MADE IN BRITAINBUYING BRITISH REPORT

Consumers and businesses prefer British-made goods – so why don’t they buy them more often? We spoke to everyday shoppers and decision-makers to find out the barriers to buying British.

CONTENTS3 Introduction.

4 HowBritishnessaffectsconsumer decision-making.

6 Whatbusinessescanlearnfrom thesefindings.

8 WhyitmattersforB2Bfirms.

10 WhyBritishfirmsdon’talwaysbuyBritish.

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INTRODUCTION Wespoketo2,000UKadults,1,000seniorbusiness decision-makersandourownmembersforthisreportand themessageisclear–everyonewantstobuymore British-madeproducts.Notonlythis,butbecauseofthequalityandsustainabilityofBritish-madegoods,andthepositiveeconomiccontributionmadebyBritishmanufacturing,manypeoplearewillingtopayapremiumtodoso.

Climatechange,Brexit,supply-chainethics–thesearejustsomeofthemanyfactorsthathavemadetheoriginofwhatwebuymattermorethanever.Buteventhoughit’sclearhowconsciouspeopleareofprovenance,it’snotalwaysstraightforwardtoknowwherethethingswebuycomefrom.

ThisiswhyMade in Britainwasfounded.WeprovidetheonlyofficiallyrecognisedaccreditationofBritish-madeproductsandourmarkiscarriedoneverythingfromVauxhallVivarovanstohigh-endFracinocoffeemachinesandluxurybathroomsbyRomanShowers.

Ifyou’reoneoftheeightin10UKadultsthatwantstobuyBritish-madegoods,thenlookoutfortheofficialMade in Britain logo.Ifyou’reamanufacturerthatwantstocapitaliseonthishugeappetiteforBritish-producedgoods,thenpleaseget intouch.

Ourthreestudies,revealedhereinthislandmarkreport,comprisethemostcomprehensiveexplorationyetofprovenanceinconsumerandbusinesspurchasing.Wewantthisreporttobethelaunchofareneweddialoguearoundwhyweshouldbuyproductsmadeclosertohome,andhowbesttomakethatbuyingdecisionwithconfidence.

Ihopeyouenjoyreadingitsfindings.

John Pearce

Chief executive, Made in Britain

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Tosayourconsumersurveyservedupencouragingresultsmightbeanunderstatement.

Itoverwhelminglyproveswhatwesuspected–peopleinBritainwanttobuyBritish-madeproducts,witheightin10of2,000consumerssayingtheywouldhappilypaymoreforproductsmadeinthiscountry.

Buttheydothisforavarietyofreasons.Motivationsdiffer,providingafascinatinginsightintothemindsetofconsumers.

First,taketheenvironment.HalfsaidadesiretobegreenermotivatestheirchoicetobuyBritishwhereverpossible,with63percentsayingtheythoughtitwouldhelptocombatclimatechange.Inotherwords,millionsofconsumersareconsciousaboutthemilestheproductstheybuyhavetravelled.

Sevenin10saidtheyboughtBritishtoboosttheeconomy,whiletwo-thirdsdosotocreateorsupportjobs.

Andthelistofproductstheywouldhappilypaymorefortoensurethey’reBritish-madeislongandincludesessentialslikefood,clothesandfurniture.

Butitisn’t‘jobdone’.Theevidenceisthatconsumersneed– andwouldwelcome–moreinformationtohelptheir buyingdecisions.

Athirdadmittedtheydon’tknowifwhattheybuyismadeinBritain,with37percentsayingtheydon’tknowwheretheircarismanufactured.That’sdespitesomeofthenation’sfavouritecars–suchasMINIandVauxhallAstra–beingmaderighthereinBritainandexportedacrosstheglobe.

HOW DOES BRITISHNESS AFFECT CONSUMER DECISION-MAKING?

