Supermarkets are increasingly tapping into the 'local' trend, driven by consumers' desire to support and feel part of their community, according toDatamonitor's consumer markets analyst.

Earlier this month, The Advocate reported that Woolworths will soon be clearly labeling its range of Tasmanian food produce in a bid to meet consumer demand for locally sourced food. The news has been welcomed by local farmers, amidst concerns about the rising level of food imports to Australia.

The strategy is an astute one, given the growing appeal of locally produced food, according to Datamonitor's April/May 2009 Consumer Survey, which found that over 26 per cent of Australians are buying food and drinks produced locally to where they live either 'all the time' or 'most of the time'. Meanwhile, 56 per cent of respondents stated that knowing where their groceries come from has become 'more' or 'significantly more' important to them compared to two years ago.

The independent grocery network IGA has also recently announced a new campaign emphasizing the individuality of each of its 1,000 stores, which are tailored to the local community. The campaign is designed to leverage local store credibility and make consumers aware that their suggestions are valued. The six-month integrated campaign includes a TV ad featuring local staff and customers and a new website with the catchphrase 'How the locals like it', which brings home the community message. In addition, the organization has implemented point of sale advertising which is tailored to each store, highlighting individual features and benefits.

"In the current retail environment, industry players are increasingly trying to distance themselves from being perceived as one-dimensional corporate heavyweights with little regard for the communities they operate in," said Datamonitor's Analyst Katrina Diamonon.