Pierre Cléroux, Vice President, Research and Chief Economist, BDC Fall 2013

1. Four Game-Changing
Consumer Trends

2. The world is changing
more than ever before

3. Impact on
Consumer
Behaviour
■ Rapidly changing
technology
- More changes will happen
in the next 5 years than
have occurred during the
last 15 years

4. Impact on
Consumer
Behaviour
■ Aging population
- In 10 years, more than
8 million Canadians will
be over 65 – twice as
many as today

5. Impact on
Consumer
Behaviour
■ 2007-2008
recession
- The worst recession since
the Great Depression had
a profound and lasting
effect on the Canadian
consumer

6. These economic forces
are not only changing our
business environment,
but are also reshaping
consumer behaviours.

7. So, what are the next gamechanging consumer trends?

8. Consumer Behaviour
in Canada
1. The Internet and the empowered consumer
2. The health “mania”
3. The “Made in Canada” advantage
4. Customization is King

9. 1. The Internet and the
Empowered Consumer

10. The Internet and
the Empowered Consumer
B2C

11. Online:
84%
of Canadians are
connected to the
Internet, owning
2.6 Internet-capable
devices on average

12. The path of a purchase
has not changed, but
the channels consumers
use are different.

13. Path of a Purchase
1
Awareness
Building
awareness
2
Intent
Consideration
3
Decision
Pre-purchase
activities
Purchase
47%
of Canadian consumers
conduct a broad online
search prior to purchase

14. Path of a Purchase
1
Awareness
Building
awareness
2
Intent
Consideration
3
Decision
Pre-purchase
activities
Purchase
42%
consult customer review
sites before buying

15. What are the Most Trusted Sources
of Opinion for Consumers?
92%
70%
47%
47%
46%
42%
41%
Source: Nielsen “Global Trust in Advertising” report 2012.

16. Path of a Purchase
1
Awareness
Building
awareness
2
Intent
Consideration
3
Decision
Pre-purchase
activities
Purchase
42%
search online to find the
best place to buy

17. Path of a Purchase
1
Awareness
41%
Building
awareness
2
Intent
Consideration
3
Decision
Pre-purchase
activities
Purchase
41%
of Canadians buy products
or services online

18. Path of a Purchase
1
Awareness
Building
awareness
2
Intent
Consideration
3
Decision
Pre-purchase
activities
Purchase
57%
of the decision
to buy a product
is made online

19. You need an online
presence!
Even if you don’t sell online.
Canadians make their buying
decisions online.

20. “High-Web SMEs have
experienced revenue growth
that was up to 22% higher
than low-Web SMEs.”
Source: BCG survey of 15,000 SMEs in countries

21. The Internet and
the Empowered Consumer
B2B

22. Online ranks as top source when
looking for a new supplier
%
100
90
80
70
60
50
40
30
20
10
0
Go-to sources
Internet
search
engines
Company
websites
Business
network
Employees
or business
partners
Magazines
Most influencial sources
Trade
shows
Friends
and
family

23. 57%
of the purchase
decision making
process has been
completed prior to
contacting a sales
representative

24. “A simple Web presence is
no longer sufficient for
businesses; they need
to adopt and develop a
multi-channel approach.”

25. The
Opportunity
The
Strategies
■ The Canadian
online retail
presence is
underdeveloped
■ Build and develop an
online presence
■ Carefully manage
online reviews
■ Understand your
market and offer
flexible acquisition
options (online/offline)

26. 2. The Health “Mania”

27. 50%
of Canadians
consider the health
impact of a product
as an important
factor during
the purchase
decision process.

28. 31%
of Canadians
are willing to pay
a premium for
healthy products.

29. Impact on Consumer
Behaviour
Health awareness is changing how Canadians:
■ eat
■ practice sports
■ spend their leisure time
■ purchase products for their family

30. Healthy
Foods
As Canadians get
older, they’re looking
for products that will
help them stay
healthy

31. Wellness
Services
Canadians are
focused on caring for
themselves; as result,
there has been an
increase in demand
for health and
wellness services

32. Health
Monitoring
Device
This health trend
combined with the
technology revolution
leads to new market
opportunities

33. Low Toxicity
Products
Canadians are
concerned about the
effect that a variety of
products have on
their health

34. The
Opportunity
■ Canadians spend
an average $935
per year on health
and wellness
The
Strategies
■ Provide new solutions to
meet the public’s desire
for a healthier lifestyle
■ Adapt your products
and services to heathconscious consumers
■ Promote health benefits
of your products and
services

35. 3. The “Made in Canada
Advantage”

37. Nearly One Out of Three Consumers
Are Willing to Pay a Premium
on Ethically Made Products
Social Responsibility

44. The
Opportunity
The
Strategies
■ SMEs can differentiate
themselves from
multinationals
■ Source locally as much
as possible
■ The “Made in Canada”
should be an option
■ Communicate and
promote the local
characteristics of
your products

45. 4. Customization is King

46. An increasing number of
Canadians are looking for
custom-made products,
tailored to their specific needs.
They also want to be more
engaged in product creation.

47. Two ways to address
this demand
Customization
Expand product lines
+
Mass customization

48. Mercier Wood
Flooring
■ Expansion of
product line
■ 13 wood species,
74 rich colors, and
beautiful ecofriendly finishes;
Mercier wood floors
offers 3000 different
possibilities

49. mymuesli
■ Mass customization
■ Production of cereals
adapted to your
specific needs: you can
create and order a
unique muesli directly
online
■ Matches your demand
(tastes, allergies, etc.)

50. “Mass customization has
created new business
models that enable SMEs
to better compete with
multinational companies.”

51. The
Opportunity
The
Strategies
■ SMEs’ flexibility gives
them a certain
advantage over larger
corporations in using
mass customization
■ Involve consumers
in product creation
■ Reorganise the business
model around mass
customization
■ Expand product
line-up with simple
personalization options

52. Conclusion
■ Engage customers in a closer dialogue
■ Understand the factors that are reshaping
the way consumers perceive value
■ Emphasize the local value of your products

53. Take the time to develop
strategies with your team.
Ask yourselves: how can
you make these trends work
to your advantage?

54. Thank you
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