gE Blog Series: Global Branding Part 2 - Evolution of the Global Brand
In 1983, Ted Levitt of the Harvard Business School made a bold prediction; Globalization was coming to fruition. Products and services were soon going to be sold everywhere on earth, not just domestically, creating a truly global brand. Since then, time has proven Ted correct.
Globalization is a major facet of today’s modern business. If you have an interest in taking your company to another country or region, you’re going to have to adapt your current business strategy to the cultural and business norms of that specific place. Global branding has evolved due to the huge advancements in technology and transportation. This creates a huge opportunity to brand your company abroad.
Trends in global branding have come and gone in the past 30 years, including the media outlets, how to reach your target customer more effectively, and how to have repeat business. Most importantly, the buying decision based on price alone has declined in the past 10 years from 16% to 7%, while buying based on brand alone has increased from 43% to 59%. As customers are faced with more alternative products, they trust the brand and will come back time and time again.
The top ten brands this year have risen in value over 118% since 2006. Companies are realizing the advantage of having a strong global brand and are spending more to increase this advantage. This speaks to the fact that 80 percent of sales and 80 percent of profits come from 20 percent of a company’s customers. The evolution of the global brand will continue, probably becoming a major asset of companies in the future than compared to the past.