Local is Lekker
Localisation is a term used to describe a movement towards locally-made and locally-sourced raw materials and goods. This movement is by no means new, having been established in the nineties as a reaction to burgeoning globalisation and the commoditisation of products to the mass-market. In their report entitled (Still) Made Here, Trendwatching.com distils this movement to its essence:
In a world that is seemingly ruled by globalization, mass production and 'cheapest of the cheapest', a growing number of consumers are seeking out the local, and thereby the authentic, the storied, the eco-friendly and the obscure.
Mass produced products have, in many ways, reached the peak of their appeal to mature consumer markets, representing nameless, faceless corporations bowing to the directives of their shareholders. This has been exacerbated by a global financial recession that has literally stripped the façade of corporations, revealing greedy, power-hungry conglomerates that care only for their bottom-line. This profit-at-all-cost mentality has come under close scrutiny in the last couple of years, leaving unethical business practices laid bare and obscene end-of-year bonuses exposed. Ultimately, this large nameless, faceless corporation has lost touch with the needs of its end user, whose value set has been irreversibly altered in the wake of global financial and environmental crisis.
Multinational companies, although often quite slow to play catch-up, are realising that there is a need for something more substantial: products with more personality and more meaning that are more relevant now at a time when people are looking to be part of the solution, and not just part of the problem.
Localisation points to this new value system that is at work within the consumer market. South Africa is a particularly interesting example as the country with the single highest wealth gap in the world, we exhibit two separate strands of consumerism, one that boasts (excessive) spending power, and one that struggles to make ends meet. Localisation comes from a mindset based in community building and upliftment, so it makes sense that this trend has quite an altruistic feel to it. Another main driver behind this trend, I would argue, is the innate human instinct to connect socially with each other, especially at a time when many people rely on technological platforms to facilitate their human connections, which cannot satisfy that human urge completely.
One of the most notable instances of localisation can be found in the food industry. Local food means fresher food that has not been jetted in from a distant region, which equates to lower carbon emissions. Fresher food is healthier as it retains more of the nutrients and requires less packaging and transport, which are both better for the health of the planet. Fresh produce sourced locally is a clear and obvious example of how local is more eco-friendly, more sustainable and healthier. It stands in stark contrast to mass-produced food that has recently come under the spotlight through the documentaries like Food Inc. which shows how large American corporations own the food from the seed to the table, and how the lines of power between the boardroom and the government have become muddied preventing proper control and regulation of the food industry in the US. Local food keeps the profits within the boundaries of the national economy, thus stimulating local micro-economies such as restaurants and green grocers and opening up entrepreneurial opportunities to use "local" as a selling point or differentiator.
Local also stands as an alternative to global ubiquity, reversing the common paradigm of bigger is better. Localisation speaks to old-world values like community and heritage on a level that mass-produced products struggle to match. It makes sense that the human instinct to retreat to what is familiar and to what feels good would play out at a time of global crisis. Localisation taps into the sense of familiarity, sense of community and the feeling of doing the right thing and a time when everything seems to be going wrong.
Synovate In:fact recently released a global study measuring attitudes towards climate change. The report concluded that 30% of people are "very concerned" about climate change, with 80% of all respondents believing that "companies have a responsibility to help reduce climate change". A staggering 50% of people "would be willing to pay more" in order to offset the damage to the environment caused by their product of choice. In light of this, it becomes very clear that people's spending habits are changing, influenced by the environmental factors that we face today as a global society.
Large companies, like McDonald's and Nestle have noticed this shift in consumer sentiment, and are re-arranging their efforts and tweaking their product offerings to converse directly with the people that they are selling to. Not too long ago Kit-Kat (via Springwise) launched 19 new flavours, which reflected regional tastes specific to certain areas of Japan. This more intimate understanding of the local people and their tastes demonstrates a brand that cares about their customer and is truly striving to serve them in an authentic way. In terms of driving brand loyalty, this is the next essential step to take, where the primary factor in the relationship becomes about service, not just about taking their money.
Recently McDonalds (via PSFK) have seen a major restructuring, which has seen sales go up even during a stormy financial climate. Instead of a broadly homogenous, global product offering regardless of cultural nuances at work in society, the fast-food giant have opted to tailor-make their offering to cater towards a diverse array of people and local cultures, thus creating a more personal relationship between the customer and the brand. In Italy, the have begun offering the McItaly Burger, and in Canada, the McLobster. In India you can buy the Maharaja Mac, and in Japan the Ebi Filit-O.
Technology has been a huge enabler in terms of the localising effort. Firstly the internet offers entrepreneurs a host of opportunities in the development of their small businesses. People can now, more easily than ever before, make and sell their homemade products, targeting their efforts to their immediate community without the huge overheads of running their own brick and mortar store. Especially in the light of the recession, which has ended in job losses for millions of people worldwide, people are increasingly opting to start their own businesses, work for themselves and do the things they love doing.
Secondly, social media sites are the perfect platform for connecting people online to their local offline community. In this way, we see how localisation is satisfying people's needs to connect in more authentic and more relevant ways. Take FourSquare for example, users create an account, download the beta software to their smartphone which is GPS enabled. Then by logging in, they can "see" the world around them. The service suggests a good place to drink coffee nearby, or a happening event that might be taking place in your proximity. Fans of FourSquare can earn badges by participation, thus really encouraging people to (in the words of FourSquare co-founder Naveen Selvadurai) "live life better".
Similarly, STACKD (via PSFK) is also an online service that aims to bring people together in a real world way. STACKD is a "hyperlocal" social media concept developed for people living in the same building. The premise is that local networking and communication can be of major importance to our lives.
Localisation also comes with a strong sense of community upliftment and social responsibility. As South Africans, we have noticed a recent proliferation of community made, ethically sourced and fair-trade products that come complete with the name of the lady who wove this particular basket or sewed that particular doll. The stories behind these products, which indicate their provenance, is a further manifestation of the trend towards localisation. It shows how brands are adapting to a shift at their consumer base that values the human element behind the nameless, faceless corporation. People want to connect with those human stories behind the brand, and they want to engage with the brand that they buy into in an authentic and conversational way, as they would a friend. Increasingly people are using the power of their purchases to express their activism on global issues such as environmental destruction and the need for us to work together in creating sustainable solutions.
Observation by Loren Phillips
