Why Businesses Really Buy Australian Made
“Buy Australian Made”. The catchy, thought-provoking and national-pride-invigorating slogan and its overarching campaign have been around for almost 30 years to encourage local manufacturing and the purchase of locally-made goods. Yet, as the perception of cheaper overseas suppliers shrouds business judgement as a result of increased cost-cutting pressures; do businesses actually buy ‘Australian Made’ or is this nothing but a hopeful cause?
Everyday consumers are accustomed to being regularly exposed to a variety of promotional elements of the Australian Made campaign, whether it’s a TV commercial showcasing our battling local farmers, or a giant billboard with the ever-recognisable logo on display. We’re constantly reminded that buying Australian means we’re getting a great and reliable product whilst supporting local jobs and the economy. As a business however, the emotion of national pride can be trumped by a product or resource’s price and quality, where the former influencer often takes greater precedence in terms of business rationality.
In challenging retail or hospitality environments, businesses understandably strive for an essential blend of affordability and high quality. Thanks to the globalisation of resources, companies in general are able to source almost the same products from our neighbouring countries in Asia, for a fraction of the price available down under. Despite the lower dollar in recent times, local competitiveness has surely taken a hit, leading businesses to search overseas for a cheaper supplier. This begs the question; do local businesses actually buy Australian Made anymore?
In short, they most definitely do. So let’s take a look at why businesses are making the switch to AU-Made.
Why Businesses Buy Australian Made
Shorter Lead Times
As a bricks and mortar business, the customer experience is the lifeblood of your organisation, particularly when a bad experience can not only ensure the loss of any one customer; it could mean the loss of thousands more thanks to Social Media. Part of developing customer service excellence is to make sure your customers can transport their newly purchased goods easily and without stress, which means you’ll need to have packaging stock ready on hand.
Thanks to geographical proximity, buying Australian means your stores get their locally manufactured stock faster in most cases than ordering the same product produced overseas. In fact, purchasing from our range of Australian Made Paper Bags can cut lead times by up to 70% when compared to manufacturing the same products overseas. Furthermore, purchasing from a local manufacturer means your business can benefit from improved cash flow as a result of the ability to hold less stock in-store, since goods can be delivered as needed or just in time.
The pursuit of finding an overseas supplier who is not only affordable, but reliable, is a challenge often only understood after dedicating years towards finding the right supply chain. Issues such as product quality, language barriers and miscommunication, needs misalignment, lack of corporate responsibility and logistical nightmares are just some of the common issues experienced when sourcing the best supplier.
On the contrary, sourcing your packaging from local manufacturers eradicates a lengthy list of problematic circumstances mentioned above, and ensures that the final product and its quality specifically, are of the highest standard. Backed by the desire to provide the best customer service, some local suppliers pride themselves on delivering the best product at the best price possible whilst making sure supportive relationships are built for the long term.
Consumers are becoming increasingly vocal about their expectations of a business, and a growing number of shoppers are beginning to believe in trending concepts such as environmentalism, ethics and country of origin. The latter in particular is a message that the ‘Australian Made’ campaign drives diligently in order to encourage the purchase of locally produced goods and to support our economy. Businesses who want to be recognised for their contributions to the country are starting to incorporate said demands into their brand and shopping experience. And why wouldn’t they, when "88.5% of Australians aged 14+ are more likely to buy Australian-made products" as a research study by Roy Morgan suggests.
Even though local business are challenged by the threat of getting undercut by overseas competition who also happen to have a low-cost workforce, the challenges of staying competitive doesn’t necessarily extend to all industries. Taking Gispac as an example, our machines have been producing high quality packaging solutions for a significant number of years, which are then delivered Australia wide, from our Sydney based warehouse, on a daily basis. Our efficiencies in manufacturing and logistics enable our product pricing to not only be competitive, but even cheaper than what it would cost to manufacture the same product overseas. With the added bonus of utilising Australian Paper, plus the incorporation of water-soluble glue and water-based inks, we’re making sure local businesses are making the right choice; the sustainable choice.
While overseas competition has Australian manufacturers and producers feeling as if they’re on the back-foot, the push to promote Australian made products educates consumers and businesses alike in realising the true value of what it means to produce in, and buy from, Australia. While it was somewhat unclear what businesses stood to gain from buying local; shorter lead times and geographical proximity, reliability and trust, customer perception and the ability to price competitively are all pivotal constituents of a business’s decision to buy Australian.
So if you’re yet to jump on board the Aussie bandwagon; the time is now.