Thursday, November 29, 2007
The Future of American Brands
With the expansion of countries like India and China in the marketplace it has become increasingly difficult for American companies to prosper amongst all its competition. Is it possible for these brands to differentiate themselves and still be American bred? Complaints that many Americans have is about the outsourcing of many jobs today in America. With jobs being outsourced it allows many brands to keep their prices affordable. In the electronics and car industry it provides a level of competence that is associated with the manufacturing done overseas as compared to America. The result of the expansion of these countries is the decline of the American economy. In the future many of the brands associated with America will become less and less American as all the parts are being outsourced from foreign countries. How much does the American value American made products? Many of us are not going to sacrifice our hard earned dollars to support American manufacturers unless it is of some benefit to us. Is this where the government should intervene? Should the American government make it increasingly difficult for companies to outsource like by adding excise taxes and other charges to companies that choose to, and grant incentives like tax write-offs for labor to those that don't. If this happened it could possibly raise the value and consumption of American made products and also allow companies to better regulate the production of the products being made. It would also raise the value of the American dollar and provide more jobs in the workforce.
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2 comments:
While I see your point in the growing trend of outsourcing, I'm not sure that alone will lead to the decline of the US economy. I do agree the our government should be looking out for the good Americans and their jobs but to a certain extent, outsourcing has increased profit margins for many US companies; benefiting the economy.
Also, the concept of 'American-made products has a lot to do with branding and how brands are perceived in the minds of consumers. i.e: there's a clothing brand (Who.A.U) who's collection has the same style as Abercrombie and Holister, but it's Korean and some Korean people even think it's an American brand when it is actually designed and based in Korea.
I agree that to many US consumers, where products are made is not important and we seek the lowest price. but I don't think American made products (esp. clothing) have lost their status as such, they just have to be marketed to right people, and the US should think globally. If countries like India and China are benefiting from the jobs created by US companies (from outsourcing and resulting exports) than the US should try and benefit from this growing market of middle class consumers by marketing 'American made' apparel to markets who desire famous brands.
For example in Japan, it is common for people to spend a good amount on clothing and people associate low prices with low quality (which is why Wal Mart failed in Japan). Levi's jeans are really popular in Asia and have similar status as Seven jeans do here.
Yes outsourcing to Asia has increased, but also is their standard of living...meaning there is a demand that should be filled and it should be by us!
The future of American brands depends on our ability to innovate and change with the shifts in the global economy and to not loose sight of what makes the US economy so strong; our entrepreneurial spirit, economic freedom and our flexible/educated workforce.
What do you guys think about maybe strengthening our brand/products abroad to markets who care about where they are made?
You guys brought up a really good point, thanks for sharing this topic with everyone:)
Also, markets like China and India have population figures that can't be ignored...the US should their strengthen brand awareness abroad, before domestic companies (Chinese, Indian companies) enter the market and have similar expertise.
--Jane Brownfield
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