Countr brand index_2011

Welcome to the seventh annual
FutureBrand Country Brand Index
(CBI), our global study of country brand
strength. The 2011-2012 CBI documents
perceptions around 113 nations, and
is based on more interviews, insights
and information than any other study of
its kind. In its development, we utilized
social media tools to investigate amongst
key opinion-formers and influencers,
asking them what makes a country’s
brand powerful and unique.

© All rights reserved.

INTRODUCTION

WHAT MAKES A STRONG
COUNTRY BRAND?

At FutureBrand, we assess the connection with a ripple effect, encouraging others around the
world to visit, do business, learn and build lives in a place.
strength of a country brand in much
the same way as any other brand.
We measure awareness, familiarity,
preference, consideration, advocacy
and active decisions to visit or interact
with a place.
But the most important factors—the aspects that truly
differentiate a country brand—are its associations and Like any brand, a country brand must be consistent across
attributes across five key dimensions: Value System, Quality many touchpoints, from advertising and public relations
of Life, Good for Business, Heritage and Culture and Tourism. to political representatives, cultural ambassadors, tourists,
companies and indigenous products.
A strong country brand is more than the sum of its attributes:
in total, it must make people’s lives better. From progressive These features, in addition to a strong point of view, role
politics to a sense of openness and freedom of speech, a on the world stage and concerted effort to drive progress,
country that is geared around its people and their needs will tourism, immigration, exchange and partnership make the
always score highly. From this comes a strong emotional difference between nation states and genuine country brands.

3. THE FUTUREBRAND 2011-2012 COUNTRY BRAND INDEX © All rights reserved.

CONTENTS OF THE 2011-2012 CBI

WHY DOES COUNTRY BRANDING MATTER? 5 THE CBI DIMENSIONS 31
Value System 32
A WORLD OF AUDIENCES 8 Quality of Life 38
Good for Business 44
OUR METHODOLOGY 9 Heritage and Culture 49
Tourism 53
CO-CREATING A GLOBAL PERSPECTIVE 11
BEYOND NATIONAL BOUNDARIES 63
WHAT’S AT STAKE? 13 Latin America 64
BRICS 66
THE 2011-2012 TOP TEN 14 MENA 69
The strongest country brands 15 APAC 72
Canada 21 Europe 75
Switzerland 22 Africa 77
New Zealand 23
Japan 24 FULL LIST OF COUNTRIES 79
Australia 25
United States 26 LOOKING TO 2012 80
Sweden 27
Finland 28 EXPERTS AND OPINION-FORMERS 82
France 29
Italy 30 SECONDARY SOURCES 84

CBI EDITORIAL TEAM 85

ABOUT FUTUREBRAND 86

CONTACT 87


INTRODUCTION

WHY DOES COUNTRY
BRANDING MATTER?

COUNTRIES ARE BRANDS THAT NEED MANAGING

Today, the term «brand» isn’t simply
a descriptor for consumer goods:
it includes products, services, places
and experiences, and how they’re
marketed to audience groups to create
familiarity and favorability.

Brand is an asset that represents the sum total of the
associations that influence preference—and it must be
carefully managed. Just like products or services, countries are
known by association, including language, images and media,
as well as first-hand experience and peer recommendation.
Brands are, in a word, a collection of perceptions.


INTRODUCTION

WHY DOES COUNTRY
BRANDING MATTER?
By continually measuring the perceptions of a country brand’s nation-building, as well as to create strong differentiation
audience, from business professionals to global travelers, amongst neighbors and competitors. Country brands
we can begin to understand the impact that news events, consisted of a historical narrative that incorporated social
cultural undertakings—and even a country’s own marketing and cultural values wedded to political or religious ideologies.
efforts—have on an individual’s decision to choose that
nation over another. That can include a decision to invest, In this way, nations were created and positioned in terms that
visit, emigrate, work, study, consume that country’s goods or transcended geography or tribalism. This was particularly
become interested in its culture. In short, a choice to let one the case in 19th century Europe, where national identities,
country play a significant role in our lives and livelihood. flags, anthems, monuments and holidays were consciously
constructed in the wake of political revolutions and emerging
What’s more, country brands are constantly compared to national independence.
their competitors—namely, other countries—and need
to be continually assessed in relative terms by their owners.
In looking for patterns or evidence of relative strength,
a country’s brand leadership—in the form of its citizens,
communities, governments and business leaders—can better
understand how to leverage its assets for the benefit
of everyone involved.

