Nasirov R.R.
BRAND-LED INNOVATION IN EMERGING MARKETS: A FRAMEWORK FOR FMCG GROWTH IN THE GCC AND CIS *
Аннотация:
in fast-moving consumer goods (FMCG), brand-led innovation – leveraging existing brand equity to launch new products – is a key growth strategy in emerging markets. This article draws on the author’s firsthand experience to propose a conceptual framework: strong brand equity enables consumer trust and product trial, while local relevance (cultural fit, taste, and regulatory compliance) ensures adoption. We analyze consumer behavior, cultural nuances, and regulatory environments in the GCC and CIS, showing how they shape brand innovation. We review case studies illustrating successful brand-driven innovations adapted for local markets. Finally, we discuss how firms can replicate these strategies for sustained growth, emphasizing investment in brand equity (trust and awareness) and deep consumer insight to tailor offerings. This framework provides a roadmap for FMCG managers seeking growth in similar emerging markets.
Ключевые слова:
Brand-led innovation, Emerging markets, FMCG, Brand equity, Local relevance, GCC, CIS, Consumer behavior, Glocalization, product development
DOI 10.24412/2712-8849-2025-687-31-43
Introduction. Emerging markets like the Gulf Cooperation Council (GCC) and the Commonwealth of Independent States (CIS) now account for a substantial share of global FMCG growth. Companies often focus on product features or cost efficiencies, but success increasingly depends on brand-led innovation: using a brand’s equity (loyalty, quality perception, trust) as a platform to introduce new, locally adapted products. Strong brand equity acts as an “asset” that allows premium pricing and greater trial of new products [5]. In emerging markets with many first-time buyers, consumers rely heavily on social proof and trust [2]. As Edelman notes, “brand trust ranks higher than brand love” and highly trusted brands are seven times more likely to be purchased [5]. Thus, established brands can overcome initial resistance to new offerings by leveraging consumer confidence.Local relevance is equally critical: consumers expect products to fit their cultural preferences, language, and regulations. Global brands must “glocalize” – adapt to local tastes and norms – to resonate. This involves, for instance, creating product formulations, flavors, and marketing messages that reflect regional cuisine, culture or religion. In the food and beverage industry, local ingredients and flavors can signal authenticity, while compliance with local standards (e.g., halal certification in the GCC or Eurasian Conformity marks in the CIS) is often mandatory.Drawing on the author’s experience launching over 30 FMCG products across the GCC and CIS markets, this article develops a conceptual framework in which brand equity and local relevance jointly drive innovation success. We begin by reviewing the theoretical foundations of brand equity and cultural adaptation. We then detail market insights for the GCC and CIS, including consumer trends, cultural nuances, and regulatory factors. Next, illustrative case studies – both regional (Camelicious, RG Brands) and global (CocaCola, Nestlé KitKat) – highlight how brand-led innovation has worked in practice. Finally, we discuss how these lessons can be generalized for sustained growth.Conceptual Framework: Brand Equity and Local Relevance.Brand Equity as Innovation Enabler.Brand equity – the added value of a brand’s name and associations – includes brand awareness, perceived quality, loyalty, and trust [5]. In the FMCG context, high brand equity reduces consumer risk when trying new products, enabling faster adoption and often premium pricing. For example, the Edelman trust study found that trusted brands vastly outperform others: “highly trusted brands are seven times more likely to be purchased” [5]. Similarly, McKinsey notes that in emerging markets, word-of-mouth (often from trusted friends and family) heavily influences purchase decisions Figure 1. A brand with strong equity and positive associations becomes part of the consumer’s “consideration set” from the outset [2], making it more likely that new product extensions will be accepted. In this way, brand equity provides both a marketing advantage and a buffer against uncertainty in dynamic markets.Figure 1. Purchase decisions of emerging-market consumers are heavily influenced by recommendations from friends and family members.Local Relevance as Adoption Driver.While brand equity opens doors, local relevance closes the sale. This means aligning products and messaging with local consumer needs. It spans:Cultural fit: flavors, ingredients, or product formats that match traditional cuisine or habits (e.g., offering date-flavored snacks in GCC, or berry-flavored dairy in Kazakhstan).Regulatory compliance: meeting local standards (halal certification in Muslim-majority markets, or EAEU conformity in CIS states) and language requirements (Arabic labels in Saudi Arabia [9], Russian/Cyrillic labels in EAEU countries).Value perceptions: positioning products in line with local value sensitivities (e.g., emphasizing health and quality in the GCC, where many consumers will pay more for premium/healthy options [6], or offering budget-friendly packs in price-conscious segments).Distribution and occasion: adapting to local retail landscapes (convenience stores, malls, online channels) and usage occasions (e.g., gift-giving seasons, family