Barclays research flags strong global appetite for British made products

New research from Barclays Corporate Banking reveals the premium international consumers are prepared to pay for products ‘made in Britain’.

This claims that, by boosting exports in targeted markets where British products are desirable and by promoting the Britishness of products across 10 key markets, the potential added value that could be generated for UK businesses is more than £3.5 billion per year.

Barclays Corporate Banking surveyed over 10,000 people across the US, Republic of Ireland, France, Netherlands, Germany, South Africa, UAE, India, China, and South Korea.

Those in India lead the way, being prepared to pay an 11.8% gross premium for products made in Britain, followed by the UAE (10.9%), the USA (10.4%), South Africa (9.6%) and China (8.8%).

Two thirds 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.

Of those who have already stumped up more, China leads the rankings here at 63%, followed by India (60%) and the UAE (56%).

Additionally, when respondents were asked if they are buying more British goods than they did five years ago, 69% of consumers in India, 64% in China and 64% in the UAE said they are increasingly doing so.

Barclays Corporate Banking asked people the price premiums they’d attach to general food products, alcoholic beverages, soft drinks, fashion items, high precision tools, automotive products, homeware and video games.

Many international consumers can’t get enough of British food products such as Welsh lamb and Scottish shortbread, with a gross price premium of 11.7% attached to this category. This was followed by alcoholic beverages at 11.2% and homeware at 10.4% with UK fashion at just under 10%.

James Binns, Global Head of Trade and Working Capital at Barclays Corporate Banking, comments: “While the EU and the US remain the biggest trading partners for the UK, there are considerable opportunities for British businesses to grow exports to less traditional markets.”

He concludes: “These consumers perceive British goods to be higher quality and better value for money, demonstrating international respect for UK made products.”

“As a result, we think there is opportunity for UK manufacturers to develop profitable new markets while also growing their existing export flows.”