Country of origin

Reading an article somewhere about Swiss watches (l will repost when I find it again) about whether the country of the manufactured item or it origin has any impact on the perception of a manufacturers product and sales was the topic and for me yes it is important for certain items. So I thought of a few other examples which are defined by their country of origin. The records shows that:

• Swiss watches are tied directly to their country of origin in this case Switzerland.
• French wine names can only be used on wine that is actually made in the country.
• Jaguar cars are made in the Britain.
• Rolls Royce cars are made in Britain.

It seems that the new generation of consumers have not known a time when products from certain countries indicated their quality. They  do not remember the ‘Made in Hong Kong’ or ‘Made in the US’ or ‘Made in Japan’ actually represented the quality of the product. For those who came late ‘Made in Japan’ meant quality and reliability where as ‘Made in Hong Kong’ or Made in the US’ did not. Times have changed and this sort of regional differentiation doesn’t matter anymore for most items, take the iPhone for example is ‘Made in China’ and are quality and reliable, although Apple promotes it as designed in California which is clever marketing.

It’s the accountants or chief financial officers who tend to run companies these days as times are tough and having products made cheaply maximises profits but at a cost of a brand which avoid at all costs mentioning where their products are made which is completely rational. However the high costs is clear and that is differentiation and technology or the cutting edge being lost. For example I don’t care where my phone is made these days hence brand agnostic but I still care about where my car is made because of brand history.

The Swiss watch brand is tied to Switzerland no doubt but this factor is part of the selling point that makes it a desirable item. That and many are ‘hand made’ and are mechanical. Of course the next generation or people do not really see or understand why or do they? Is it just attitude because they can’t afford it hence say its not as reliable as a generic watch say the digital watch specialist Casio, or can’t see the value. Or maybe that most don’t realise that they need to service them and are not throw away items? Or do they want these things because of prestige, expense or even fashion? Anyway it is a personal choice but could Swiss watches be made else where in the world and stillsell?  on that branding sell – no.

French wines are a intellectual properly issue which they claim Champagne is a region in France and any other wine that may be of the same construction cannot be called the same name which seems fair enough. However that clearly does not mean quality as other wines not from France or Champagne are clearly better. It is already proven that country of origin doesn’t have much of an impact. It’s a foodie thing – I think. But to many the ‘French wine’ branding does mean a lot.

Part of the Jaguar brand’s appeal sells on being British although parts are made else where in the world so the key selling point according to PR is that it is made in Britain. They claim to be  a prestige car by have a long history too which helps the brand. Although the company now owed by an Indian company is not widely stated which indicates the strength of the country of origin selling point. For most though whether they can survive if their cars are are made else where is dubious.

Rolls Royce cars represent the pinnacle of the luxury and prestige car brand although they are now owned by BMW and Volkswagen which is not a widely promoted as they claim that Rolls Royce is run separately, that said they are modified versions of BMWs and Volkswagen. That of course means that Rolls Royce are promoted as being the most expensive and advanced cars in the world. Whether true or not is debatable since the rise of Tesla cars! Could Rolls Royce cars be made else where in the world not in Britain and retain that image perhaps not for the older folk only maybe for the new generation.

So in the end I think the country of origin or manufacture does have a impact on the brand’s perception and sales.