It’s through this combined understanding of shifting audience
perceptions and competitive positioning that country brands This is true for the United States as well, which constructed
can be best managed, driving relevance and differentiation in its own identity—and along with it one of the most significant
the face of a rapidly changing world. country brands in the world. One that started by rejecting
the parliamentary authority of the United Kingdom, unifying
NATIONS ARE OFTEN CREATED LIKE BRANDS a federal system of democracy and developing a powerful
Throughout history, countries have managed their brand as narrative of free agency inspired by classical Greece
a means to influence perception. Often, the objective was to and republican Rome. The «stars and stripes» became
support an internal view that unified citizens and supported synonymous with an American dream of freedom, citizenship


INTRODUCTION

WHY DOES COUNTRY
BRANDING MATTER?
and a pioneering spirit—values that still drive many to live and attractiveness for investment as well as tourism, and can
work in the United States today. compromise domestic confidence and social unity.
A well-defined association around origin and nationality can
A nation’s primary goal should be to succinctly capture its also become a hallmark of quality in the long-term. The fact
narrative and assets for internal and external audiences to that the European Union places such a high legal emphasis
identify and support the nation’s purpose. Although branding on labeling the origin of products and services should
is a modern coinage, born from advertising and marketing in underscore the link between a nation’s branding and the
the twentieth century, a country’s brand is closely tied to the branding of a nation’s goods. The ability to legally use terms
full spectrum of its political, cultural and commercial history. of authenticity around regional origin allows for protection
against counterfeiting, false advertising and misleading sales
messages. That’s where the business of branding meets the
assets of a country’s brand.

COUNTRY BRANDING IS MORE IMPORTANT THAN EVER
As we review our list of countries and their relative strengths
for the 2011-2012 CBI, it’s worth keeping in mind that a
country’s brand is never fixed. Countries must respond as
competitors in a world of scarce resources, differentiating
themselves and securing an advantage for themselves and
their constituents. Failure to clearly articulate a compelling
story can lead to a major disadvantage when a nation is
compared to others. Country branding is a very
real requirement for 21st century nations. This year’s
COUNTRY BRANDS ARE MORE THAN JUST TOURISM developments reinforce how economic, social and political
Country branding is a vital element in both domestic and change can influence brand strength year to year, particularly
international affairs. The difference between a successful, as social media intensifies and accelerates the distribution of
defined and understood brand and a weaker, less images, ideas and associations that shape perception.
differentiated one can have a significant impact on a nation’s


INTRODUCTION

A WORLD OF AUDIENCES

In the past, country brands
were primarily associated with travel
and tourism.
A country’s reputation was built through tourism
communications, advertising and word-of-mouth; its brand was
formulated through the products, services and even emigrants
originating from within its borders. Reputations were slowly built
and carefully constructed, and they remained consistent over
the course of generations.

Today, the opposite is true. Thanks to the internet and mobile
devices, our instantaneous ability to connect with other citizens
of the world, with images, news, opinions and rumors means
that a country’s image can shift overnight.

Our world is at once a geography of borders as well as a network
of border-less communities with the means to communicate
instantly. There are countless stakeholders influencing,
controlling and managing today’s brands. For that reason,
a brand’s image needs to be reconfirmed daily and across
multiple touchpoints. Because a country, its leaders, companies
and people are scrutinized constantly, it’s vital that a country
brand be clearly defined, broadly aligned and continually
assessed in all the decision-making dimensions measured by
FutureBrand’s CBI. In so doing, the stakeholders of a country’s
brand can more accurately manage and shape their image.