dining habits).Academic and industry research repeatedly shows that consumers in emerging markets hold both global and local brands to different expectations: they may trust international names for quality but still seek local cues that make a product feel relevant [3]. As one strategy guide emphasizes, companies should focus regionally and let social networks amplify local launches [2].Integrative Framework. The core proposition of this article is that brand-led innovation in emerging FMCG markets succeeds when strong brand equity is combined with deep local relevance. In practice, this means: (1) Invest in building or leveraging brand equity through advertising, promotions, and customer experience to establish trust and recall. (2) Conduct rigorous consumer research to identify local tastes, cultural values, and unmet needs. (3) Develop new products under the brand that reflect local insights (e.g., flavors, package sizes, health claims). (4) Communicate with local channels and influencers (using language and narratives that resonate). (5) Ensure compliance with local regulatory and religious requirements (e.g., halal certification) from the outset.This dual emphasis ensures that a new product is both trusted (by brand) and meaningful (by fit). For instance, Nestlé’s global KitKat brand leveraged its strong equity but created a UAE-produced variant with Middle-Eastern dessert flavors, satisfying both brand expectations and local taste [7]. Similarly, RG Brands (a Kazakh company) developed fruit-juice recipes using local preferences, capturing market share from global importers [10]. These cases illustrate the framework’s validity.GCC Market Dynamics: Consumers, Culture, and Regulation.The GCC (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman) is a mix of wealthy oil economies and rapidly modernizing societies. Key features affecting FMCG innovation include:Demographics and Digital: GCC populations are youthful and highly urbanized. For example, female workforce participation in Saudi jumped from 19% (2016) to 33% (2020), reflecting social change [6]. Internet and social media penetration are high, so online marketing and e-commerce are important. However, malls and traditional souks (markets) still influence buying behavior.Cultural Nuances: Strong Islamic culture shapes consumption. Products must be halal-certified (especially meat, dairy, poultry) – Saudi Arabia mandates halal certification for meat/poultry imports since 2020 [9]. Alcohol is prohibited, which opens opportunities for non-alcoholic alternatives (e.g., regional sparkling beverages). Arabic language and Islamic imagery (e.g., Ramadan themes) often feature in branding. Expatriate populations (up to 80% in UAE) create diverse tastes, but they also act as trendsetters.Consumer Trends: Recent research (Bain) indicates GCC consumers value health, convenience, taste, and affordability [6]. Despite high incomes, spending became polarized after 2015: a segment pays premium for quality and health (e.g., organic or sugar-free alternatives), while value-conscious shoppers gravitate to promotions and private labels Figure 2. Notably, smaller local and regional brands have captured niche segments – for example, the top three “meal-maker” brands lost share to midsize and local players, as these agile companies catered to emerging premium taste niches [6]. This implies that even dominant brands must continuously innovate to avoid being overtaken by more culturally attuned competitors.Figure 2. Consumer trends shaped the new normal in the GCC.Regulatory Environment: The GCC has increasingly stringent food regulations. All packaged food in Saudi must now carry Arabic labels (product name, ingredients, country-of-origin, etc.) [9]. The introduction of VAT (value-added tax) – for instance, Saudi raised VAT from 5% to 15% in recent years – also pressures pricing and promotion strategies [6]. Governments encourage diversification (e.g., Saudi Vision 2030), potentially opening avenues for domestic product development, but also enforcing strict food safety standards.In sum, a brand entering the GCC must navigate a complex mosaic of high-tech modernity and traditional culture. Brands that localize successfully – by formulating products for local tastes and lifestyles while using their global equity – can win consumer loyalty in this dynamic region.CIS Market Dynamics: Consumers, Culture, and Regulation.The CIS comprises a diverse set of economies (Russia, Ukraine, Uzbekistan, Kazakhstan, Belarus, etc.) with shared Soviet heritage but varied contemporary dynamics. Key factors for FMCG innovation include:Consumer Preferences: CIS consumers often show strong loyalty to regional brands. For example, in Kazakhstan, consumers reported “preferences and loyalty to local brands in food product categories versus foreign brands”[3], likely due to cultural familiarity and perceived authenticity. In Russia, recent reports suggest consumers have become more brand-aware amid economic uncertainty, with many now explicitly considering the manufacturer when buying. Price sensitivity is higher in the CIS than in the GCC, while premium segments exist (driven by the urban middle class), many shoppers seek deals, especially given the inflationary pressures. Nonetheless, there is a growing segment willing to pay extra for perceived quality, health, or novelty. Cultural factors – such as preference for traditional flavors (rye bread, sour cream, dill, etc.) – shape product