The Source Code

Made in U.S.A.: China’s Premium Brand?

  

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Thought “Made in U.S.A.” may be perceived in China similarly to how “Made in China” is in North America? Guess again. Over the past few years Chinese consumer interest in American made brands has skyrocketed. While the majority of sales come via luxury clothing and garment manufactures like Ralph Lauren, a trend of purchasing U.S.A. made goods is developing in other areas of the Chinese economy as well.

These developments present an appealing export opportunity for industrial brands with solid reputations and great product quality track records. Especially when recent facts suggest Chinese consumers are more than willing to pay a premium for American products.

A ground swell is clearly forming and as we know from Malcolm Gladwell’s book The Tipping Point, it only takes a few mavens to incite a positive brand reaction.  Particularly, for product providers who can offer consumers a safer, more prestigious or enhanced quality item.       

• China is comprised mainly of new families and with the 1 child policy in effect, parents are obsessed with providing a safe environment for themselves and their child. Meaning products that will make the workplace or home a safer place are likely to catch the eye of more than a few people.
• As we know from the garment industry, premium brands sell and sell well. However you don’t necessarily have to be a premium brand company to thrive. In some cases it may be enough to show consumers you are one of the few products in your marketplace not being made in China.
• It’s proven in North Americans will pay for quality when they know the value is present. China’s no different. If your organization can demonstrate the quality, the Chinese will happily pay the premium.  

Of course just having the Made in U.S.A. tag doesn’t guarantee you success. Long-term sustainability will likely hinge on your organizations ability to clearly communicate your products value proposition and why it’s worth paying the extra money for enhanced safety, prestige or quality.    

That’s it for today. Stay tuned for the next weeks post.

(For more than 10 years, GCP Industrial Products has successfully offered its customers a unique sourcing process that allows them to save money, streamline their supply chain and grow with new products. Our plans are to continue to grow based upon mutually beneficial relationships and the quality of our products and services to our ever growing customer base. To contact us please click here or phone 1-888-893-5427. Thank you.)