September 7, 2007
Consumers Look for ‘Made in the U.S.A.’ Label
A combination of factors including safety issues with imported products, environmental concerns and even economic nationalism are leading more consumers to look for the “Made in the U.S.A.” label on products they buy, according to a report by The New York Times.
Bill Allayaud, a director for the Sierra Club, told The Times that he was among those who has begun to look for American made goods where once he dismissed concerns about buying foreign made products.
“Every time you see ‘Made in China,’” he said, “you think, ‘wait a minute, something’s not right here.’”
Alex Steffen, executive director of www.worldchanging.com, said consumers are looking to buy American goods because it provides them with the opportunity to enjoy “guilt-free affluence.”
This desire, said Mr. Steffen, has meant “you have not only the local food craze but things like American apparel, or Canadian diamonds instead of African ‘blood diamonds,’ or local-crafted toys.”
Interestingly, the low price of imported goods has in many cases given American-made products a luxury cache. The Times article pointed to New Balance, which produces its top-of-the-line sneaker in the U.S. while sourcing lower-end models overseas.
In the past, the fashion industry led a manufacturing exodus to points overseas. While the vast majority of goods continue to be made somewhere other than here, New Balance and others such as Nicole Miller and Oscar de la Renta are manufacturing in the U.S.
While these designers are producing goods domestically, they are not currently incorporating “Made in the U.S.A.” into marketing messages.
Despite problems with some low-cost goods produced in China and elsewhere, there is still a view held by many consumers that “Made Over There” equates to higher quality and buying U.S. products does not merit serious consideration.
Ernie Boch, president of Boch Automotive, which operates Honda, Subaru and Toyota dealerships, said that is the case when it comes to affluent consumers buying cars. “It’s kind of like people who stay at the Four Seasons,” he said. “They’ve heard of Motel 6, but they don’t stay there. It’s not part of their vernacular.”
Discussion Questions: Is the time right for a retailer to establish a purchasing/sales strategy along the line of Sam Walton’s “Buy American” program? Are American consumers ready to buy “Made in the U.S.A.” goods? How would a retailer market such a program?
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Depends on the category…for food, there is no better time (John Mackey says that food buying is a local issue), or there is no other way if you’re at all health conscious. But for apparel, toys and other products with more complex manufacturing processes, “Buy American” is a tough consumer proposition. So, until Americans change their buying habits (as in paying more), things look to remain the same.
As a former merchant of women’s apparel, I can tell you first hand that when competing with foreign manufacturers (especially Southeast Asia) on the apparel front, Americans have a long way to go. With rare exception, foreign producers are simply faster, cheaper and better…which, of course, translates into more timely goods, higher quality goods and the big stick in American retail–less costly goods.
At least for apparel, merchants are only reacting to what consumers want…and that’ll never change.
American manufacturers did not move operations overseas because consumers simply preferred goods of foreign origin. Consumers are often price thirsty and voted preferences based on saving dollars or even a few cents.
Many manufacturers reluctantly shifted operations abroad merely to remain in business by meeting consumers’ low-price cravings. Not all shifted to China. Some felt forced to relocate family businesses to Mexico due to the economic and competitive forces unleashed by NAFTA. Many were sad to close U.S. operations and release long time, loyal employees.
When I lived in Japan, I was surprised to find that many Japanese goods, such as cameras, were actually cheaper back home than in their country of origin. Perhaps more surprising, Japanese friends were aware of this pricing oddity and stated they were happy to overpay at home as it helped keep down the prices of Japanese goods sold overseas and brought in valuable foreign currency.
Considering all the current and likely future product recalls we see, if more Americans brought this type of thinking on shopping trips, ‘Made in the U.S.A.’ would be more than a hopeful marketing trend.
One part of this question puzzles me–are American consumers ready to buy “Made in the U.S.A.”? I thought there was a hefty proportion of the population complaining vociferously about jobs being outsourced and wondering why Americans are not being hired to do/make the things that Americans want to buy. I’m also puzzled by part of one of the answers–the one that says women’s apparel made “over there” is of better quality. Growing up in the U.S., I was taught that many (not all, of course) clothes and other items made in Asia especially were of poor quality and that you get what you pay for. Is there really now a perception that American-made is of lower quality? The perception in the UK, where most clothing items are imported, is that it’s OK for them to be poor quality as long as they’re inexpensive because it doesn’t hurt so much to discard and replace frequently in an effort to keep up with the latest fashion trends. Establishing a purchasing/sales strategy will entirely depend on the availability of good quality, attractive, reasonably priced products and secure supply. All things being equal, it could be a good idea. Otherwise, it could be a category killer. On the other hand, is there anyone left over there with the skills, financial backing and creativity to get anything to market? And if they do, won’t there then be a backlash about depriving people in emerging economies of ways in which they can earn a living and get to be more Western/consumerish?
