Patty Schmucker, Co-Founder American Made Beauty09.03.15
We Americans are a patriotic bunch. Witness our star-spangled embrace of all things made in the USA. From automobiles and trucks (the top four are all Made in America) to wine and especially beauty products, being conceived, developed and Made in the USA means something. And it’s not just in this country. While our own sense of patriotism often drives us to look for a made-here moniker, the fact is, international consumers have also started looking for products from the U.S.
The success—indeed the frenzy—of the iPhone all over the world shows just how much American brands are desired. The fact is, companies who are based here, produce quality merchandise because of strict oversight and regulations. When something is stamped Made in America, the world knows they’re getting a product of quality, integrity, and creativity.
With so much success domestically, should American companies consider selling abroad? Yes. Here’s why: Mergers and acquisition in the U.S. market have made it increasingly more difficult for domestic brands to get their footing. Companies are finding that, with the right strategic thinking, exporting is a viable opportunity to increase sales and bottom line success. Consider that 94% of the population and 70% of the buying power of the world exists outside of the U.S. Still, less than 2% of U.S.-based companies export. That spells opportunity.
Forward thinking allows brand owners to formulate using only those ingredients that meet the requirements of larger segments of the world. Gathering the data needed to meet international registration compliance is one third of the cost if done at the time the product is in development as compared to going back years later. Pricing is critical and without an understanding of the cost of running a business that is export ready, the true cost of goods (COG) can be understated leading to establishing prices too low for sustainability and often lower than what is competitive.
The quality and lifestyle aspiration of brands “Made in America” have taken on new value as we see an increasing number of international buyers reaching out to American brand owners. Embrace it. It may be your patriotic duty.
The success—indeed the frenzy—of the iPhone all over the world shows just how much American brands are desired. The fact is, companies who are based here, produce quality merchandise because of strict oversight and regulations. When something is stamped Made in America, the world knows they’re getting a product of quality, integrity, and creativity.
With so much success domestically, should American companies consider selling abroad? Yes. Here’s why: Mergers and acquisition in the U.S. market have made it increasingly more difficult for domestic brands to get their footing. Companies are finding that, with the right strategic thinking, exporting is a viable opportunity to increase sales and bottom line success. Consider that 94% of the population and 70% of the buying power of the world exists outside of the U.S. Still, less than 2% of U.S.-based companies export. That spells opportunity.
Forward thinking allows brand owners to formulate using only those ingredients that meet the requirements of larger segments of the world. Gathering the data needed to meet international registration compliance is one third of the cost if done at the time the product is in development as compared to going back years later. Pricing is critical and without an understanding of the cost of running a business that is export ready, the true cost of goods (COG) can be understated leading to establishing prices too low for sustainability and often lower than what is competitive.
The quality and lifestyle aspiration of brands “Made in America” have taken on new value as we see an increasing number of international buyers reaching out to American brand owners. Embrace it. It may be your patriotic duty.