The Local Market Next Door

We have all experienced the current state of affairs: constant change. We’re experiencing it from an economical level, a political level and a societal level; and within those three levels, I believe the constant change means the world is getting more localized, and the globalization of industries is blowing in a new direction. Therefore the need for brands to think about how they connect on a local level becomes even more critical.

I read in a Kantar Worldpanel report that local brands in fast-growth markets that share the same market as global brands are growing 50% faster. Think about it, 50% faster. But why? My theory is that we just went through a moment in time where we are all a “snap” away from one another, thanks to social media. It has connected us together so quickly, that I believe consciously, or even subconsciously, we are all now yearning for something that is right at our doorstep.

Remember what it was like to leave your home for the first time? You were so excited to explore what is out there. But eventually, no matter how far you go, or how may experiences you have, the need to reconnect with where it all started for you becomes critical, and all of a sudden, those things that used to be right at your doorstep – the things you took for granted – become the best and most important things in the world to you.

That is what I believe is happening around us. Even though social media is not an airplane or a train, it has the ability to take you places. Facetime, your Instagram story, Snapchat, Periscope, Twitter, etc. are your transportation tools. As you can see with the growth in these social media tools, we are getting connected at such a quick rate that inevitably, we all yearn for something right at our fingertips.

So if you are a global brand, what do you do to compete? Because I run a company with offices in 27 countries, I am able to work with both local and global brands, giving me a very unique perspective. Creating experiences around products that are so connected to local markets that the way they appear, taste, and work are so local that it actually feels like that same bakery around the corner where you grew up. I call this, “believability.”

Believability means that if your best friend tells you that something is the right product for you, you will most likely buy that product over another. And that is more powerful of an influence than any marketing, advertising or local in-store sales person can make on your decision. It is when the one thing people can’t see or touch kicks in. It is when your gut feeling or instinct tells you that this is the product for you. It feels right, it feels nostalgic, it feels local, it has believability.

Therefore, if you are a marketer today or a brand trying to connect to local, the first thing to focus on is believability. The questions you should be asking are the following:

·     Is my product relevant? Do people want it?

·     Does it serve a human need? Can it connect to an instinct?

·     Have I created an experience around my product that is connected to the local markets and is it realistic or believable to the consumers I want to purchase the product? 

If you can answer each of these questions clearly, you will be positioned for success. If any of these are off, you might be successful in a market, but do not expect significant growth from the local brand right next door.

DK