American luxury consumers are becoming increasingly aware of the ‘place of manufacture’ when shopping, according to Unity Marketing’s latest report.
Titled What luxury executives need to know about where their products are manufactured, the report found that companies moving their manufacturing operations to countries where production costs are lower run the risk of driving away the very customers they seek.
Nearly 70 percent of the 1321 luxury consumers surveyed (average income US$287,200) said the place of manufacture was important when considering a new purchase.
Unity Marketing president Pam Danziger said luxury customers show a definite preference for luxury goods manufactured in certain countries.
“Overwhelmingly, they associate countries like the USA, Italy, France and Germany with better quality luxury goods. On the other hand, nearly two-thirds (63 percent) of those surveyed said that manufacturing luxury goods in less costly places, like China, is bad for luxury consumers.”
The top 10 most positively viewed places of manufacture were:
10. Australia and Scotland
The top 4 most negatively viewed places of manufacture were:
4. The Phillipines
The new report, which compares the results of the April 2011 survey with a similar survey conducted in January 2007, concluded that “luxury consumers are getting more aware of where their favourite luxury brands are sourced”.
“(The findings) suggests opportunities for brands to create awareness in the minds of luxury consumers about the place of manufacture and how to position ‘place’ to influence the consumer toward purchase,” said Danziger.
“Clearly, luxury consumers are flipping over products and looking for that country of manufacture stamp, and if it doesn’t say what they expect, they may well put it down and move on to an item manufactured in a country they associate with higher quality.
“After all it is their search for superior quality that most powerfully motivates consumers to purchase luxury goods.”
For more information visit www.unitymarketingonline.com