Advances in technology, changing demographics and the recession of 2007-08 have led to five emerging consumer trends that entrepreneurs should take advantage of to create business opportunities, according to the results of a Business Development Bank of Canada (BDC) study released October 21.
The research, which has been published to coincide with the launch of BDC Small Business Week (October 20-26), found that many entrepreneurs are not taking advantage of the trends, which are:
- the Internet revolution: online shopping affects nearly every aspect of a consumer's purchasing decisions, as shoppers are increasingly diligent about checking prices and product information online;
- new awareness about health concerns: consumers want products to help maintain or improve their health, with one-third of Canadians willing to pay a premium for products that enhance their health;
- buying ethically responsible and local products: six in 10 Canadians consider themselves ethical consumers and three-quarters said they would pay more for products from a socially responsible company;
- customization: three-quarters of shoppers are looking for products that are personalized to fit their specific requirements and consumers are becoming more involved in product creation; and
- frugality: consumers are making fewer purchases and spending more time shopping around for better values.
"These consumer trends have created rich business opportunities, which entrepreneurs must seize on if they want to grow their businesses," said BDC chief economist Pierre Cleroux.
Other findings of the study include:
- a discount of 10% is enough to make a consumer buy an item online instead of in a store;
- sales of health and wellness apps in 2012 totalled $1.3 billion;
- the average American supermarket has 40,000 SKUs, which is an increase of five times when compared with 1975; and
- internet retail sales in Canada are set to increase from $5.4 billion in 2012 to $10 billion by 2020.
The full report can be found here.
