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Pricing of Global Brands Across Continents

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Brand View captures pricing data from retailers around the globe. In this Insight, we investigate how much consumers are paying for the same items in their respective countries.

Our analysis revealed significant differences in the relationships between the price of baskets in different countries and their values when compared to average salaries.

Which country is cheapest for groceries?

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We compared a basket of items listed in of Walmart (US), Pick ‘n’ Pay (South Africa) and Coles (Australia), then compared it with the cost of the same basket in Tesco (UK), forming an index.

We discovered that on average South African and US shoppers pay 23 to 25 per cent less than UK shoppers for an identical basket of items, while shoppers in Australia pay 49 per cent more.

Which countries benefit most?

We then performed the same process, indexing against the UK, with national average salaries (as compiled by the International Labour Organisation) in order to compare this against the index of baskets. The graph (right) shows the two results compared.

Shoppers in Australia are the worst off, paying more for items and being paid 15 per cent less than in the UK. Meanwhile, shoppers in the US reap the benefits of paying significantly less for their basket while taking home, on average, 6 per cent more pay than their UK counterparts

Is this variation in price consistent across the entire product range?

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Where possible, we looked at the price of comparable items available in every region of the study to see if price variation at the basket level was reflected across the product range.

While Australia is generally more expensive than other countries, the premium they pay is not consistent across the contents of their basket. For example, Lurpack Butter Unsalted Block (250g) is more than double the price it is in the UK, whilst an Iceberg Lettuce is around 30% cheaper. Patterns across brands, categories, fresh or ambient proved elusive.

In some cases, we did see more uniformity in the pricing of items in the other countries analysed. For example, Red Bull pricing is much closer to that of the UK in both the US and South Africa with only a 10-20p variation. However, Coca-Cola again bucks the trend being significantly cheaper in both the US and South Africa than it is in the UK – at around half the price.


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