America's Image Problem
But dislike of U.S. policy may not hurt products
Changing your country's image isn't easy. In the 1990s, Britain-home of top fashion designers, hot bands, and soccer's ultrahip David Beckham-tried to reimagine itself as an artsy, edgy, innovative nation. "Cool Britannia" was the rockin' phrase (a play, of course, on the patriotic song "Rule, Britannia"). But the United Kingdom's extreme makeover was as successful as London's Millennium Dome. "Cool Britannia" had to compete against a thousand-year buildup of other images and perceptions. "Think of England, and what comes to mind?" asks international branding consultant Nick Wreden. "Tower of London? Buckingham Palace guards? Shakespeare in that funny collar? All images that relate to centuries-old traditions, not cutting-edge innovation."
Still, a country's "national brand" can change quickly-if only for the worse. Just ask American business executives. Not long ago, being seen as an "American" company was smart marketing. "The American brand was an investment theme that many investment managers tried to play back in the '80s and '90s," says Jeff MacDonagh, portfolio manager at Domini Social Investments. "Companies like Coca-Cola, Levi's, the Gap. But that's a theme that has come and gone."
Bad vibes. As has America's worldwide popularity. A survey this spring by the Pew Global Attitudes Project, conducted in 15 nations, found that global perceptions of the United States continue to worsen. The percentage of Britons, for instance, who view America favorably had fallen to 56 percent from 83 percent in 2000. For Germans, the number had dropped to 37 percent from 78 percent. Even the brief era of good feeling in 2005 that stemmed from the U.S.-led Asian tsunami relief effort seems to have faded in countries such as India and Indonesia.
Clearly, international opposition to U.S. foreign policy and dislike of President George W. Bush is playing a big role in creating these sour attitudes. Every quarter, consultant Simon Anholt surveys 26,000 consumers in 35 nations for their opinions on national brands. In his most recent survey, the United States ranked 10th overall, right behind Australia and just ahead of Spain. Britain finished first and Turkey dead last. And while the United States scored in the top five in the investment and culture categories, it finished 22nd in governance. "The only thing that America could do to return to its natural position as No. 1 or 2 is a new government with a new foreign policy," Anholt says.
Are these negative perceptions affecting U.S. businesses and products? Not according to Anholt's surveys, which show continued high regard for American companies and products. Consumers, it seems, are generally adept at separating people and companies of a nation from that nation's government. And even if a government becomes so profoundly unpopular that it begins to contaminate a nation's overall image, what's a company to do? Culturally iconic brands such as Coca-Cola or McDonald's are deeply woven into Americana. And good luck to companies like American Express or American Airlines. Anyway, it seems unlikely that a U.S.-based company would admit that its American roots are hurting sales. "But privately you will find CEOs who say that being linked to a country is a lot like working with a celebrity," Anholt says. "It can be favorable or unfavorable, but you are never quite sure what they are going to do next."
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