Many sectors such as the food industry or the electronic industry have been impacted by Covid-19 and the disruption in supply chains. This disruption have had several effects such as shortages or the emergence of new consumption trends. According to research firm Kantar, Covid-19 has driven a surge in ecommerce and “localism”.
What is “localism” ?
Localism is the desire to consume locally, that is to buy goods and services from your own country. This change in consumption is usually motivated by a rise in awareness concerning environmental issues such as the pollution caused by transportation. This trend has become more important over the last decade but saw an even more significant surge during the pandemic. According to Kantar, two-third of consumers now prefer to buy local and almost half say they pay more attention to the origin of products. This rise in localism has appeared not only in developed countries like France but also in developing countries like Thailand or Costa Rica.
Short food chains in France
Supermarkets knew some food shortages at the start of the pandemic which pushed consumers to look for other supply sources. Short food chains or circuit court in French is one of these solutions.
Many companies that act as a platform between producers and consumers have seen a rise in their turnover. For example, Kelbongoo (the name is a pun with Quel bon goût which means to have good taste), a French platform selling farmers' produce has seen a 40% increase in its orders and traffic on its website has been multiplied by 5. La ruche qui dit oui!, another French platform, has seen its turnover grow by 70%.
According to the CEO of La ruche qui dit oui !, short food chains are the perfect solution for both buyers and producers. Buyers can buy better quality products and face the food shortage and producers who were not able to sell their produce to restaurants anymore because they closed down during the lockdown can redirect their production.
The need for localism in developing countries
Thailand saw a lot of covid cases right after the start of the pandemic that greatly impacted the country’s economy which is mainly based on tourism. The country largely relied on imports and the local economy of the country was fragile thus showing the need to relocate part of the food production and supply. For example, the NGO Ecothailand supported the establishment of 5 community gardens in Koh Phangan.
Monteverde in Costa Rica also relies on tourism and faces the same issues as Thailand. The vast majority of tourism-related businesses are locally-owned so business owners quickly adapted to the situation. For example, local farmers who previously served restaurants and hotels set up a food bank which allowed them to reach more different consumers.
Towards digital localism
Covid-19 saw the surge of localism but also of e-commerce with a third of households increasing their spending online. The combination of both trends is called “digital localism”. During the pandemic, new online platforms were developed by small businesses to sell their goods online but also by governmental institutions. For example, the French region Occcitanie created DansmaZone (which mean in my area) where local producers can sell their goods and services.
Can it last ?
Although more people started to consume locally during the pandemic, it didn’t last. La Ruche qui dit oui ! has reported that most of its new clients did not stay long probably because they started to buy local after the food shortages in supermarkets and not because they believe in a different way of consumption. If we want this trend to continue, it is important to make sure that people are more aware of environmental issues and the impact food consumption can have on the environment.
Governments understand how important it is to achieve food security and want to re-localise part of the food production. This relocalisation and rising “localism” trend is not only happening in the food industry but also in other industries like the pharmaceutical industry.
Nina Lagneau
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Sources :
Localism, Livelihoods and circular economies : The role of local foundations in creating opportunities and building more durable communities, published on August 4, 2021, <https://globalfundcommunityfoundations.org/news/localism-livelihoods-and-circular-economies-the-role-of-local-foundations-in-creating-opportunities-and-building-more-durable-communities/>
“Localism” is forecast to be a major post-pandemic trend, published on May 15 2020, <https://www.warc.com/newsandopinion/news/localism-is-forecast-to-be-a-major-post-pandemic-trend/43612>
Covid-19 : la ruée vers les circuits courts a été éphémère dans la Nièvre, published on July 16 2021, <https://www.lejdc.fr/nevers-58000/actualites/covid-19-la-ruee-vers-les-circuits-courts-a-ete-ephemere-dans-la-nievre_13983873/>
Le coronavirus dope les circuits courts, published on April 18 2020, <https://www.wedemain.fr/ralentir/alimentation-le-coronavirus-dope-les-circuits-courts_a4642-html-2/ >
Hello Nina,
ReplyDeleteThank you for this article, it is really interesting. As you wrote, I think that buying local is very important, even more so to be self-sufficient in food production. But do you think that it is really possible to convince consumers to buy more locally as it is often more expensive and they tend to buy where it is cheaper, even if it is not good for the environment ?
Tatiana T.
Hello Tatiana, thank you for your question.
DeleteI think it is going to be complicated for consumers to change their habits since as you said most people tend to go for the cheaper option. However, people are still becoming more aware of these issues and maybe with time we will actually put the quality before the price.
Also, although it is true that it is often more expensive to buy locally, it is not always the case. For example, it actually costs the same price or it can even be cheaper to buy food directly to the producer (through an AMAP for example) since the mass retailer aren't here to take their share.
Nina.L
Hello Nina!
ReplyDeleteI really enjoyed your article and I have a question for you. Even if we see the efforts made by the new companies that offer more local products, as you say, these steps may not be enough to face the big supermarket chains.
What role can the big brands play in changing mentalities and helping this environmental transition to more local services?
Victoria S.
Hello Victoria, thank you for your question !
DeleteAlthough I think big brands have a role to play in changing mentalities since more than 70% of people in France shop in supermarkets for example, I don't think they could actually play that role.
Corporations are only motivated by profits (which is not criticism, it's the definition of a company) so unless they profit from it, they won't tend to promote local consumption.
What I mean is that this trend is becoming more popular so big retailers usually have a section with local products, local fruits and vegetables... But they promote these products not because we need to consume more locally but because it strenghen their image of a comitted brand.
However, I think we need a real change in consumption and this change won't profit to these companies. For example, if we decide to buy our fruits and vegetables from a local producer there will be no need for a supermarket since the producer itself won't be living far away. So, I don't think companies could play a role in this transition as they will lose money out of it.
Nina.L