To support quality local brands or opt for the convenience of global retail giants — what gives one option an edge over the other? In a recent Bizrate Insights survey, we looked closely at consumer preferences, including the barriers and motivations driving them to shop locally or go global. Here’s what we found.

Where Local Brands Win: Trust and Quality

Local brands have an edge when it comes to consumer trust and perceived product quality. According to our survey of 515 U.S. customers:

  • 50% trust local brands more than national ones.
  • 56% believe local brands offer higher-quality products, while only 6% think local brands are lower quality.
  • 53% are willing to pay more for local products.
  • 44% prefer buying from local brands.

Earning customer trust can be hard. Shoppers often feel a stronger connection to local brands, and the fact that local businesses already have a reputation for quality and authenticity is a win for them.

Community Support

We also found that local brands’ emotional connection with their communities is critical to their success. Our survey showed 65% of consumers are motivated to buy from local brands to support the local economy.

But at the same time, shoppers are often torn between their desire to support local businesses and their sensitivity to price.

Where Global Brands Win: Price and Accessibility

While consumers value local brands, many remain price-conscious and can be swayed by the convenience and variety offered by global or national retailers. Our survey showed:

  • 47% of shoppers cite higher prices for local brands as a purchasing barrier, despite the willingness of many to pay more for quality.
  • 50% want local brands to offer competitive pricing to compete with national brands.
  • 45% cite limited store locations as an obstacle, while 39% cite limited product availability.

National and global retailers can tap into resources unavailable to smaller local brands, enticing shoppers with lower prices and easy access to a wide variety of goods. This makes them a practical choice for consumers who prioritize affordability and ease over quality and community support.

Strategies and Recommendations for Both Sides

Local and global brands have distinct strengths they can leverage to win consumer loyalty — it’s all about addressing key customer concerns.

Local Businesses

  • Address Price Sensitivity: Consider offering tiered pricing models or loyalty programs that reward repeat customers with discounts. This helps counter the perception that local products are too expensive.
  • Bulk Purchasing or Subscription Models: Offer discounts on larger purchases or subscription plans to make products more affordable over time, creating a sense of value for customers.
  • Emphasize Authenticity and Quality: Lean into your community roots by highlighting local sourcing, craftsmanship, and personal stories in your branding. Consumers are more likely to pay a premium when they feel a personal connection to the brand.
  • Improve Accessibility: Explore ways to expand your presence, whether by opening more store locations or partnering with larger platforms to increase product availability.

Big Brands

  • Emphasize Cost-Effectiveness: Use value-driven promotions or product bundles to attract price-sensitive shoppers. Position yourself as the brand that delivers affordability without compromising on quality.
  • Build Trust Through Transparency: Focus on supply chain openness and how this affects product quality. Consider using localized marketing strategies to mimic the personal touch that local brands excel at.
  • Partner with Local Businesses: Collaborating with local retailers can help you tap into the trust and authenticity they’ve built with consumers. Offering exclusive local products can strengthen your appeal to those who value supporting their community.
  • Enhance Convenience: Continue to leverage your broad distribution networks to maintain easy access for consumers. Ensure that products are readily available both in-store and online to remain the go-to for convenience-driven shoppers.

Blending Global Reach with Local Impact

Ever thought of turning your competition into a mutually beneficial partnership? Global brands collaborating with smaller local businesses can bring customers the best of both worlds — the quality and community support that comes from shopping small, and the competitive pricing and convenience of large-scale retailers.

But the customers won’t be the only ones who benefit. Local brands win by leveraging the widespread distribution of bigger retailers, putting their exclusive local products on the shelves of national stores. Meanwhile, big brands win customer trust and authenticity points by highlighting and providing access to local products. You could even go one step further by offering co-branded products or services that strengthen a connection with shoppers.

Final Thoughts: Winning the Loyalty Game

Ultimately, consumer loyalty comes down to what matters most to each shopper — price, quality, trust, or convenience. For ecommerce businesses, big or small, the key is to lean into your strengths while addressing concerns that might push customers toward your competitors. Sometimes, this may mean teaming up to combine the local trust and quality of smaller brands with the reach and efficiency of larger retailers.

To learn more about these latest consumer trends, download our Shopper Insights Brief or schedule a demo with Bizrate Insights today to learn how we can help you fine-tune your strategy and boost customer loyalty.