Entrepreneurs who source and make local products often feel like they are competing against a global stage, even when their business only serves the local market. It is not uncommon for them to find imported products priced lower than the cost of their own raw materials. And if it isn’t the challenge of unsustainably low prices that they have to compete against, it’s the widespread perception among South Africans that many international products are better quality. Faced with these pressures many business owners may wonder if they should abandon local sourcing and production in favour of importing cheaper products or raw materials?
Absolutely not, says Buntu Mjindi, senior investment officer at Business Partners Limited. Producing and buying locally is too important for our economic development, and besides, there are clear business advantages in developing a local supply chain for your business, he says.
The build up to Heritage Day presents a good opportunity for entrepreneurs to showcase the value and benefits of sourcing locally produced goods. Heritage Month is worthy of reflecting on the economic and social benefits of supporting local supply chains. When products are made locally it strengthens local jobs in factories and retailers, stimulates consumer spending within communities and fosters a sense of pride and community cohesion that strengthen the broader economy.
However, for many business owners, patriotic sentiment alone means very little, especially to the harsh reality of competing with half-priced imports. Fortunately, says Buntu, there are compelling business arguments in favour of investing in local sourcing and production. While importing cheaper alternatives or turning your factory into a warehouse full of knock-offs might give you an edge in the market over the short term, it leaves your business exposed to the whims of the international trade over which you have no control.
Developing a local supply chain, in contrast, can be a slow and demanding journey, but it’s one that lays the foundation for a resilient, strong and stable business asset, right at your doorstep. As such, you are in a much better position to influence the quality of your raw materials or stock items, the lead times and the price with local suppliers. You can request customisations, negotiate terms and foster strong personal relationships with your suppliers, an often underestimated advantage in business.
Since It’s a long-term process, says Buntu, start small and focus on one stock item or component at a time. Don’t rely on just doing online price comparisons but visit local suppliers’ production facilities, meet face to face and make connections, introduce your business and negotiate deals.
Even with reduced transport costs and some room to negotiate on pricing, local raw materials may still struggle to compete with the flood of ultra cheap imports. But the benefits of a stable, adaptable and locally rooted supply chain outweigh the short-term savings of cheap overseas goods. The mega factories in the East have immense economies of scale, says Buntu. Don’t compete on price, he says. Local producers should also focus on elevating the quality of their offerings and positioning them as premium products. Competing on excellence rather than price allows businesses to challenge the dominance of cheap generic imports with goods that are not only meaningful, but superior in craftsmanship and value.
When a business reaches a point of confidence in the resilience and reliability of its supply chain, offering a market guarantee becomes a smart way to build trust and stand out. Guarantees on delivery, product quality, or availability show that the company is reliable and puts customers first. It reassures clients that the company stands firmly behind its commitments. In today’s competitive landscape, such guarantees not only enhance brand credibility but also drive customer loyalty and long-term growth.
In today’s competitive marketplace, local producers can stand out by focusing on authenticity and customisation. Instead of mimicking mass-produced imports, businesses should tailor products to local tastes, values and culture. “Make sure your story is heard,” says Buntu. “Show that your product is proudly local and worth supporting.” When products reflect community pride and shared identity, they build emotional connections that drive loyalty and set them apart
Heritage Month is the perfect time to celebrate and promote the local content of your products, says Buntu, but this message should be woven into your marketing all year round. If you can show South Africans that your product supports local communities or creates jobs, you tap into a sense of national pride. It’s a buying impulse that, thankfully, has become part of our shared heritage.
About the Author: BPL Admin
