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Q: "Made in China" label perception ( Answered 4 out of 5 stars,   5 Comments )
Question  
Subject: "Made in China" label perception
Category: Business and Money > Advertising and Marketing
Asked by: furesz-ga
List Price: $25.00
Posted: 12 Jun 2006 08:39 PDT
Expires: 12 Jul 2006 08:39 PDT
Question ID: 737475
I need access to some surveys done on the value perception of the
"made in china" label. What do people think about a product that is
from a german brand (associated with quality) and all suddenly it has
a made in China label on it. I need some factual information (statistics, surveys).
I am also interested in any luxury brands that are thinking about
manufacturing in china for Export. I know for example Toyota and
Mercedes are manufacturing in China or thinking about it, but does any
luxury brand do it and export to Europe on USA. I need some examples.
I am sure there have been some studies done on this subject since
China is the next frontier for manufacturing. But is it time yet for
the luxury brands to take their production there? Would they lose more
by this move in the eyes of the customers than they would gain from
cheap labor? I need to see some studies researchers or companies have
done on this subject.
Answer  
Subject: Re: "Made in China" label perception
Answered By: answerfinder-ga on 12 Jun 2006 12:31 PDT
Rated:4 out of 5 stars
 
Dear furesz-ga,

I have looked and this question and here are my findings. First, I
have only found one survey on the perception of the label: ?made in
China? or Chinese goods. There are plenty of comments and opinions,
and it is reported that even the Chinese do not like buying ?made in
China? goods. I give some examples below.

This is from a survey carried out by Synovate (see this page for full details).
?ONLY one in eight respondents from the US and key markets in Europe
think highly of the quality of products made in China and Korea, a
recent Synovate survey showed.?
http://www.synovate.com/knowledge/infact/issues/200601/

The Age (Australia) 
Discusses Australian exporters and products made in China and he
perception of Chinese goods.
http://www.theage.com.au/articles/2003/10/19/1066502066361.html

A US architect in China and his view.
?'Made in China' not yet a mark of quality Workmanship of household
goods less important than outer appearance?
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/05/13/HOGPUIOMTT1.DTL

As you will see from these articles on Chinese companies, even the
Chinese view their own goods the same way.

?In a 2005 Interbrand survey of branding professionals, 79 percent
stated that the "Made in China" label hurts Chinese brands. ?
http://www.cmomagazine.com/read/010106/sr_watch_flank.html

?Even in their home market, ?Made in China? carries the same
connotations of cheap, shoddy, and unreliable that burden Chinese
brands abroad.?
http://www.redherring.com/article.aspx?a=15989


Moving now to Western companies setting up in China and exporting back
home. Several, including Toyota which you mentioned, are setting up in
China but aiming at the Asian market. Some companies such as mobile
phone firm Motorola and consumer electronics giant Philips manufacture
in China, most appear to be electronic products and I am not sure
whether you class this as luxury items.


This Italian furniture company are reported by be pleased with their
products from China.
DeCoro - successfully transferred to China in 2003
http://news.bbc.co.uk/1/hi/business/3194120.stm
View the company's press releases on their web site.
http://www.decoro.com/index.html

Boston.com article on a US Custom-designed furniture company.
http://www.boston.com/business/articles/2004/10/23/custom_made___in_china/?rss_id=Boston+Globe+--+Business+News

This China Daily2005 article discusses DaimlerChrysler making
not-for-export cars, but the article does refer to a US company
exporting to the US

?One U.S. entrepreneur is betting that cars with "Made in China"
stickers won't meet resistance from U.S. consumers due to poor
quality.

Malcolm Bricklin, who heads Visionary Vehicles, said he plans to
import 250,000 sedans and sport-utility vehicles a year from China,
beginning in 2007, for sale in the United States. Chery Motor Co., an
8-year-old firm in Wuhu, will make the cars. Bricklin said the
vehicles would be comparable to BMWs and other high-end brands, but 40
percent less expensive.

