Buying local? Price remains the top priority for consumers
Buying local? Price remains the top priority for consumers
Catherine Rolland, Analyst, Sycomore AM
Consumers claim to be receptive to the “Made in France” label, yet in practice, price remains the primary purchasing criterion. This topic was discussed during the third workshop of the “Social” working group — “(Re)localisation Done Right: A Competitiveness and Sustainability Challenge” — within the Think Tank “2030, Investir Demain”.
“Made in France” rarely drives consumer purchasing decisions
The “Made in France” label is attractive. Consumers express concern for national sovereignty, the need for reindustrialisation, and support for short supply chains. In theory, they claim they are ready to prioritise French brands that commit to local production.
In practice, there’s often a gap between intent and action. When it comes to actual purchasing decisions, “Made in France” is typically not as decisive as price. The inflationary context of recent years has further reinforced this trend, as confirmed by major retail players.
Consumers who are truly motivated by “Made in” claims represent a relatively marginal customer base for most mainstream brands. These consumers tend to be urban, economically secure, and professionally active.
That said, the origin of a product does carry more weight in certain sectors. In the food industry, health-conscious consumers are reassured by compliance with French safety standards. In fashion, ethical or identity-driven considerations — such as concern for working conditions — may influence choices. In the luxury sector, “Made in France” or “Made in Italy” denotes craftsmanship and is therefore a key element in purchasing decisions.
Pricing for “Made in France” products must remain competitive
Outside the high-end segment, where price sensitivity is lower, companies must ensure that locally produced goods remain competitively priced. For instance, Renault’s pricing strategy for the electric R5 model is designed to be aligned with similar offerings from foreign competitors. While the model is produced in Douai, with 75% of suppliers located within 300 km, this “Made in France” aspect serves as a complementary — but secondary — marketing asset, with price remaining the dominant factor.
Rowenta, on the other hand, made the decision to reshore the production of a stick vacuum cleaner previously manufactured in Asia. This was a high-price-point product, making the cost differential more acceptable. Additionally, logistics costs and parts inventory levels were significantly reduced. This initiative supports the ongoing development of its industrial site in Vernon, in the Eure region.
Employment retention is a key motivation for localisation
For many companies, the primary motivation for bringing production back to France is job preservation at legacy sites. Renault’s transformation of its Flins plant in 2021 is a clear example: the site is now focused on circular economy initiatives — refurbishing automotive parts, recycling raw materials, repairing EV batteries, and reconditioning used vehicles.
Supply chain resilience is a growing concern
While relocating production can be a virtuous move, it requires a solid business model. Cost structures remain a central concern, but companies are increasingly factoring in the benefits of more resilient, localised supply chains. The COVID-19 crisis exposed the vulnerabilities of offshore production in distant low-cost countries — including supply chain disruptions and procurement breakdowns.
SEB provides another illustrative example: to strengthen supply chain security, the group relocated part of its European and Chinese electronic board production to Saint-Lô, in Normandy.
Rebuilding national production requires industry revitalisation
Developing local manufacturing capabilities also depends on rebuilding entire industrial ecosystems — and that means reviving lost skills. Julien Chaverou, CEO of CAMIF, advocates for the reconstruction of mid-range production in France in the home and textile sectors, which are currently underdeveloped. A challenge to watch closely.
This document reflects the author’s opinion as of the publication date. It does not constitute an investment recommendation.
