Is it time for an Australian Made 'aisle' in the supermarket?

By Allan Dib | 24 July 2020
 

Allan Dib, strategist and champion of consumer centricity

Buying Australian-made products has continuously drawn interest among Australians – at times more than others. It is not surprising that buying Australian Made has become a trending topic among Australian households, especially given the unpredictable environment we are currently living in. As air freight comes to a standstill and manufacturing in China shutdowns, it has become even more apparent how much of what we buy is produced overseas- we all saw the images of empty shelves in Kmart during the peak of the pandemic buying.

According to Roy Morgan Research, 90% of Australians say they are motivated to buy Australian-made products, but this attitude is not reflected in their purchasing behaviour.

If we say we want to buy Australian Made, why don’t we do it?
● There is not an option – some products are not manufactured here, e.g., electronics.
● It is too expensive – the cheap labour market overseas results in more competitive prices.
● Unclear understanding – it is hard to know what is made/grown in Australia.
● We forget – we do not always think to buy Australian-made products when shopping.

Retailers, however, do have the opportunity to solve for the last two reasons. They can apply the principles from the Nudge theory to make it easier for Australians to buy Australian-made products, especially in supermarkets where consumers have options.

Supermarkets are already set up to help shoppers make better choices when shopping -
● If I want to eat healthily, I can go to the health food aisle. As a result, I do not have to look for gluten-free pasta in the designated pasta aisle.
● If I am making Vindaloo, I can simply go to the multicultural aisle and buy an authentic Indian curry powder.

Is it time for an Australian Made “aisle” in the supermarket?

I think it is, well maybe not an actual aisle. It should at least be a search feature when shopping online.
Currently, there are thousands of consumers in Facebook groups advising each other on how to make the switch to Australian-made brands. They are educating one another on where to shop for these products and how to find them in stores.

Therefore, it looks like there is an excellent opportunity for Australian supermarket brands – they are always looking for ways to differentiate themselves in the market and become more relevant in their shoppers' lives. The strategy will connect with most Australians.
● Older Australians have always been more parochial and opted for locally produced products.
● Younger Australians are making more ethically driven decisions; they seek brands that are progressive and doing good for the community.

It has never been a better time for supermarkets to nudge shoppers to buy Australian-made products.


ALLAN DIB – STRATEGIST AND CHAMPION OF CONSUMER CENTRICITY

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