Dear Paula:
It was great to see your comment about help desks.
I have a Cannon printer/fax/scanner. Their help desk is in Virginia, they all are American-born, they have the actual machines in the room as well as the manuals and computers to hook them up. So they talk you through any issues by doing just what the user does, in real time.
So the Japanese know how to run an American help desk.
Consumers are notorious for saying something in a survey or poll and behaving not according to what they said. Therefore, I do not think American consumers care where merchandise is made, all they care for is cheap merchandise! If American consumers were interested in “Made in America” merchandise, then our manufacturing base, at least for consumer products, would not have moved overseas.
I have long been concerned with the trend of moving the majority of manufacturing from the U.S. to China. China may have moved from radical communism to radical capitalism; however they are still a dictatorship.
It becomes increasingly difficult to find goods that are not made in China, even if you are willing to pay a premium for them. Sadly, I think that the majority of American consumers will always put moral concerns behind the desire to purchase the lowest priced goods.
The concept of “Made in the U.S.A.” is fantastic!
I always look first for the opportunity to purchase and promote “U.S.A. Made” in every product release, cradle to cradle design process and seed to compost sustainability initiative involved in my development processes.
Yes, it costs more but what are we really paying for? We are paying for not only the product but also a good life for our future generations on a beautiful green sustainable planet.
A big part of my personal and professional commitment is not just to sell product but also educate the consumer as to the current environmental and economic impact of the choices we make.
If we all band together, we can re-gain our sustainable economy and global environment.
If we all say it can’t be done or it’s up to the consumer, it will never happen.
Lot’s of people making small contributions everywhere creates a giant impact.
Yes, we have a long way to go but the sooner we all start, the sooner we all obtain the goals.
Educate now! Be innovative, tell everyone what you are doing and explain the impact it has on their daily lives.
I am advising my clients that already have products made in the USA to take advantage accordingly, as one small marketing point of interest. However, there is also some irony in that many consumers view “made in the USA” as being more expensive. Nonetheless, it’s a good idea for toys, HBA, and certain food items, but please be sure that your statements are completely true before using the claim.
I’ve been concerned over the U.S. becoming consumers and not making much of anything anymore, so I think a move back to some American made products is a healthy one (just please don’t ask me to buy an American car yet…).
Food and toys are, as others have pointed out, a no-brainer. Apparel will be tricky. To my knowledge apart from American Apparel, only St. John actually makes its clothes in the U.S., and they don’t even advertise that. Pricing pressure (and more creatively made fabrics) will keep the majority of apparel made in China for some time to come.
I think it’s critical for the U.S. to add practical value to the world, beyond just our “ideas”–which is the facile answer given to me when I say “We don’t make anything anymore.” Our trade deficit is embarrassing. We have to produce goods and services.
Tech providers are not immune. I think I’d sell my soul for a “made in the USA” help desk.
It would be almost impossible to establish and maintain such a strategy. Almost nothing is made wholly in one place anymore. There are foreign components in most every product made anywhere. (It’s called cross-border production sharing, a trend I identified some 20 years ago.) We live in a truly global economy, with outsourcing, fracturing and subcontracting.
The keys for retailers and consumers are quality, utility and affordability. Those features will trump patriotism, or even previous reputation, every time, in any product, from cars to shampoo.
Consumers have relationships with companies, providers of goods and services, and retailers. With countries? Not so much. With their own country? Of course. But again, it is virtually impossible to stick to wholly American goods exclusively. A recent book author tried this and failed–the book was called “A Year Without China.” Read it and see.
One would think that toys would be a “no-brainer” right now with all the recalls and quality issues with Chinese made products. Any company that could get to market before this Christmas with “Made in America” toys should hit a home run. I doubt that most would be able to make such a tight schedule but it seams like there are big rewards for anyone that can. All the recalled and rejected toys should leave a void in the current pipeline.
