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last updated 25/09/2020


Franchises' reputations grow as local brands deliver

last updated 25/09/2020


25 September 2020 - A new survey has shown that New Zealanders' appreciation of certain franchise brands grew during uncertain times.

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The Coffee Club has jumped into the top 100 brands in New Zealand in an international survey on consumer brand perception. With the pandemic on everyone’s minds here, Asia’s Top 1000 Brands found that companies providing essentials and comforts were big winners during the survey period, and coffee seems to come into both categories.

In general, the survey tends to reflect the power of international product brands, especially in the technology sector, with Samsung, Apple and Google taking the first three spots. Of the five local brands in the top 20, it was notable that three were franchises.  Pak’nSave moved into the top 10 of the annual survey for the first time, Anchor came in 17th while New World rose to 18th position. McDonald’s, the world’s best-known franchise, came in at 35th.

The survey reinforces the fact that, when it comes to the delivery of products and services, franchises offer a distinct advantage. A focus on shareholder return and the lack of employee loyalty often mean big businesses find it hard to deliver real service, but franchises combine the dedication of locally-owned and operated businesses with the market awareness and buying power of a major brand.

With global companies increasingly dominating many sectors, franchises also offer local business people the opportunity to be part of something bigger, investing both capital and their own time and expertise into a proven business model which can become a sizeable (and saleable) asset in itself.

Ownership by local franchisees also mean that businesses make a real contribution to New Zealand’s economy through taxation, rather than exporting profits overseas.

There were 15 New Zealand brands in the top 100, including 5 retailers; the only non-franchised retailers among them were Michael Hill and the Life Pharmacy chain (which includes some franchises under the Care Chemist name).

Asia’s Top 1000 Brands aggregates data from an online survey developed by Campaign Asia-Pacific and global information and insights provider Nielsen. The survey was conducted between February 21 and March 19, 2020 and explores consumer attitudes in 14 markets from China and India to New Zealand. The study encompasses 15 major categories. Participants gave their responses to the following questions:

Question 1: “When you think of the following category, which is the best brand that comes to your mind? By best, we mean the one that you trust the most or the one that has the best reputation in this category.”

Question 2: “Apart from the best brand tha­t you entered, which brand do you consider to be the second best brand in the category?”

Read more about the survey here.

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