Buy Local, Live Global

Understanding Consumer Preferences for Local Products and the need to keep Export Growing

In a time, government and general media appeal companies to address their best efforts to export, the general population are encouraged to favour local products instead of foreign ones. This reality, a classic reaction result of domestic market retraction, would be consider normal not for the fact that this is happening in the large majority of western nations, economically and socially interdependent.

Visiting London a few weeks ago, I notice a large number of ads promoting British products, namely appeals to favour local food production. Supermarket chains affirming their commitment to help domestic industry, public reference to local origin as a differentiation factor, Chefs explaining why people benefit from cooking fresh local items, etc.

Funny enough, I could be reporting the similar appeals and commercials in almost every country of western civilization.

Although theoretically acceptable, can a large number of economically interdependent nations, adopt simultaneously a policy based in local products consumption and growth through export? Does this mean that U.E. intra trade is about to change considerably?

It’s only natural and expectable that each nation tries to protect its own industry survival. Still, considering that the large majority of western nations are far from being self-sufficient, it is only fair to hope that trade will continue as strong as before.  

For local producers, there is a big window of opportunity as consumers are more willing to favour their products. The ones that take should be prepared to build a reliable logistic and deliver consistently good quality products at affordable products. Waving the nation flag will not be enough.

For exporters, although times are expected to be harder as demand for differentiation from locals will increase, it may be the moment consolidate business.  

For the ones already in the market, it’s time to take advantage from the existing relationship and improve the mix of product, price, logistic and communication. Your company, better than anyone else, knows how to strength the offer and work ahead of competition.  

For new comers the challenge is bigger, but equally attractive. Facing higher barriers, the companies will have to segment markets and select partners and be willing develop smarter products (even when your product is a commodity). Companies will have to move beyond features and create a competitive integrated offer. Taking the product qualities and enhancing benefits. Adjusting packaging and logistic to better fit the market. Thinking beyond the sale and the willing to consider local actions to promote the product.

The wind today is favouring local against imported, but in a world of interdependent nations no country can rely exclusively its own production neglecting neighbours and old partners.

Companies face new challenges when domestic markets get smaller and export barriers rise. Locals and Exporters are already fighting for their fair share of business and most probably the fittest companies of both groups will get.