Local purchase | Pay more, okay, but how much?

To what extent are Quebec consumers willing to pay more for a product designed or manufactured in the province? A recent study provides new answers to this question.

The strategic analysis firm AppEco asked 2,800 people to select the item they would buy from a choice of options associated with various prices and provenance labels. From the selections made by participants, the research team was able to identify how much more people were willing to pay depending on the origin of the product.

“Unlike opinion polls in which we generally ask people what they are willing to pay, we presented them with concrete choices,” explains Julien Mc Donald-Guimond, economist and director of AppEco.

The study, commissioned by the certification body Les Produits du Québec (LPDQ), focused on seven categories of manufactured goods: clothing, furniture, hardware (tools), sports equipment, garden (outdoor furniture), health and beauty (products hygiene and cosmetics) as well as home (household products).

Three labels simply indicating the origin of the product (China, United States, as well as Quebec) were used, in addition to the three official LPDQ labels, namely “Product of Quebec”, “Made in Quebec” and “Designed in Quebec”.

The analysis shows that compared to a product imported from China, the participants were ready to pay the following additional premium:

• 28% to 71% for a product bearing the “Made in Quebec” certification from LPDQ
• 27% to 70% for a product bearing the “Product of Quebec” certification from LPDQ
• 22% to 60% for a product bearing the “Designed in Quebec” certification from LPDQ
• 19% to 52% for a product bearing a simple “Quebec” label
• 11% to 35% for a product with an “Imported from USA” label

The additional premium is expressed as a range, because it varies greatly depending on the category studied. “Health and beauty” products are those for which consumers seem most inclined to spend more for a local version, and furniture is the one that seems to encourage this behavior the least.

Good news for LPDQ

For LPDQ, an organization created barely three years ago, this is good news, given that its logos work better than the simple mention “Quebec”.

“We work on our certification marks. We are making efforts on the positioning, explanation and communication of these brands,” underlines Elfi Morin, director of LPDQ.

More than 185 companies sought LPDQ certification. Some of them put the logo directly on their products, but it is not that simple for all.

Those who export, in particular, do not necessarily want to have to manage two types of packaging, with and without the logo, explains Elfi Morin.

Participating distributors can then come to the rescue, by displaying the logo directly on their shelves next to the item’s price tag, or in their flyer or on their website.

Sometimes you have to search a little, but you can find, for example, a directory of Quebec Products on the Walmart, Jean Coutu or Mondou sites.

This allows us to learn the origin of certain products that we do not spontaneously associate with Quebec, such as Sponge Towels paper towels, Picardie brand bird feeding seeds or even La Parisienne laundry soap.

“There are local purchasing opportunities everywhere, it’s accessibility that we’re aiming for. We often tend to think that buying local is about craftsmanship and high-end products. This is very good, but we also need to make it visible in everyday consumption,” says Elfi Morin.

“For some [détaillants]the local aspect occupies an important place in their business strategy. Having an impartial third party who identifies local products at home is no small thing, it takes that burden off them,” continues the director.