development. Local brands often emphasize national identity, which resonates in markets with recent geopolitical tensions (favoring domestic over Western brands).Retail Landscape: Modern retail chains (hypermarkets, supermarkets) coexist with traditional bazaars and small “corner” stores. FMCG products may need to be packaged for smaller unit sales in remote areas. Promotional culture (discounts, loyalty programs) is widespread, but so is trust in brands that have proven themselves over decades (e.g., Soviet-era food brands).Regulation: The Eurasian Economic Union (EAEU – Russia, Kazakhstan, Belarus, Armenia, Kyrgyzstan) imposes common technical regulations. Crucially, the “Eurasian Conformity” (EAC) mark has been mandatory on all imported and domestic food products since 2015 (fas.usda.gov). This certifies compliance with EAEU standards and acts as a quality guarantee. Labels generally must be in Russian and include ingredients, producer, and origin. Sanctions and trade restrictions (post-2014 and post-2022) have spurred import substitution: many Western brands have exited, and local producers launched domestic alternatives or rebranded (e.g., Russia’s “Vkusno i tochka” burgers replacing McDonald’s). Thus, in the CIS, successful innovations often come from local companies with deep market knowledge and agility, though global firms that adapt can also thrive if they secure compliance and tailor products.Overall, the CIS market rewards brands that project authenticity and national relevance. Like the GCC, consumers care about brand reputation – but the trust may hinge on a brand’s local roots as much as its global pedigree.Case Studies of Brand-Led Innovation.Camelicious (UAE): Leveraging Local Ingredients under a New Brand.In Dubai, the government-backed Emirates Industry for Camel Milk & Products created Camelicious, a new FMCG brand centered on camel milk – a traditional local product with modern positioning. Camelicious leveraged the novelty of camel dairy to carve a niche globally. The brand invested in state-of-the-art farms and processing, achieving EU export approval in 2016 [4]. Camelicious then expanded into global markets (over 20 countries by 2025) with products ranging from fresh camel milk and flavored yogurts to (notably) camel-milk baby formula introduced in 2020.Insights: The Camelicious story illustrates how a new brand platform can be built on local heritage. The brand communicated camel milk’s health benefits and cultural authenticity while meeting strict international standards. Here, brand equity was built from scratch around a unique selling proposition, and local relevance was inherent. It shows that even unconventional products can succeed if the brand narrative is compelling and compliance (halal, EU hygiene, etc.) is ensured.Nestlé KitKat (UAE): Global Brand, Local Flavors.Nestlé’s globally recognized KitKat bar illustrates brand-led adaptation. In 2018, Nestlé Middle East launched “KitKat Mini Moments Desserts”, a variant produced in its UAE factory with four dessert-inspired flavors (Cherry Brownie, Strawberry Cheesecake, Crème Brûlée, Tiramisu) [7]. These flavors were chosen to resonate with regional tastes for sweets, while the core brand experience (“break”) remained consistent. Nestlé’s local marketing highlighted that this was a Middle East innovation: as Nestlé Middle East’s executive noted, “thanks to the local manufacturing that drives innovation, Nestlé Middle East has now achieved almost 20 innovations in the region over the past 5 years”.Insights: KitKat Mini Moments combined Nestlé’s strong KitKat equity (trust, quality) with localized product features. Because the product was made in the UAE, it also eased regulatory approvals and distribution in the GCC. This case demonstrates how a global brand can extend into niche local segments by introducing novel flavors under the same brand umbrella, thereby pushing innovation while maintaining consistency. It also shows the importance of manufacturing investment in-market to tailor offerings.CocaCola Life (UAE): Meeting Health Trends with Brand Trust.CocaCola is an iconic brand worldwide. In 2016 it introduced CocaCola Life (a stevia-sweetened low-calorie cola) in the UAE [1]. The product launch capitalized on rising health consciousness among Gulf consumers (seeking lower-calorie options) while carrying the Coca-Cola brand’s assurance of taste. The Coca-Cola Middle East marketing director emphasized that “CocaCola Life is the latest example of the company’s commitment to offering more choice, demonstrating our innovation in enriching our product portfolio to meet consumers’ evolving needs and preferences”. The positioning (limited edition, local launch events) tapped into regional preferences for novelty and sampling.Insights: This example shows that even incremental product innovations (a new variant) can be effective if the brand already has trust. The brand equity of Coca-Cola eased consumer acceptance of an alternative cola, and local launch activities (in malls, events) generated buzz. It highlights that attention to regional health trends (many UAE consumers try sugar alternatives) can drive category innovation under global brand names.RG Brands (Kazakhstan): Local Company Innovates for Local Tastes.RG Brands began as an importer of beverages in Kazakhstan and pivoted to local innovation. In 1999, leveraging its market knowledge, RG Brands developed 12 flavors of natural fruit juices (under its Da-Da brand) in 250ml and 