Luxury Brands Adopt Made in the USA

For today’s luxury and upscale retailers, turning couture into cash may be easier by buying products made in the USA. The reasons for buying American seem to be adding up faster than customers' credit card swipes.

Buying local makes it easier for retailers to stay one step ahead of fashion trends, and products can be stocked up that much faster in store shelves. Labor costs in China and other countries are rising, as are import duties. Roller coaster exchange rates and fuel costs add even more unpredictability. 

Brooks Brothers Chief Executive Claudio Del Vecchio notes that more retailers are stocking up on American-made products. "There are opportunities to test products" made in America, said Del Vecchio. "It's part of our culture to support American manufacturing. We like to buy from America." Brooks Brothers makes 70% of its suits in Massachusetts and all of its ties in New York.

Luxury retailer Saks has upped domestic sourcing of its "contemporary brands," aimed at younger trend-savvy shoppers who may be more price conscious. "We are seeing a resurgence in 'Made in America' in contemporary brands," said Saks Chief Executive Steve Sadove. "We are increasing sourcing there because you can get replenishment much more easily (through) supply chains in America."

Business consultant Bain & Co. noted that nearly two-thirds of wealthy consumers said they would buy American-made goods whenever possible. A survey conducted by American Express Publishing/Harrison Group revealed that over 75 percent of wealthy consumers like brands made in America, with 65 percent of them saying they would buy American-made products whenever they can.

At a recent Financial Times Business of Luxury panel, Susan Gilchrist at the communications firm Brunswick Group noted their clients’ preference for USA made products. "A lot of our (luxury) clients talk about bringing sourcing back home," said Gilchrist. "It's not just about publicity. The actual (cost) differential gap is really closing."

When it comes to high-end wedding gowns, Vera Wang is saying “I do” to made in America. "It's almost impossible to do the dress elsewhere," said Vera Wang president Mario Grauso. "We have 12 weeks to deliver the dress. We don't want to disappoint the bride. Our high-end customers care where it's made."

The New York Times recently reported that the 'Made in USA' label has evolved from a symbol of Main Street pride to a chic status symbol for upscale retailers like J.Crew and Gilt Groupe, which have created special marketing around American-made goods. Dave Schiff, a founder of Made Collection, a new flash-sale site that sells only American-made goods, noted that ‘Made in the USA’ once came with baggage. “The old ‘Buy American’ is get something lousy and pay more,” said Schiff.  Now “it’s a premium product.”

As a retail buyer, the handwriting’s on the wall: Americans increasingly regard “Made in USA” as upscale and worth the money. Add the uncertainty of foreign labor costs, fluctuating exchange rates and longer lag times from design to distribution and the case for buying American is stronger than ever.

Image courtesy of sattva / FreeDigitalPhotos.net