INTRODUCTION

OUR METHODOLOGY

The Country Brand Index has become increasingly rigorous and sophisticated
since its inception in 2005, and now includes more research data than ever
before, establishing itself as the most authoritative study on country branding in
the world. The report draws its data and its insights from several core resources:

350014102 400+
BUSINESS AND
LEISURE TRAVELERS
PRIMARY
RESEARCH
EXPERT
CONTRIBUTORS
IDEAS DEVELOPED IN
COLLABORATIVE EXERCISE
MARKETS IN 16 CITIES
QUANTITATIVE RESEARCH. Between July 18 and July 27, 2011, around the world. These experts participated in «deep dive»
FutureBrand collected quantitative data from 3,500 frequent moderated workshops with the aim of consolidating their views
business and leisure travelers and opinion-formers in 14 and perceptions across the key HDM attributes and dimensions.
countries around the world. With an international outlook
and sense of global fluency, they represent a knowledge bank CO-CREATIVE INSIGHTS.Our third source leveraged crowd-sourcing
sought-out by investors and tourists alike. and an online, co-creative community, giving us the chance to
capture real-time discussions amongst experts and interested
EXPERT OPINIONS. Additionally, between August 19 and third-parties around the world. This collaborative exercise took
September 7, 2011, we connected with experts in tourism, place between August 30 and September 16, 2011.
export, investment and public policy in 16 different cities


INTRODUCTION

OUR METHODOLOGY

We use FutureBrand’s proprietary Hierarchical Decision This model offers insights that help us assess how well-
model (HDM) to determine how key audiences—including developed a brand is as well as key challenges that need
residents, investors, tourists and foreign governments—relate to be addressed. Our HDM also allows for a measurement
to a country brand, from mere awareness to full advocacy. of a country’s relative performance and progress. In short,
the HDM takes seven areas into consideration:

1 2 3 4 5 6 7
AWARENESS: FAMILIARITY: ASSOCIATIONS: PREFERENCE: CONSIDERATION: DECISION / VISITATION: ADVOCACY:
Do key audiences know How well do people know What qualities come to mind How highly do audiences Is the country considered To what extent do people Do visitors recommend
that the country exists? the country and its offerings? when people think of the esteem the country? for a visit? follow through and visit the the country to family,
How top-of-mind is it? country? Here, we look at Does it resonate? What about for investment country or establish friends and colleagues?
five association dimensions: or to acquire or consume its a commercial relation?
Value System, Quality of Life, products?
Good for Business, Heritage
and Culture and Tourism.


INTRODUCTION

CO-CREATING A GLOBAL PERSPECTIVE

Social technologies have multiplied
the speed and reach of opinions about
destinations, news events and brands
that shape overall country perceptions.

For the first time ever this year, we have harnessed social
technology to inform our view of the factors influencing country
brand strength. Our qualitative research was broadened into a
co-creation exercise that extended conversations in 15 countries
into a global online forum. In-person focus groups offered the
chance to understand expert traveller views on country brand
themes in a particular market. However, by inviting the same
people to answer questions and develop ideas together online,
we were able to co-create a single global perspective on this
year’s important issues.

Our approach utilized a platform called DiscoveryCast to help
manage expert discussions around key questions relating to the
factors influencing country brand strength, this year’s rising stars
and the events that would have the greatest influence on country
brand rankings. We worked with over 40 expert contributors
across four continents who developed over 400 ideas in a
collaborative exercise.


INTRODUCTION

CO-CREATING A GLOBAL PERSPECTIVE

Each expert was able to submit feedback on and develop ideas and Heritage and Culture and reinforce the importance of
that have informed many of the insights and qualitative findings a country’s population as its most powerful brand assets.
in this year’s CBI. We were particularly keen to understand the Identity—from a tourism logo to a national flag or its colors —is
collective view of the most important factors in country brand a critical symbol of any country brand and one of the most
strength. This relates to the unchanging elements that are most valuable and instantly recognizable elements of country brand
influential in creating perceptions of a place. equity. Interestingly, «economy» and «stability» were also rated
as two of the top five factors influencing country brand strength
by our experts, perhaps reflecting a stronger than normal
preoccupation with the global financial situation and relating
closely to the Good for Business and Quality of Life dimensions
in our quantitative research.

