Brand South Africa Research Report

Transcription

1 Brand South Africa Research Report The Nation Brands Index South Africa s global reputation By: Dr Petrus de Kock General Manager - Research

2 Contents 1. Introduction 3 2. Highlights from the 2017 Nation Brands Index report 4 3. The long-term view on Nation Brand reputation 5 4. How the world sees South Africa and how we view ourselves 6 5. The competitor landscape 8 6. Conclusion 8

3 1. Introduction This research report will explore a range of findings on the South African Nation Brand s global reputation. However, these results cannot be analysed in isolation. In a period characterised by both global and internal change, one lesson emerging from the NBI 2017 is that perceptions and the reputation of a nation can only be developed through long-term consistency. While this may be the case, it is also clear from the report that sudden or abrupt internal changes in a nation, as experienced by the USA this year, can result in dramatic changes to the reputation standing of that nation among global audiences. But, what does this mean? It means that South Africa s global reputation, based on the statistical findings from the NBI, did last year, as in years before, consistently improve y-oy with points. However, in ranking the country moves down from 35/50, to 38/50 this year. As explored below, one of the main reasons for the drop in ranking pertains to a strong showing by Latin American countries, particularly Chile and Peru. When analysing results, it emerges that nations from Latin America show the strongest improvements in the index this year which also implies that from a global positioning and reputation point of view, these nations are South Africa s closest competitors. In terms of the top ten positions in the index, the most significant movement pertains to the USA which falls from 1/50 in 2016 to 6 th position in In terms of statistical scoring, the USA is the only country in the top ten which registers a negative statistical score by dropping with on the previous year. Germany takes first place, followed in second by France, third occupied by the UK, fourth Canada, and in fifth place Japan. Clearly the global opinion of the USA shifted as a result of the election of Donald Trump. This research report intends to share with Brand South Africa s stakeholders, and the broader public, key findings from the NBI s 2017 Report. Brand South Africa subscribes to the NBI with the purpose of identifying strengths, challenges and opportunities for the enhancement of the nation brand s reputation both at home and abroad. Although it may be a rather simplistic analogy to make, it can be said that the positive or negative impact of a nation s reputation is very similar to that of an individual citizen. This means that what someone else thinks of you as a person, or the opinion others hold of you, could ultimately impact on and shape your reputation. This furthermore implies that how a person or a nation is perceived, impacts on how decisions will be made, and how you as a person, or a nation will be treated by peers. Sections to follow will explore not only South Africa s performance, but also elements such as: Main highlights for South Africa from the report The long-term view on a Nation Brand reputation How the world sees South Africa, and how we view ourselves The competitor landscape

4 2. Highlights from the Nation Brands Index 2017 Report Brand South Africa In 2017 the South African ranking moved from 35/50 to 38 th out of 50 nations overall. While the country s relative ranking slides back to 38/50, it is important to indicate that in terms of statistical score, it improves with 0.73 on Furthermore, the statistical scores in each of the six pillars reputation is measured on by the NBI, also improves with the strongest upward movement in the People, Immigration and Investment, Governance pillars. However, while the above may be the case, when reviewing performance in the last number of years, the following markets are proving themselves to be South Africa s closest competitors, being Chile, Peru that improves ranking as well as statistical score in the study on last year to advance ahead of South Africa. Other countries that made significant statistical score improvements are Turkey (39/50), Egypt (40/50), and Indonesia (41/50). While these markets still rank behind South Africa, their improvement in this year s statistical measurement indicate that these markets may be building momentum. According to Simon Anholt, the global mood plays a much bigger role in determining rankings of Nation Brands than the efforts individual markets take to enhance their Nation Brand profile and positioning internationally. He distinguishes between two forces, It appears that there are two forces at work here. There is a very powerful force which one might call the global mood, promoting or relegating the images of large clusters of broadly similar countries up and down from year to year, in what seems to be entirely unpredictable ways; and there is a very much weaker force which one might call specific responses to the behaviours of individual countries. These specific responses can occasionally be ascribed to particular episodes or behaviours (such as a military coup, the election of a particularly popular or unpopular leader, or a major international sporting event). 1 As in previous years the Culture and People pillars support the over-all performance of South Africa in the NBI. In terms of African nations, South Africa outperforms Nigeria and Kenya with a perception score lead of 3.5 and more on all indices. Markets that show an improved opinion towards South Africa include: the USA (+4.16), Argentina (+3.66), China (+3.31) the improved perceptions in these markets contributed directly to the over-all statistical score increase in Note as well that the movement in China is very important. Countries that remain quite critical of South Africa include: South Korea, Mexico, and Japan. Countries with the most favorable views of South Africa include: India (20/50), UK (30/50), Germany (31/50), France (32/50), Italy (33/50) and Sweden (33/50). As in previous years the study is also conducted in South Africa. This provides insight into how South Africans rank their own country. Notable in this year s results is the fact that South Africans now rank the country at the bottom of the pile for Governance at

