What does it mean to support a local brand?

THIS week, the Woke Salaryman put out one of the best explainers on what it means for Singaporeans to support local products and services.

In a series of cartoons (sponsored in collaboration with the office behind Made with Passion), the online media publisher took aim at the flaws of local brands being entitled to support from the local consumers.

The case study was a hypothetical small side-hustle of baking and selling cookies - incidentally an activity that became an obsession for many during last year's lockdown. (So perhaps, not hypothetical.)

Even though the cookies might have tasted like cardboard, out of friendship, the baker is told that the cookies taste great. Pleased, he continues to give away his baked goods. His stoic friends soldier on, receiving them with forced smiles.

This cookie-monster situation escalates. Warming to these half-baked compliments, the baker decides to quit his job to start a cookie business.

"Naturally, other people won't buy your friends' cookies. Eventually, your friend is forced to shut down the bakery, losing their initial investment and lots of time," the cartoon said.

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Asking for support

It also pointed out that "supporting local" is falsely used as guilt-tripping to buy local products, even if they turn out to be inferior.

A quick scan on social media and online shopping platforms also revealed some shops that asked for support on the basis that they are a "local brand", even though their products are largely commoditised and in some cases, off Taobao.

It was just over lunch this week that a new acquaintance and I spent some time discussing the ill-fit from designs of a well-known local clothing store. In the end, we pointed out, we've lost hope that the clothings' fit would ever be reliable. Over time, that "local brand" support wears off.

The cartoon points out that instead, honest feedback would help local brands stay competitive. In the long run, our local brands become more valuable.

It was a simple presentation, but it offered much to chew on.

This is a simple lesson on business: before starting a new venture, does the proposed product or service address a large-enough demand to justify the investments and the ensuing risks? Is it good enough?

To get there, that trusted inner circle of feedback counts. But if familiarity bias takes over, a budding entrepreneur doesn't get the hard truth needed to set business goals in order.

Accurate feedback

This is a natural conflict. Adam Grant, an organisational psychologist at Wharton School of Business, notes that while romantic partners and close friends might be more informed about who you are, "they share that pesky desire to see you positively". (He suggested that colleagues are better at accurate feedback, because they are motivated to see you accurately.)

There is, though, a counterpoint to this. Sometimes in Singapore, a country that is so small and often unforgiving, perhaps we have also given ourselves too slim a margin for error.

What the cartoon depicted was true, but how can businesses then act on honest feedback? What's helpful is a community - including customers - where small business owners can bounce off ideas on how to improve a product or service, or to execute a strategy. But while there are small communities that have popped up among small entrepreneurs, the rise of the influencer business has also meant some gaming of "likes" among local brands to drum up interest.

How far this artificial inflation of fancy for local brands will go - and the full cost of this - is yet unknown. It is a pity - the bigger benefit to having such a community should be in the more tangible things: refining business plans, sharing ways to grow the brand as success attracts competition, cross-selling, or tackling a new customer base together. Singapore brands should fly the flag, together, but with the right intentions. And we have brands that we can be proud of - we also want more of them.

Singapore brands can be build on the country's unique selling points to create a niche product. "Perhaps one day we will see Singapore culture being exported as a product that is in demand all around the world, like K-Pop, anime, American TV, etc," the cartoon points out. "Until then, we have to be honest to our local brands so that they can fulfil their true potential. Because (to) 'support local' is a choice, not a rule."

Which brings us back to the implicit point behind the cartoon. Perhaps what is better to bring together - and hold on to - as a Singapore brand identity is the one that focuses on quality and standards.

In valuing this ethos, a budding entrepreneur is dignified by any negative feedback he receives on his product or service. It cuts out the favourable home bias that threatens the survival of a local business. And this, combined with a vibrant, authentic community for small businesses, might alleviate some of that risk inherent in entrepreneurs starting out on their own in a small market.

None of this is easy. But the truth is, the path of least resistance is rarely the best one.