The increasing export value of the 'Made in Britain' label

Overseas consumers are willing to pay a higher price for products labeled 'Made in Britain,' which command a “considerably higher premium” than products sold without a country of origin, according to new research independently commissioned by Barclays Corporate Banking.

Over 7,610 individuals were surveyed in eight countries; France, Ireland, Germany, the US, Brazil, South Africa, China and Qatar to examine what premium they are willing to pay for different products labeled as 'Made in Britain,' 'Made in England,' 'Made in Scotland,' and 'Made in Wales,' to better understand the value of 'Brand Britain'. The investigation examined all product categories, including apparel, footwear and accessories.

C

onsumers willing to pay a premium for an item bearing the Union Flag

The research found that consumers in the questioned export markets are more likely to purchase a product if its bears the Union Flag, with two-thirds of consumers (64 percent) in new and emerging countries more inclined to buy a product carrying the flag. Items labeled as 'Made in England/Scotland/Wales' were found to command a noticeably lower price than items labeled as 'Made in Britain'.

According to the report, 31 percent of consumers in new and emerging markets have knowingly and willingly paid a premium price for products from Great Britain, in comparison to 14 percent of customers in developed markets. The label 'Made in Britain' was also found to trigger an eagerness to pay up to 7 percent more among customers in emerging markets, than items without a stated country of origin and 50 percent of respondents in all countries were said to the perceive the quality of British goods to be “good” or “very good,” to a further extend than Scottish, English and Welsh products.

“While British businesses are currently reliant on the EU and the USA for the majority of their exports, they are well placed to expand into new and emerging markets,” commented Rebecca McNeil, Head of Business Lending at Barclays Corporate Banking. “The report shows that the biggest premiums for British branded goods will be paid in these markets, not the developed markets. These new and emerging markets are also growing at a faster rate than the established trading partners, meaning growth opportunities and premium pricing are aligned.”

The research predicts that of the 2.1 billion pound premium increase in the eight countries surveyed, the largest gains would be made for exports to the US, in the form of 0.8 billion pounds, which is the market to which the UK exports the most. This is closely followed by 0.7 billion pounds to China, a country to which UK has begun increasing its exports to rapidly over the past decade.

Qatar was the country found to pay the highest additional average premium for fashion products labeled as 'Made in Britain,' paying 1,26 per transaction. “We understand that these new markets can be more challenging to enter but for those that persevere, there are opportunities for a greater return,” added McNeil. “Rather than focusing on seemingly saturated developed markets, exporters should seriously consider looking further afield as there are bigger premiums to be had when products are marketed as Made in Britain.”

Photos: Grenson Tim Little's factory in Rushden, Northamptonshire, 'Made in Britain' label.