Australia replaces top international brands with its own—even if they are no longer operational

AUSTRALIA's TOP LOCAL BRANDS

In our analysis of Australia's top local brands in 2019, we investigated why Australians were placing greater value than ever on national brands as the likes of Qantas, Vegemite and BHP jumped up the ranking. That trend has been taken a step further in 2020, with all non-Australian brands now pushed out of the list of Australia's top local brands.

The ranking asks respondents what they think is the strongest local brand—specifically which has the best reputation and resonates most strongly with those living in this market. 

Apple and Samsung were the only non-Australian brands to make the list in 2019. But in 2020, US electronics giant Apple slid a considerable 20 places in the top local brands ranking, while South Korea's Samsung (which is the top brand in the overall Asia's Top 1000 Brands ranking) fell four slots. They have been replaced in the top 10 by homegrown brands Holden and Kmart. 

Nick Foley, the president of Southeast Asia Pacific and Japan at Landor and Fitch, suggests that Samsung's loss may be the result of collateral damage informed by geopolitical tensions between Australia and Asia.

"It’s hard to think of a time when relations between Australia and China have been so strained, and having the US president blaming the coronavirus on China is not helping soothe matters either," Foley says. "With this in mind, it’s not surprising to see Samsung drop back in its rating with Aussies. Whilst the brand is Korean, for many consumers anything that is associated with ‘Asia’ may be unfavourable at the present time."

Elsewhere, it’s noteworthy that Woolworths usurped Coles this year, moving to 2nd place. This could be the work of Andrew Hicks, who was appointed in June last year to become the supermarket’s first-ever CMO. Since taking up the role, Hicks has overseen major marketing campaigns that have injected fresh life into the nearly 100-year-old brand. Hicks, along with Coles CMO Lisa Ronson, featured in Campaign Asia-Pacific's Power List 2020.

"Woolworths by all accounts has been winning the race for groceries, and the growth of “The Fresh Food People” is unsurprising given our nation’s obsession with food in every form," explains AnalogFolk partner and managing director Matt Robinson.

"This is a trend that is not going anywhere. According to the latest data from Illion, food delivery during COVID-19 has absolutely exploded and is the fastest-growing area of discretionary spend in the country. Whether it’s restaurant delivery, fast food, food and recipe boxes, or just plain old groceries, this category has grown by around 280%."

The fact that Kmart joined the top 10 this year—jumping up 20 places in the local ranking—shows that Australians really do love their supermarkets.

Australia has been through an extremely challenging 12 months, from bushfires, to drought and the impact of COVID-19. In the face of this adversity, national pride is growing stronger in Australia, which has always been a parochial market. This is most acutely represented in the entrance of Holden into the top 10 list (from 11th place in 2019). To see why it is significant that Holden has joined the top 10 list, see our analysis here.