MARKETERS READY FOR SHOPPERS WITH A RENEWED YEN FOR AMERICAN-MADE GOODS
BY DEBORAH L. VENCE // CONTRIBUTING EDITOR
07 Feature MarketingNews 11.15.07
THE STEADY DRUMBEAT this year of recalls and disasters related to products made overseas have left American consumers feeling deceived and vulnerable. Recalls on certain pet foods, toys made with lead paint, tires and even toothpaste have overwhelmed American consumers. "Consumers are incredibly aware and concerned about product safety, specifically for toys and other products … for their children," says Rachel Weintraub, director of product safety for the Consumer Federation of America in Washington. "There is intense scrutiny and concern now."
Consumers have had enough: They want guarantees that what they’re buying is safe, and one of the key phrases they’re in search of is "Made in the USA." Marketers and retailers want to grant their wish, and they trumpet the "Made in the USA" label—when they can.
"Consumers are yearning now for reliable, high-quality goods. It needs to be once again communicated to the public that quality craftsmanship is associated with the USA," says Scott Piergrossi, creative director at Brand Institute Inc. a brand identity consultancy in Miami. "U.S. companies have a great opportunity … [to] communicate to target markets those products that are made in the United States."
Much of American consumers’ anger and dismay is directed at Chinese suppliers. The higher-profile recalls—such as the pet food recall in March and April, and the tire recall over the summer—were indeed traced back to Chinese subcontractors, although other recalls in 2007, as in any year, were prompted by problems at U.S. companies and factories.
So it wasn’t surprising that a late-August Gallup Poll revealed American consumers’ growing aversion to the "Made in China" label. The survey found that 72% of Americans say they now pay more attention to which country produces the products they buy. The survey also stated that American consumers are "deeply suspicious of Chinese-made goods": 65% of respondents indicated they made an effort to avoid buying products made in China and expressed willingness to pay higher prices for similar goods made in the United States.
"When I was at the grocery store recently, [customers] were looking at the back of the product [package] to make sure that it wasn’t made in China," notes James L. Dettore, president and CEO of Brand Institute, Inc.
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Good luck with that.
China is the States’ second-largest import partner; we import more goods from Canada—barely—and Mexico is a somewhat distant third. The trade deficit the United States runs with these three countries alone constitutes about one-third of the country’s total trade deficit.
About 80% of toys sold in the United States are made in China, according to New York-based Toy Industry Association Inc. Meanwhile, the Consumer Product Safety Commission [CPSC] reports that some 60% of all the products under CPSC jurisdiction are made in China, according to a commission representative.
And the National Traffic Safety board reports that, in 2006, 46% of the car, light truck and medium truck tires sold in the United States were imported, 23% of which were imported from China. Ten years ago, imports constituted just 19% of total tire sales, and in 2000, Chinese tires were just 6% of imported tires.
Companies are cashing in on "Made in the USA" whenever they can, however. "Between 66% and 67% of our toys are made in the USA," says Tom Prichard, executive vice president of The Little Tikes Co. in Hudson, Ohio. The company specializes in toys, most made of plastic, which stand up to a lot of use.
"Moms we’ve talked with are looking for an easy way to [find out] if products are made here or not. So, we created a [Made in the USA] label to put on the front of our packaging," Prichard says. Previously, the company’s "Made in the USA" information was in the fine print.
Also, the company’s Web site has a large area on its front page inviting visitors to browse through the company’s U.S. made goods, and linking to a part of the site where all those goods are grouped together. For those toys that have components made elsewhere, Little Tikes created a separate label that states, "Made in the USA with U.S. and global components."
"Made in the USA" is something "we never should’ve gotten away from," Prichard says.
Turner Toys similarly looks to better inform its consumers about which of its wooden trains, flying planes and play furniture for toddlers are made here and which product parts are made overseas.
"We had a very intense week in August when it hit me that I better do something [after hearing about all the toy recalls]. I said, ‘Let’s take a couple of days and [take] a more comprehensive look at the problem,’ " says Ed Loewenton, owner of the Morrisville, Vt.-based company.
Turner also created a "Made in America" page that lists its U.S.-made items. The top of the Web page states, "In the past few weeks, many of our shoppers have decided to buy only toys made in America. Although not all our products are made in the USA we have quite a few. Below is a list."
The "Made in the USA" label "always has been an emphasis [at Turner Toys]," Loewenton says.
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For other companies, the emphasis has been less on the geographic source of the goods and more on informing customers that their products are checked for safety.
Cranbury, N.J.-based LaJobi Industries Inc., for example, is a company that makes and distributes children’s furniture nder such brands as Graco, Babi Italia and onavita. In August, LaJobi sent a letter to ts retailers calling attention to the fact that ll of its products are lead-free.
In part, the letter from LaJobi’s president, Lawrence Bivona, said, "Product Safety is a top priority to LaJobi Industries in designing and manufacturing baby cribs and furniture. We want to assure all of our customers that our products are rigorously tested and comply with all the safety standards and requirements set by the CPSC and [American Society for Testing and Materials]. We want to assure our customers that we require all of our paint and finish suppliers to certify that each batch of material delivered to our factories has been tested for, and are free of Lead and Heavy Metals."
"We became aware that consumers are very sensitive to all the hype in the news with the recall situation, especially when it comes to families and children. People have the right to be concerned," says Barbara Rogers, LaJobi’s director of marketing.
Most of LaJobi’s furniture is made in Thailand and Vietnam, but the company requires its finishing companies to certify that they check the finishes that go on the products, Rogers points out. "They wouldn’t come with the certificate if they weren’t tested for lead," she says.
One company that’s never had an issue with foreign-made components or finished goods is Plano, Texas-based American Joe Apparel. It makes 100% certified authentic American-made, manufactured and processed clothing for men, women and children.
Coincidentally, American Joe launched a "Check the Tag" marketing campaign last spring, before the headlines began about the product recalls.
"It’s time that Americans started courting their own brands. American Joe is trying to make Americans more aware of where their goods are coming from," says Nan Moon, general partner at American Joe.
Created by Cincinnati-based Eisen Management Group [EMG], a PR and social media marketing and advertising firm, the campaign includes advertising, publicity, a Web component, celebrity endorsements and national sponsorship, and a social media program.
"I know that sometimes people only have 15 minutes to run into the mall and buy something," Moon adds. "As Americans, we need to be aware that we can get good, quality goods that are produced in the United States."
With the holiday shopping season upon us, the issue is one that retailers, and suppliers, are watching closely.
"We will see the economic consequences [of the recalls] this holiday season," predicts the Consumer Federation’s Weintraub. Deborah L. Vence is a contributing editor based outside of Chicago.
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