63%THOUGHTit would help

T O C O M B A TCLIMATE CHANGE

Happily pay more for products

made in Britain

FROM 2000

HALFsaid being greenermotivates theirchoice to buy British

IN TEN SAID THEY BOUGHT BRITISH TO BOOSTECONOMY

DO SOTO CREATEORSUPPORTJOBS

Don’t know ifwhat they buy ismade in Britain

DON’T KNOW WHERETHEIR CAR IS MADE

37%

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Consumersalsoadmitthereareproducts–beautyproductsandsportsequipmentamongthem–theydon’tknowtheoriginof.

Yettheprizeonofferifconsumersknowmoreishuge.Sixin10saidtheyaremoreloyaltoaproducttheyknowismadeinBritainandeightin10wanttobuymorethingsmadedomestically.AndaquarterwouldswitchallegianceifamanufacturermovedtomakingaBritishproductoverseas.

Perhapsmostencouragingofall,fourin10thinkBritishproductsareofbetterqualityandwillpayfortheprivilegeofowningthem–byanaverageofsevenpercenttobeprecise.

Allfascinatingstatistics,butwhatarethetake-outsfromthesurvey?They’rethree-fold.

First,theBritishpublicunambiguouslywantBritishproductswhereverpossible.

Second,thisdesireismotivatedbyprincipledfactors.Theycareabouttheenvironmentalimpactofbuyingproductsfromoverseas,theywanttoboosttheUKeconomyandsupportBritishjobs.

Finally,though,moreinformationandeducationareneeded.Inthemajorityofcases,it’snotclearwhetheraproductismadeinBritainorabroadandyetthisisakeypartofthebuyingdecision-makingprocess.

It’swhyhavinganofficial,recognisablemark–onethatletsconsumersknowwhatthey’rebuyingismadewithintheseshores–issocrucial.

OursurveytellsusthepublicwantBritishproducts.Andtheywanttoknowthey’rebuyingBritish.

SIX IN 10 ARE LOYAL TO BRITISH MADE PRODUCTS

Want to buymore things

made in Britainmore

40%THINK BRITISHPRODUCTS

ARE OFBETTER

QUALITY

of businesses buy British

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Themessagefromconsumerscontainedinoursurveywasloudandclear–theywanttobuyBritishmoreoften.

Nevertheless,somemanufacturerscontinuetomaketheirthingsabroad,perhapsinestablishedmanufacturingeconomieslikeChinaandTaiwan.Whyisthis?

Inpart,itreflectsbasiceconomics.TheUKisarelativelyexpensiveplaceinwhichtomanufacturegoods,witha highly-skilledworkforce.Addtothattheworld-classreputationenjoyedbyBritishdesignandyouhavea‘premium’manufacturingmarket.

Andyetthiscouldbeoffsetbythepotentialpay-offsfor Britishmanufacturers.

Asoursurveyshows,consumersexpectBritish-madeproductstobeofbetterqualityandtheyarewillingtopaymoreforthem–byanaverageofsevenpercent.OncetheybuyBritish,consumersarelikelytostayloyal,oursurveysuggests.

Allofwhichsuggeststhatchoosingamanufacturingbaseonthebasisofcostalonecouldbeamistake.

Andthereareotherreasonsforbusinessestoswitchtobeing‘Made in Britain’,too.

Taketheenvironment.Climatechangehasfastbecomethebiggestissueofourtimes,withbrandsacrosstheworldbeingchallengedontheirenvironmentalimpact.ConsumersareattunedtothisandmanywanttobuyBritishbecause productsmadeclosertohomeinevitablyhaveasmallerenvironmentalfootprint.

Next,thesocialside.Asconsumerscontinuetobecomemorediscerning,soattentionfocusesonthepositivecontributionofcompanies.Betweenthem,theUK’smanufacturersemploymillionsofpeople,investmillionsofpoundseachyearintotheirlocaleconomiesandcontributehugeamountsintaxrevenue.

Manyaremodelcorporatecitizensandthismatterstotoday’sconsumers.Often,theywanttobeguidedbytheirconsciencewhenbuying.

