5 Trends Shaping the Future of Business in Canada
Happy Friday Readers! Everyday this week, we shared on our social media pages a great infographic published by the BDC (Business Development Bank of Canada). The informative image is about the top trends that are shaping the future of Canadian business. Today’s blog will be a summary of this infographic.
The BDC states that Canadian businesses can benefit from many new and exciting opportunities by adapting and leveraging the following 5 trends:
1. The Internet Revolution
- 50% of consumers conduct an online search prior to purchasing a product or service
- 75% of consumers are influenced by online ratings and reviews
- Consumer’s Trusted Sources Ranking
- #1 Personal recommendations
- #2 Consumer opinions posted on the Internet
- Almost 1/3 of smartphone users would rather look up product information on their mobile device rather than asking store employees
- More than 1 in 10 consumers admit to using stores to test a product before buying it online. This is called “showrooming”.
The best way to get product or service information before we had easy and quick accessibility to the Internet was to call or visit a store directly. Nowadays, consumers prefer to turn to online searches to make buying decisions, before, after or even while shopping. These consumers are being referred to as “Review Researchers”. Others are being called “Smartphone Shoppers” if they use their mobile devices to view, research or buy online deals. This has changed a lot for brick-and-mortar retailers, as they now have to compete with online retailers and ensure they have enough information about their products and services online for consumers. Internet retail sales were $5.4 billion in 2012 and are predicted to reach up to $10 billion by 2020. It is time for brick-and-mortar stores to make big changes towards eCommerce opportunities.
2. The “Health Mania”
- 33% of Canadians are willing to pay more for health-enhancing products
- 25% of Canadians will be over 65 years old by 2031, meaning this health trend will only accelerate
- 4 out of every 10 dollars (from the weight loss & diet management market) are spent on devices and accessories
- $1.3B was spent on health smartphone apps in 2012
- $5.4B in sales of athletic apparel in 2012
- $935 is the average annual per capita spent on health and wellness (up from $818 in 2007)
- ~$735M was spent in the health tourism market (spa services, medical tourism, specialty menus)
In recent years, “healthy-living” has been the new trend in Canada, which has truly changed people’s lifestyle and eating habits. Consumers are requesting fresh produce and bottle water, instead of frozen, processed foods and soft drinks. Not only are Canadians changing their food demand but they are also getting active. Sportswear sales have increased and new markets are emerging, such as the health-monitoring equipment market. Canadian entrepreneurs are taking advantage of this new trend and targeting the health-conscious consumers.
3. The “Made-In-Canada” Advantage
- 97% of consumers want to support the local economy, therefore they try to buy local as often as they can
- 87% of consumers think buying locally is better for the environment
- 45% of Canadian consumers made an effort to buy products “made-in-Canada” in the past year
- 60% of Canadians consider themselves ethical purchasers
- 75% of consumers said they would pay more for products or services from a socially responsible company/li>
- 33% of consumers have researched a company’s business, social or environmental practices in the past year
- 90% would stop buying products from a company if they learned it was using irresponsible business practices
- +50% of global consumers take “green” factors into account when making purchasing decisions
Canadians are making a conscious effort to consume responsibly, by integrating environmentally responsible practices into their lifestyles and making an effort to buy local products.
4. Customization is King
- ~75% of buyers claimed to want personalized products/services in 2013
- 1 in 3 consumers consider the brand a key deciding factor
- Up to 20% increase in average order sizes due to mass product customization
Canadian consumers are moving away from the traditional consumption of standardized, mass-produced products and requesting customized goods. Because of this, many companies are delivering ‘made-to-order’ and diversifying their product lines to respond to consumers’ demands.
5. The Thrifty Consumer
- 2/3 of Canadian consumers consider a low price a key factor (buying decisions)
- 42% search online to ensure they are getting the best price
- Customers are likely to price-check online if the purchase is expensive
- 50% of thrifty consumers see saving as a way to generate extra income
- 47% of consumers still seek local stores
Frugal living is the new trend for Canadians. More and more consumers are becoming budget-conscious and are choosing to share, trade or even rent goods and services rather than purchase them. Another key component of being economical involves group couponing, where big discounts can be found for local businesses.
Hope you enjoyed learning about the 5 “must-watch” trends that are shaping the future of Canadian businesses. To view the BDC’s full infographic, click here.
If you’re looking to deploy an eCommerce or mCommerce store, contact us for more information.
Tweet: 50% of consumers conduct an #online search prior to purchasing a #product or #service
