Monday, November 29, 2004
That soft power thing..
Long time readers of this blog will know of my bias towards soft power, which I believe can be used a great deal more constructively than hard power. The trouble with America's (the Bush administration specifically) attitude to the world today is that they might slowly but surely be losing the soft power dominance they have exerted all around the globe for the better part of the last 50 years. For a super power that has economic interests in every corner of the world, this slow erosion of soft power at the periphery of its economic empire can become quite debilitating. Linda Tischler tells us why quoting from a study commissioned by Keith Reinhard, CEO of the global advertising agency DDB Worldwide in 17 countries.
People felt exploited by global expansion, inundated by our entertainment products, and put off by our arrogance. His findings were echoed by the annual NOP World survey of power brands. That study of 1,000 consumers in each of 30 countries found that over the past two years, the number of consumers who use U.S. products from companies such as Microsoft and McDonald's had dropped to 27% from 30%. Non-U.S. brands held their ground in the same period.
The numbers may seem small, but they're significant. "We are not saying that there are going to be massive boycotts or huge migrations away from global brands," says Tom Miller, managing director of NOP World. "But the margins of the market are where the risk lies, and these days even losing a percentage point or two of share is not good news."
Reinhard points out that people still love a lot of things about America: our can-do spirit, our optimism, our creativity, and even our business acumen. But in the commercial world, people don't buy things from sellers they don't trust. And Brand U.S.A. has lost foreign consumers' trust. To restore that faith, American companies must use "soft" power skills to do what military might cannot. That will mean outreach. Reinhard envisions corporate internship exchange programs, best-practice sharing among companies, and corporation-funded English language programs in Arab countries. Other projects focus on addressing the "ugly American" issue -- programs to teach top officers at American multinationals what they need to know to be kinder, gentler global citizens, plus a World Citizens Guide for students and another for adults.
Whether business has the will to deliver on such a lofty agenda is unclear. International sales at most consumer products makers, after all, are holding their own. But Miller notes that privately, companies are voicing concern about their country's image problem. Sales are a lagging indicator. "Attitudinal change ultimately drives behavioral shifts," he says, and companies already sense the shift in attitudes.
People felt exploited by global expansion, inundated by our entertainment products, and put off by our arrogance. His findings were echoed by the annual NOP World survey of power brands. That study of 1,000 consumers in each of 30 countries found that over the past two years, the number of consumers who use U.S. products from companies such as Microsoft and McDonald's had dropped to 27% from 30%. Non-U.S. brands held their ground in the same period.
The numbers may seem small, but they're significant. "We are not saying that there are going to be massive boycotts or huge migrations away from global brands," says Tom Miller, managing director of NOP World. "But the margins of the market are where the risk lies, and these days even losing a percentage point or two of share is not good news."
Reinhard points out that people still love a lot of things about America: our can-do spirit, our optimism, our creativity, and even our business acumen. But in the commercial world, people don't buy things from sellers they don't trust. And Brand U.S.A. has lost foreign consumers' trust. To restore that faith, American companies must use "soft" power skills to do what military might cannot. That will mean outreach. Reinhard envisions corporate internship exchange programs, best-practice sharing among companies, and corporation-funded English language programs in Arab countries. Other projects focus on addressing the "ugly American" issue -- programs to teach top officers at American multinationals what they need to know to be kinder, gentler global citizens, plus a World Citizens Guide for students and another for adults.
Whether business has the will to deliver on such a lofty agenda is unclear. International sales at most consumer products makers, after all, are holding their own. But Miller notes that privately, companies are voicing concern about their country's image problem. Sales are a lagging indicator. "Attitudinal change ultimately drives behavioral shifts," he says, and companies already sense the shift in attitudes.
