
42%
33% 13%
18%
23%
35%
42%

14. 14
– Perception of current strengths in key industries (selected results)–
7%
5%
5%
16%
8%
23%
12%
7%
10%
19%
12%
6%
17%
5%
4%
20%
20%
17%
2%
10%
6%
10%
2%
3%
13%
6%
10%
20%
5%
2%
1%
18%
13%
23%
Industry level: China and South Korea are associated with
strengths in similar industries, Brazil ranks high in tourism
IT/
telecommunications
Home appliances
& electronics
Automotive
Raw materials/
energy
Q.: What industries are products and services from … known for? (Multiple answers possible)
Food & beverage
Textiles
Tourism
33%
!!
!!
!
!
!

15. 15
‘Quality’ perception: all countries show relatively low
levels – South Korea still seen as quality leader
– Perception of ‘excellent quality’ as attribute for products from the respective countries –
Q.: Please indicate what attributes you associate with products and services from …
12%
14% 14% 14%
25%
0%
10%
20%
30%
40%
50%
60%
China Russia Brazil India South Korea

16. 16
Perception of ‘innovation’: China clearly pushing for
leadership in terms of innovation and high tech
– Perception of ‘innovation and high tech’ as attribute for products from the respective countries –
Q.: Please indicate what attributes you associate with products and services from …
14% 14%
26%
41%
43%
0%
10%
20%
30%
40%
50%
60%
Russia Brazil India China South Korea

17. 17
Perception of ‘good value for money’: Chinese brands
perceived as leading in this dimension
– Perception of ‘good value for money’ as attribute for products from the respective countries –
Q.: Please indicate what attributes you associate with products and services from …
25%
28%
39%
41%
49%
0%
10%
20%
30%
40%
50%
60%
Russia Brazil India South Korea China

18. 18
– Perception of brand and product attributes for respective countries –
Image profile: China challenges South Korea’s pole
position in terms of ‘design’ and ‘innovation’
Q.: Please indicate what attributes you associate with products and services from …
0% 10% 20% 30% 40% 50%
Brazil Russia India China South Korea
Outstanding design
Excellent quality
High prestige
Environmentally friendly
High reliability
Innovative & high-tech
Fashionable & exciting

19. 19
– Perception of brand and product attributes for respective countries –
All brands are associated with low levels of
‘trustworthiness’ and ‘sustainability’
Q.: Please indicate what attributes you associate with products and services from …
0% 10% 20% 30% 40% 50%
Brazil Russia India China South Korea
High performance
Durability
Good value for money
Good customer service
Trustworthy
Good corporate citizenship
Close to customer needs

20. 20
– Aided awareness of emerging market brands (rank 1 to 10) – • South Korean brands
clearly dominate the
ranking
• Top 10 dominated by
car and electronic/
household appliance
brands
• Chinese and Indian
companies make the
Top 10 only through
brand acquisition
• Russian brands show
comparably strong
awareness rates
Aided awareness: Korean, acquired Western brands, and
Russian brands show very high awareness levels
98%
97%
97%
96%
96%
94%
94%
77%
76%
71%
Samsung
Kia
Hyundai
Volvo
Jaguar
LG
Land Rover
Lada
Gazprom
Kaspersky
Q.: Please indicate which of the following brands you are familiar with or have heard of.

21. 21
– Aided awareness of emerging market brands (rank 11 to 20) – • Lenovo, as the first
originally Chinese
brand, also benefited
initially from its
acquisition of IBM’s
personal computer
business
• Although Brazil’s first
brand is ranked 14th,
Pitú is still recognized
by nearly 50% of
German consumers
• Air India is the only
genuine Indian brand
in the Top 20
Most famous original brands from China, India, and Brazil
are substantially behind those from South Korea
68%
62%
57%
47%
45%
44%
44%
44%
40%
38%
Kalashnikov
Lenovo
Aeroflot
Air India
Hankook
Tyre
Pitú
Tupolev
Huawei
Beluga
Korean Air
Q.: Please indicate which of the following you are familiar with or have heard of.

