Top trend: Aussies like it local
Australians have always been supportive of their local communities, but Datamonitor research has found that this desire has intensified over the past 12 months. Local products are shaping up to be a key source of growth for food and drink companies in 2011.
It is well known that Australian consumers want to buy Australian. Most recently a survey (conducted by Roy Morgan Research) of almost 19,000 people found that 90% prefer to buy products Made in Australia. Now it seems that we do not just want our food and drinks to be Australian, but they should be produced as close to our local area as possible.
The ‘locavore’ movement describes the growing interest in locally produced products, and while the trend started in the US, it has gained popularity in Australians also.
Datamonitor research conducted in July/August 2010 found that 33% of Australians are buying locally produced food either ‘most of the time’ or ‘all the time’, up from 26% in April/May 2009.
Katrina Diamonon, consumer markets analyst at Datamonitor remarked: “locally made food and drinks resonate strongly with Australians, not only as they support local communities, but because they are often perceived to be fresher and superior in quality.”
However, the ambiguity of the term ‘local’ has manifested in many companies laying claim to the word without adequate substantiation, in a trend some marketing commentators have coined ‘local washing’. Diamonon continued: “industry players need to be wary of using a diluted version of the term ‘local’ merely to promote sustainable credentials. Local claims need to be accompanied by an authentic brand story that brings the value of local to life.”
Another challenge for the local food market is competition from imports, a threat that has intensified as a result of the devastating floods across Queensland. Hectares of food crops have been destroyed by the torrential rain, which has dramatically reduced yield and driven up food prices across the country. “During this difficult time, value conscious Australians are faced with a decision to either support local farmers or turn to lower-priced imports,” Diamonon continued.
The local movement will continue to gather momentum in the coming year, but manufacturers need to fully understand the value that consumers derive from ‘local’ in order to capitalize on this opportunity. “Consumers are keen to support fellow Australians, but need to be reassured that buying local does not compromise their pursuit for value or quality. Emphasizing tangible benefits such as price and convenience – in addition to local claims – will appeal to well-intentioned consumers,” concluded Diamonon.
Great to read this article recognising the trend for people to Buy Australian Made and Grown. 100’s of Australian made products can be found at http://www.BuyAustralianMade.com.au.
AUSBUY is 20 in September as it was formed in 1991. It has been the only organisation promoting local in the time – but not just locally sourced, it also needs to be locally owned so that the profits are reinvested in long term sustainable food production. AUSBUY used the “Akubra Effect” in 2010 to highlight how many companies pretend to be Australian and they are not. Our current labelling laws do not make it easy for consumers. Quality and value for money and accessability come before price in any serious marketing studies – that is why it is important in these difficult times that the retailers focus on supporting our owned, otherwise it will be a party for importers or those foreign companies processing here who increasingly access produce off shore. Lost market share will not be regained and given our high dollar the importers were having a party even before the floods. I am a Friend of AUSBUY and like many other thousands of Australians really care and act upon our convictions every time we shop. THE AUSBUY Guide helps us do that.
Brilliant article, Josette. Thanks to you, I now have a better grasp of this issue. Many thanks for the learning! Best regards, P. 🙂
we are Australian made, owned and operated and proud to be so (we even buy our hosting in Australia), and it makes me so proud to know Australians are showing more & more interest in home grown/owned.
the more we can do to support Australia the better we will all be in the long run.
Sue your comment about retailers supporting Australian made products is a very important one BUT one that many retailers do not appear to care about. You only have to look on the shelves of major retailers and see where the majority of items come from to see that. And shoppers usually pay only marginally below what the Aussie made items could be sold for. The margins that are added to imported items by the buyers, wholesalers and then the retailers ensures that. I know there are importers who even take an Australian made items to China to have them copied and then import them back to replace the Aussie made items on the shelves. Shoppers need to be more aware of what is available that is Aussie made and then support them by buying their products. Many of the businesses featured on http://www.BuyAustralianMade.com.au are now opening up a supply chain direct to the end buyer and taking out all the “middle men” and their margins the result lower prices for the shopper, higher margin for the Australian manufacturer. You may also be interested to know that BuyAustralianMade is launching an iphone app shortly which will make it easy for shoppers to find Australian made items on supermarket shelves, you can pre register for the FREE app on the BAM website.