"Everybody knows that China is coming and that China is going to be
the price leader in whatever it gets into," said Bricklin, who once
brought low-cost Yugos and Subarus into the United States. ?
http://www.chinadaily.com.cn/english/doc/2005-04/22/content_436543.htm
Company web site.
http://www.vvcars.com/

This FT article (you have to apply for a free trial to view it)
discusses how fashion houses and designers are using China labour but
find the quality in the finished article open to debate.
China: Mass production meets quality control
https://registration.ft.com/registration/barrier?referer=://www.google.co.uk/search?q=%22made+in+china%22+quality&hl=en&lr=&start=60&sa=N&location=http%3A//news.ft.com/cms/s/8fa719f4-c614-11d9-b69b-00000e2511c8,dwp_uuid=3ad6480e-bd5a-11d9-87aa-00000e2511c8.html

There is a similar discussion on designer labelled products in this news article.
http://news.bbc.co.uk/1/hi/business/4198266.stm


I hope this answers your question, but I note there is a lot to read
in all this, so if it does not answer your question, or the answer is
unclear, then please ask for clarification of this research before
rating the answer. I shall respond to the clarification request as
soon as I receive it.
Thank you
answerfinder

Request for Answer Clarification by furesz-ga on 12 Jun 2006 13:34 PDT
I would like to see a little bit more scientific research or surveys
just like the first link you have sent me, than one is quite helpfull.
A little bit more numbers and statistics. I am sure companies have
done tons of focus group research before they entered the Chinese
market. Opinions are great but most of what you have found I already
looked at myself.
As far as luxury brands produced in China and used for Export you gave
a great example of Italian furniture being produced there and than
exported. That was great. Now are there any other companies in
different types of industries that are amongst the market leaders in
what they are doing and they are also manufacturing their products in
China. Or at least they are considering it and doing some research on
it? What would be the negative or positive for such a company to
manufacture in China or if it is already doing it what has been the
poistive and the negative in their experience. Can you help me answer
that?

Clarification of Answer by answerfinder-ga on 13 Jun 2006 06:02 PDT
Dear furesz-ga,

I have been unable to find any other detailed reports on the
perception of Chinese manufactured products or businesses relocating
to China. Also, I have been unable to find companies specifically
discussing their move or potential move to China and reporting on
their findings. I suspect that if a company did commission for such
research they would not necessarily publish it on the internet.

I found these additional items which may be of interest.

Short article but Australian non-luxury
http://www.exports.cn/products-made-in-china.html

The Brand Channel report which is refered to in one of the above articles. 
http://www.brandchannel.com/images/papers/250_ChinaBrandStrategy.pdf

China Business Review general outline of moving business to China and
mentions supervising quality.
http://www.chinabusinessreview.com/public/0409/cheng.html

I hope this helps.

answerfinder-ga

Request for Answer Clarification by furesz-ga on 13 Jun 2006 07:25 PDT
If you can't find anymore survey's and luxury brands that are
considering the move to China can you find any student research papers
on this subject?

Clarification of Answer by answerfinder-ga on 13 Jun 2006 07:49 PDT
Dear furesz-ga,

No, they would have come up in my searches. However, this document is
now available (it was not yesterday for some reason so you had better
save it onto your computer in case it is not available again).
 
Consumer Perceptions of Product Quality: Made In China
MJ SCHNIEDERJANS, Q CAO, JR OLSON - QUALITY MANAGEMENT JOURNAL, 2004
http://www.qualityprogress.asq.org/pub/qmj/past/vol11_issue3/qmjv11i3schniederjans.pdf

answerfinder-ga
furesz-ga rated this answer:4 out of 5 stars
Brilliant research. The exact information that I wanted was not found
( that is why 4 stars)but I got a lot of information that I can sift
through and make the best of it. Thank you very much for the research.
I will certainly use your service int he future.

Comments  
Subject: Re: "Made in China" label perception
From: techtor-ga on 12 Jun 2006 09:44 PDT
 
May I put in a brief comment about it. Here in the Philippines,
something made in China has the reputation of lacking robustness and
ruggedness, plus there is no or little follow-up support for the
product after purchase. But you can buy the product at a ridiculously
cheap price. This goes for things like tools, appliances and
motorcycles.
Subject: Re: "Made in China" label perception
From: probonopublico-ga on 12 Jun 2006 10:53 PDT
 
Here in the UK, 'Made in China' is becoming the norm.

Generally, there is no stigma attached because retailers provide their
own warranties if appropriate.
Subject: Re: "Made in China" label perception
From: furesz-ga on 12 Jun 2006 11:08 PDT
 
I appreciate the commnets. Do you know of any luxury brands that
manufacture their product in China and than Export it to Europe or
USA?
Subject: Re: "Made in China" label perception
From: heelbornheelbred-ga on 12 Jun 2006 16:16 PDT
 
I think of Made in China when I think of Walmart. The stuff is about
2x worse in quality, but 3x cheaper.
Subject: Re: "Made in China" label perception
From: frde-ga on 13 Jun 2006 02:50 PDT
 
Clarkes shoes shifted all their production from the UK to China

They are not a luxury brand, but they occupy the 'quality' niche

The entire IBM PC division was sold to China - their kit is regarded as quality

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