Table of Contents
Executive Summary
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- The issues
- Retailers haven’t reached their full potential in engaging Canadians with online shopping
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- Figure 1: Shop online at least once a month 2015 vs 2018, August 2015/April 2018
- Canadians likely doing more browsing than actual shopping online
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- Figure 2: Percentage of total shopping done online, April 2018
- The presence of Amazon looms large
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- Figure 3: Percentage of total online shopping done on Amazon, April 2018
- The opportunities
- Incentivizing re-orders may yield gains amongst parents with under-5s
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- Figure 4: Percentage of total shopping done online, April 2018
- Boomers are an untapped group with solid potential
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- Figure 5: Online shopping frequency, Baby Boomers vs overall, April 2018
- 18-34s are paying attention to product suggestions, give them some food for thought
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- Figure 6: Receptivity to retailer suggestions, 18-34s vs overall, April 2018
- What it means
The Market – What You Need to Know
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- Consumers have more spending power
- The Canadian retail landscape is changing
- Tariffs are likely to have an impact on the prices of goods
Market Factors
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- Perceived financial health has improved
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- Figure 7: Perception of financial health, January/February 2016-18
- The retail landscape in Canada is changing
- The presence of Amazon is real and will grow
- International retailers continue to increase their presence
- Consumers could be seeing higher prices due to tariffs
Key Players – What You Need to Know
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- The appeal of Amazon is strong amongst Canadians
- Cash-back sites are motivating consumers to shop online
- Retailers haven’t reached their full potential (yet)
- Celebratory days attract consumers during off-peak times
- Smart speakers will have an impact on how consumers shop online
What’s Working?
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- Amazon’s presence is strong in Canada
- Amazon.ca has mass appeal
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- Figure 8: Proportion of total online shopping done on Amazon.ca, by household income, April 2018
- The breadth of products is a draw – In their words
- Amazon’s ad campaigns continue to reinforce variety
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- Figure 9: A to Z, May 2018
- Amazon’s other features also have broad appeal
- Cash-back shopping sites are working to drive online traffic
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- Figure 10: Use cash-back shopping sites, parents with under-12s vs overall, April 2018
- Every little bit helps – In their words
- Ebates ads are here to help
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- Figure 11: Pshhh!, September 2016
- Figure 12: Is Ebates Legit? People Explain the Truth About Ebates!, June 2017
What’s Struggling?
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- E-commerce usage amongst Canadians continues to lag behind the US
- Canadians are less likely to be doing the bulk of their shopping online
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- Figure 13: Percentage of total shopping done online, Canada vs US, April 2018 (Canada)/March 2018 (US)
- Proportion of monthly online shoppers has increased in the US, stable in Canada
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- Figure 14: Shop online at least once a month, Canada vs US, August 2015 and April 2018 (Canada)/March 2015 and March 2018 (US)
- Retailers are missing out on older Canadian shoppers
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- Figure 15: Percentage of total shopping done online, by age, Canada vs US, April 2018 (Canada)/March 2018 (US)
What’s Next?
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- Smart speakers are changing how and when consumers shop
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- Figure 16: Winter win, February 2018
- Amazon will continue to broaden its appeal to younger shoppers
- Retailers create their own special celebration days
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- Figure 17: Way Day, Wayfair direct mail campaign, April 2018
- Companies are finding ways to make shipping even faster
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- Figure 18: Amazon Key, October 2017
The Consumer – What You Need to Know
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- Virtually all Canadians shop online
- Canadians still do the bulk of their shopping in-store
- Amazon’s presence looms large
- Consumers are toggling between devices when shopping online
Frequency of Online Shopping
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- Virtually all Canadians are shopping online
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- Figure 19: Online shopping frequency, April 2018
- Parents with under-5s are heavy online shoppers
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- Figure 20: Online shopping frequency, parents with under-5s vs overall, April 2018
- Small incentives for re-orders should work to grow reliance on e-commerce
- Benefits to be had by targeting dads
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- Figure 21: The story of Lucy, August 2017
- Retailers may (still) be missing the mark with Boomers
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- Figure 22: Online shopping frequency, Baby Boomers vs overall, April 2018
- Holiday prep is a good time to connect with women aged 55-64
Reliance on E-commerce
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- Canadians still lean towards shopping in-stores
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- Figure 23: Percentage of total shopping done online, April 2018
- Figure 24: Attitudes towards online shopping, April 2018
- Young men more inclined to making the bulk of their purchases online
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- Figure 25: More than 50% of total shopping done online, men 18-24 vs overall, April 2018
- Tiered offerings supported by messages of self-gifting will resonate
- Boomers are still attached to physical stores
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- Figure 26: Attitudes towards online shopping, April 2018
- Connecting with Boomers while they’re in their comfort zone will yield gains
Reliance on Amazon
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- Amazon is an undeniable presence
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- Figure 27: Proportion of total online shopping done on Amazon, April 2018
- Amazon appeals to all ages
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- Figure 28: Proportion of total online shopping done on Amazon.ca, by age, April 2018
- Storytelling and emphasising quality should keep the attention of older consumers
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- Figure 29: The musical, April 2018
- Quebecers are less likely to shop from Amazon
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- Figure 30: Proportion of total online shopping done on Amazon.ca, Quebec vs overall, April 2018
- Quebecers less concerned about shipping, so give them other perks
Pre-purchase Process
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- Canadians may be doing more browsing than actual shopping online
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- Figure 31: Pre-purchase process, by category, April 2018
- Men 18-34: it’s more about consideration when shopping for electronics
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- Figure 32: Pre-purchase process of electronics and appliances, men 18-34 vs overall, April 2018
- Gains to be had by giving them some (more) food for thought
- Also, remind them of loyalty points
- Women aged 18-24 are scoring for deals when shopping for clothing
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- Figure 33: Pre-purchase process of electronics and appliances, women 18-34 vs overall, April 2018
- The quest for deals means they will be interested in more than just promotion codes
Devices and Platforms Used for Online Shopping
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- Consumers are toggling between devices and platforms
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- Figure 34: Devices used for online shopping, April 2018
- Brand experience is brand experience, no matter the device
- 18-24s may be moving away from desktops
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- Figure 35: Usage of desktop vs mobile phone for online shopping, by age, April 2018
- Incentivising sharing will boost discovery amongst women aged 18-24
- Parents with young children are using their phones
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- Figure 36: Usage of mobile phone for online shopping, by age of children at home, April 2018
- Parents will lean on brands that lend a helping hand
Basket Building and Abandonment
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- Clear communication of costs are a must
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- Figure 37: Basket abandonment due to unexpected prices and high shipping costs, April 2018
- Affluent consumers are more sensitive to surprises and may demand greater transparency
- Threshold for free shipping matters to women 35-54
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- Figure 38: Agreement with ‘I often order more to get free shipping’, women 35-54 vs overall, April 2018
- Product suggestions will grow baskets of 18-34s
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- Figure 39: Receptivity to retailer suggestions, 18-34s vs overall, April 2018
- Personalized recommendations are key – In their words
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
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