How ‘Brand Britain’ is shaping company strategies
Britain as a brand is incredibly powerful – a factor picked up on by most businesses that are based in the UK.
Following Scotland’s decision to remain as part of Britain, Barclays Corporate Banking commissioned research to find out exactly what ‘Brand Britain’ is worth.
The results suggest it is hugely influential for businesses looking to export products as it is suggested that British branding commands a significantly higher premium.
It is suggested that people in emerging markets are 64% more likely to purchase products if they carry the Union Jack flag.
ONS export data was combined with a survey of more than 7,600 people from eight key export markets – France, Ireland, Germany, the USA, Brazil, South Africa, China and Qatar.
The study then looked at what firms would be willing to pay for different goods labelled as Made in Britain/ England/ Scotland/ Wales.
Products from the latter three did not carry as much weight as those branded British, with the exception of Scottish alcohol which was widely recognised, especially in the Irish and US markets.
The preference for British products is greater in emerging markets with the ‘willingness to pay’ gap between these and developed markets standing at 4.5%.
Such branding commands a premium in the region of 7%, while more than half of those questioned believed British goods to be ‘good’ or ‘very good’.
Products from Scotland, England and Wales were also viewed positively but not to the same extent.
The results of the research highlight the need for many businesses in the UK to ensure they brand and market their products in the right manner in order to maximise profits.
For smaller companies in particular, failing to do so could result in increased financial pressures and a lack of sales – both factors that could damage a company.
In certain instances, business restructuring could be carried out to alter the way that a company does its business.
Breaking into emerging markets could be essential, so it is important the right strategies are in place to make it possible.
One aspect of that could rely on ensuring products have the British stamp of approval.
By Phil Smith