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April 10, 2005

The Eroding "Made in Germany" Label

MercedesFrom DW-World.de
The "Made in Germany" label gives products a certain cachet worldwide, but recent blunders by manufacturers have dulled the seal's shine. The label itself might be misleading; many product components are made abroad.

For many German companies, the fatherland is nothing more than a hub for their multinational operations. Even though they love to put the "Made in Germany" label on their products -- for many people, those words signify high quality and dependability -- many, if not most parts of the product come from beyond Germany's borders.

"Between you and me, no one really cares where a product is manufactured," Peter Hammann, a professor of marketing at the Ruhr University in Bochum said. "If a certain brand is on the shirt, on the suit or on the car, that's enough. Where it originated doesn't interest people."

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» Globalization erodes from gmtPlus09
I don't completely agree with the statement that due to globalization, once-dominant associations such as high quality and dependability has eroded from the nation-state's brand image (equity). The acceptance of this statement varies by industry. [Read More]

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