Shop Local, Advertise Local – The Key to Post-Lockdown Economic Success

Supermarkets, both large and small, and associated local retailers are now considered the country’s economic superheroes, giving citizens access to all the essential products required to stay at home and keep the spread of COVID-19 under control.

One interesting effect we have seen from lockdown is that people are shopping more locally for essentials. Whether this be the local diary, or the closest supermarket, we’ve all become more attuned to the offerings in our neighbourhood.

As the nation emerges from lockdown, this trend is expected to continue. Kiwis understand that local and small to medium sized businesses are the most at risk, with their owners’ jobs and livelihoods being directly affected. A focus on trying to buy New Zealand made, or shop in smaller retailers, is occurring with JCDecaux’s own research revealing that 75% of the population claims to have a strong desire to support Kiwi owned and operated small businesses and brands.

“Now in Stage 2 restrictions, with most businesses open and operating, our research reveals that Kiwis have clear intentions for commercial activity - 37% plan to splurge with some form of treat spending, while 89% plan to continue spending in a normal or reasoned capacity. After an extended period of isolation and forced saving, the trend is clear – people are ready to shop!” JCDecaux New Zealand Country Head, Mike Watkins, said.

This represents a strong opportunity for local brands to start rebuilding awareness and ensure they are top of mind and part of a consumer’s consideration set when they are out-and-about and ready to purchase. In New Zealand, almost eight in 10 people (77%)* expect to hear from brands in the current environment.

It is a critical time for brand presence. Research shows it is vital for brands to continue advertising to ensure long-term growth and success during recessionary times and beyond.

During the last recession, 60% of brands that went ‘dark’ with no ad spend for six months saw brand use fall by 24% and brand image decline by 28%. Those that maintained or increased their ad spend, saw sales lift by 256% compared to those that did ^.

As some international brands cut back on advertising spend, it represents a great opportunity for smaller and local brands to efficiently increase their share of voice and capitalise on positive community sentiment towards small and medium sized businesses. An added benefit is that it is generally a cost effective time to advertise.

JCDecaux believes people have been missing their outdoor lives – including advertising – and there will be a heightened sense of attention to the outdoor environment once people start resuming ‘normal’ lives. Out-of-home advertising can help New Zealand brands and businesses to be top of mind as restrictions ease.

JCDecaux is committed to finding an effective advertising solution for any campaign, large or small. For brands and retailers wanting to run local campaigns, JCDecaux can help select a single, high-impact site in close proximity to a store location to raise awareness among people within the local community.

Please contact JCDecaux Account Director Brylin Nichols to discuss suitable opportunities for your business.

*Pure Profile study commissioned by DDB
** Dentsu Aegis network
^ Kantar Millward Brown
^^ Fiftyfive5