In a global world Australia is going local
New research reveals a strong shift in the balance of local versus global marketing as Australian companies seek competitive advantage.
Some of the country’s largest companies are planning increases of up to 60 per cent in the allocation for localised marketing, according to a recently published report by Monash University’s Australian Centre for Retail Studies (ACRS).
The first Australian study of its kind, commissioned by Retail Safari, explored the growing phenomenon of local and personalised marketing in a rapidly evolving and channel-saturated retail landscape.
ACRS Research Director Dr Sean Sands said the implications for companies were clear: developing strong engagement at local community and individual levels was a must.
“Localisation is no longer just about customising creative messages and running a few local promotions, but has to integrate and involve all channels and touchpoints,” Dr Sands said.
“Fundamentally there needs to be a paradigm shift in the way marketers develop strategies for acquisition and sales.”
Dr Sands said the study found that by centralising the strategic and operational development of localised marketing activities, organisations can expect signficant cost savings, improved brand integrity and overall sales performance.
“Despite the benefits, there were several common barriers to developing a more locally focused approach – the most critical being access to suitably skilled resources, understanding of local market dynamics, segmentations challenges and the relatively high cost of Australian media,” Dr Sands said.
The study also found there was a ‘sameness’ and homogenisation of markets, media channels and brand experiences globally and consumers had a desire for stronger community participation and presence.
“We are definitely seeing that rise of consumer power as they have more channel choice to make their purchases and companies need to listen,” Dr Sands said.
Managing Director of Retail Safari, Mr Gindkai Tan said the research validated the focus to drive local market penetration across multiple channels.
“The fact is in today’s retail environment the relationship with brands is managed at the local level – whether in terms of brand messaging, direct customer engagement, merchandising and stock assortment or pricing,” Mr Tan said.
“The challenge for retailers and manufacturers today is clearly one of cost – how to manage national or global scale and resource availability with local market realities and profit opportunities.”
For more information please contact Glynis Smalley, Monash Media & Communications + 61 3 9903 4843 or 0409 941 784.