SMEs are slow to adapt to new consumer expectations

2023-09-12 10:08:52

Companies are slow to take into account changing consumer expectations, particularly in terms of prices, use of digital platforms and principles of sustainable development.

“Consumer trends are changing, and business leaders will need to redouble their efforts to adapt,” observed in a telephone interview with Duty Pierre Cléroux, chief economist of the Business Development Bank of Canada (BDC), on the eve of the unveiling, Tuesday, of a report on the main consumer trends in Canada.

A probable consequence of the sharp increase in the cost of living in recent years, the main novelty is the attention that is now being paid to the prices of goods and services. Nearly seven out of ten Canadian consumers now say they are “proud to find ways to save” when making their purchases, and a third say they “prefer the acquisition of second-hand or free collected goods,” we note. following an anonymous survey carried out by the Angus Reid firm among a non-probability sample of 1,983 adult consumers (April 3 to 10) and 759 SME managers (May 30 to June 9).

Consumer trends are changing, and business leaders will need to work harder to adapt.

This sensitivity to the price of things is particularly great among the youngest, Generation Z, those born following 1996: more than three quarters of them report most often basing their purchasing decision on the lowest cost. But they are not alone, with two-fifths of Generation Y consumers (1981-1996) saying they are more likely to buy second-hand or salvaged goods and nearly 80% of Generation X consumers (1965-1980) saying to look for purchases with special offers and discounts.

Perhaps a little less financially tight, two-thirds of baby boomers express a desire to “live simply”, even if that means having fewer possessions or smaller housing.

Environment and e-commerce

Also concerned regarding the environment, nearly half of Canadians (49%) — and a little more Quebecers still (58%) — however believe “that businesses must reduce their impact on the environment, even if this must be done translate into higher prices. A majority also report having stopped buying from companies whose business practices did not suit them.

Already noticeable the last times that the BDC had painted this kind of picture, in 2013 et in 2016, the enthusiasm for new technologies and online commerce has only grown. In the wake, in particular, of a COVID pandemic which accelerated the use of e-commerce, the strong majority of Canadian consumers now expect to find and purchase the goods and services that interest them as easily (79%) and to have an equally seamless experience (75%) whether doing business with businesses in person or over the Internet.

However, only nearly a third of the companies surveyed have acquired technological tools or have rethought their way of doing things to make life easier for their customers. Less than a quarter report having initiated an ecological shift or having positioned themselves as socially responsible. And only one in ten said they produce goods that are easy to repair, offer a repair service or offer used, refurbished or returned goods. As for the differences in preferences between generations of consumers, in particular, less than 30% say they take this into account in their offer or their marketing.

“Business leaders are like you and me,” recalled Pierre Cléroux. They are not dumber or meaner. “They just need to be explained to them the changes taking place on the ground and helped to see the best ways to adapt to them. »

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