Our experts also developed a list of the events that had the
most influence on country brand strength in the last year,
which in turn informed some of the main themes in this year’s
index. These were led by the downgrading of the United
States’ economy—a major shock to the global financial
system, particularly in the wake of China’s emergence as the
world’s second largest economy, and perhaps a factor in the
United States’ continued drop in the rankings from 2009.
Other major events—like the Japan nuclear disaster, the Arab
Spring, riots and royal weddings in the United Kingdom and
Word cloud of the most important The discussions were unprompted, allowing each expert to the death of Osama Bin Laden— were all felt to be powerful
factors in country brand strength
co-created by our expert contributors.
suggest their own ideas in their own words, but a great deal enough to influence country brand perceptions. And this year’s
of consistency emerged from the discussions. The top three shifting rankings—particularly for the United Kingdom and
factors based on frequency of mention, commenting and rating Japan—demonstrate that being in the news can correlate to
were culture, identity and people. Perceptions of culture and changing brand strength, even if the results are sometimes
people are an integral part of dimensions like Value System counterintuitive.


INTRODUCTION

WHAT’S AT STAKE?

At the heart of everything we’ve And when a government and population respect tradition
and culture, they can encourage travel and make it easier
learned in the past seven years is the for visitors to interact with and appreciate that country’s
important role that education and assets. Finally, when an international audience begins to
validate all that a country’s brand has to its credit, investment
literacy play in creating a nation of opportunities and commercial transactions are better realized.
active, supportive citizens
The power of a country brand is directly proportionate to the
For example, when a nation’s population can create power of its people, its leadership and its sense of purpose in
and maintain institutions of governance that reflect and the global community. In realizing this strength, a country can
encourage their cultural values while still protecting the rights create better lives for all of its citizens.
and opinions of minority voices, that country experiences
significantly more growth and success. With that in mind, we’re pleased to present the top ten country
brands for the year 2011.
From there, a government that understands how to marshal
and optimize a nation’s natural resources while remaining
open and entrepreneurial is more likely to set-out on a positive
economic course.


THE 2011-2012 TOP TEN
1. CA Canada 0
2. CH Switzerland 3
3. NZ New Zealand 0
4. JP Japan 2
5. AU Australia 3
6. US United States 2
7. SE Sweden 3
8. FI Finland 0
9. FR France 2
10. IT Italy 2


THE STRONGEST COUNTRY BRANDS

Brand Canada: Why country brand as a platform to build sustainable brand strength across every
dimension. From the creation of beautiful b-roll landscape
management is important footage to the ubiquitous use of the country’s iconic maple
The countries that dominate our top ten perform well year leaf, Canada actively made the most of its assets to support a
after year across every area of brand strength. Interestingly, «keep exploring» brand position.
Canada continues to be the strongest country brand despite
its lack of leading rankings in any one dimension—proving Additionally, a focus on developing specific perceptions in
that consistency is more important than specialty focus. tourism marketing has paid off, with increased scores this year
in areas like History—not typically a strength for Canada.
But Canada’s strength depends on more than just
consistency: the nation actively manages its country brand This attention to country brand management will be even more
to constantly improve performance. As the United Kingdom important as the country faces its first period of economic
prepares to leverage the power of the London 2012 Olympic decline for two years—shrinking 0.4% in the second quarter
Games, it would do well to emulate Canada’s treatment of the of 2011—and consumer confidence drops—a change that
Vancouver 2010 Winter Olympics, where the event was used correlates to a slight fall in Canada’s Good for Business score.




The United Kingdom
leaves the top ten

For the first time since the CBI’s founding, the United
Kingdom does not appear in the top ten, capping off a
two-year downward trend for the country’s brand. This is a
symbolic fall for the nation, which has traditionally punched
above its weight in brand strength. Ironically, this follows a
year of good press for the country, especially with the Royal
Wedding in April.

But the United Kingdom’s brand is something of a paradox.
For example, tourism represents nearly 10% of the country’s «Occupy» demonstrations in London, the United Kingdom
GDP and is second only to chemicals and financial services continues to suffer unusual levels of social discontent in the
in terms of export earnings. Visitor numbers for business and context of global economic downturn and significant public
leisure actually increased year to date in the three months spending cuts that perhaps account for a fall in perceptions
leading up to August, and overall visitor spending is up 4% of Value System.
since 2010. But the country has one of its weakest scores in
the Tourism dimension of our study, particularly in areas like As the United Kingdom looks ahead to 2012, it will surely be
Value for Money. hoping that the «Olympic effect» starts to improve low scores
in the Tourism dimension, delivering promised «legacy»
Perceptions are also weakening in traditional areas of strength social improvements and business growth, while reversing
for the country with Heritage and Culture falling five places—a a downward trend in perceptions across the dimensions.
counter-intuitive outcome in light of the focus on London’s Hopefully, the county can start to tell a new story about
heritage sites during April’s festivities. And while our research its future, counterbalancing an increasing dependence on
study preceded nationwide urban rioting and subsequent pageantry and nostalgia to maintain its position in the rankings.




