Staying ahead of Canadian online shopping behaviours - Presented by June16, 2021

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Staying ahead of
Canadian online
shopping behaviours
Presented by

June16, 2021
Online consumption behaviors have been constantly
evolving along the past years and without question, the
year 2020 has set an unprecedent mark. The acceleration
of eCommerce and its effects on the consumers decision
journey are more noticeable than ever before. In Canada,
for brands to remain successful in this new reality it is
fundamental to have an understanding of these behaviours
from a local perspective and more importantly, be able to
assess how these can translate into actionable & strategic
interventions along what should be the growth key pillars to
grow customer flow in eCommerce: Experience, Content,
Media & eRetail.

                                                               2
• Convenience is the primary factor affecting online shopping with consumers citing that not having to go

   Key
             out into stores (64%), being able to shop around for the best price (62%) and saving them time (54%) as
             the top three advantages.
           • 63% of Canadians browse on Amazon to discover products, but Amazon was not the #1 online

findings
             purchase platform in the top 6 categories where they were ranked highest for product discoverability
             including Clothing, Shoes and Accessories (71%), Consumer Electronics (51%), Health & Beauty (47%),
             and Books (43%). This suggests that shoppers are researching and browsing in these categories on
             Amazon before making their final purchase decision elsewhere.
           • 89% of consumers intend to use eCommerce Pure Play Retailers (primarily Amazon) in the future
             (consideration +6% over past 6 months usage), but Big Box Specialty and General Merchandise eRetail
             platforms are showing the strongest signs of future growth (+18% and 16% over past 6 months usage
             respectively). Brands should adopt best content practices across all relevant retailer platforms to
             provide their consumers with consistent brand messaging regardless of where they shop.
           • eCommerce platforms are the #1 source of influence for shoppers at each stage of their decision
             journey - Discovery (33%), Research (21%), Purchase (25%). This reflects a convergence of the online
             funnel as multiple touchpoints can lead consumers to be one click away from purchase, and traditional
             campaigns focusing only on upper funnel considerations may no longer be as effective in the digital
             space.
           • Advertising influence accelerating in importance with 33% of shoppers influenced to purchase online
             based on an ad compared to 23% in the prior year, particularly with aspirational categories including
             Clothing, Shoes, and Accessories, Consumer Electronics, and Health & Beauty which over indexed
             compared to the category average.

                                                                                                                       3
Convenience key advantage of online shopping
for consumers

                                                                                                                                                     2019      2020
                                           68%
                    64%                             62%                    63%
                                                                                      54%
                                                                                             48%
                                                                                                    42%          44%
                                                                                                                       41%
                                                                                                                                    36%
                                                                                                                                           33%

                                                                                                                                                     8%   6%

    Saves me having to go            I can shop around for               Saves me time      Wider Selection   Consumer reviews    Detailed product    Other
       out into stores                   the best price                                                       about the product     information
         (*New for 2020)

                               Convenience #1

Q3. What do you perceive as the advantages of online shopping? Total Base n = 1500;                                                                                   4
Canadians browse on Amazon to discover products,
but tend to prefer purchasing from Specialty retailers
                                  Categories Shopped Online 2020
                                                                                                                                                          Have used Amazon to discover products
                71%
                                                                                                                                                          Top Purchase Platform

                                     51%
                                                           47%
                                                                                 43%
                                                                                                       37%                    37%
                                                                                       37%
                                            35%

                      24%                                                                                                            25%
                                                                  21%
                                                                                                              20%

                                                                                                                                                      36%    39%              27%    23%                26%   27%

           Clothing, shoes, and      Consumer           Health & Beauty            Books            Furniture & Home            Grocery             Toys & Games         Cleaning Supplies      Countertop kitchen
               accessories           Electronics                                                         Décor                                                                                          appliances

Q5. Which of the following product categories have you shopped online for in the past year. Total       Q17. Which of the categories are you most likely to shop on Amazon.ca? Base n = 151 to 1478
Sample Base n = 1500; Have used Amazon to discover new products base n = 945                            Q15. Where are you most likely to purchase these products online? Pick one for each category.                5
eCommerce Pure Play platforms continues to lead
but Big Box Specialty and General Merchandise
stores display strong signs of future growth
                     +6
                                                                        +18
        83%
                      89%                                                                                              -16                                                         Past 6 Month Usage
                                                                                                                                                                                   Likely to use in future
                                                                       77%
                                                                                                                       74%

                                                         59%                                               58%
                                                                                                                                                                     +1

                                                                                                                                                                                                              +6
                                                                                                                                                        30%          31%

                                                                                                                                                                                                             21%
                                                                                                                                                                                                15%

     E-Comm - Pure Play                                Big Box - Specialty                      Big Box - General Merchandise                                Social                                 Grocery

Q5. Which of the following product categories have you shopped online for in the past year. Total Sample Base n =   1500; Have used Amazon to discover new products base n = 945
Online platforms #1 source of influence
     across the consumer journey
                                     Discovery                                                                           Research                                               Purchase
                                                                                                 Online search port al                                   21%        Amazon                       25%
     Online shopping marketplace                                      33%

Recommended by friends or family                                      32%                             Online Ret ailer                           14%
                                                                                                                                                                    Walmart                10%
              Discovered in-store                               24%
                                                                                         Reviews on consumers sites                           12%
                    Flyers/inserts                        22%                                                                                                         Costco           9%
                                                                                                      Walk into store                      11%
                       Online ads                         21%
                                                                                                                                                               Canadian_ Tire         7%
          Social media post s/ads                   16%                               Opinions from friends or family                      10%

                           TV ads                   16%                                              Brand websit es                                               Best_Buy       6%
                                                                                                                                      8%
                         Print ads                 14%
                                                                                           Omni channel retailer site                 7%                              Google     4%
                 Email newslett er                 13%
                                                                                                Videos or streaming             4%
                       Search ads                 13%                                                                                                                 Indigo     4%
  Endorsed by an online influencer           9%                                                         Social Media       3%
                                                                                                                                                                    The_Bay      3%
                  Out of home ad             9%                                                    Online idea board       2%
         Endorsem ent by celebrity      6%                                                                                                                      Home_Depot       3%
                                                                                                               Other       2%
                      Cinema ads       5%
                                                                                                  None of t he above                 6%                             Loblaws      3%
                            Other            10%

     Q12. When you are thinking of buying a new product, which of the following sources are the most useful in discovering new products? Base n = 1500
     Q13. What is usually your first point of research when you are considering buying a product online? Base n = 1500
     Q14. Which other sources do you use to research before purchasing these category products online? Base n = 1500
     Q15. Where are you most likely to purchase these products online? Pick one for each category. Base n = 1500                                                                                       7
Convenience primary factor affecting online shopping,
but advertising accelerating in importance
                                                                                                                                                                         80%                79%

                                                                                                  2019

                                                                                                  2020

                                                   33% (19%)

                                     23%                                                               22%
                                                                                                                         19%

                                        Advertising*                                                          Search                                                       Convenience

Q7. Thinking about the last time you shopped online for these categories, how did you make your decision to shop online? Total Base n = 1500
Advertising bucket: “I clicked on an ad of product while browsing online”; “Saw an ad online”; “It was endorsed by a social media personality I follow.”; *“Saw a deal online” added 2020
Search bucket: “Web browser search (e.g. Google, Bing)”
Convenience bucket: “It was not available in-store near me”; “Convenient for me instead of going into physical store”; “The product is only sold online”                                          8
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