5 consumer trends to watch

Business owners should capitalize on changing consumer habits, says a new Business Development Bank of Canada report. In honor of small business week, the report points out five trends that are altering consumer behaviours and impacting earnings. These are:

• people are buying locally;
• they’re more aware of their health;
• they’re using the Internet more widely.

• shoppers are increasingly frugal, with seven out of ten reducing spending since the recession; and

“These consumer trends have created rich business opportunities, which entrepreneurs must seize on if they want to grow their businesses,” said Pierre Cléroux, chief economist at BDC.

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Many business owners aren’t adapting to the new consumer landscape, however. In particular, the report says many small companies have been slow to offer online shopping solutions to customers.

In fact, it finds Canada’s online retail presence remains largely underdeveloped. Our country is lagging behind most other developed nations.

Cléroux adds, “A simple website is no longer sufficient for businesses. Instead, they need to adopt a multi-channel approach.”

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Highlight local products and sales

Of all the trends identified in the report, the buy-local movement has been the most prominent.

Nearly two-thirds of consumers have bought products made in Canada in the past year, adds the report, and two-in-five consider local production when comparing products.

The majority of these shoppers (97%) are striving to support the economy, as well as help local farmers (96%) and create jobs (93%).

Read: Local purchasing boosts economy

Companies also need to consider that “consumers want personalized, high-quality [merchandise] at reasonable prices and [they’re] using…penny-pinching strategies…to get more bang for their buck,” concludes Cléroux.

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For more, view the BDC’s infographic.

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