Nudgeable Nations
Decoding Brand Switching:China and Brazil
We find the Nudgeables everywhere — the mindset is global — but the retail landscape (today and tomorrow) plays a huge part in facilitating the nudge as brand-switching dynamics play out.
Brazil and China, for instance, showcase a particularly high propensity for switching. These figures significantly surpass the global average of 42%, highlighting these countries as fertile grounds for targeted marketing strategies. Each market has experienced unique changes in its retail landscapes, showcasing the growing potential for brands to capitalise on Nudgeables. The opportunity to nudge these consumers is significant today and is poised to expand even further in the future.
In Brazil and China, the shopping environment greatly influences the potential for brand switching.
China is undeniably the most ‘online’ country for shopping, with 85% of consumers buying online compared to the 28% European average. The online shopping experience in China is designed to ensure seamless purchases often driven by subtle brand pushes. Influencers wield significant power, presenting and recommending products with seamless click-through functions for purchase. Suggested products and ads are subtly presented, reducing the need for personal searches and driving subconscious brand switching. Shopping festivals, such as Singles Day, are also major events, with targeted marketing encouraging mass purchases during deals, thus boosting penetration…at least until the next purchase cycle.
The nature of the economy drives more frequent shopping due to weekly wage payments and inflation levels impacting choices. The rise of new store formats and discounters encourages Brazilian shoppers to ‘shop around’ in physical stores for the best deals. 'Stock-up' shopping is limited due to financial constraints, ensuring consumers return to stores more frequently, offering more opportunities for the next nudge. Being meaningfully different to secure predisposition, and present to secure purchase, is crucial in this fast-moving economy.
European markets such as Great Britain and France exhibit lower switching rates at 37.3% and 34.8%, respectively. However, these figures still represent significant opportunities for growth. Remember, the long-term return comes with establishing sustainable household penetration.
Opportunities for Targeted Marketing
Examining market-specific trends reveals that more than a one-size-fits-all approach is required. Brands must adapt their strategies to align with local behaviours and preferences. In high-switching markets like Brazil and China, more aggressive and innovative marketing tactics can capture the Nudgeables' attention.