AndnexttoBrexit.Itremainsdifficulttopredicthowthiswillaffectconsumerandbusinessbehaviourinthelong-run.Butitseemslikelyoneeffectwillbeasharpeningofthefocusonprovenance.Againstthisbackground,aspectsliketransparencyandvisibilityofsupplychainbecomekey.

Importantly,though,‘Made in Britain’isn’tjustadomesticplay,crucialasitisinamarketof65millionpeople.AreportbyBarclayslastyearsuggestedoverseasdemandforBritishproductswasontheriseand–liketheirUKcounterparts–foreignconsumersarehappytopaymoreforourproducts.

Whyisthat?Insimpleterms,it’sbecauseBritishproductsareperceivedtobehighquality,or‘premium’.ThisattitudewasparticularlypronouncedamongAsianandAfricanconsumers.

Andtoendwherewecamein,itdoescomedowntowhatconsumerswant.Inoursurvey,anoverwhelmingmajority–eightin10people–saidtheywantedtobuyBritishmoreoftenthantheydonow.

Thecallfromconsumersisclear.Whywouldbusinesses notanswerit?

WHY DO BUSINESSES NEED TO LEARN FROM THESE FINDINGS?

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Oursecondstudypolled1,000seniorbusinessdecision-makersbasedintheUK.

Perhapssurprisingly,theyweremorepre-disposedtobuyingBritishthanUKconsumers.

Whereas40percentofconsumerssaidtheybuyBritishnomatterwhatthecost,thisroseto66percentforbusinesses.

WealsospoketoaproportionofMade in Britainmembers,ofwhichtherearecurrentlymorethan1,000basedaroundtheUK.Ofthe10percentwespoketo,two-thirdssaidtheybuyBritishnomatterwhatthecost.

YoumightexpectourmembershiptobeamongthemostpassionateadvocatesofBritishmadegoods–andthenumberssuggestthistobethecase–butwewereheartenedtoseethisreflectedinthewiderUKbusinesspopulation,too.

But what are their motivations?

Morethanathird(37percent)saiditmadethemfeelproudtobuyBritish.Butotherreasonsstoodoutmore.Bothbusinessesatlargeandourmembersfeelit’sgoodfortheeconomy,pollingat56percentand61percentrespectively.

Justunderhalf(47percent)thinkBritish-madeproductsarebetterqualitythanimportedalternatives.Perhapsunsurprisingly,ourmembersareevenmoreenthusiasticabouttheirownproducts.Almosttwo-thirds(65percent)believeBritish-mademeansbetterquality.

Concernsaboutsustainabilityalsofeaturehighlyinbusinesses’concerns.Some67percentofbusinessesbelievebuyingmoreproductsmadeinBritaincouldhelptotackleclimatechange,risingtothree-quartersofourmembers.

BUT IT’S NOT JUST A CONSUMER ISSUE. B2B FIRMS NEED TO PAY ATTENTION, TOO

47 %

66%of businesses buy British

T H IN K BR I T I S H PROD U C T S A R EBETTER QUALITY THAN IMPORTS

67%of businesses believe buying Britishcould help tackle climate change

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Forthesereasonsandmore,businessbuyersaremoreswitchedontoissuesofprovenancethanconsumers,with42percentsayingtheywouldalwaysconsiderwheresomethingismadebeforemakingapurchase.OurMade in Britainmembersweremarginallyhigherat47percent.Bothcomparetojust15percentofconsumers.

Thisconcernextendsintobrandloyalty.Two-thirdsofbusinesspurchasedecision-makerswouldbemoreloyaltoaBritish-madebrand–amassive87percentofourmembership.

And what of Brexit’s potential impact?

Forbusinesses,asignificantproportion(46percent)saytheywillbuymoreBritish-madeproductsaftertheUKleavestheEuropeanUnion.Thiswashigher–at55percent–forourmanufacturingbusinessmembers,perhapsunsurprisinglygiventheirfuturesupplychainconcerns.

