Made in Britain: Digital Branding Strategy for UK Manufacturers

Manufacturing is an important supporting industry for the British economy. In 2018, the manufacturing industry provided 2.7 million jobs to the UK, and economic output reached 191 billion pounds, accounting for 10% of the UK's total output. (Note 1) However, in recent years, the relative share of manufacturing in the British economy has declined at a faster rate than many other developed countries. In 2015, the total value added (GVA) of manufacturing to the British economy was 9.77%. In terms of the indicator in some other economies, Germany is 22.81%, Italy is 15.79%, France is 11.23%, the United States is 12.33%, and the EU average is 15.7%. (Note 2)

The industrial imbalance caused by the continuous decline in the proportion of manufacturing in the British economy will bring continuous challenges to the British foreign trade, employment and regional development. In 2018, manufacturing exports in the UK reached 275 billion pounds, accounting for 42% of the country's total exports. However, in the past 20 years, the British manufacturing trade deficit has continued to increase. In 1997, the trade deficit in manufacturing industry was only 7.5 billion pounds, but it had grown to 92 billion pounds in 2018. To reduce the trade deficit, the most direct way is to increase exports, especially for small and medium manufacturers.

British manufacturers hold the belief in the potential of business growth by exporting to overseas markets. Meanwhile, the vast majority (77%) of manufacturers have confidence in British manufacturing. (Note 3) Just as the operation of the manufacturing industry has undergone tremendous changes, the marketing techniques and skills of manufacturers have also undergone tremendous changes. What used to be effective strategies for manufacturers (direct mail, trade shows, print advertising, telemarketing) will no longer produce the same effect. Based on a research, 94%of B2B buyers stated that they would conduct some form of online research before buying corporate products. (Note 4) Manufacturers who failed to utilize digital marketing will face the danger of not being discovered by contemporary buyers.

The overall market in China is huge, with Chinese consumers that trust and yearn the products that are "Made in the UK". However, they have little knowledge of specific British brands. According to data from the National Bureau of Statistics of China, total retail sales of consumer goods in China reached 41.2 trillion RMB in 2019, an increase of 8% year-on-year. It is estimated that China will become the world's largest consumer market by 2021. (Note 5) In addition, China's middle class has also grown rapidly in recent years. According to the research from McKinsey, the proportion of the Chinese middle class has increased from 6.6% in 2010 to 45.7% in 2018. (Note 6)

With the growth of China's consumption market and the proportion of middle class, consumers are pursuing more choices of brands. For a long time, British brands have successfully established the brand images of refinement and classic among Chinese consumers. However, some well-known British brands have encountered setbacks in the process of entering the Chinese market because they do not understand the Chinese market. Meanwhile, more British brands lack an effective channel to enter the Chinese market and let Chinese consumers has the chance to know them. For the British manufacturers that want to enter the Chinese market, digital marketing will be the only way for the brand to expand rapidly.

About the Author

Haisen Ding is an entrepreneur, investor and digital branding expert. He is the founder and chairman of Global Manufacturer System; co-founder and CEO of World Executive Group; and co-founder and CEO of World Brand Lab. He is the founder and organizer of two major digital marketing events in Greater China area, namely, the World Brand Summit and the Asia Brand Conference. He was selected as one of the 100 Global Leaders for Tomorrow by World Economic Forum in Davos, in 2003.

Reference

1. Chris Rhodes. Manufacturing: statistics and policy. 10 January 2020.
https://researchbriefings.files.parliament.uk/documents/SN01942/SN01942.pdf

2. House of Lords European Union Committee. "Brexit: trade in goods". 14 March 2017.
https://publications.parliament.uk/pa/ld201617/ldselect/ldeucom/129/129.pdf

3. Annual Manufacturing Report 2019
https://www.themanufacturer.com/uk-manufacturing-statistics/

4. The Future of Manufacturing: A New Era of Opportunity and Challenge for the UK.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/255922/13-809-future-manufacturing-project-report.pdf

5. China to surpass US as world's biggest consumer market this year. 24 January 2019.
https://asia.nikkei.com/Economy/China-to-surpass-US-as-world-s-biggest-consumer-market-this-year

6. Johnny Ho, Felix Poh, Jia Zhou, & Daniel Zipser. China consumer report 2020: The many faces of the Chinese consumer. 18 December 2019.
https://www.mckinsey.com/featured-insights/china/china-consumer-report-2020-the-many-faces-of-the-chinese-consumer