Despite the current trade disruptions being experienced by UK exporters, new research shows that overseas demand for British-made goods is booming, particularly in less traditional markets.
In a survey of 10,000 people across ten international markets, Barclays Corporate Banking found that exporters could benefit from price premiums of up to £3.5 billion per year thanks to Britain’s reputation for high-quality goods.
Consumers in populous, far-flung markets are prepared to pay the largest premiums for British-made goods. In India, respondents were willing to pay nearly 12 per cent more to buy British, followed closely by the UAE (10.9 per cent), USA (10.4 per cent), South Africa (9.6 per cent) and China (8.8 per cent).
In China, two-thirds of those surveyed said they would be willing to pay more for goods displaying the Union Jack because they believe them to be of higher quality. A similar number (63 per cent) said they had already done so.
Overseas consumers are also buying more British goods than they did five years ago, particularly in India (69 per cent), China and the UAE (both 64 per cent).
The goods most likely to attract a premium were food and drink products, fashion items, high precision tools, automotive goods, homeware and video games.
James Binns, Global Head of Trade and Working Capital at Barclays Corporate Banking, said:
“As the UK enters a new era on the international stage, our research highlights that there is a strong appetite for British-made products all over the world. Most notably, it shows there is a significant opportunity for growth in markets such as China, India and the UAE, which is timely when new trade routes are being opened up to markets further afield.
“While the EU and the US remain the biggest trading partners for the UK, there are considerable opportunities for British businesses to grow exports to less traditional markets. These consumers perceive British goods to be of higher quality and better value for money, demonstrating international respect for UK-made products. As a result, we think there is an opportunity for UK manufacturers to develop profitable new markets while also growing their existing export flows.”
While emerging markets offer a strong opportunity for growth, the UK’s more traditional trade partners also continue to back the British. According to the research, consumers in France, Germany and Ireland - the UK’s three biggest EU trading partners - are collectively willing to pay nearly £1.5 billion in additional premiums for British-made goods.