Chinese Consumers Willing To Pay More For “Made in USA” Goods: BCG Study
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It seems that Americans are not the only ones who are beginning to shun Chinese-made products for those made in the U-S-of-A.
According to a study by the Boston Consulting Group (BCG), as cited by Reuters on Wednesday, consumers in China are now willing to pay more for products with “Made in USA” labels, compared to those produced domestically, as they perceive American-made goods to be more durable and of higher quality.
It seems that Americans are not the only ones who are beginning to shun Chinese-made products for those made in the U-S-of-A.
According to a study by the Boston Consulting Group (BCG), as cited by Reuters on Wednesday, consumers in China are now willing to pay more for products with “Made in USA” labels, compared to those produced domestically, as they perceive American-made goods to be more durable and of higher quality.
The study, conducted among more than 5,000 consumers, found that at least 61 percent of respondents would pay more for a product made in the U.S.; while more than double the number of respondents also indicated that they would pick a U.S.-made item over a Chinese-made alternative, even if the products were of similar price and quality.
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The most common items that Chinese consumers were willing to pay a premium, of less than 10 percent, for included baby food, household appliances, tires, car parts and furniture. However, the survey also found that respondents would pay high premiums, up to 71 percent, for specific ‘status-symbol’ goods such as U.S. made athletic shoes and mobile phones.
Not surprisingly, in both the U.S. and China, more than 80 percent of those polled cited quality as a reason to pay more for U.S. goods.
[quote]“The Chinese consumer is quietly concerned about what they’re getting,” said Hal Sirkin, a BCG senior partner and co-author of the study to Reuters.[/quote]Sirkin claimed that as more Chinese enter the middle class, they would naturally begin to look for value in the goods they buy rather than just the lowest price.
Based on the findings, BCG also argued that more manufacturers should now base their production back to the U.S. in order to capitalise on the increasingly-discerning Chinese consumer.
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[quote]”If you’re going to have things that have a long life, like mechanics’ hand tools, there’s real premiums for ‘Made in USA’ over a foreign brand because the quality is better,” Sirkin said, citing Stanley brand tools as an example.[/quote]However, the study also showed that the appeal of U.S. goods was by no means universal. Almost two-thirds of Germans surveyed said that they would pay more for German-made products, while French consumers saw U.S.-made mobile phones, shoes or baby toys as less valuable than local equivalents.