American Apparel, emphasizing its Los Angeles production, has built a winning niche brand. No doubt there’s a lot more opportunity for American-identified goods. There has to be more than a production strategy, though. The goods have to be well designed or at a special price point or have some other Unique Selling Proposition. Levi Strauss used to make millions of jeans in the U.S. but their sales declined sharply, regardless.
You can’t “Buy American” when there are so few American goods to buy. How about doing a quick tabulation of all the industries we’ve given away to cheap foreign labor–everything from steel and textiles, to apparel and food. Shame on us!
The question is can we get this back and how? You mention the designers now producing some products in the U.S. again. I believe this could be a trend in a number of industries. Apparel may lead the way.
Because of the short shelf life of fashion goods, some manufacturers in Europe who were outsourcing to Asia are bringing production back to Eastern Europe. They are getting a quality product at a relatively low cost and don’t have to deal with long turn around times.
In the U.S., not everyone is so enamored of outsourcing programming and other tech jobs to India where salaries are getting higher and the quality of critical work is coming under increased scrutiny.
Who knows, maybe someone in Washington will wake up and see the damage that all the “free” and “Fair” trade pacts have done and come up with a plan to bring business back to the U.S.
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Depends on the category…for food, there is no better time (John Mackey says that food buying is a local issue), or there is no other way if you’re at all health conscious. But for apparel, toys and other products with more complex manufacturing processes, “Buy American” is a tough consumer proposition. So, until Americans change their buying habits (as in paying more), things look to remain the same.
As a former merchant of women’s apparel, I can tell you first hand that when competing with foreign manufacturers (especially Southeast Asia) on the apparel front, Americans have a long way to go. With rare exception, foreign producers are simply faster, cheaper and better…which, of course, translates into more timely goods, higher quality goods and the big stick in American retail–less costly goods.
At least for apparel, merchants are only reacting to what consumers want…and that’ll never change.
American manufacturers did not move operations overseas because consumers simply preferred goods of foreign origin. Consumers are often price thirsty and voted preferences based on saving dollars or even a few cents.
Many manufacturers reluctantly shifted operations abroad merely to remain in business by meeting consumers’ low-price cravings. Not all shifted to China. Some felt forced to relocate family businesses to Mexico due to the economic and competitive forces unleashed by NAFTA. Many were sad to close U.S. operations and release long time, loyal employees.
When I lived in Japan, I was surprised to find that many Japanese goods, such as cameras, were actually cheaper back home than in their country of origin. Perhaps more surprising, Japanese friends were aware of this pricing oddity and stated they were happy to overpay at home as it helped keep down the prices of Japanese goods sold overseas and brought in valuable foreign currency.
Considering all the current and likely future product recalls we see, if more Americans brought this type of thinking on shopping trips, ‘Made in the U.S.A.’ would be more than a hopeful marketing trend.
One part of this question puzzles me–are American consumers ready to buy “Made in the U.S.A.”? I thought there was a hefty proportion of the population complaining vociferously about jobs being outsourced and wondering why Americans are not being hired to do/make the things that Americans want to buy. I’m also puzzled by part of one of the answers–the one that says women’s apparel made “over there” is of better quality. Growing up in the U.S., I was taught that many (not all, of course) clothes and other items made in Asia especially were of poor quality and that you get what you pay for. Is there really now a perception that American-made is of lower quality? The perception in the UK, where most clothing items are imported, is that it’s OK for them to be poor quality as long as they’re inexpensive because it doesn’t hurt so much to discard and replace frequently in an effort to keep up with the latest fashion trends. Establishing a purchasing/sales strategy will entirely depend on the availability of good quality, attractive, reasonably priced products and secure supply. All things being equal, it could be a good idea. Otherwise, it could be a category killer. On the other hand, is there anyone left over there with the skills, financial backing and creativity to get anything to market? And if they do, won’t there then be a backlash about depriving people in emerging economies of ways in which they can earn a living and get to be more Western/consumerish?
Dear Paula:
It was great to see your comment about help desks.
I have a Cannon printer/fax/scanner. Their help desk is in Virginia, they all are American-born, they have the actual machines in the room as well as the manuals and computers to hook them up. So they talk you through any issues by doing just what the user does, in real time.
So the Japanese know how to run an American help desk.
Consumers are notorious for saying something in a survey or poll and behaving not according to what they said. Therefore, I do not think American consumers care where merchandise is made, all they care for is cheap merchandise! If American consumers were interested in “Made in America” merchandise, then our manufacturing base, at least for consumer products, would not have moved overseas.
