Despite facing significant cost-of-living pressures, Australians are expected to ramp up their spending ahead of the Christmas season. The Australian Retailers Association (ARA), in conjunction with Roy Morgan, forecasted $66.8 billion in spending from November to December 24 this year, up 0.1 per cent on the previous year. According to ARA boss Paul Zahra, much of this spending is set to be bargain-driven, as consumers seek savings where possible. However, many consumers are searching for value
value as well as price in their gift-giving, and want to buy products in line with their values. A key one is support for brands that produce and manufacture products locally.
A different Roy Morgan survey revealed that almost 70 per cent of Australians have been looking to buy more Australian-made products over the last year, while 73 per cent have stated that they are willing to pay more for an item if it is produced in Australia. Further, about a third said that they would pay a 10 per cent premium on Australian-made products
In line with this, not-for-profit organisation Australian Made has launched a Christmas campaign which encourages relevant brands to “aggressively market” the fact that they produce locally. It also urges consumers to seek out items that carry its trademarked logo – a green and gold kangaroo which certifies that the item is produced and manufactured locally.
According to Australian Made chief executive Ben Lazzaro, there are about 4,500 businesses that have been licensed to carry this logo, with the certified trademark indicating that the product is safe to use and meets the standards required of Australian Consumer Law, and the Australian Made, Australian Grown logo code of practices.
“We strongly encourage our Australian Made makers to aggressively promote their Australian credentials on product labels and across all channels this festive season, whether they be online, social or at point of sale,” Lazzaro said.
“Consumers have told us that this is what they are interested in and what they have a preference for.”
According to Lazzaro, there are no downsides for consumers when it comes to backing local businesses. He told Inside Retail that Australians are passionate about supporting local, a sentiment reinforced by the Roy Morgan research.
Lazzaro also stressed that, by opting for Australian-made products, consumers are contributing to the local economy, and helping to preserve local jobs. There are also likely to be fewer miles involved in the delivery of items onto store shelves.
Aggressive marketing strategy
While evidence suggests that consumers want to buy local, the challenges facing retailers that wish to produce and manufacture locally can be significant. This was demonstrated by Nobody Denim founder John Condilis, who recently stated that it’s impossible to manufacture clothing in Australia.
However, Lazzaro believes that the viability of doing so is sector-dependent. For instance, he pointed to complementary health and vitamin products, which are highly trusted and regarded when produced locally, with products in high demand domestically and internationally.
He said that governments also have a role to play in supporting local production – with the type and extent of the support received depending on the sector at hand.
“Coming out of Covid-19, the importance of supporting local businesses and manufacturers became apparent. Because we had a local manufacturing sector, brands were able to retool [their product line], and made products they might not usually make, like PPE,” he said.
“As a result, consumers are far more mindful of the importance of having this capability on their doorstep, and are willing to support it.”
Avoiding one-and-done products
While a large segment of consumers will undoubtedly be on the lookout for budget-friendly gifts this Christmas, Lazzaro believes that businesses that offer locally made products can still appeal to shoppers by focusing on the quality and customer service.
“Many customers are trying to avoid disposable, one and done items that might not tick those boxes of longevity or quality,” he said.
Beyond the Christmas campaign, he said that Australia Madewill continue to remind Australians of the value that can be found in supporting local businesses. It runs seasonal campaigns supporting this endeavour throughout the year, with a big focus on Australian Made week in May.
Ambassadors for this event have included Adam Liaw and Ash Barty in recent years, with a big name lined up for 2024.