British goods exporters can benefit from price premiums worth up to £3.5bn a year across ten key markets, a new report has found.
The ‘Made in Britain’ report, published by Barclays yesterday (11 March), assessed the average price differential that consumers said they were willing to pay for British products in 10 major markets including France, Germany, US, UAE, China, and India.
Buying more British
Across all 10 markets, over a third (36%) of respondents said they were buying more British goods than five years ago.
The report notes there is “a willingness among consumers in key markets to pay a premium for British-made products and growing overseas demand for ‘Made in Britain’ goods”.
Consumers in India are the most prepared to pay extra for British goods (11.8% more on average), followed by the UAE (10.9%), the US (10.4%), South Africa (9.6%) and China (8.8%), Business Money reports.
From shortbread to cars
The research also looked at the price premiums consumers attached to a number of different British-made goods – such as food products, alcohol, soft drinks, fashion, high precision tools, automotive products, homeware and video games.
It found that British food, such as Welsh lamb and Scottish shortbread, commanded a gross price premium of 11.7%. This was followed by alcoholic beverages at 11.2% and homeware at 10.4% with UK fashion at just under 10%.
In a boost to the UK’s automotive sector, 15% of the people surveyed described it as “the best in the world” and, on average, said they’d pay a 10.2% premium for British-made cars.
Value for money
Global head of trade at Barclays Corporate Banking James Binns said: “Consumers perceive British goods as being value for money. Not only because of quality, but longevity, innovation and craftsmanship.”
The report suggests that boosting exports in targeted markets where British products are desirable could increase margins, particularly for sectors where high levels of competition in the UK can create downward pressure on domestic prices.
Finance available
As reported previously in the IOE&IT Daily Update, the government has announced more support for buyers of UK goods in a bid to boost exports.
The UKEF launched the new Standard Buyer Loan Guarantee (SBLG) last month, to provide financial support to overseas buyers at a time when they are struggling to access the capital needed to buy UK goods and services.
