business development bank of canada - report on consumer trends for the fraser valley ca association

Economic Overview and Changing consumer TrendsShannon Baird, Senior Account ManagerBusiness Development Bank of Canada (BDC)

2 Ideas for staying ahead of the game

Source: Conference Board of Canada. Provincial Outlook: British Columbia (Summer 2013)* Forecast.

British Columbia’s economic outlook

GDP Growth 2014*

2.4%Canada

3.0%British Columbia

GDP Growth 2013*

1.7%Canada

1.5%British Columbia

Forestry Manufacturing

MiningConstruction

4 Ideas for staying ahead of the game

+116,000

+1,270,000

by 2035

4,670

4,727

4,786by 2015

Source: Conference Board of Canada. Provincial Outlook: British Columbia (Long-term Economic Forecasts)

British Columbia’s demographic outlook

5 Ideas for staying ahead of the game

• Growth rebounded after the recession, and has since continued to expand, but at a more moderate pace

• Economic growth should accelerate somewhat in 2013 and 2014

Fraser Valley economic climate, industry swings and trends.

6 Ideas for staying ahead of the game

Source: Conference Board of Canada. Provincial Outlook: British Columbia (Summer 2013)* Forecast.

Abbotsford/Mission economic outlook

GDP Growth 2014*

3.0%British Columbia2.7%

Abbotsford/Mission

GDP Growth 2013*

1.5%British Columbia2.7%

Abbotsford/Mission

7 Ideas for staying ahead of the game

Chilliwack’s Impressive GDP Growth

8 Ideas for staying ahead of the game

Source: Conference Board of Canada. Provincial Outlook: British Columbia (Summer 2013)* Forecast.

Fraser Valley Unemployment Rates

2012

6.5%Chilliwack

7.9%Abbotsford/Mission

2011

5.4%Chilliwack

8.9%Abbotsford/Mission

9 Ideas for staying ahead of the game

Canadian Unemployment Rate Comparison

10 Ideas for staying ahead of the game

Abbotsford-Mission housing market

11 Ideas for staying ahead of the game

Fraser Valley*: Residential Sales and Average Prices

12 Ideas for staying ahead of the game

Abbotsford-Mission non residential activity

13 Ideas for staying ahead of the game

Abbotsford-Mission GDP Outlook, by sector

14 Ideas for staying ahead of the game

The recession was harder for consumers than for businesses

ManufacturingConstruction

Services

Mapping your future growthGame-Changing Consumer Trends

17 Ideas for staying ahead of the game

Consumer Behaviour in Canada

■ The Internet and the Empowered Consumer

■ The New Health Mania

■ The “Made in Canada” advantage

■ Customization is King

■ The Lingering effects of the Recession

The Internet and the Empowered Consumer

Online:

of Canadians are connected to the Internet, owning 2.6 Internet-capable devices on average

84%

20 Ideas for staying ahead of the game

Changing Path of Consumer Purchasing

84% connectivity

A simple of lack of web presence is no longer enough

A structured, proactive & tailored multi platform strategy is required.

Source : The Conference Board of Canada, Metropolitan Outlook 2 Winter 2013, Economic Insight into 15 Canadian Metropolitan Economies.

21 Ideas for staying ahead of the game

41%of consumers buy

products or services online.

50%of consumers perform an online research prior to a

purchase.

The Internet revolution

Consumer reviews posted online rank #2 behind personal recommendations as trusted sources.

75%of consumers say that

online ratings and reviews influence their buying

decisions.

22 Ideas for staying ahead of the game

B2B – Business to Business and the internet

89% of companies will google new and potential suppliers

80% will have an in depth look at the website

57% will make their decision based on the quality of the webpage

What if there is no webpage?

The Healthy Consumer

of Canadians consider the health impact of a product as an important factor during the purchase decision process.

50%

of Canadians are willing to pay a premium for healthy products.

33%

Low Toxicity Product

The “Made in CanadaAdvantage”

28 Ideas for staying ahead of the game

30%of Canadian consumers

are willing to pay more for a locally

made product.

90%of consumers would stop buying from a company

using irresponsible practices

Canadians are proud of products and services made in Canada

Two thirds of Canadians have made an effort to buy local in the past year.

75%of consumers would pay more for products and services from a socially responsible company

29 Ideas for staying ahead of the game

Internet Purchases in Canada

Customization is King

31 Ideas for staying ahead of the game

32 Ideas for staying ahead of the game

Lingering Effects of the Recession

■ A profound and lasting effect on consumption habits

■ Consumer confidence remains weak

■ Low interest rates have spurred high debt levels

■ The Sharing Economy

1 888 INFO BDC bdc.ca

Shannon Baird

Senior Account Manager

Fraser Valley Business Centre

604 586-2416    

shannon.baird@bdc.ca

Thank you!