5 49/50, and 19/50 over-all. Strongest self-perceptions: Tourism 7/50, People 4/50, Culture 6/50. This will be explored in more detail in Section 4 together with insights on how international audiences in particular markets ranks South Africa s reputation in particular areas. Table 1 provides a detailed breakdown of South Africa s performance in the NBI since Table 1: South Africa s Performance on the NBI South Africa ( ) Overall rank ( ) ( ) ( ) ( ) ( ) ( ) Exports Governance Culture People Tourism Immigration & Investment The Long Term view on Nation Brand reputation From the 2017 NBI it becomes apparent that there are no short-cuts to the development of a reputable global reputation. There are two dimensions to the issue, being firstly, the idea that spending on pure marketing alone will enhance a country s reputation, and secondly, the fact that a country s contribution to the global commons, and how this is received/perceived by audiences, is a determining factor in shaping a Nation Brand s reputation. Simon Anholt indicates in this regard that, It is surely time to let the myth of the image campaign out of its misery, and for governments to focus instead on measurable activities that provide a clear return on investment But national images are earned over decades and generations: they are the consequence of consistent behaviours, not of messages, slogans or publicity stunts. 2

6 This does, however, not mean that classic marketing and communications are unimportant. As indicated in the same context, very targeted investment marketing drives, tourism promotion, export promotion, talent attraction, and communications aimed at enhancing cultural relations can yield specific and measurable results. 3 The implication for the South African Nation Brand is that while the country s ranking drops to 38/50 this year, a very long-term perspective and approach is needed, as indicated in the 2017 NBI report, The kinds of initiatives that might genuinely result in a sustainably improved global image for any given country require a level of patience, wisdom, courage, imagination and commitment which is sadly beyond the reach of most governments at least of democratically elected governments, with their permanent fixation on the electoral cycle, on party politics and on the unending domestic popularity contest which dominates politics in the age of spin. 4 Developing a long-term, coherent, and reputable Nation Brand that appeals to international and domestic audiences therefore requires commitment. This long-term approach has to be supported by relevant marketing and communications initiatives to, on an on-going basis, reinforce consistency. This consistency can be derived from key strategic national policies, and institutional mechanisms, that enhance national performance, and boost confidence both domestically and internationally. While the above holds true in terms of having a committed long-term approach to managing and positioning a Nation Brand, it is also important to mention that the nation has to maintain a well-rounded reputation with strengths in all six dimensions according to which reputation is measured. This means strong performance in all areas, seeing that, as the 2017 Nation Brand Index report indicates, Seldom does a nation earn a ranking within the top five on the overall NBI without consistency in its image How the world sees South Africa, and how we view ourselves The NBI study results from the survey conducted in South Africa indicate that, like most other nations, South Africans have a strong self-perception. Below are the rankings derived from how South Africans view/perceive themselves and the Nation Brand s reputation. Most striking in the list below is a clear sense of pessimism regarding governance. This result indicates that much work needs to be done to reinforce the message of national governance capability. Over-all = 19/50 Exports = 12/50 Governance = 49/50 Culture = 6/50 People = 4/50

7 Tourism = 7/50 Immigration & Investment = 23/50 South Africans place their home country 15th on overall NBI, and at 7th place or better on Culture, Tourism, and People. However, similar to past years, they continue to be far more critical than other global citizens on Governance, where they rank themselves in 49 th place. South Africans perception of their government is especially poor in terms of its competence and honesty, ranking their own nation absolutely last. The latter finding has to be viewed in the context of rapid internal political changes. Since 2016 with the local government elections, dynamic changes have been afoot in terms of both intra- and inter-political party dynamics. While for some this may be a sign of uncertainty, it could also be read as a sign of a maturing and deepening of democracy. Nevertheless, South Africans are also unimpressed by their government s efforts to fight poverty and promote rights and fairness. Notably, South Africans are at odds with most nations about their government s efforts to protect the environment, ranking their country lower than almost all other panel nations do. While the self-perception of the Nation Brand is relatively healthy (with the exception of governance) it is interesting to observe which nations rank South Africa better and/or worse than in In this regard there are nations such as Japan, South Korea, and Turkey, and to a lesser degree Egypt that are relatively cold in terms of perceptions of South Africa. The countries with a much stronger reputational perception of South Africa include India, and interestingly enough European nations. The snapshot below, taken from the NBI 2017 report, reflects on countries providing South Africa with the highest, versus those that give the Nation Brand the lowest rankings in Fig. 1 International rankings of South Africa As indicated in an earlier section, for a nation to rank consistently at the top of the index it is necessary for it to maintain a full rounded reputational profile. As can be seen in the case of South Africa, Immigration & Investment, Governance and Exports are weaker than other areas. This means from a practical point of view that much needs to be done both internally and externally to conceive coherent internal systems, and policies that can over a long period of time be communicated to enhance the Nation Brand s profile in those areas.

