Canadian shoppers differ from American shoppers in several ways, including how and why they purchase products online. Affordable prices are more important to Canadian shoppers than American shoppers. However, American shoppers are more likely to seek deals like promotion codes or coupons.
DIFFERENCES BETWEEN CANADIAN AND AMERICAN SHOPPERS
Product Choice & Recommendations
- Canadian shoppers consider recommendations from friends and family more important than American shoppers.
- In terms of product choice, American shoppers are used to having a wide range of brands or products to choose from. In comparison, Canadian shoppers are easily overwhelmed by product choice.
- American shoppers place more value on wanting to be the first to try a product than Canadians.
Skeptics
- In general, Canadians are skeptical. Almost 45% of these shoppers are "skeptical of the effectiveness of all-in-one products that claim to replace several other products," compared to less than 35% of American shoppers.
- Canadians need substantial proof that a product is better, which is why the key messaging of a lot of brands in the country focus on why their products are better.
Sustainability
- Canadian shoppers place a higher value on eco-friendly initiatives by brands than Americans, especially in relation to packaging.
- Up to 58% of Canadians would switch the household care products they buy for similar products with less packaging versus 49% of Americans.
Low Prices & Deals
- Canadian shoppers expect the products they purchase to offer low cost and high quality. They are willing to shop around till they get products with a balanced mix of both.
- Almost 60% of Canadian consumers will go to multiple stores to get the lowest price.
- Despite their preference for low price products, Canadian shoppers do not display intense deal-seeking behaviors, such as looking for promotion codes or clipping coupons.
- Instead, they depend on their knowledge of "what retailers are charging and are ready and willing to take advantage of deals when they are in stores.
- American shoppers, on the other hand, are more inclined toward deal seeking behaviors as gather online and offline discounts before shopping.
- In Canada, well-placed signages highlighting savings are more important than in the US because they drive purchases. This is evidenced by the fact that more Canadians than Americans purchase sale items.
Quality
- The inclination to find deals while shopping indicates that Canadian shoppers are less likely to take risks when faced with choosing between purchasing lower priced brands versus paying more for their favorite brand.
- Compared to American shoppers, they are more likely to wait till their preferred brand goes on sale, rather than "taking the risk on quality and trade in to buy a generic brand each time they shop."
- This does not mean they are not interested in private labels; most Canadians purchase private label brands at least half the time.
ONLINE SHOPPING BEHAVIORS OF CANADIAN AND AMERICAN CONSUMERS
- American shoppers are more likely to regularly shop online than Canadian shoppers. Over 50% of Americans are regular online shoppers, compared to 40% of Canadians.
- Canadian shoppers are the most likely (31%) to scour a social network for reviews or recommendations before actually making a purchase. Only 29% of US shoppers do this.
- Canadians and Americans have different reasons for shopping online. The main reasons Canadians prefer online shopping include cheaper prices (52%), not having to go out (39%), product in stock (33%), saves time (28%), and the breadth of product choices (24%).
- Americans on the other hand, prefer online shopping due to convenience and ease its (88%), saves time (84%), the breadth of product choices (84%), lack of queues (78%), availability of product reviews (78%), and cheaper prices (76%).
- In terms of what they purchase online, Canadian shoppers tend to buy apparel (42%), flights or travel packages (40%), books (34%), show/game tickets (33%), electronics (32%), household items (29%), and games or apps (24%).
- Americans purchase apparel (58%), electronics (48%), books/movies/music/games (36%), cosmetics & body care (32%), food & drinks (28%), household applices & goods (27%), and sports & outdoor (18%).
SHOPPING BEHAVIORS OF CANADIAN CONSUMERS BY PROVINCE
Annual Trips & Annual Dollars Per Household
- On average, Canadian consumers make 156 shopping trips per year and spend $8,645 annually across all "fast-moving consumer goods (FMCG) channels, which include grocery, drug, mass merchandisers and warehouse club stores, among others."
- Canadians in Alberta spend the most of FMCG purchases annually, $9,448, however, they make the second least shopping trips per year, 144.
