US: Chinese willing to pay more for "Made in USA"
Consumers in the US and China are willing to pay a premium for apparel made in the USA because they see it as more durable and of higher quality, a study has found.
The report, conducted by the Boston Consulting Group, said that over 60% of Chinese consumers would pay more for products labelled Made in USA than for those labelled Made in China. Nearly 50% of Chinese consumers surveyed said they would prefer a product made in the US to a China-made product of similar price and quality.
The research found consumers in the US and China are willing to pay a 10-60% premium for the Made in USA brand across a number of categories, including apparel, baby food, appliances and electronics.
The study found nearly 60% of US consumers had chosen US-made products over less expensive Chinese goods at least once in the month before the survey.
"These findings suggest that there's a big opportunity for manufacturers and retailers to command a price premium by promoting the Made in USA brand-not only in the US but also in China," said Harold Sirkin, a BCG senior partner and co-author of the research.
"Retailers may want to adjust their strategies to capitalise on the strong consumer interest."
The findings support prior BCG analysis showing that the US is becoming increasingly attractive as a location for making certain products for the US market and as a base for US exports.
In contrast to US and Chinese consumers, European consumers strongly prefer products made in their own countries. More than 65% of consumers in both Germany and France said they would be willing to pay more for products made in their home country than for those made in the US.
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