SMEs urged to capitalize on new Canadian consumer buying trends

MANILA, Philippines - Filipino enterprises interested in tapping or expanding their share of the Canadian market should take note of the five top consumer buying trends in the North American country.

The Philippine Embassy in Ottawa, Canada, in a communication sent to the Department of Foreign Affairs, said Filipino businesses need to know and take advantage of these influences shaping consumer-buying behavior.

The purchasing patterns were identified in new research conducted by the Business Development Bank of Canada (BDC), the Philippine embassy said in the letter.

“These five consumer trends will have a permanent impact on Canadians’ buying habits and create growth opportunities for small and medium-sized enterprises (SMEs),” the BDC report said.

The biggest among these trends is the buy-local movement. Consumers are shopping close to home, looking for locally made goods and aware that buying Canadian-made may be a better ethical and environmental choice.

The BDC study found that 45 percent of consumers made an effort to buy local in the past year, 87 percent believed it was more environmentally responsible to do so, and 97 percent said they bought a local product to support the economy.

“Marketing a ‘Made in Canada,’or better still, a local connection, can be a big advantage for small and medium-sized businesses,” said the report.

The Philippine Embassy adds: This trend is a signal for Philippine manufacturers “to establish a presence in the market, and for franchise owners to adjust their concepts... in order to establish a ‘local connection’.”

Another big purchasing development is rising health awareness. The researchers found that the aging population is becoming more aware of healthy choices in food, cosmetics, and ergonomically designed products.

Half of Canadians consider the health impact of the product in purchasing decisions, and one-third is willing to pay a premium for healthy products.

The third trend is frugality, with two in three consumers saying their main consideration in purchase is lowest cost.

“Canadian incomes are stagnant and debt is high, making consumers more cautious about spending,” said the paper. As the baby boomers retire, an increasing portion of the population will be living on fixed incomes.

Customized goods are also gaining popularity. Consumers are looking to get exactly what they want, and they believe that new technology makes it possible for them to buy at prices and lead times that match those of mass-produced products.

The fifth major influence on Canadian buying disposition is the Internet. “An increasing amount of research about products is now being done online, even when consumers don’t buy online,” the BDC said. “At the same time, online shopping is growing, and online reviews are critical.”

It added: “Regardless of whether they buy a product over the Internet or in a store, more consumers are influenced by what they see on online channels. Entrepreneurs must realize that a simple website is no longer sufficient for businesses. Instead, they need to adopt a multi-channel approach.”