A 2019 survey by Wave X Remix Culture found more than half of consumers believed that local brands and products were more authentic than content and products from other countries.
There are deeper ethical value shifts beyond self-expression and consumption driving this desire for localisation. Consumers are prioritising environmental responsibility while helping local businesses thrive and reconnect with communities.
The Proudly Local, Going Global trend is driving the rise of local consumer brands, especially in developing markets, going head to head with multinationals. For niche brands, regional and even global success has followed.
Multinational companies are keen on localising their production or acquiring already established local players. Localisation strategies also help multinationals better adjust to consumer needs that arise due to cultural differences or lower purchasing power. The large and expanding consumer base is one of the key factors driving production localisation in markets, such as India and Nigeria.
Food and beverages are among the leading industries for local production with 85% of production sold within the producer nations on average. This local trend extends to changes happening in manufacturing facilities and processes. Mini factories, which are located much closer to the end consumer, are superseding multinational mega factories. This aligns with environmental priorities and a retreat from globalisation.
By producing locally, companies can reduce delivery times. This aligns with manufacturers in terms of their sustainable credentials and distribution models. Being accessible, local and clean is becoming more important to survival.
Source: Euromonitor International
Extract from a report of Euromonitor International on “Top 10 Global Consumer Trends 2020”