The lure of local

 

According to research from PDG Insights, consumers are just as interested in supporting local brands as they are local retailers.

“There is an appeal in … buying a brand where you not only know the brand story, but the owner’s story as well,” says PDG founder Diana Sheehan. “For any consumer, watching a brand go from being sold at a local farmer’s market, or getting a display at a single store, to growing into critical success with national distribution is fun. Americans love to see how small brands evolve into a national success story.”

From PDG’s research:

• Almost half of US consumers say they go out of their way to buy local brands or products.
• 52% of respondents intentionally bought local fruits and vegetables.
• Younger consumers are more intent on buying local brands across categories. Consumers under 35 are intentionally buying local brands in twice as many categories as those 55 and older.
• 68% of shoppers said that having access to local brands in the fruits and veggies category was extremely important or very important.

How do you define a ‘local brand’?

Answers differed depending on the category, but most consumers consider a brand local if it is produced within the state. But when averaging responses across categories, 28% said a local brand “is produced within my immediate city or town” and 20% said “production must be within 50 miles of my city or town for a brand to qualify as local.”

Why does buying local brands matter to consumers?

“We see consistency in why consumers prioritize buying local brands and why they shop at local retailers, particularly as it relates to community support and product assortment,” Sheehan says. “We also see a clear connection to which retailers consumers choose to buy local brands that must be considered.”

Community first: Consumers are buying local brands because they are supporting small businesses, keeping money in the local economy and helping to create jobs in the community, with 74% of consumers saying they like to support their local community.

Unique products and assortment: People believe local brands provide unique products that they can’t find anywhere else. They believe local products are more authentic and could even be higher quality than national brands, with 52% feeling a personal connection to the brands they are buying.

Retail differentiation: 54% of consumers say they choose retailers to shop based on if they carry local brands that matter to them.