OurtwosurveyssuggestthatB2Bbrandsshouldcareeverybitasmuchasconsumerbrandsabouttheoriginoftheirproductionandhowit’scommunicatedtopotentialbuyers,ifnotmoreso.

Britishmanufacturing,despitetheoftendownbeatmediacoveragethatfollowsit,isclearlystillheldinashighregardbythenation’sbusinesscommunityasbytheshopperonthe highstreet.

WOULD CONSIDERWHERE SOMETHING

WAS MADE PRIORTO PURCHASE

42%

46%will buy more British products

AFTER THE UK LEAVES THE EUROPEAN UNION

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Seveninevery10businesseswouldliketobuymoregoodsmadeinBritainthantheycurrentlydoand88percentofourmembership.Likeconsumers,thereissignificantlatentdemand.

Sowhydon’tthey?It’snotforwantoftrying.

Athirdsimplystruggletogetahandleonaproduct’sorigins–muchlikeconsumers.Ourmemberswerealittlecleareronthis,withonly12percentfacingthisissue.Thoughofcourse,theybelongtoacommunityofaccreditedBritishmanufacturers.

But22percentofourmemberssaidtheymayknowabrandwasfoundedinBritainbutareunsureifitsproductsaremadehere.Thisroseto40percentamongthewiderbusinesspopulation.

Almostthreein10businesses(29percent)saytheysimplyfinditconfusing,37percentsaytheycan’ttellwhenaproductisBritish-madeandathirdsaytheywouldn’tknowwheretogotobuythem.

Now,morethanever,thereisaneedtocoalescearoundourofficialaccreditationforqualityBritish-madeproductstohelpcutthroughtheconfusionforbusinessesaswellasshoppers.

Costis,ofcourse,anissue,too.Askedwhattheirmostimportantfactorwasindecision-making,cost(26percent)andquality(27percent)werepeggedatroughlyequallevelsofimportance.ButdespiteviewingBritish-madegoodsoverwhelminglyfavourablyinthequalitystakes,overhalfsaidonereasontheywon’tbuymoreBritishgoodsisbecausetheirbusinesseswillseeitas tooexpensive.

Qualityalwayscomesatacostandthisalmostbestows apreconceptionofapricepremiumonBritish-manufacturedproducts.

Withenvironmentalconcernsrisingeverfurtherupthecorporateagendaandqualitynevermorecriticalinanagewherereputationsaremadeandbrokenonsocialmedia,Britishgoodsshouldstillcapitalise,despitetheperceptionofcarryingaweightierpricetag.

WHY DON’T UK BUSINESSES BUY BRITISH?

IN EVERY

BUSINESSESWOULD LIKE TOBUY MOREBRITISHGOODS

STRUGGLETO GET AHANDLE ONA PRODUCT’SORIGINS

can’t tell when a productis British-made

Over half...S A I D T H E Y W O N ’ T B U Y M O R E B R I T I S H

G O O D S B E C A U S E T H E I R B U S I N E S S E SW I L L S E E I T A S T O O E X P E N S I V E

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“Sustainability, shopping locally and supporting British businesses have all climbed up the agenda for consumers in recent years. From this research it is clear that the same is true for businesses who would, in most cases, prefer to source British-made products in their supply chains. The desire is there – what is missing is the insight and knowledge to make these kinds of procurement decisions with confidence.

“The finding that a third of consumers struggle to determine where products come from should be a wake-up call to British firms who manufacture their products within the UK. By not signposting their products’ origins clearly, they risk missing out on increased loyalty from shoppers and any halo effects that surround British products being perceived as better quality.”

Professor Dominic Medway, Deputy Pro-Vice-Chancellor at the Faculty of Business and Law and specialist in place marketing at Manchester Metropolitan University

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HELPING BRITAIN’S MANUFACTURERS SELL MORE WITH ONE MARK

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