Concerns voiced about the quality of Chinese manufacturing in the wake of many consumer product recalls does not deter heavy-duty distributors and fleet customers from purchasing China-made products, concludes a recent survey conducted by Wade&Partners.
According to the telephone survey, 42 percent of distributors are concerned about Chinese imports, as are 64 percent of their customers. The respondents replied that they primarily are concerned about the quality of materials used, the level of workmanship and the product’s ability to meet U.S. government specs, particularly those addressing safety.
A well-known domestic brand name, however, can trump concerns about overseas manufacturing, according to the survey.
“If people recognize the name, then it seems to fall into the ‘safe buy’ category, meaning it will work the way it is supposed to and it will be dependable,” says Bill Wade, managing partner, Wade&Partners.
Wade notes that certain brands “scream American” even if they now are imported. “If a product previously was known as American made, it seems to stay that way in a counter person’s mind, even after it is off-shored,” says Wade.
“I was not expecting distributors to say that brand familiarity would so overwhelmingly take precedence over what is actually in the box.”
Another question the study asked was if “Made in America” still has selling power and the response was “yes” with 75 percent of those surveyed saying that a product still can create a market simply by being American made. Respondents defined the meaning of “Made in America” to heavy-duty distributors as superior engineering and quality, better production machinery, good workmanship, finish and dependability.
However, an American-made product might not sell for more money. The survey finds that 38 percent of respondents believe that an American-made part cannot automatically command a premium price. Sixty-two percent of respondents say that a domestic product can or might sell for a premium. If a product is for a perceived important, high-priority or safety use, those surveyed are more inclined to believe that it can be sold at a premium.
According to the survey, some people have ceased selling products they feel may not be up to par, no matter what the brand name. Others are taking an in-depth look at products and manufacturing processes to make sure they are up to standards.
The Wade&Partners survey randomly selected a significant sample of heavy-duty distributor branch managers who were questioned through a blind telephone survey. Additional responses came from interviews conducted with owners and executives of independent heavy-duty distributors, says the company.
