Shopify’s global study of more than 24,000 consumers and 9,000 small and medium-sized businesses (SMBs) ahead of Black Friday / Cyber Monday (BFCM) across Australia, Canada, France, Germany, Italy, Japan, Netherlands, New Zealand, Spain, Sweden, the UK and the US shows largely a shift away from “stack them high, sell them cheap” towards high-quality, durable products, and highlights the importance of businesses connecting directly with consumers across all surfaces, from social media and Web3 to in-store and mobile.
The data below provides insight into the trends that will define this year’s BFCM for Canadian shoppers and small businesses. Relevant insights from the survey include:
Consumers are looking for greater value; businesses are expecting a big BFCM before bills bite
● Canadians are tightening their belts but they are open to treating themselves each month. ○ Canadian consumers are cautious about spending due to uncertainty of the cost of living crisis, with more than three in four (76%) saying they have reduced their disposable spending in the past couple of months. That increases to 80% among those aged 35-44, who are likely facing dual pressure of slow wage growth and increasing expenditures.
- 71% of Canadian consumers say they’re likely to cut back on spending but they are still keen to treat themselves about once a month, a figure that rises to 76% for Gen Z shoppers (18-24) and 78% for millennials (25-34).
● Quality versus quantity or speed is top of mind for consumers.
- Almost three quarters of Canadian consumers (74%) are looking to spend money on higher quality products that will last for a long time during this BFCM shopping window
- Businesses have an opportunity to provide daily joy in times of uncertainty and hardship with 72% of shoppers looking to spend money on smaller purchases that bring them everyday satisfaction during this period, a number that rises to 78% and above for 25-34-year-olds.
● Canadian consumers are open to spending this BFCM before they feel the pinch.
- Over half (59%) of Canadian consumers said they planned to spend the same amount as last year or more on this BFCM, a figure that rises to 74% for those 25-34.
- Many of those shoppers however plan to do so with the knowledge that things may get worse later; 45% said they planned to spend more this BFCM compared to previous years, before they feel the pinch (64% for Gen Z consumers).
- While consumers are considering purchases more, they are not willing to forego social experiences, such as trips out with loved ones (73%).
● Consideration and bargain hunting are foundational shopping behaviours.
- 88% of Canadian consumers say they’ll compare prices to see where the best discounts are before making a purchase, behind only Italy with 89%. Interestingly, that figure reduces to 82% amongst Gen Z shoppers, but rises to 91% of those aged 65+.
- 73% of Canadian consumers say they are more likely to shop during sales (e.g. BFCM and January Sales) to get more for their money, the third highest of any country surveyed.
● Planning for a normal holiday season before the reality of 2023 sets in.
- Half (50%) of Canadian consumers are putting more money aside for this holiday season than they have done previously – this spikes to 67% of Gen Z compared to just 31% of those aged 65+.
- 73% of consumers also state they’re more likely to do the majority of their holiday shopping during BFCM / sales moments to get more bang for their buck.
Conscious consumerism is growing on a mass scale; businesses see the demand but the cost of investing more in sustainability* is a sticking point
● Canadian consumers won’t budge on sustainability despite wallet squeeze.
- More than half (54%) say they shop sustainably now and plan to either continue with their efforts or will be more sustainable in 2023 – few are willing to say they will compromise on this, even in a cost of living crisis.
- In fact, over half of Canadian consumers (53%) say they are more likely to buy from a brand that is sustainable this BFCM, and over a third (36%) are willing to pay more for sustainable products. ○ Eliminating unnecessary purchases altogether, finding products with recyclable / eco-friendly packaging, and buying locally and limiting the carbon footprint of products and services they use are paramount.
● Businesses’ biggest barrier to sustainability is cost, although they recognise consumer demand. ○ Over half (53%) of Canadian businesses rank sustainability as a top priority now, two percentage points lower than their American neighbours.
- Yet 61% of consumers say they’re willing to research and shop around to find the right sustainable product, a number that rises to 74% for Canadian Gen Z 18-24 consumers – a distinct gap that businesses must bridge.
- The obstacles blocking businesses from investing more in sustainable products includes the cost required to invest properly (cited by 40%), lack of time (31%) and know-how (25%).
● Businesses’ sustainable efforts won’t be derailed – but delivery times could be.
- Businesses can find ways to streamline costs that may even tie in with sustainable approaches, e.g. providing a longer delivery time given 60% of Canadian consumers are willing to wait longer for a product to arrive if it lowers its total footprint
● SMBs are finding new ways of building sustainable options for their customers.
- Almost one in three (32%) businesses are already offering an in-store recycling drop off service with over a fifth (22%) planning to implement initiatives.
Customers and businesses are open to connecting across platforms and loyalty is up for grabs
● Consumers (especially young customers) are open to social commerce; businesses are focusing on improving their tech stack.
- Canadian Gen Z respondents are highly receptive to new touch points such as shopping for products directly through brand social channels (55% of 18-24 year olds are willing to shop through Instagram, almost double the global overall average of 30% of those surveyed; 51% in the same age group would via TikTok, almost triple the national average of 19%).
- For Canadian consumers at large, Facebook, YouTube and Instagram top the list of social channels they are willing to purchase from.
- Over a third (35%) of Canadian businesses rank improvement / implementation of digital infrastructure to do more online sales as the top investment to ensure future resilience. This is followed closely by technology designed to optimise the customer experience such as virtual try-on before buying at 33%.
● Consumers want to hear about deals and schemes; businesses must communicate or miss out. ○ Over half of all Canadian consumers (52%) plan to do the majority of their holiday shopping during BFCM. Discounts and loyalty schemes ranked the two most important ways that brands can retain consumer loyalty during the cost of living squeeze.
● More than ever, having a direct relationship with consumers is important.
- 91% of Canadian businesses agree with this sentiment. And 73% of Canadian consumers said it’s important that brands communicate with them about BFCM offers and more.
● Businesses are embracing new ways to collect payments but are also back on the main street. ○ 80% of Canadian businesses say that D2C via an online store/mobile app is either the same or more important for business than compared to a year ago. 73% say the same for having a bricks and mortar presence, while reaching consumers via social media (84%) or selling to them via social media (81%) was just as, if not more important than ever.
● Consumers are shopping across all surfaces and businesses are looking to add value. ○ 91% of Canadian consumers say they are just as likely or more likely to shop in an online store than a year ago, 89% are purchasing the same or more in store and 74% are just as likely or more likely to discover new products to purchase through social media advertising than a year ago.
Methodology: Online survey conducted by Sapio Research, on behalf of Shopify, among 24,009 consumers and 9,012 businesses with fewer than 1,000 employees across the UK, France, Germany, Spain, Italy, Netherlands,Sweden, Australia, New Zealand, Japan, US and Canada. The survey took place between September and October 2022. In Canada, 2,000 consumers and 500 SMBs were surveyed.
*For Shopify’s global study, we clarified “sustainability” to mean the following for consumers and businesses: consumers having climate-conscious options when shopping, such as brands or products that offer carbon neutral shipping or that take a ‘low or no waste’ approach; and businesses being mindful of their environmental impact.
