EUROPE

THE LOCAL EFFECT

Driven by food safety concerns and economic uncertainty, local origin has become a major decision driver when choosing a brand or product. Consumers perceive local products as more reliable,  authentic, and ethically sourced, especially when compared to imported goods that involve longer transportation time and multiple logistic handling. Recent studies to the EU consumers present further evidence of the preference for domestic products, with 78% of consumers considering products made in their own country to be trustworthy in comparison to other imports which are now viewed with caution. The opening of country borders creates an opportunity for retailers to consider the solutions found during the lockdown and evaluate how their supply chain is set up. A flexible and agile supply chain is key to avoid future stock shortages, balance the sources of supply and guarantee both product and business' sustainability. Consumers will be more engaged and loyal to retailers that have a Private Brand program linked to their communities and support local farmers and manufacturers.

CHINA

CHINA'S "NEW NORMAL"

With the development of the "new normal" after the pandemic, total retail sales of social consumer goods in April 2020 increased by 8.3% over the previous month. China's national consumption of the consumer staple sectors continued to perform solidly, with retail sales of food products (eg. grains, oil, etc) and daily necessities growing respectively 18.2% and 8.3% year-on-year in April. It is essential for  Chinese retailers to focus on their own positioning and strengths among multiple retail segments. The main retailers and fresh supermarkets obtain sustained growth as the consumer prices in the food category had a high growth rate of  14.8% year-on-year in April influenced by the solid increase of the consumer staple sectors.

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