Small countries can have
a big reputation

Country brand strength is not a function of geographic size
or economic power. China demonstrates this very fact with
a fall of nine places to sixty-fifth position in 2011, despite
having the world’s largest population and displacing Japan
as the second largest economy. Conversely, New Zealand,
Switzerland and Finland all enjoy top ten rankings and some
of the highest scores in the index with populations below
ten million.

In New Zealand’s case, the country is enjoying high levels the after-effects of a devastating earthquake in February 2011.
of macroeconomic growth in tandem with its continued But when it comes to punching above its weight, Switzerland
position at number three in our ranking, despite having is the real success story in 2011. Maintaining its momentum,
the lowest population and GDP of the countries in our top the country’s brand has moved from eleventh to fifth and now
ten. April 2011 saw it deliver its largest ever trade surplus, second position in three years, leading the rankings in the
providing over a third of world dairy exports. Good for Business dimension and appearing in the top ten for
every other dimension except Heritage and Culture. Just as in
Like Australia, the country continues to prosper as it supplies 2010, positive perceptions of Switzerland’s favorable regulatory
the resources essential to economic growth in China and other environment, infrastructure and value system make it a place
accelerating economies. As a country brand, New Zealand people want to visit, invest in and recommend.
leads the rankings in terms of perceptions of Natural Beauty
and appears in the Value System top ten, but overall the This, coupled with some of the world’s most beautiful natural
brands suffered in the Good for Business dimension—falling attractions, a strong portfolio of national «made in» brands
three places to eighteenth position—perhaps correlating to and a stable economy means Switzerland continues to live up
increasingly high housing prices, rising household debts and to the «plus» in its iconic national identity.




Scandinavia weathers
the European storm

While the Eurozone continues to confront instability, the
risk of default on sovereign debt and currency threats that
could damage the perceptions of member states, Europe’s
northernmost countries are enjoying unprecedented levels
of brand strength.

In 2011, we continue to feel the effect of Brand Scandinavia,
with Sweden rising three places to seventh, Finland holding
fast at eighth, Norway up one and Denmark rising four
places to fifteenth position. Sweden has enjoyed one of the EU member state Finland also enjoyed strong economic growth
sharpest increases in overall strength over the past two of over 5% in the first quarter of 2011 and mirrors Sweden’s
years, now dominating both the Quality of Life and Value dominance of the Value System and Quality of Life dimensions,
System dimensions and second only to Switzerland in Good as well as top honors in the Skilled Workforce attribute.
for Business.
Unlike Sweden, which enjoys a consistent conversion from
This is in the context of Sweden’s 6.4% annual growth in the consideration to visitation and advocacy—a key measure
first quarter of 2011, falling unemployment and public debt in country brand strength—brand Finland sees a drop in
below 40% of GDP—the reverse of most of its counterparts in this area, perhaps indicating that visitors’ expectations
the top ten. Part of this economic success relates to Sweden’s are not always met as consistently as they are elsewhere
established manufacturing base, as well as strong exported in Scandinavia.
brands across multiple categories.




The paradox of bad news
Japanese Prime Minister Naoto Kan described the March
2011 earthquake, tsunami and ensuing nuclear disaster that
took thousands of lives and devastated easternmost Japan
as the most difficult crisis the country has faced since the
second world war. Quite aside from the trauma, loss of life and
impact on infrastructure, early estimates indicate that the total
financial impact of the disaster could exceed $300 billion.

While the country reels from this terrible event and the world
watches as its third largest economy struggles to regain
momentum, this year sees Japan continue its rise in the
country brand rankings, moving up two ranks to fourth place. In this case—as with the Chilean Miners’ rescue and the
In fact, perhaps paradoxically, Japan leapt to number one in Iceland volcanic eruption in 2010—we see the positive effect
the Tourism dimension and moved up five places in Quality that global news exposure can have on perceptions of a place,
of Life. regardless of the nature of the news itself.
Japan has always been a strong country brand and enjoys
enormous popularity as a destination for business and leisure. It could also be argued that enormous latent goodwill and
While visitor figures dropped significantly between March and decades of strong reputation-building provided an underlying
August 2011, decline is slowing against numbers for 2010 as resilience that has helped the country brand survive and even
we approach the end of the year. flourish in difficult times.




