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European Backlash: International Consumers Shun American Brands

GMI Poll shows frustration over President Bush's reelection and U.S.'s unilateral foreign policies, causing many Europeans to avoid products and services from American-based companies

Seattle, Washington - November 22, 2004 - GMI Poll finds that one in five European consumers will avoid purchasing products and services offered by many American-based companies - notably Marlboro cigarettes, American Airlines and AOL - as a direct result of U.S. unilateral foreign policies and their discontent over President Bush's reelection, according to independent market research solutions company GMI, Inc.

The GMI Poll, conducted one week after the U.S. general election, sampled 8,000 international consumers, including a 1,000 representative sample in Canada, China, France, Germany, Japan, Russia, and the United Kingdom. The survey finds that 81% of Germans, 73% of French and 52% of consumers living in the UK are displeased by the reelection of President Bush. Additionally, nine of 10 French and German consumers think the U.S. president is an ineffective global leader and two-thirds of all European respondents believe the Bush administration's foreign policies are driven by self-interests and empire building.

As a consequence of their frustration with the United States' policies overseas, one in five European consumers indicate that they will avoid purchasing certain American-brands products and services in the future.

"When allies view American foreign policy as arrogant and self interested, we damage our reputation for being powerful, innovative and, most importantly, fair. GMI Poll data illustrates that a less favorable view of America affects the image of products closely associated with American brands," explains Dr. Mitchell Eggers, chief pollster and COO of GMI.

GMI Poll also found that 35% of Europeans say their image of America is most influenced by U.S. foreign policies. With that in mind, 41% of global respondents think the U.S.-led war in Iraq was an attempt by the Bush administration to control oil supplies and more than two-thirds of all respondents think the United States might attack another country in its war against terrorism within the next four years.

The study indicates that companies most closely associated with America and with good local non-American made substitutes were most likely to be impacted by the European consumers' boycott. A good example of this is Mecca Cola, a Coca-Cola substitute which has been cashing in on anti-American sentiment around the world as a direct result of the U.S.'s actions in Iraq (BBC News, January 8, 2003).

International marketing expert and co-author of the best-selling business book Working with Americans (© 2002 Financial Times, Prentice Hall) Allyson Stewart-Allen (an American based in Europe for the past 17 years), indicates this may be the beginning of a growing hostility towards American companies not only in Europe, but globally.

"The anti-American sentiment overseas is at risk of growing still further as Europeans perceive they have another four years of distasteful American foreign policies," she stated. "If anything, the appointment of Condoleezza Rice, who is seen as even more hawkish in Europe than Colin Powell, may exacerbate this perception in Europe" explains Stewart-Allen. She added that American brands are at risk of suffering in the long-term unless they make more deliberate efforts to look and act like local brands, use local marketing tactics and obtain local knowledge much like Ford Motor Co. has successfully done with their Volvo, Jaguar and Land Rover Marques.

According to the data, 29% of German respondents who indicated they would avoid American products thought Ford was extremely American, and 30% of this group said they would avoid purchasing Ford vehicles. Ford's chief competitor, General Motors, was not as fortunate: 56% of the same group of respondents thought GM was an extremely American company and 42% said they would definitely avoid GM's products.

"American companies shouldn't apologize or hide the fact that their heritage is American, but it is no longer an option to be their key 'unique selling point' in Europe in the way it used to be," further explains Stewart-Allen. "There is still an appreciation that the U.S. is an innovative, creative, voracious economy, but those concepts which work well there need to be positioned in international markets on the basis of their functional, need-satisfying and psychological merits rather than because one can buy a bit of America" she adds.

When GMI Poll respondents were asked to describe the American people, the three most common answers were "friendly," "arrogant" and "creative." Contrarily, the American government was described as "arrogant," "loud and unwilling to listen," and "powerful," according to the GMI Poll. Stewart-Allen believes the closer companies are associated with America, the more likely they can expect decreased revenues from overseas consumers.

In Europe, survey results show that the companies most likely to be impacted include Marlboro cigarettes, American Express, United Airlines, McDonalds, General Motors and CNN News. One company least likely to be impacted is Hormel's brand SPAM. Stewart-Allen notes that SPAM is another good example of a company that presents itself in its global markets as a local consumer product though of American heritage.

Other key GMI Poll data include: 61% of French and Germans, and 59% of British think the reelection of President Bush has increased the possibility of an attack on the United States; only nine percent of Europeans believe that the Bush administration will successfully build a democracy in Iraq within the next four years; and 50% of French and Germans describe their race (not ethnicity) as European, not Caucasian, hinting at what Dr. Eggers calls an emerging European nationality as a consequence of the EU and European backlash against America.

The recently completed survey is the sixth GMI Poll conducted over the past several months. GMI Poll questions are designed to solicit opinions on numerous topical issues and critical global events. GMI surveys use highly profiled double opt-in panels from more than 500 global sources to help achieve 97% accuracy in their statistical results.

About GMI Poll

GMI Poll quickly and accurately gathers international opinions about topical issues and critical global events, with real-time results available in as little as 24 hours. GMI Poll is the only survey that polls global opinions in real time, online, and with statistically accurate results.

About GMI

GMI (Global Market Insite, Inc.) is the only company that provides comprehensive integrated solutions for global market intelligence for both market research firms and corporate market research departments at Global 2000 companies. Solutions include Net-MR®, a suite of software tools to manage and automate research throughout the project lifecycle, desktop analysis tools, 24x7x365 service bureau capabilities, and one of the world’s largest, highly profiled, double opt-in managed panels, spanning across 200 countries. In addition, GMI offers high-value, real-time enterprise feedback solutions for customer, partner and employee programs. Founded in 1999 with world headquartersin Seattle, Wash., GMI has operations on five continents.