China Willing to Pay More for Made in the U.S.A.
Staff Staff -- Furniture Today, November 30, 2012
BOSTON - Made in the U.S.A. is resonating in China. In fact, Chinese consumers are willing spend more for a product manufactured in America, according to a new study by the Boston Consulting Group (BCG).
The survey of more than 5,000 consumers, found that 61 percent of Chinese consumers would pay more for a product made in the United States. Nearly 50 percent of Chinese consumers prefer a product made in the U.S. to a China-made product of equivalent price and quality, according to the study. The premium that Chinese consumers are willing to pay ranges from about 10 percent to almost 80 percent in the categories tested, and more than half had chosen U.S.-made products over less expensive Chinese goods at least once in the month before the survey.
Chinese consumers are likely responding to recent cases of lead paint in toys, tainted milk and other scandals, and as more Chinese enter the middle class, they are looking for more value in the goods they buy rather than just the lowest price. This may pressure Chinese manufacturers to improve quality.
"These findings suggest that there's a big opportunity for manufacturers and retailers to command a price premium by promoting the Made in U.S.A. brand-not only in the U.S. but also in China," said Harold L. Sirkin, a BCG senior partner and coauthor of the research, in a statement. "Retailers may want to adjust their strategies to capitalize on the strong consumer interest."
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