- With only 142 shopping trips per year, Canadians in Manitoba/Saskatchewan make the least shopping trips, when compared to other provinces, however, these consumers are big spenders as they spend $8,523 on FMCG products annually.
- Consumers in British Columbia make 151 shopping trips annually, while the total amount spent on FMCG products per household is $8,322 annually. Ontarians make 152 shopping trips annually and spend $8,295 on FMCG products per year.
- Canadians in the Maritimes and Quebec make the most shopping trips per year, 173 shopping trips and 171 trips respectively. They also spend similarly on FMCG goods. While the total spend on FMCG goods per household is $8,955 in the Maritimes, it is $8,943 in Quebec.
Basket Size
- The average Canadian spends $55 per shopping trip.
- During individual trips, Canadians in Alberta spend almost 20% more than the average Canadian at $66 per trip.
- Canadian consumers in Manitoba/Saskatchewan spend $60 per shopping trip, compared to those in Ontario who spend $55 per shopping trip.
- Canadians in Quebec and British Columbia spend $52 and $55, respectively per shopping trip.
Outlets
- While consumers in Ontario are the most likely to shop at discount retailers - as it makes up 37% of their FMCG purchases - they spend the least in these stores.
- In comparison, consumers in British Columbia are less likely to shop at discount retailers but spend the most in these stores.
-
Important Considerations when Food Shopping
- The most important considerations for consumers in British Columbia, in relation to food shopping, include affordability (67%), locally grown (36%), nutritional content (33%), and flavor (31%).
- For consumers in Ontario, the most important consideration is also affordability (72%), however, flavor (37%) and nutritional content (35%) are slightly more important to these consumers.
- Affordability is also the most important consideration consumers in Quebec factor in - 71%. While flavor (35%) and nutritional content (32%) are high on their list, when compared to Ontario and British Columbia, they are less likely to consider both factors.
Reviews
- Consumers in Ontario and British Columbia are the most likely to regularly search for reviews and recommendations before purchasing a product.
- Quebec consumers are the least likely to search out reviews and recommendations when buying a product.
E-Commerce
- Consumers in Quebec, especially French speakers in this province, are slower to adopt ecommerce than other provinces.
- In total, 64% of consumers in Quebec are digital buyers, compared to over 70% of consumers in other provinces.
- Gen Zers and millennials in Quebec make up the majority of digital buyers as at least 80% of them shop online.
- Although Quebec consumers are visiting online shopping sites like Amazon.ca "as often as residents from other regions do anywhere in Canada, even more in some cases, the province’s average online spend still generally lags behind the national average."
- According to experts, the slow adoption of ecommerce in Quebec is mainly because of limited shipping options and its small market.
- The fact that US companies are not expanding to this province - due to the language requirement - is another major reason behind its slow ecommerce adoption.
Online Purchases
- Based on a 2018 study by ClickSpend, Canadians spend $2,748 online per year.
- Households in British Columbia spend the most at $3,369 per year.
- Quebec households spend the least, with around $2,236 in annual purchases.
Online Purchases by Category
- British Columbia consumers are more likely to shop online for apparel online that consumers in other provinces. Apparel accounts for the largest share of their online purchase, closely followed by food and grocery.
- While consumers in Quebec are less likely to buy apparel online, these consumers are more likely to buy groceries online as almost 6% of their groceries are purchased online - more than 15% above the national average.
- Similar to consumers in British Columbia, Ontario consumers are more likely to purchase apparel online as this category makes up almost 30% of their online purchases.
- Online purchases of electronics in Toronto are concentrated, specifically in Mississauga and Markham.
-
Online Purchases by Category - Amount Spent
- Annually, households in British Columbia spend $846 on apparel, $566 on recreation, and $479 on food & grocery online - the highest when compared to other provinces.
- Households in Ontario spend $813 on apparel, $477 on recreation, and $446 on food & grocery purchases made online.
- Quebec households spend $570 on apparel and $335 on recreation-related online purchases per year. They spend a whooping $477 annually on food and grocery - the second highest when compared to other provinces.