1L sizes [10]. These products featured locally popular fruits and achieved rapid success: by 2000 they accounted for over 20% of all F&B sales in Kazakhstan.RG Brands’ strategy was deliberate: it aimed “to develop new products under its own brands instead of relying on MNCs, being a Kazakhstan company in a better position to develop products that meet the needs and demands of consumers in the country and the Central Asian region”. The company continues to invest in R&D, packaging, and understanding local preferences (even introducing a regional energy drink).Insights: RG Brands demonstrates how a local company can build its own brand equity and use it to introduce tailored innovations. The brand was trusted as “ours,” and it filled gaps left by imports (e.g. seasonal flavors absent in foreign products). This case underlines that local insights and nimbleness often give regional brands an edge in CIS markets. Multinational FMCG firms entering the CIS must therefore either partner with or emulate such localized approaches.Replicating Success: Strategies for Sustained Growth.The cases above suggest several replicable strategies:Build/Leverage Brand Equity First: Before launching an innovation, ensure your brand has recognition and positive associations in the market. This can involve brand-building campaigns, consistent quality, and customer engagement. A trusted brand shortens the adoption curve for new products [5].Deep Local Consumer Research: Conduct qualitative and quantitative studies to identify unmet needs, taste preferences, and cultural symbols. In emerging markets, small deviations from familiarity can be critical, e.g., a toothpaste with a local herbal ingredient or a beverage in a pack size optimized for family sharing or single purchases.Tailor Products to Local Preferences: Use local flavors, ingredients, or product formats. For instance, GCC companies have introduced carbonated drinks with unique regional fruits, CIS firms might add local spices or traditional recipes. Global brands should not just import global SKUs but “glocalize” (e.g. Nestlé KitKat’s dessert flavors).Ensure Regulatory and Cultural Fit: Obtain all necessary certifications (halal, EAC, organic, etc.) in advance. Use local languages on packaging and follow cultural norms in branding. Failure here can derail a launch regardless of brand equity.Pilot in Focused Geographies: As McKinsey notes, emerging-market word-of-mouth is local in nature [2]. It can be effective to pilot in a city or cluster and then expand as the brand gains organic traction. This approach reduces cost and allows iterative improvement.Leverage Digital and Community Channels: Younger consumers in GCC and CIS are highly active online. Engage them through social media, influencers, and even e-commerce exclusives. At the same time, align with traditional community structures (family gatherings, local influencers, trade associations).Partner or Co-create with Local Players: Joint ventures or partnerships with successful local brands can combine foreign capital and brand with domestic market know-how. Alternatively, funding local entrepreneurs or co-branding with regional icons can accelerate acceptance.Monitor and Iterate: Use metrics (sales data, social listening) to refine products quickly. In polarized markets (e.g. premium vs. value), companies should iterate variants – for instance, offering both a budget and a premium version under the same brand.By following these strategies, FMCG companies can replicate the success of the case examples. In essence, brand-led innovation in the GCC and CIS means bridging global brand strength with local market intelligence.Conclusion.This article has outlined a framework for FMCG growth in the GCC and CIS through brand-led innovation. By combining strong brand equity with deep local relevance, companies can introduce new products that resonate with consumers in emerging markets. Our analysis, grounded in both literature and the author’s practical experience (30+ product launches), shows that this approach addresses the critical barriers of trust and cultural fit. In the GCC, we see consumers seeking health, quality, and novelty within traditional values, in the CIS, national preferences and evolving economic pressures shape buying behavior. Case studies from regional players (Camelicious, RG Brands) and global multinationals (Coca-Cola, Nestlé) illustrate how tailored innovations under strong brand platforms have driven growth.For brand managers and marketers, the lesson is clear: invest in building intangible brand value and use it as a springboard for innovation, but never lose sight of local consumer realities. Governments and regulators in these regions are also evolving – imposing new standards like halal certification or EAEU marking – which brands must anticipate. Future research could track how digital transformation (e-commerce, AI) further intersects with brand-led innovation. But the guiding principle remains: brands that know their markets deeply and adapt creatively will capture the ongoing growth opportunities in the GCC and CIS.
Номер журнала Вестник науки №6 (87) том 2
Ссылка для цитирования:
Nasirov R.R. BRAND-LED INNOVATION IN EMERGING MARKETS: A FRAMEWORK FOR FMCG GROWTH IN THE GCC AND CIS // Вестник науки №6 (87) том 2. С. 31 - 43. 2025 г. ISSN 2712-8849 // Электронный ресурс: https://www.вестник-науки.рф/article/23877 (дата обращения: 08.07.2025 г.)
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