22. 22
– Correct recognition of country of origin (rank 1 to 10) – • Russian brands show
highest recognition
of country of origin
• South Korean brands
generally have low
COO recognition (Kia
52%, rank 23;
Samsung, 43%, rank
32)
• No Brazilian brand
among top 10
Recognition of country of origin: top 10 featured brands
with most explicit country reference
95%
94%
94%
92%
92%
90%
90%
89%
84%
75%
Tupolev
Air China
Air India
Kalashnikov
Korean Air
Russian
Standard
State Bank
of India (SBI)
Gazprom
Aeroflot
Tsingtao
Q.: Where do you think this brand is from?│ Sample: Based on interviewees who are familiar with the brand

23. 23
– Perception of necessary improvements for brands from respective countries –
Shared brand challenges: perceived shortcomings with
regard to quality, image, and eco-friendliness
Q.: What areas do products and services from … need to improve in?
0% 10% 20% 30% 40% 50% 60% 70%
Brazil Russia India China South Korea
Product quality
Value for money
Availability
Image
Customer service
Eco-friendliness

24. 24
– Expected future success potential in key industries –
5%
4%
4%
26%
5%
29%
11%
5%
15%
22%
16%
3%
16%
5%
4%
24%
17%
20%
1%
9%
5%
0%
4%
1%
4%
11%
6%
13%
23%
3%
2%
1%
13%
11%
Future success potential: consumers see brands’
potential – China to put further pressure on South Korea
Q.: In which industries do you think products and services from … will be (more) successful in the future?
IT /
telecommunications
Home appliances
& electronics
Automotive
Raw materials/
energy
Food & beverage
Textiles
Tourism
45%
33%
!!
!
!
!
!

25. 25
Agenda
• Executive summary
• Survey approach
• Survey results
• Strategic implications and recommendations
• About globeone

26. 26
Main challenges for emerging market brands targeting
European consumers
#1
Brand awareness challenge
#2
Brand image challenge
#3
Country of origin challenge
• Most strikingly, BRIC brands lack
market exposure, as they are simply
not available or have to few
distribution points
• Consequently, those brands also lack
significant awareness, interest, and
profiling to be in the relevant brand
set for German consumers
• Brand awareness is the entry ticket –
but so far the brand-building efforts of
these new players are very limited
 Expand and upgrade marketing
capabilities to create positive
awareness in the right target groups
of German consumers
• “Low cost” or “value for money” are
often perceived as predominant
competitive advantages
• Sustainable brand building is not only
about differentiating products, but
also about building emotional values
and relationships with and among
consumers
 Address concerns and needs based on
insights, and counter low brand
knowledge by emphasizing unique
brand attributes, entering into
dialogue, or using external credibility
booster (e.g. tests, testimonials,
guarantees, cooperation)
• The COO image can serve as a cue in
the purchasing decision process. It
can strengthen the image of a brand,
but also weaken it. The effect varies
across categories
• Emerging market brands often need
to overcome negative associations
related to the broader political, social,
or technological environments of
their home countries
 Apply market-driven strategies to
overcome a COO challenge or to
realize potentially positive COO image
effects in different product categories
?
Innovative?
Not desirable ???
Low quality
???
???

27. 27
From awareness to image to purchase: different routes of
emerging market brands can be observed (1/2)
Note: routes based on “Brand Breakout” by Nirmalya Kumar and Jan Benedict E.M. Steenkamp, 2013
{1 Entering a market with a decent-quality, low-price product to attract price-sensitive consumers, and
then steadily increase quality and price to enter higher segments until a dominant market presence
across the entire price/quality range is achieved (examples: Samsung, LG, Haier)
“Asian tortoise route”
{2 Taking over traditional brands to rapidly enter new markets and build on a strong customer base;
thorough decision to retain the acquired brand as a separate brand or to merge it
(examples: Geely-Volvo or Tata Motors-Jaguar)
“Brand acquisition route”
{3 Overcoming negative country of origin associations that can be a significant purchase barrier for brands (example:
“Incredible India”). COO image campaigns are most effective when governments and companies with champion
brands join forces to launch positioning campaigns or establish and seize positioning opportunities
“Positive campaign route” – work on the COO
{4 Ensuring substantial support form the state to establish a dominant position in the domestic market. This strong
position is then leveraged to enter international markets subsequently. The government can provide indirect
(barriers to entry for competitors) or direct (with e.g. subsidies) support (example: Gazprom)
“National champion route”

28. 28
From awareness to image to purchase: different routes of
emerging market brands can be observed (2/2)
Note: routes based on “Brand Breakout” by Nirmalya Kumar and Jan Benedict E.M. Steenkamp, 2013
{6 Branding natural resources on the basis of an association between the brand and a particular geographical
region (example: Natura Brazil associating its brand with the country’s biodiversity)
“Natural resource route”
{7 Following emigrants into the world, e.g. by first addressing people with a background in emerging markets, or
people who have made experience with the brand in its domestic market (e.g. by tourism, business travels) and
seek the same experience upon return to their home country (example: Reliance Mediaworks’ Big Cinemas)
“Diaspora route”
8 Leveraging B2B strength in B2C markets, e.g. by developing from a contract manufacturer into a
branded player, or by brand extensions (example: Huawei)
“Business to consumer route”
{
5 Positioning on positive cultural myths, transferring unique associations to the brand (e.g. ayurveda
from India, silk from China, vodka and withstanding heavy winters from Russia, beach and samba
culture from Brazil) (example: Havaianas)
“Cultural resource route”
{
Market-driven brand positioning as key factor for sustainable success for all of these approaches

