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Four Game-Changing Consumer Trends
 

Four Game-Changing Consumer Trends

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

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

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    Four Game-Changing Consumer Trends Four Game-Changing Consumer Trends Presentation Transcript

    • Four Game-Changing Consumer Trends
    • The world is changing more than ever before
    • Impact on Consumer Behaviour ■ Rapidly changing technology - More changes will happen in the next 5 years than have occurred during the last 15 years
    • Impact on Consumer Behaviour ■ Aging population - In 10 years, more than 8 million Canadians will be over 65 – twice as many as today
    • Impact on Consumer Behaviour ■ 2007-2008 recession - The worst recession since the Great Depression had a profound and lasting effect on the Canadian consumer
    • These economic forces are not only changing our business environment, but are also reshaping consumer behaviours.
    • So, what are the next gamechanging consumer trends?
    • 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
    • 1. The Internet and the Empowered Consumer
    • The Internet and the Empowered Consumer B2C
    • Online: 84% of Canadians are connected to the Internet, owning 2.6 Internet-capable devices on average
    • The path of a purchase has not changed, but the channels consumers use are different.
    • 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
    • Path of a Purchase 1 Awareness Building awareness 2 Intent Consideration 3 Decision Pre-purchase activities Purchase 42% consult customer review sites before buying
    • 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.
    • 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
    • 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
    • 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
    • You need an online presence! Even if you don’t sell online. Canadians make their buying decisions online.
    • “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
    • The Internet and the Empowered Consumer B2B
    • 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
    • 57% of the purchase decision making process has been completed prior to contacting a sales representative
    • “A simple Web presence is no longer sufficient for businesses; they need to adopt and develop a multi-channel approach.”
    • 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)
    • 2. The Health “Mania”
    • 50% of Canadians consider the health impact of a product as an important factor during the purchase decision process.
    • 31% of Canadians are willing to pay a premium for healthy products.
    • Impact on Consumer Behaviour Health awareness is changing how Canadians: ■ eat ■ practice sports ■ spend their leisure time ■ purchase products for their family
    • Healthy Foods As Canadians get older, they’re looking for products that will help them stay healthy
    • Wellness Services Canadians are focused on caring for themselves; as result, there has been an increase in demand for health and wellness services
    • Health Monitoring Device This health trend combined with the technology revolution leads to new market opportunities
    • Low Toxicity Products Canadians are concerned about the effect that a variety of products have on their health
    • 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
    • 3. The “Made in Canada Advantage”
    • Nearly One Out of Three Consumers Are Willing to Pay a Premium on Ethically Made Products Social Responsibility
    • 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
    • 4. Customization is King
    • 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.
    • Two ways to address this demand Customization Expand product lines + Mass customization
    • Mercier Wood Flooring ■ Expansion of product line ■ 13 wood species, 74 rich colors, and beautiful ecofriendly finishes; Mercier wood floors offers 3000 different possibilities
    • 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.)
    • “Mass customization has created new business models that enable SMEs to better compete with multinational companies.”
    • 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
    • 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
    • Take the time to develop strategies with your team. Ask yourselves: how can you make these trends work to your advantage?
    • Thank you Follow us: BDC BDC_News BDC Entrepreneur bdc.ca