You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • World stocks mixed ahead of Fed chief testimony
    BANGKOK (AP) — World stock markets were mixed Wednesday, hours before Federal Reserve chairman Ben Bernanke is to deliver remarks before Congress on the state of the U.S. economy.
  • Microsoft calls Xbox One an all-in-one console
    Microsoft on Tuesday unveiled the Xbox One, an entertainment console meant to be the one system households will need for games, television, movies and other entertainment.
  • Dimon keeps two-faceted job
    Jamie Dimon, the CEO and chairman of JPMorgan Chase, easily survived a vote Tuesday that would have called on him to give up his role as chairman of the nation’s largest bank.
Advertisement

‘Made in USA’ label still carries cachet

Buyers see homemade as evidence of luxury, quality

– The Made-in-America label has undergone a deluxe makeover. Brands such as Brooks Brothers and the Olsen twins are using it to hawk luxury goods, a tactic made popular by blue-collar brands such as Levi Strauss and Chrysler.

Menswear maker Joseph Abboud has a “Made in USA” banner on his website with a link to footage of the Massachusetts factory that crafts his suits. Brooks Brothers has factories from New York to North Carolina, and The Row, the luxury fashion line from Mary Kate and Ashley Olsen, manufactures most of its clothes in America’s biggest cities.

“There is a customer that appreciates that the product is made in the United States and is willing to pay for the difference,” Brooks Brothers CEO Claudio Del Vecchio said in an interview.

While Brooks Brothers made few goods in the U.S. 10 years ago, today a “large percentage” is American-made, he said.

The U.S. reputation for quality is benefiting upscale labels as more Americans question where their goods come from and how their buying affects the economy, said Pam Danziger, president of Unity Marketing Inc.

“Made in America feeds into the values proposition,” she said. “They are voting with their money not just for U.S. jobs, but for a way of life. In 2007, they were on a spending jag – they weren’t thinking about things like this.”

Now that they are, luxury-goods makers in the United States, the largest market, stand to profit: Almost two-thirds of wealthy consumers say they try to buy American when they can. Global spending on luxury apparel, accessories, watches, jewelry, perfume and other products might climb to about $260 billion in 2011 from $245 billion last year, excluding currency moves, Bain & Co. said May 3 in a report.

More than three-quarters of affluent consumers surveyed this year by American Express Publishing and the Harrison Group, a luxury research firm, said they like brands made in America, up 5 percentage points from 2008. Sixty-five percent say they try to buy U.S. products whenever possible, a three-percentage-point gain.

The self-made nature of much of America’s wealth may be one of the reasons the pitch is so appealing, says Andrew Sacks, head of New York luxury ad firm Agency Sacks.

“There is a built-in inherent interest among those successful people to do whatever they can do to help,” Sacks said.

Advertisement