Member Article

‘Brand Britain’ represents huge export value for British businesses

Products labelled Made in Britain command a considerably higher premium when sold abroad than those with no declared country of origin, according to research independently by Barclays Corporate Banking.

When consumers in eight key export markets see the Union Flag on a product, their inclination to buy increases.

In new and emerging markets, two thirds of consumers (64%) would be more inclined to purchase a product carrying the Union Flag.

The report’s findings sought to understand the value of ‘Brand Britain’ for export purposes in comparison to the brand values of Made in England/Wales/Scotland.

The research combined ONS export data with a survey of 7,610 individuals in eight key export markets (France, Ireland, Germany, the USA, Brazil, South Africa, China and Qatar) designed to examine the premium they are willing to pay for different goods labelled as Made in Britain/England/Scotland/Wales.

When labelled as Made in England/Scotland/Wales, goods tend to command considerably lower premiums than Made in Britain.

The only case where this is not true is for alcoholic beverages where the branding Made in Scotland adds a greater premium than Made in Britain in several countries, particularly in the USA and Ireland.

However, this is not replicated in new and emerging markets where alcoholic beverages branded as Made in Britain commanded bigger premiums in China and South Africa.

31% of customers in new and emerging markets have knowingly paid a premium for products from Great Britain. The same figure for developed economies is just 14%.

The label Made in Britain triggers a willingness to pay up to 7% more among customers in new and emerging markets than for products without a declared country of origin.

At least 50% of respondents in all countries perceived the quality of British goods to be “good” or “very good”. Scottish, English and Welsh products were also perceived positively, but often not to the same extent.

The report estimates that of the up to £2.1 billion premium gain in the eight markets surveyed by labelling goods ‘Made in Britain’, the highest gains, in the order of £0.8 billion, would be obtained for exports to the USA, the market to which the UK exports the most in absolute terms, followed closely by £0.7 billion to China.

Debbie Mullen, head of Barclays Corporate Banking in Yorkshire said: “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.

“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.

“We understand that these new markets can be more challenging to enter but for those that persevere, there are opportunities for a greater return.

“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.”

This was posted in Bdaily's Members' News section by Ellen Forster .