The rise of the "Shop Local" trend; how to adapt?
The COVID-19 pandemic changed many dynamics that persist to this day in the retail industry and has made it necessary for businesses to adapt and, often, reinvent themselves. That said, the industry has changed so fast and in so many ways that sometimes it can be tough to keep up. This is mainly because consumers were forced to change their behavior to adapt to the conditions resulting from the pandemic, mainly because of the numerous lockdowns that took place during the last two years.
Essentially, the COVID-19 pandemic has changed the way we shop locally; the "Shop Local" trend has clearly had positive implications for communities and suburbs, as the increasing footfall in local stores has helped multiple small businesses succeed amid the global economic recovery.
Why are more people choosing to shop locally now than ever before?
The CommBank Consumer Insights Report from 2022 reveals that, since the pandemic, consumers in Australia have adopted a more local focus, whether that's on Australian-made products or shopping in their local area. To the point that 52% of Australians believe locally sourced and manufactured products are now more important.
This includes a variety of categories, such as recreational goods (59 percent), health and beauty (53 percent), electronics (55 percent), groceries (53 percent), and liquor (39 percent).
This trend will predictably grow this year as consumers frequent their local suburban shopping centers and stores more often than pre-pandemic. The influence of government efforts to encourage people to "shop local" to promote and strengthen local economies, thus saving many small businesses affected by COVID-19, is noteworthy.
- Shifting consumer behaviors
The new consumer behaviors span all areas of life, modifying our daily dynamics from how we work to how we shop and entertain ourselves. These rapid and drastic changes have enormously influenced retailers and consumer-packaged goods companies. There are many reasons for this; a Freshworks survey revealed that 41% of global consumers indicated that the pandemic inspired them to try to shop from local businesses during the pandemic, and 94% plan to continue post-pandemic.
The above reflects how global consumers felt smaller businesses responded to the pandemic. For example, many believe that local shops improved customer service, providing a better level of personalization and offering a better customer experience than more prominent companies.
On the other hand, as the pandemic took its toll on local businesses and economies, many consumers kept spending close to home to help corner stores and local markets stay afloat. Another reason consumers began to shop locally and changed their behavior when supporting companies post-pandemic is the ability of small businesses to connect with their shoppers. According to Freshworks, 34% of global consumers plan to support local businesses or companies where they have a personal connection post-pandemic.
- A greater sense of community
Expectations around the customer service experience are not the only things impacting consumers' post-pandemic behavior. Their expectations for corporate behavior have also changed. For example, shopping locally is more important to people after COVID-19 because greater awareness has been raised about looking out for their local community. As a result, consumers increasingly value companies that consider their broader role in society by offering better services, discounts, and sales and giving back to the community.
Research shows that customers are more conscious about their shopping habits and are more likely to support companies that align with their ethics and values, are more sustainable, and have less environmental impact.
Adapting to the rise in shopping local:
In that sense, it is clear that sales teams need to reevaluate their priorities, align with new consumer expectations, connect with shoppers, and choose to provide a more ethical and sustainable service. Allocating resources to managing smaller, independent stores is becoming increasingly important.
How can this be achieved? The most significant thing is an agile field team that allows your business to cover prioritized stores and locations efficiently and inexpensively. This implies being able to visit thousands of small retailers, which can be complex. It doesn't have to be, though.
Crowdsourced data is now playing an increasingly important role in the changing retail landscape. SmartSpotter provides actionable crowdsourced data and analytics you can rely on to ensure that your business thrives in the midst of post-pandemic trends.
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