Importance of Buying Local and its Contribution to the Economy
When was the last time you bought products from an E-Commerce platform like Amazon or Flipkart? Now compare that with the last time you bought local. The answers to these questions may differ significantly in most cases. In today’s world of Globalization it is just so much easier to buy products online with one click as compared to going out and buying the same products for arguably a better price – and also support your community’s economy while you’re at it.
Shopping with locally owned businesses has a much greater impact on your daily lifestyle than spending money at chains or online retailers or services. Think about it. Local businesses have the opportunity to interact more intimately with consumers like us and are able to give better and more personalized customer service at the community level with the profits they make.
These businesses become pillars of the community, with owners and employees who know the marketplace behind them. Consumers are usually willing to pay more for great service, and customer loyalty is solidified by shoppers and clients feeling that their money is well spent in supporting a local business they respect . Not only does buying local provide employment to the unemployed rural population, it is also symbolic of Indian self-respect and self-reliance.
The industrial induction of commercing locally sourced produce in Indian culture:-
Let us look at a few brilliant examples of economies sustained on the principle of buying local:
Chanakya used a brilliant strategy when the Mauryan empire was under siege laid by Kalinga and Ujjain. Their supply lines were cut off. In order to sustain themselves, they started to produce resources locally. Money kept circulating in the local community and the Empire became economically independent.
The Dravidian kingdoms, the Cholas, Cheris and Pandya’s focused more on growing their own economy rather than mere political expansion. This rapid economic growth resulted in a favorable balance of global trade where exports of locally produced commodities were significantly higher than the imports of foreign goods.
Buying the eco-friendly and economically sustainable khadi helped fuel the swadeshi movement and the movement of independence as a whole in the early 20th century.
Hundreds of India’s beautiful small economic activities have originated from various social, religious and cultural activities like marriage thread ceremony and hundreds of folk festivals in India trigger a host of small economic activities which is beautifully interwoven that once led to a self-reliant village.
Buying locally tells a story. Telling the story behind your brand has never been as important as it differentiates you from your competitors and is increasingly desirable in the eyes of consumers. A focus on local sourcing is an ideal theme to include in your business.
Money being spent locally circulates money within the community, which means more jobs, better salaries, and building the local tax base.
Money spent locally means wages and benefits are paid to local residents, profits are earned by local owners, purchases each business makes of local goods can be used internally or for resale, and contributions are given to nearby organizations rather than corporations based in other places.
Non-locally owned businesses do not have the same economic impact for a community, as they don’t help disperse wages, donations, taxes that fund city services, and typically don’t support or purchase from other small businesses in the area or transport their goods from local businesses.
When a community supports its local businesses, it encourages new entrepreneurs to decide to pursue their own new businesses or help nurture existing ones. Expanding and strengthening a community that cares about supporting its local businesses allows for new, unique businesses to flourish, while also retaining professionals who are less likely to leave because they live within the community, and are more invested in the future of the area. Unique businesses help give distinctive character to local marketplaces, while an influx of national chain retailers can distract from a community’s identity and take away from the feeling of originality in the community.
Applications and benefits:-
Buying locally promotes more local wealth.
Shopping at small businesses promotes the local economy by boosting community wealth and jobs. This Chicago study found that for every $100 spent at a local business, $68 remained in the city compared to only $43 of each $100 at a national chain retailer.
Buying locally reduces the use of fossil fuels.
Everyone knows how manufacturing of goods in large scale industries is a major factor behind high values of CO2 emissions. Locally produced goods cause significantly lower carbon emissions, and now more than ever, we need to switch to sustainable means of production and consumption.
Buying locally utilizes less plastic.
The rate of plastic being used at such a constant pace is circulating pandemonium beyond the endocrine disrupters lining our water bottles. In fact, a whopping 91% of plastic isn’t even recycled which explains why 8 million metric tons of it ends up in our Buying local goods actually reinforces the action of BYOB (bringing your own bag) to the farmer’s market.
Buying locally has various health benefits: Locally produced foods are much less likely to contain preservatives, and can even be 100% organic. These foods are much more likely to suit your nutrition needs as compared to foods sourced internationally.
Buying locally promotes agriculture: Farmers are known as the ‘Backbone’ of our country. Buying locally removes all intermediaries from the equation, which means 100% of the consumer’s money can actually go to these farmers.