INDUSTRY'S CHOICE
LETTERS TO THE EDITOR
Ste,—Although it is far from my wish or intention to enter into an argument about the merits or demerits of State control, there is one point in Mr. Vargas Eyre's article, " Industry's Choice," which is subject to debate. Is it right to suggest that our export trade should avoid competing in the market of cheap standardised goods? Wholly apart from the class of product produced by cheap Oriental or similar labour, our greatest competitor in this line will be the United States with a higher wage rate than ours. That the U.S.A. has been able to produce at lower costs than ourselves is mainly due to mass production methods, the introduction of which was facilitated by the extent of their home market. If, however, we can capture a world market as big as their home market, there is nothing to stop us from producing as good and as cheap products without any debasement of our wage standard. Our inherent skill, of which Mr. Eyre so rightly makes a point, will, in fact, probably produce a better product at a competitive price. Really, we have been doing so for years in our own country, where at least three grades of goods find a sale among different classes of the public according to their requirements.
What British industry has to do is not to put the cart before the
horse by saying this is the class of product we should make and export ; but to say what is the class of product required by our potential cus- tomers—let us see if we can make it at their price and according to their peculiar specification. (Lest the last two words be incomprehensible, let me explain that every country has its own physical, sociological, economic and spiritual values which materially affect the precise specification of goods of the same nature.) Intensive consumer research overseas will produce the right answer.
It is to carry out this part of the job of exporting that the British Trade Research Organisation was formed by industrialists fully alive to the problems that industry has to face. This is industry's " getting together " in a co-operative effort—without any question of State aid! If it leads to the sharing of the expenses of market research by groups of firms, there will be an obvious advantage.
While I by no means quarrel with Mr. Eyre's contention that Britain is at her best in the production of high quality goods, let us not neglect the far vaster market which wants cheaper products.—Yours faithfully,
British Export Trading Research Organisation.
PHILIP BAKER.
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