Of all kiwi consumers, 60 percent prefer buying locally-made products. Buying local has accelerated since the pandemic's beginning, as the benefit is seen more directly in local communities. Local suppliers, manufacturers, courier drivers, accountants and tradespeople are all affected by a localised business community ecosystem - not just the brand and the customer.
"Both environmental benefits and community emphasis are driving factors behind the buy local movement. Consumers are becoming more conscious of sustainable ethics and their carbon footprint, and because of this, they are gravitating towards local products. There are economic benefits too. Buying locally from New Zealand businesses increases the employment of local people rather than paying international firms where there is no local benefit from the money spent on goods," said Brad Worthington, Managing Director of Fogdog.
Buying local allows smaller producers and suppliers a chance in the market against more prominent brands. Ultimately, more competition and a greater variety of products are the best outcomes for consumers.
"We are so grateful that kiwis care more than ever about supporting local. This renewed dedication to buying local means that small local brands like ours have the ability to grow and make it onto the shelves of supermarkets nationwide. We are so grateful for the support of customers, retail buyers and supermarkets rallying behind the buy local movement," said Lauren Lulu Taylor of Secret Kiwi Kitchen.
Despite the pandemic accelerating the purchasing decision, it also brought several challenges for local brands.
"A small business owner always rides the rollercoaster of business highs and lows. The most stressful impact of Covid was the rollercoaster with higher highs and lower lows," said Geoff Crawford, Managing Director of Telegraph Hill Limited.
"One of the biggest challenges was the change in product style demand. Our hospitality slowed, but our supermarket/retail, corporate gifts and gift box company market grew significantly. We quickly adapted our bakery output to suit what was needed at the time. One of the most important things to us was ensuring our staff were okay. Another challenge we faced, along with everyone else, was dealing with supply chain issues," said Alistair Parker, Molly Woppy Director.
Research and development is vital in producing a buy local product. What is already out there, where are the market gaps, and how can a brand be price competitive while undertaking sustainable, local business practices? Customers need to be at the centre of all thinking.
"A couple of lenses on this from us, both as a consumer-facing business and a manufacturer ourselves. The cost/quality conflict will always exist. While we've positioned ourselves to be accessible price-wise, we are finding that where a quality option is available locally, people are prepared to stretch a little," said Kyran Rei Co-Founder, Business Development Manager of plan*t.
The future of buying local and New Zealand-made products is a collaborative one and a chance for kiwi businesses to work more efficiently. As new grocery industry requirements emerge, shelf space can open up for smaller companies.
"We see it as vitally important that smaller brands have the opportunity to showcase their products. Consumers want locally made, good quality choices, and if local producers can't get a word in, the magic of locality can be lost. It's about ensuring there are fair and equitable entries to the market. The reality, though, is there is limited shelf space in traditional retail. We see the opportunity in the growth of online platforms to provide more choices and added convenience for the customer," said Scotty Baragwanath and Madeleine Smart, Founder and Marketing Manager at Blue Frog Breakfast.
"We'd like to see priority is given to local producers and more recognition for factors like sustainable packaging and fair wages, meaning potentially lower margins for supermarkets rather than higher margins being prioritised over ethical concerns. We do see some of the major retailers like New World implementing 'buy local/NZ made' campaigns which are really heartening. Our independent retailers are also critical, not only because they often lead the way in supporting local producers, they're always on the hunt for new products and brands that are challenging the status quo, so they're incredibly important for food innovation in New Zealand as well," said Sarah Phillipps, Head of Marketing at Raglan Food Co.
"Presently ranging decision is primarily driven by big data – a function of unit sales turns x retailer margin offered. As such (to ensure local suppliers maximise their chance to get ranged), local manufacturing needs to stay cost competitive day to day to optimise the margin equation for retailers who need to offer their assortment at the keenest possible price for consumers. The key challenge to overcome presently is the collective added costs to operating a local business which is not helping keep our ranges cost competitive with imports," said Peter Cox from Harraways.
A common theme for the future of New Zealand-made and buying local is collaboration. Businesses are looking at ways to engage with locals and celebrate one another to showcase the incredible products available to the nation. From local ingredient suppliers to packaging businesses, transferring as many aspects of a company as feasible to be locally operated will help keep brands active.
