A global brand strategy allows focus on the premium segment. This segment is often small, but attractive
because of the substantial purchasing power of the middle classes in emerging economies,
even where average incomes are low. Volumes are typically small, yet margins may be large. The
advantages of a global strategy are well recognised. For instance, Quelch points to added value
for consumers because of a consistent worldwide brand image, lower costs from economies of scale,
cross-border learning and attraction and recruitment of ambitious employees.10
The premium segment is particularly attractive in cultures where status and prestige are highly
valued, as in many Asian countries. The prestige of a brand is therefore a major factor in the consumers’
perceived value of a product.11 This ‘‘conspicuous consumption’’ implies that demand for
the most expensive brand may exceed that for a less pricey premium brand.
A global brand strategy requires, first and foremost, a recognised global brand, along with the
ability to communicate the brand’s values and to deliver quality even under adverse conditions.12
It does not necessarily require direct investment. Premium brands may be imported and distributed
through local agents, especially if the country of origin forms part of the brand’s image and if transportation
costs are low.