8 South Africa is notably strong in India, Germany, France, and the UK. Although the following countries have varied perceptions of South Africa across the indices Argentina, Australia, Brazil, Italy, and Sweden show a generally positive disposition towards the country. However, even in the latter cases, governance, and perceptions of the investment & immigration environments, leave much room for improvement. 5. The competitive reputation landscape In the 2017 NBI Latin American nations stand out as fast paced movers in scores and rankings. Accordingly, Mexico, Chile and Peru outperform score improvements of nations ranking close to them in the NBI. Mexico s score improvement in the Culture attribute is ahead of the average increase for other nations in the NBI at (versus the average of +0.89); Chile registers the second highest score gain on the NBI with Tourism seeing the strongest improvement; Peru outperforms the average improvement in the Governance and Culture indicators. Looking at rankings over the years it is evident that South Africa s closest competitors in terms of the NBI come from Latin America. Particularly important in this year s NBI is the movement of Peru and Chile. Both these nations display momentum, and strong improvements in statistical scores. While South Africa s statistical score also improved, it is at a much slower pace than Peru and Chile. 6. Conclusion As reiterated at several junctures in the report, it is necessary to develop and maintain a long-term approach to the management and ultimate enhancement of the South African Nation Brand s global reputation. Such long-term thinking has to be anchored into existing future-oriented policies, institutional capabilities, and governance initiatives. From the results it is evident that Latin American nations are, from an NBI reputation point of view, the closest competitors of South Africa. While South Africa improves on the overall statistical measures of the NBI, it stands to lose more ground as competitor nations gain more momentum in the eyes of global audiences. While South Africans have a generally healthy self-perception, current political debates and developments in the country is clearly a major concern. This impacts directly on how governance capability is seen, with the potential consequence of further loss of trust in the state as anchor of a robust and vibrant democracy. The work of developing the Nation Brand s reputation falls squarely on the shoulders of government, business and civil society.

9 As a developing nation with major assets and comparative advantages in the global arena, South Africa can yet achieve major breakthroughs in the long-term depending on collective commitment to making interventions that can change current areas of weakness. 7. In Brief: The NBI Methodology The 2017 NBI survey measures the strength and attractiveness of 50 countries brand image by examining the six dimensions of the Nation Brand Hexagon. These nations were selected on the basis of their political and economic influence on global geopolitics as well as the relative flow of activities related to trade, business, people and tourism. The survey was carried out in 20 major developed and developing countries that are considered to play important and diverse roles in international relations, trade and the flow of business, cultural and tourism activities. Given the increasing global role played by developing countries, the survey also strives to represent regional balance as well as balance between high-income and middle-income countries. The core 20 panel countries are: Western Europe/North America: USA, Canada, UK, Germany, France, Italy, Sweden Central and Eastern Europe: Russia, Poland, Turkey Asia-Pacific: Japan, China, India, South Korea, Australia Latin America: Argentina, Brazil, Mexico Middle East/Africa: Egypt, South Africa The online sample comprised a total of 20,353 adults age 18 or over, with at least 1,000 interviews per country. The sample was weighted to ensure representivity according to key demographics (e.g. age, gender, education, and in certain instances, race).

10 References Anholt-GfK Nation Brands Index. October P Ibid, P. 8 3 Ibid, p.8 4 Ibid, p.8 5 Ibid, p.13 Brand South Africa s Research Notes and Research Reports communicate findings from Brand South Africa research and related panel discussions. The Research Notes and Reports are intended to elicit comments, contribute to debate, and inform stakeholders about trends and issues that impact on South Africa s reputation and overall competitiveness. Views expressed in Research Notes are those of the author(s) and do not necessarily represent those of Brand South Africa, or the Government of the Republic of South Africa. Every precaution is taken to ensure the accuracy of information. However, Brand South Africa shall not be liable to any person for inaccurate information or opinions contained herein. Contacts: Dr Petrus de Kock General Manager Research - petrusd@brandsouthafrica.com Ms Leigh-Gail Petersen Research Manager leighgailp@brandsouthafrica.com