Edelman Asia 'goodpurpose' Study: Economic Crisis and Product Safely Issues Drive Consumers to Focus on Brands' Social Purpose

Hong Kong, Nov 24, 2008; A study of consumers in China, India, and Japan shows that despite the economic downturn, a strong majority think it is important to purchase products and brands they perceive to be socially responsible (China 90%, India 90% and Japan 64%).

The study is part of a 10-market global study called 'goodpurpose' conducted by PR firm Edelman. The study seeks to understand consumer attitudes and preferences on the emerging topic of social purpose.

"What we find particularly interesting in this study is that economic concerns are taking a distant place behind consumers' demands that quality brands be produced by socially conscious companies," commented Alan VanderMolen, Edelman's Asia-Pacific President. "We believe this is driven by two factors. First, the obvious fallout from product safety issues in the region over the past 18 months; and second, an expanding middle class that now has the power to address social issues at home through purchase decisions."

Even in an economic downturn, the majority of consumers in China and India would remain loyal to brands that have a good purpose. 77% of consumers in China and 84% in India say they would remain loyal to socially responsible brands in a recession. However, Japanese consumers tend to be less committed during tough times, with 46% saying they would remain loyal to a brand that demonstrated social purpose in an economic downturn.

"Brands that engage in social purpose have the opportunity to solidify relationships with consumers by consistently delivering quality products and demonstrating an ongoing commitment to the social welfare of the communities in which they are operating," Mr. VanderMolen said.

Top of Mind Causes/Issues

Overall, the environment remains a high priority for consumers in China, India and Japan. 88% of Indian consumers and 82% of Chinese consumers are prepared to pay more for goods that are environmentally friendly. 68% of Japanese consumers feel the environment is the most important issue.

However, there are some differences amongst consumers in these markets as well.

Commitment to helping others - and to brands and companies that share that commitment - is by far the strongest in China. Despite the economic downturn, China currently leads the way globally in giving more financial or voluntary support to good causes. 85% of consumers in China say they are involved in social causes, the highest number in the world.

Although Indians think it is important to take environmentally friendly actions, they do not believe the environment is in crisis. Respondents in India are significantly more likely than their peers in every other country to agree that there is too much fuss about the environment (79%), and they do not believe we are having global warming (56%). However, 92% feel it is their duty to contribute to a better society and environment.

In Japan, the level of active involvement is the lowest amongst the three countries surveyed, with only 16% of Japanese consumers saying they are actively involved in social causes.

"When brands act as 'citizen brands,' contributing to community and society beyond their functional benefits, 'doing good' can translate to 'doing well' and the brand can forge a stronger emotional bond with its consumers," Mr. VanderMolen added.

About Edelman's Good Purpose Consumer Study

StrategyOne conducted 6048 interviews in 10 countries between August and October 2008. The study was an online survey of consumers, nationally representative of each of the country populations. For India and China the survey was conducted as face to face and CATI respectively. Sample sizes per country are: US = 1006, China = 1000, UK = 522, Germany = 506, Brazil = 500, Italy = 500, Japan = 502, India = 503, Canada = 502. France = 507. The margin of error is +/- 5% for the Chinese, Indian and Japanese samples.

About Edelman

Edelman is the world's largest independent public relations firm, with 3,400 employees in 54 offices worldwide. Edelman was named "Large Agency of the Year" in 2008 by PRWeek and a top-10 firm in the Advertising Age "2007 Agency A-List," the first and only PR firm to receive this recognition. CEO Richard Edelman was honored as "2007 and 2008 Agency Executive of the Year" by both Advertising Age and PRWeek. PRWeek also named Edelman "Large Agency of the Year" in 2006 and awarded the firm its "Editor's Choice" distinction. For more information, visit www.edelman.com or www.edelmanapac.com.