I have long been concerned with the trend of moving the majority of manufacturing from the U.S. to China. China may have moved from radical communism to radical capitalism; however they are still a dictatorship.
It becomes increasingly difficult to find goods that are not made in China, even if you are willing to pay a premium for them. Sadly, I think that the majority of American consumers will always put moral concerns behind the desire to purchase the lowest priced goods.
The concept of “Made in the U.S.A.” is fantastic!
I always look first for the opportunity to purchase and promote “U.S.A. Made” in every product release, cradle to cradle design process and seed to compost sustainability initiative involved in my development processes.
Yes, it costs more but what are we really paying for? We are paying for not only the product but also a good life for our future generations on a beautiful green sustainable planet.
A big part of my personal and professional commitment is not just to sell product but also educate the consumer as to the current environmental and economic impact of the choices we make.
If we all band together, we can re-gain our sustainable economy and global environment.
If we all say it can’t be done or it’s up to the consumer, it will never happen.
Lot’s of people making small contributions everywhere creates a giant impact.
Yes, we have a long way to go but the sooner we all start, the sooner we all obtain the goals.
Educate now! Be innovative, tell everyone what you are doing and explain the impact it has on their daily lives.
I am advising my clients that already have products made in the USA to take advantage accordingly, as one small marketing point of interest. However, there is also some irony in that many consumers view “made in the USA” as being more expensive. Nonetheless, it’s a good idea for toys, HBA, and certain food items, but please be sure that your statements are completely true before using the claim.
I’ve been concerned over the U.S. becoming consumers and not making much of anything anymore, so I think a move back to some American made products is a healthy one (just please don’t ask me to buy an American car yet…).
Food and toys are, as others have pointed out, a no-brainer. Apparel will be tricky. To my knowledge apart from American Apparel, only St. John actually makes its clothes in the U.S., and they don’t even advertise that. Pricing pressure (and more creatively made fabrics) will keep the majority of apparel made in China for some time to come.
I think it’s critical for the U.S. to add practical value to the world, beyond just our “ideas”–which is the facile answer given to me when I say “We don’t make anything anymore.” Our trade deficit is embarrassing. We have to produce goods and services.
Tech providers are not immune. I think I’d sell my soul for a “made in the USA” help desk.
It would be almost impossible to establish and maintain such a strategy. Almost nothing is made wholly in one place anymore. There are foreign components in most every product made anywhere. (It’s called cross-border production sharing, a trend I identified some 20 years ago.) We live in a truly global economy, with outsourcing, fracturing and subcontracting.
The keys for retailers and consumers are quality, utility and affordability. Those features will trump patriotism, or even previous reputation, every time, in any product, from cars to shampoo.
Consumers have relationships with companies, providers of goods and services, and retailers. With countries? Not so much. With their own country? Of course. But again, it is virtually impossible to stick to wholly American goods exclusively. A recent book author tried this and failed–the book was called “A Year Without China.” Read it and see.
One would think that toys would be a “no-brainer” right now with all the recalls and quality issues with Chinese made products. Any company that could get to market before this Christmas with “Made in America” toys should hit a home run. I doubt that most would be able to make such a tight schedule but it seams like there are big rewards for anyone that can. All the recalled and rejected toys should leave a void in the current pipeline.
American Apparel, emphasizing its Los Angeles production, has built a winning niche brand. No doubt there’s a lot more opportunity for American-identified goods. There has to be more than a production strategy, though. The goods have to be well designed or at a special price point or have some other Unique Selling Proposition. Levi Strauss used to make millions of jeans in the U.S. but their sales declined sharply, regardless.
You can’t “Buy American” when there are so few American goods to buy. How about doing a quick tabulation of all the industries we’ve given away to cheap foreign labor–everything from steel and textiles, to apparel and food. Shame on us!
The question is can we get this back and how? You mention the designers now producing some products in the U.S. again. I believe this could be a trend in a number of industries. Apparel may lead the way.
Because of the short shelf life of fashion goods, some manufacturers in Europe who were outsourcing to Asia are bringing production back to Eastern Europe. They are getting a quality product at a relatively low cost and don’t have to deal with long turn around times.
In the U.S., not everyone is so enamored of outsourcing programming and other tech jobs to India where salaries are getting higher and the quality of critical work is coming under increased scrutiny.
Who knows, maybe someone in Washington will wake up and see the damage that all the “free” and “Fair” trade pacts have done and come up with a plan to bring business back to the U.S.