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America v. China – Who has the Goods?

It is known that most American consumers want American-made goods over Chinese-made goods.  However, over 60 percent of Chinese consumers also want American-made goods and are willing to pay more for them.  In a study released by The Boston Consulting Group (BCG) American-made goods were found to be the most desired, with almost 50 percent of Chinese consumers preferring an American-made product over a Chinese-made product of equal price and quality.  In fact, Chinese consumers are willing to pay premiums of up to almost 80 percent.

Clearly, there is a large market in China for American brands, and many businesses and manufacturers have tried to tap into that market.  Cultural differences, government red tape, and shipping difficulties have caused failures, but there are still many international trade resources that can help a business get into the Chinese market. 23980386551_cbb9a69a09_b

More BCG findings support the idea that the U.S. is becoming more and more appealing as a location for both creating products for the U.S. and also for creating products for global export.  The U.S. is increasingly cost competitive compared to other major countries, so if the U.S. increases exports in could create a few million jobs for Americans.

Quality is one of the largest drivers of the desire for American goods.  American-made products are seen as better quality than those made in China.  For American consumers, patriotism is another large driver, as they want to keep jobs in the U.S.

However, other separate European countries strongly prefer products made in their own country instead of the U.S. or China.  65% of European consumers would rather pay more for products made in their own country.

Quality will forever be a critical aspect of factors that guide consumer purchases.  American-made products are safer and contain better ingredients for food, which is a concern for people in many countries.  It is no shock when Chinese-made food, toys, and products are recalled.  What is made in the U.S. may not be perfect or as healthy as what would be ideal, but it is better than what is made in China.  If the markets start to switch to American-made products, it is possible that the Chinese will upgrade their product quality.

 

Source

http://www.forbes.com/sites/tjmccue/2012/11/19/made-in-america-has-a-new-ring/#33930a0d1b85

https://www.bcgperspectives.com/content/articles/manufacturing_supply_chain_management_made_in_america_again/

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