Pic: Barclays
As the UK government negotiates trade deals in markets across the globe, research from Barclays Corporate Banking released recently reveals how British exporters can benefit from annual price premiums of up to £3.5 billion in ten countries. Results show UK-made products are still held in high regard around the world and consumers are willing to pay a premium.
In an international study of over 10,000 people across ten markets—the United States, Republic of Ireland, France, Netherlands, Germany, South Africa, the United Arab Emirates, India, China and South Korea—Barclays asked respondents how much extra they would be willing to pay if products like food and drink, clothing and cars bore a Union Jack kite mark.
Consumers in populous, far-flung markets are prepared to pay most for British-made goods. Those in India lead the way, being prepared to pay an 11.8 per cent gross premium for products made in the United Kingdom, followed by the UAE (10.9 per cent), the United States(10.4 per cent), South Africa (9.6 per cent) and China (8.8 per cent).
Their willingness to part with extra cash is reflected in the esteem in which items ‘made in Britain’ are held. Two thirds (66 per cent) of consumers in China and India said they’d be inclined to pay more for goods displaying the Union Jack because they believe them to be of a higher quality. This is way ahead of the survey’s impressive average of 39 per cent, according to a press release from Barclays.
The picture is enhanced when looking at consumers who say they’ve already paid more for British products with China leading the rankings here at 63 per cent, followed by India (60 per cent) and the UAE (56 per cent).
Additionally, when respondents were asked if are buying more British goods than they did five years ago, 69 per cent of consumers in India, 64 per cent in China and 64 per cent in the UAE said they are increasingly buying British.
Barclays Corporate Banking’s research asked people the price premiums they would attach to a number of different British-made goods. These were: general food products, alcoholic beverages, soft drinks, fashion items, high precision tools, automotive products, homeware and video games.
The results show that many international consumers can’t get enough of British food products with a gross price premium of 11.7 per cent attached to this category. This was followed by alcoholic beverages at 11.2 per cent and homeware at 10.4 per cent with UK fashion at just under 10 per cent.
Fibre2Fashion News Desk (DS)
As the UK government negotiates trade deals in markets across the globe, research from Barclays Corporate Banking released recently reveals how British exporters can benefit from annual price premiums of up to £3.5 billion in ten countries.Results show UK-made products are still held in high regard around the world and consumers are willing to pay a premium.