Consumers in eight key export markets are more likely to buy when they see the Union Jack on the product. This is particularly the case in new and emerging markets, where two-thirds of consumers would be more inclined to purchase a product carrying the Union Jack.
The research, published by Barclays Corporate Banking, combined ONS export data with a survey of 7,610 individuals in the eight key export markets of France, Ireland, Germany, Brazil, South Africa, China, Qatar and the US.
“Made in Britain” vs “Made in England”
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.
More generally, there is a stronger preference for British branded products in new and emerging markets than in developed markets. Across all product categories, the “willingness to pay” gap between developed, and new and emerging markets is 4.5 percentage points.
Thirty-one per cent 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 per cent.
“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,” explains Rebecca McNeil, head of business lending at Barclays Corporate Banking.
“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.”