New study: the increasing value of 'Brand Britain'
The independently commissioned study by Barclays Corporate Banking found that when consumers in eight key export markets see the Union Flag on a product, their inclination to buy increases. This was found to be especially true in new and emerging markets where 64% of consumers polled said they would be more inclined to purchase a product carrying the Union Flag.
The research combined ONS export data with a survey of 7,610 individuals in the key export markets of France, Ireland, Germany, the USA, Brazil, South Africa, China and Qatar.
When goods are labelled as Made in England/Scotland/Wales, the study found that they tend to command considerably lower premiums than those labelled Made in Britain. The only exception was for alcoholic beverages where the branding Made in Scotland added a greater premium than Made in Britain in several countries, particularly in the USA and Ireland. However, this was not the case in new and emerging markets where alcoholic beverages branded as Made in Britain commanded bigger premiums in China and South Africa.
According to the report, 31% of customers in new and emerging markets have knowingly paid a premium for products from Great Britain compared to just 14% for developed economies. The label Made in Britain was also found to trigger 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”. The study also found that Scottish, English and Welsh products were also perceived positively, but often not to the same extent.
Rebecca McNeil, head of business lending at Barclays Corporate Banking, 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."
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