Frivolous spending that has no value or sustainability is in decline
Canadians are spending again but their decision making could have a significant impact on the companies and industries that thrive.
A larger share of consumers is being more thoughtful with their money and considering whether they can live with less, while ensuring that their hard-earned dollars are helping society.
Research from EY shows that sustainability is being considered by 80% of Canadian consumers as they plan their holiday spending and are looking for companies that are transparent about their environmental impact (71%), while behaving ethically (70%) and manufacturing sustainably (69%).
"The pandemic has helped Canadians realize that they can live with less and consume responsibly, driving them to take actions to be more sustainable in their everyday lives," says Lokesh Chaudhry, EY Canada Consumer Co-Leader. "Whether decreasing spending on unnecessary goods, repairing items instead of replacing them or pivoting to private labels and buying from environmentally-friendly companies, it's clear that consumers are eager to do their part to improve their social impact and lessen their environmental one."
The EY Future Consumer Index Survey reveals that some consumers are willing to pay more for sustainability and will be attracted to those companies that effectively communicate factors such as the long-term savings or benefits of reusable and higher quality products.
Average holidays spend
A separate poll of Canadian consumers by Accenture shows that they plan to spend $635 on average this holiday season.
That’s 23% higher than last year and rises to $956 among those with children who believe in Santa. Baby Boomers will also be indulging, with an average anticipated spend of $713.
The study also reveals a desire to help others as 2021 ends. Almost seven in 10 Canadian consumers intend to make some form of charitable contribution over the holidays.
"At the same time, many families are still feeling the economic impact of COVID-19, which will understandably have an impact on the amount they are able to donate while others may have already donated throughout the year,” commented Robin Sahota, a managing director at Accenture who leads its Retail practice in Canada.
Again, Accenture’s research highlights a shift towards a more conscientious Canadian consumer.
Four in 10 respondents said they will opt for green or environmentally friendly packaging and deliveries, 44% said they plan to seek out products that come in reusable or refillable packaging, and 58% said they intend to buy more locally sourced products and from local retailers in the next six to 12 months.
Supporting BIPOC (Black, Indigenous, People of Colour)-owned stores is cited by almost one third of respondents.
