01.24.2007

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07.14.2005 Is Buying Local the Real Deal?

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What Makes 'Local' Special?

Prior to the industrial revolution, the advent of mass transportation and the commoditization of packaged goods, some of the most basic needs of consumers were met by farmers, and crafts and trade people within a local community. The notion that products might travel thousands of miles to arrive in a store was typically only realized by exotic fabrics or spices brought back from long treacherous expeditions spanning the globe. Among many things, what made foods and other products produced "locally" special were the strong stories and faces behind their production as well as an intrinsic connection to a specific place.

There is perhaps nothing more organic than marketing local. Today, consumers at all levels understand the association between "organic" and "local" simply because local products stand a chance of being fresher and spark memories of pastoral times that predate the ills of modern living.

The most common notion of "local" is one such way marketers, manufacturers and retailers feel is the fastest path today to differentiate themselves and gain quicker acceptance in the marketplace because of a perceived connection to the values it embodies (e.g., produce that is locally grown is perceived to be fresher and taste better, local = organic; local = fresher, better quality, etc.)

Social advocacy groups would have us believe that shoppers aspire to a higher level of ethical consumption and "vote with their dollars." But we see that cultural change is being driven by a number of factors, none the least of which is a shift in consumer lifestyles as consumers interest is gravitating toward companies, brands, products and services that embody and sell authentic experiences.

The spirit of ethical consumption has ebbed and flowed somewhat in lock-step with various corporate misdeeds, which are tracked and monitored by a variety of grass-roots "watchdog" groups who never fail to surprise the largest corporations with the impact of their "fringe" perspectives. Just ask the apparel industry about the impact of various groups who focused on the topic of worker's rights in developing countries or the tuna industry on the effects of NGOs reporting on mercury in tuna and the general decline of global fisheries.

As an ideal at the family and individual level, ethical consumption has also played a role in how consumers experience their participation in various "good" causes that intersect with their lifestyles. Organic products are an excellent example: Despite the fact that health and a concern for the diet of their children is the pathway to adoption of organics for many consumers, at the same time there is an underlying belief that organics are also "good" for the environment, safer in terms of how they are produced, and through their purchase support small, family-run farms and businesses.

In the food arena, as organics have diffused into the mainstream, local now occupies the fringe. One possible reason for this can be seen in the words of Michael Pollan interviewed for a recent Economist article. According to Pollan: "The mainstream co-opts the fringe and shifts its position in the process...but then you need people to stake out the fringe again." He goes on to say he believes fair trade products are heading in the same direction as organics, that is, into mainstream culture.

So what makes "local" special and perhaps even immune to the commoditizing effects of the mass market? In the same Economist article, an important point is made about local foods and products as remaining unique and "special" to consumers simply because by their very nature buying direct (e.g., local) "short circuits industrial production and distribution systems in the same way that organics used to." A trip to your local farmer's market, or to a local potter's shop, reinforces these observations, since the scale and dependability of production is typically random and "home made." These two qualities don't necessarily mesh well with consumer perceptions of megalithic retail chains or polished marketing campaigns, and in their very simplicity and ability to surprise, act as antidote to consumers weary of the mass market.

Consumer Understanding of Local

To be sure, local is one of the hottest cues of quality right now in the world of food. It is quickly overtaking organic for many consumers, both those interested in health as well as gourmet food experiences. In addition to ethical consumption, local has several different meanings all of which influence how it can be used in marketing language:

1. Local defined as "distance from my pantry to the natural source"

This is the purist's view, a la Alice Waters and others, who subscribe to a perspective of local as a part of ethical consumption undertaken to save so-called "food miles" while at the same time benefiting local economies and family farms. It is a political critique of industrial food supply chains and, often, the processing of food needed to make food travel long distances. It is an environmentalist critique of the consequences of shipping/transporting food over long distances, when enough food to live on can be had locally.

2. Local defined as "grounded in a geographic region or locale known for producing high-quality raw ingredients in a given category."

This viewpoint is where entire markets can be built around a local product simply because the product showcases the power of indigenous cues of natural quality by merging geography and food in a way that sharply distinguishes the local product from a processed, packaged, typically nationally branded equivalent.

• Copper River salmon is a great example of local symbolism being used to market a raw product. The fore-fronting of the exact river grounds the consumer precisely in the geographic source of their food in a way that implies that Copper River must be a special place to find wild salmon.

• Local defined as a geographic region can be seen strongest in "raw" food categories such as "Chilean Packham Pears" or "Washington Cherries."

3. Local defined as freshly made "artisanal prepared foods" that supplant the need for processed, shelf-stable equivalents shipped in from highly centralized supply chains.

In prepared foods, like fresh-baked breads or meals, local vendors easily trump branded, packaged competitors, by appearing more authentic and artisanal (e.g., Essential Baking Company in Seattle vs. Pepperidge Farm or Wonderbread).

• An emerging trend reflecting this aspect of local can be observed in fine restaurants packaging up their meals and selling them as heat-n-serve meals in grocery store environments.

In response to consumer demand retailers in both the United Kingdom and the U.S. are developing processes by which they "connect" individual stores or sets of stores with local suppliers. While these efforts are limited by the self-imposed limits to mass production of most local products, they are nevertheless important steps, since consumers consistently voice an interest in products they perceive to be as made within their community or region. Moreover, when consumers talk about organic and local, they clearly perceive that food retains more nutrients the less time it stands in travel.

Finally, local is linked by shoppers as a way to "vote with one's dollars" in terms of supporting the local community. As one consumer told us, "It's better to pay slightly more for local organics from local businesses, because if I don't they might go away." This is a typical mindset among consumers who want to retain the convenience of their neighborhood grocery store while at the same time "doing something good." While ethical consumption plays a role in some cases, for a majority of consumers the fascination with "local" products has as much to do with a return to values of simplicity, an equation of kindness with old-fashioned systems of hand production, and most strongly, the ability to match a product with a place or face.

The Language of Local: Authenticity

As we've noted many times from our research, consumers have an increased desire to obtain products they deem are the "real deal" or most authentic. Quality markers - such as ingredients and narratives of origin (i.e., local) - and the context within which a purchase is made are those factors that have the most influence on the perception that a product is or is not authentic. As one consumer told us:

"Authenticity means something is genuine; it's real, not just for show... Something that is more heartfelt, something with human spirit in it... authenticity is fairly hard to find."

We often hear from consumers in the core that they only shop small community-based stores such as co-ops in their search for truly authentic goods. By contrast, products found in mainstream channels are scrutinized very carefully before a core consumer will conclude that the product is authentic. Alternately, the co-op may not seem authentic to a mid-level consumer who is used to shopping in conventional grocery stores. To them, their local grocery store represents what is authentic to their lives.

Authenticity is about more than just a product. It encompasses diverse elements such as language, visuals, context, occasion and values. The language and visuals used to communicate with consumers can differ depending upon where the consumer is located in the world. Authentic language to the core, such as "artisan" may ring hollow with mid-level consumers who believe "handmade" is a more authentic term. The context and occasion concerns how and when the product or service will be used. For example, authentic cranberry sauce at a holiday dinner may mean eating a canned version since this is a family tradition. However, at a Saturday night dinner with friends, authentic may mean a homemade cranberry sauce concocted with exotic ingredients.

At the end of the day, you can't fake authenticity. So, when you share great stories about your local offerings with consumers, don't tell tall tales, showcase special ingredients from special locales made by special people. In the end, it will help you stay special in the eyes of consumers.

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