BEIJING, China – A majority of Chinese shoppers would pay a premium for products showing they were “made in USA”, a report by the Boston Consulting Group has revealed.
The company polled 5,000 people in China, France, Germany and the US, and discovered over 60% of its Chinese panel proved ready to meet higher prices for American-made goods.
Quality was a key differentiator for these shoppers, with 82% of Chinese respondents either “agreed” or “strongly agreed” that US goods had better credentials in this area.
Nearly half of Chinese customers generally preferred “Made in USA” lines to competitors of similar cost and quality that were manufactured at home.
Upon considering ten categories ranging from baby food and apparel to electronics and appliances, Chinese contributors would be happy to pay 10% to 80% more for US goods, the study added.
Indeed, over 50% of individuals polled in the country had previously selected American-made items instead of local alternatives on a minimum of one occasion in the last month.
Turning to the US, the report revealed that more than 60% of American shoppers were ready to spend greater amounts on products made locally in the ten sectors featured in the research.
When assessing the premium they might meet, totals came in the 10% to 60% range, with at least 20% of contributors prepared to stand a double-digit difference on this metric to buy American brands.
Fully 93% of shoppers would engage in this activity if it kept jobs in America, while 85% believed local offerings were of better quality than Chinese rivals, and 80% thought choosing US lines was patriotic.
Nearly 60% of American buyers had also opted for “Made in USA” items over lower-cost Chinese alternatives during the month before being questioned.
“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.
“Retailers may want to adjust their strategies to capitalise on the strong consumer interest.”
By contrast, more than 65% of participants in both France and Germany said they would be willing to pay higher prices to buy products made in their home country rather than in the US, the analysis added.