I bought a new pair of running shows over the summer. I almost always buy Nike shoes, but I bought New Balance for the first time (and the last time, but that is another issue). I was interested to read the label that was attached to the shoes (the red highlighting is in the original):
“Many of our shoes are produced in one of six United States factories. While most of the footwear industry has moved its production overseas to take advantage of low labor costs and generally cheaper production costs, we continue to have many of our shoes made in the United States and have expanded production substantially. Since 1995, we have increased our manufacturing jobs by 65%. We at New Balance are proud to provide jobs to the U.S. workforce, and proud of our well educated, high quality associates who can compete with anyone in the world.”
In general:
“New Balance remains committed to producing jobs for American workers and to supporting domestic manufactures and suppliers where possible.”
Three questions immediately come to mind:
1. Are New Balance consumers aware of the firm’s intended point of differentiation?
2. Are non-New Balance consumers aware of New Balance’s position?
3. Do any consumers alter their purchasing decisions because of this position?
As a non-U.S. national living in the U.S., I do not draw a moral distinction between a U.S. job and one overseas. I think a worker from India, China, Vietnam, or any other country, should have the equal right to work for any company that wants to hire him or her. As a result, I am ambivalent (from a nationalistic perspective) regarding the outsourcing debate. I do think, however, that it is perfectly legitimate for consumers to be strategic in their purchasing decisions and ‘country of origin’ is as good a reason for buying a product as most of the other reasons people use (Issues: Country of Origin, p223). It would be interesting to know, therefore, whether New Balance, Saturn, or any other firm that employs nationalism as a marketing strategy is rewarded for its efforts.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
