Aussie-Made

The Hype vs. Retail Reality

On the surface, this appears to be a golden opportunity to align with customer sentiment and boost sales.

But whilst supporting local industry is a powerful ideal, small business owners must ground their strategy in reality. Before overhauling your inventory, it's crucial to look beyond the hype and consider the real-world factors that truly drive consumer behaviour.

Beyond the Hype

The Gap Between Saying and Doing

Most shoppers like to think of themselves as supporters of Aussie-made, but what people say and what they actually do at the checkout can be very different. Surveys capture intentions and aspirations, rather than actual behaviour. When faced with a choice in your shop, factors such as price, convenience, and habit often win over ideals.

Price Still Rules, Especially Today

Although Roy Morgan found that many Australians would pay a little more for Australian-made products, the increase was not substantial. Around half said they would only pay up to 5% more, and just 20% would pay up to 10% more. With rising costs and tighter budgets, today's price usually comes first. If a comparable imported product is significantly cheaper, most shoppers will reach for it even if they wish they could do otherwise.

The Scarcity of Aussie-Made Goods

Here's an often-overlooked truth: in many categories, there isn't an Australian-made option available. Decades of relocating our manufacturing overseas have resulted in the majority of everyday retail goods being imported. You can't sell what doesn't exist. We no longer have the local manufacturing capacity that we had 40 years ago; it has long since disappeared.

Confusing Labels

Whilst we have country-of-origin labelling for most foods, the rules for non-food items are much looser. Today, "Made in Australia" may mean "packed or assembled here."

'Australian-Made' Isn't a Guarantee of Quality

The "Australian-Made" badge speaks to a product's origin, not its quality. Your reputation depends on selling quality and value. The label "Made in Australia" doesn't make their product better.

Things Are Rarely Equal

If you're comparing two identical products at the same price, the Australian-made option is likely to be the better choice. However, in real-world retail, products have costs, quality and a brand. Origin is just one factor alongside your staff's recommendations, product availability, and customer preferences.

Conclusion

The desire to support Australian businesses is genuine, and it deserves respect. But buying local is an aspiration.

It's easy to get caught up in broad trends. However, your best insights come from your point-of-sale system, not surveys. Your POS System shows what your customers really buy (not just what they say they want). Use the information you have for a deeper dive here. Your sales data is real and actionable. Let that guide your next steps.