Memo #15: Buy Local with Confidence

By: Laura Burnham, Sebastian Contin, Lucia (Ming-Hsuan) Huang, Iana Lanceta, Lillian Phillip, Simran Sandhu, & Frank Venditti

The “Buy Local with Confidence” report and toolkit supports BIAs, local economic development organizations, and other community leaders to protect local businesses in pandemic situations and bolster activity in their main streets. This report and toolkit, put together by a team of economic development students at Ryerson University, offers research, tools, and templates aimed at supporting organizations with their own successful campaigns.

Change, challenge and opportunity have dominated the narrative for 2020. At the start of the year, the world was turned upside down while trying to deal with the nearly unprecedented impacts of COVID-19. Canada implemented strict health and safety regulations in response to this major change resulting in widespread business closures, but social and economic challenges of the pandemic prevailed nonetheless. As of yet, the proverbial light at the end of the tunnel remains dim, but there is indeed opportunity for businesses to survive and thrive during these difficult times. 

Change

Canadian consumer confidence changed significantly throughout April to June of 2020. According to the Consumer Confidence Index, consumer confidence reached its lowest point in April. By June, consumer confidence had increased to about half of what it was prior to COVID-19. Although Canadians felt more confident about the state of the future job market, they still showed concern about the current financial climate.

Meanwhile, consumer behaviour has been shifting throughout the pandemic. These shifts are demonstrated in the greater use of e-commerce as well as in the changing patterns of in-store shopping experiences. Although some consumers will eventually return to their pre-pandemic behaviours, changes in consumer behaviour will continue to evolve.

Challenge

As with most of the world, the COVID-19 pandemic has had a profound impact on the Canadian economy. Overall, the Canadian GDP experienced a sharp decline in the first months of the pandemic. Between March and April 2020, the country experienced the biggest GDP contraction ever recorded in Canadian history. The majority of Canadian businesses have reported indelible losses, with 51.6% reporting losses greater than a third of their expected revenue in the month of April. It is estimated that about 10% of all businesses will not be able to recover and will be forced to permanently close as a result of the pandemic. 

Opportunity

During this challenging time, the Buy Local movement has gained more prominence and has become a call to action for Canadians to support local main street businesses. The case study research undertaken for the full Report revealed a number of important trends for BIAs to consider in order to make their own Buy Local movement a reality. These trends were identified as essential components of a strong and comprehensive Buy Local campaign and comprised of the six success factors outlined in the Report and Toolkit.

1. Implementation and communication of health and safety measures; 

2. Creative use of digital marketing; 

3. Target audience planning to capitalize on niche markets; 

4. Facilitation of physical and emotional placemaking; 

5. Creation of public-private partnerships; and 

6. Finding Buy Local messaging that resonates with one’s own community.

Based on the success factors, the following sample projects taken from the Toolkit can be adopted by BIAs looking for creative inspiration. 

1. Awareness Campaign: Visual media to clearly communicate the health and safety measures a business employs.

2. Mobile Store: A new, competitive delivery service option for main street businesses.

3. Interactive Games: Self-guided activities that promote local shopping or community messaging.

4. Community Avatar: A virtual social media “influencer” that brings life to the stories of the downtown.

5. The World in One Stop: A local tourism initiative shining a spotlight on businesses specializing in international foods, merchandise, and services.

In addition to these sample projects, planning templates are included in the Toolkit as a starting point for BIAs to organize their own Buy Local campaigns. Together, the Report and Toolkit aims to help BIAs and local economic development organizations better prepare for the economic impacts brought about by pandemic situations—giving communities the boost they need until they find themselves on the other side of the proverbial tunnel. 

For more information about the Report or toolkit, please contact Laura, Iana, or Lucia.

Note: The contents of this memo have been taken from an article with the same name and authors in the Economic Development Journal of Canada. These contents are being republished with express permission from the Journal’s Editor.