29. 29
globeone Market-Driven Positioning Process®
Source: globeone 2013
#4#2 #6
#1 #3 #5 #7Screening the
market:
Local positioning options
are matched with the
brand’s global value
proposition to filter out
concepts that would over-
stretch the brand.
Aligning your
brand:
Evaluating existing internal
data and combining it with
pragmatic external research
produces initial insights and a
thorough overview of the
market.
Based on a thorough
competitor analysis, only the
truly unique positioning
concepts remain in this phase
– the ‘blank spots’ for the
brand.
Setting your
brand apart:
The optimal market-driven
positioning enables the brand
to become and stay highly
relevant in the local market.
Proposing the
ideal values:
Relevance
comes first:
Understanding what people
really care about and what
makes them buy a product
points the way to potential
positioning routes.
Making your brand
credible:
Finding out what internal and
external target groups already
think of the brand helps to
identify the most convincing
positioning concepts.
Finding the best
positioning
The ideal concept for the
brand is chosen through
detailed testing and validation.
Consistency
Check
Credibility
Check
Differentiation
Analysis
Attractiveness
Validation
Market-driven
Positioning Concept
Relevance
Screen
Brand/Market
Insights
Market-driven Positioning Concept
Market-driven Positioning Concept
Market-driven Positioning Concept
Sporty
Elaborate
Progressive

30. 30
Agenda
• Executive summary
• Survey approach
• Survey results
• Strategic implications and recommendations
• About globeone

31. 31
globeone’s mission
globeone is a management consultancy with a focus on the world’s
key growth markets.
From our offices in Germany, South America, and across Asia, we
combine global strategy and local opportunity to help brands with
market-driven positioning where it matters most.
With special competence in brand management, marketing
strategy, communications and research, we help ambitious leaders
outsmart the competition.

32. 32
We deliver a global service portfolio from our
regional hubs

33. 33
We support our clients throughout
implementation, helping our
partners reach long-term goals.
We position products, brands, and
organizations in markets with
relevant target groups.
Market-
Driven
Positioning
Market-Driven Positioning – the core of what we do
We work based on insights from
consumers, stakeholders, and
market intelligence.
We craft strategies for growth:
market entry, market expansion,
organizational transformation.

34. 34
Brand Performance
Monitor
Market Structure
Analysis
Customer Insight
Generation
Definition of Market
Drivers & Segmentation
Competitor Bench-
marking/COM Analysis
Growth Area Mapping
Digital Excellence
Transformation Road-
mapping
Integrated Marketing &
COM Planning
Strategic Positioning
Initiatives Concepts
Integrated Campaign
Development
Lead Generation
Processes (CRM/dCRM)
Agency Selection &
Steering
Performance
Measurement
Insight Transfer Strategy Planning Roll-out
Internal COM Screen
Growth & Expansion
Plan
Stakeholder Alignment
Project Management
Support
Market-Driven Positioning – our services
Market-Driven
Positioning

35. 35
Contact
Christian Titze
Manager, Global Practice Lead
globeone
Kranhaus Süd
Im Zollhafen 24
50678 Köln – Germany
Phone: +49 (0) 221 788068-0
Fax: +49 (0) 221 788068-29
E-mail: cologne@globe-one.com
www.globe-one.com
Dr. Niklas Schaffmeister
Managing Partner
Carina Hauswald
Managing Director, globeone Cologne

36. 36
Also available:
globeone BRIC Branding® Survey
• The survey offers exclusive insights and strategic recommendations for the world’s key growth
markets, e.g.:
 Insights regarding the perception of German brands in key growth markets
 Derived strategic recommendations on brand management in these markets
• The survey was featured in several leading German business newspapers such as Handelsblatt,
FAZ, Wirtschaftswoche and Manager Magazin
Download the survey: http://www.globe-one.com/news-insights/publications/

37. Cologne  Shanghai  Beijing  Mumbai  São Paulo  Singapore  Seoul
© Copyright
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globeone GmbH or its network office until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of
this work is permitted only with the consent of globeone GmbH or its network office. This document is a discussion paper. It makes use of
secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements.
Note: registered trademark application for globeone Market-Driven Positioning Process pending