Iconic country brands in decline
It’s been a challenging year for the United States. Displaced
by Canada in 2010, and now down another two places to
sixth overall, the United States suffers from a downward trend
in brand strength that mirrors its troubled socio-political and
economic fortunes. However, despite slower than hoped
for growth in employment and GDP, the United States has
shown some improvement in perceptions around Good
for Business—including Regulatory Environment, Skilled
Workforce and Investment Climate—rising four places against
2010. It is worth noting that our research was in-field before
the controversial downgrade of the United States’ credit rating
to AA+ status and the Occupy Wall Street movement that But America is not the only iconic country brand suffering from
intensified speculation about America’s long-term stability. a downward trend in strength this year. France has fallen two
places to ninth position, following a drop of the same amount
Tourism strength is also slightly improved, up six places in 2010. This is set against a background of increased turmoil
this year as a result of significantly increased perceptions of in the European Union as French president Nicolas Sarkozy
Value for Money, correlating to a weakened dollar and highly takes a lead role in attempting to stabilize the Eurozone’s
publicized domestic mortgage defaults across the nation. economy alongside Germany’s Angela Merkel.
Next year’s presidential election also brings the potential
for the end of the Obama administration or a weakening The United States and France continue to be among the
of its mandate as presidential approval ratings continue to world’s strongest country brands and show great resilience in
fall, further diluting the «Obama effect» that was a strong the face of these challenges. But their decline year after year—
contributing factor the the United States’ number one position together with that of the United Kingdom—might hint at an
in the 2009 CBI. inexorable decline in strength.


THE 2011-2012
WORLD EVENTS TOP TEN

#1 CANADA
HIGHLIGHTS
AREA (KM2) GDP GROWTH 2010/2009 WHAT THE EXPERTS ARE SAYING...

9,984,670 3.21 % “Canada has a stable political
POPULATION FDI 2009 (MILLION USD) system, economy and market; an open
34,030,589 524,938 and tolerant society; and policies that
GDP (MILLION CURRENT USD) TOURISM EMPLOYMENT (2011 EST.) encourage immigration.”
1,577,040 550,000 jobs (3.2 % of total emp.)
GDP PER CAPITA (CURRENT USD) HDI VALUE
OTTAWA
46,342 0.908

HDM PERFORMANCE

Environmental
environment
Stable legal

friendliness
of speech
Tolerance

Freedom
freedom
Political
VALUE SYSTEM
S
e
t Lik
Mos ive In
for MValue #3 to L
1 1 oney #4 #4 1 1 1 1
#7 n
catio
#5 Edu em
Reso Syst
lodg rt & re
lthca

QUA
10 10
in
optio g
#3 Hea em 10 10 10 10
st

A
ns Sy
ISM

LITY
#8
#17

T O
Attra dard
R

ction #14 #8 Staniving
TOU

s fL

F
F
F
o
#4

LIFE

DECISION / VISITATION #7
IF
20 20 #16 ty 20 20 20 20
Safe
#7
Food #30
#4
Job ortunity

CONSIDERATION #8
Opp

PREFERENCE #12
30 30 30 30 30 30
#9
FAMILIARITY #7
AWARENESS #7

ASSOCIATIONS

#44 #11

ADVOCACY #6
#15 #29 #12
40 40 HE #7 40 40 40 40
S
au l

#34

Sk orkf
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Be tura

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TA

W
ille orc
GE IN
Na

US

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& B
ory

Ad chn
CU R
FO
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LT
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UR OD
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50 50 50 50 50 50
nc gy

E GO
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Inv lima
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1 2 3 4 5 6 7
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Au

In the radar chart, numbers indicate the ranking for each country within that as «strong» or «very strong» against the particular attribute is indicated by the
specific attribute, while the percentage of actual responses rating each country distance from the centre of the grid, moving from zero to 100%.


Countr brand index_2011

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