Question

Topic: Customer Behavior

Does The Country Of Origin Affect Us Consumption?

Posted by Blaine Wilkerson on 1/22/2004 at 4:53 AM ET 125 Points
Recently, one of my clients moved his manufacturing from Canada to Vietnam, cutting the wholesale costs by more than 30% and reducing import duties etc.

However, almost immediately, US sales dropped.

Obviously, consumers around the world have varying philosophies, but with specific regards to the U.S., do you think Vietnam manufacturing has a "negative" impact?

Any comments and/or direction to research sources would be greatly appreciated!
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by ReadCopy on 1/22/2004 at 6:30 AM Accepted
    Its obviously an important issue when looking at how the brand is potentially perceived. Its been many years since purchasers simply used the rational side of their brain in purchasing (“What benefits will I get from this product/service”), and we began to see more emotional or psychological (“How this product/service makes me feel”) purchasing, and we are now entering a era where political purchases are making an impact.

    Political purchasers are interested in the true Political nature of the brand and organisation behind the product or service … they will ask questions about environmental issues, corporate social responsibility, GM, labour issues!

    I seem to remember big brands having similar, high profile problems over recent (Nike and Levi Strauss spring to mind!). But these companies typically resolve the issue by pumping money back into the region that are moving into, they do this by supporting things like local poverty, housing, support of small business and women and children issues.

    I guess your client needs to analyse whether this move was TRULY responsible for their downturn, and whether their buyers are acting politically, or is there a general downturn in their sector, is the workmanship at fault!

    If it is a political move then ideally these companies and your manufacturing client should have anticipated the problems, but that said, no-one ever does! I think the answer is that your client must now embark on a Corporate Responsibility campaign (and promote it), and this means understanding the need of the local community where the new plant is, and seeing what can be done (I know they will argue that they are paying wages … but they must do much more). This campaign could be as simple of giving to local charities or other community based projects.

    As always .. good luck
  • Posted by Jim Sterne on 1/22/2004 at 11:32 AM Member
    I''m confused. What makes you think that moving the manufacturing resulted in lower sales? Did the company launch an ad campaign to tell its customers about the change? Was it the subject of large numbers of editorials? I''m wondering if there is an assumption that the one caused the other and I''m curious about the basis for that assumption...
  • Posted by Blaine Wilkerson on 1/22/2004 at 5:46 PM Author
    To answer a few uncertainties declared in some of the responses regarding how people found out about the Vietnem manufacturing:

    1. A majority of the customers are wholesalers. Naturally, they were not only curious about how the prices were reduced, but why it will take longer to get their orders. So my client told them!

    2. The boxes say "MADE IN VIETNAM"

    3. Is there ANYTHING you own that you are either unaware of or doesn''t have some kind of marking as to where it was made?

    I''m really surprised I had to elaborate on that. ( Not to all of you of course).

    Let me know if anyone still doesn''t understand.
  • Posted by Blaine Wilkerson on 1/23/2004 at 12:15 PM Author
    Jim Deveau,

    The only "relevant detail" I left out was the clients are wholesale buyers.

    I feel it doesn''t matter if the buyer is a retailer or a consumer....the question still stands valid.

    By the way, if I choose to post a question, it is based on my own volition to inquire opinions or instigate a discussion...not always to discover an answer. Therefore, I will post any question I like, even if I already know the answer.

    Anyway, thanks for the obvious answers and condescending insults Mr. Catalyst. The only thing you catalyzed was pissing me off.






  • Posted by Blaine Wilkerson on 1/25/2004 at 10:25 PM Author
    It is obvious that you wish to appear proffesional on the surface, then throw in a last minute, passive-aggressive "jab". In light of this observation, I decline to engage.

    I''m not running for public office here, therefore I view my candor as no threat to my reputation.

    Thank you for responding. Perhaps we can interact on better terms next time.

    Regards...
  • Posted by ReadCopy on 1/26/2004 at 7:15 AM Member
    Just an interesting additional point I picked up over the weekend.

    63 percent of UK retail consumers ... would change the UK manufactured brand they regularly purchased IF the brand was suddently manufacturer outside of the UK!

    This is an incredible statistic (I am trying to find the source) based on the fact that only 70 percent of the UK adult population actually bother to vote in General Elections!
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Customer Behavior)