The COVID-19 pandemic has reshaped every aspect of our lives, including how Canadian’s shop, interact with different brands, behave on social media, and make purchasing decisions. As businesses still navigating through the complexities post-pandemic world, understanding Canadian consumers from every aspect is more important than ever. By identifying emerging trends and adapting strategies, companies can position themselves in the rapidly changing business landscape and marketplace.
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The question is: “what are the major impacts”?
Increasing Dominance of E-commerce
E-commerce has been around for decades, but the pandemic accelerated its growth significantly, with Canadians embracing the convenience and safety it offers. According to Statistics Canada, retail e-commerce sales rose by 2.2 percent in 2022 compared to 3.9 percent in 2019.
For instance, the retail giant Shopify, reported a massive 71 percent increase in gross merchandise volume (GMV) in the second quarter of 2021 compared to 2020, highlighting the surge in online e-commerce post-pandemic.
This trend continues post-pandemic, with consumers increasingly turning to online platforms for their day-to-day grocery needs. The market is expected to generate more than seven trillion U.S. dollars by the end of 2025 (Statista).
Demand for Seamless and Interactive Omnichannel Experiences
The rapid shift towards online shopping increased the demand for seamless omnichannel experiences to enhance both offline and online interactions. Only businesses that offer multiple touchpoints, such as click-and-collect options, virtual support, and personalized offerings, can succeed in the market and establish a distinct place based solely on customer engagement and satisfaction.
This strategy was well adopted by Indigo, a renowned Canadian retailer that effectively integrates its online and offline channels. This allows their customers to browse products online, reserve items for in-store pickup, and access virtual book clubs and events, creating and delivering enhanced value to their customers.
More Focus on Health and Sustainability
The pandemic not only triggered the growth of e-commerce businesses but also compelled people to prioritize their health unlike before. In the years following 2020, there has been a growing demand for products and services that prioritize wellness, safety, and environmental responsibility. Brands that demonstrate these values can build trust and loyalty with increasingly conscious customers.
The pandemic has accelerated the shift towards natural ingredients, ethical sourcing, and sustainable packaging, resonating with the changing values of environmentally-conscious consumers. This shift has the potential to draw in more customers, thereby boosting profits and lowering costs for companies. A notable example of this trend can be seen in a well-known Canadian cosmetic brand, as reported in company news. Many brands are rapidly shifting towards this trend, focusing on building a sustainable yet profitable business.
Shift towards Purpose-Driven Consumption
In the post-pandemic business world, consumers are gravitating toward brands that align with their values and support social causes. Purpose-driven marketing initiatives that address issues such as diversity, equity, and inclusion (DEI), support social causes, and advocate for the environment can resonate deeply with Canadian consumers and foster brand loyalty and affinity.
Outdoor apparel company Patagonia, who has long been a trailblazer in purpose-driven marketing has been successful in driving customer loyalty among their consumers. They actively advocate for environmental conservation and social causes that align and resonate with their customer base.
Increase Adoption of Digital Wallets and Contactless Payments
Canada has seen rapid adoption of contactless payments and digital wallets, fueled by safety concerns and the ease and convenience of touch-free transactions. Businesses quick to adapt to these shifting landscapes and offering a range of payment options, including tap-and-go and mobile payment platforms, can enhance shopping experience and streamline the process for consumers.
In addition to tap-and-go, online payment platforms are indispensable tools for businesses operating in the digital sphere. Moreover, consumer preferences continue to evolve, and businesses need to be agile and responsive, embracing new and innovative payment solutions to meet the changing needs of the demographics and the market itself.
Value Conscious Spending and Frugality
The pandemic has completely changed consumer habits and their spending capacity. This, coupled with ongoing recession and economic turmoil, consumers are cautious about spending their hard-earned dollars, prioritizing essentials, and seeking ways to maximize their wealth. A business that offers discounts, cashbacks, or offers, appeals to the shoppers.
This is evident across many industries in Canada, especially in retail where the market has seen a shift towards players offering the opportunity of cost savings. Besides the increased cost of living coupled with inflation and tight market conditions, has boomed many businesses across Canada, especially the retail sector, surging profits and sales numbers post-pandemic market, according to Global News.
In short, businesses that realize the importance of offering high value for money can attract price-conscious customers, without sacrificing the quality of products being offered. As customer and market preferences change, businesses need to stay flexible and adjust their strategies to meet the value-for-money needs of their consumers.
Importance of Authenticity and Transparency
In an age of digital business and information overload, authenticity and transparency are paramount for building and sustaining trust and credibility with consumers. Brands that demonstrate integrity and community with utmost transparency, and engage in a genuine and honest conversation can foster a stronger, loyal, and sustainable relationship.
According to Retail Insider and the 2021 Gustavson Brand Trust Index (GBTI), there has been a dramatic shift in consumer loyalty and purchase considerations post-Covid-19. It is now more important than ever for businesses to understand this shift and strategize accordingly if they wish to remain competitive in evolving market landscapes. As businesses continue to navigate the impacts of the pandemic, they must recognize that profitability alone is no longer sufficient; prioritizing consumer trust should be a primary consideration for any brand, regardless of the industry in which they operate.
Conclusion: Embracing Change and Driving Growth
The world is now divided into two phases: pre-pandemic and post-pandemic, and this has divided businesses too. There has been a profound shift in consumer behavior and purchasing patterns that brands need to understand and build upon. Businesses that are successful in understanding gaps and maneuvering their strategies can gain a competitive edge and sustain market share in such a dynamic and ever-changing business landscape.
Embracing e-commerce, prioritizing multichannel experiences, addressing the concerns of consumers, and aligning business and products with the values of consumers, can build deeper and more meaningful connections with Canadian consumers which is vital to sustain in this rapidly changing Canadian business and market landscape.
References:
https://www.statista.com/topics/2728/e-commerce-in-canada/#topicOverview
https://strategyonline.ca/2022/06/12/indigos-dramatic-profit-pivot-is-marked-with-digital-best-practices/
https://retail-insider.com/retail-insider/2021/11/consumers-in-canada-increasingly-embracing-sustainability-as-pandemic-continues-study/
https://www.statista.com/topics/10493/consumer-behavior-in-canada/
https://retail-insider.com/retail-insider/2021/05/canadian-consumers-lose-trust-in-big-brand-retailers-during-pandemic-study/
