Canadian e-retailers to benefit from buy-local holiday shopping trend
PayPal, a global digital payments leader, along with Ipsos, released research on holiday shopping trends ahead of Black Friday. The study revealed that a buy-local mentality is sweeping across the nation with three out of four (73 percent) Canadian online shoppers planning to buy holiday gifts online from Canadian retailers instead of buying from U.S. or international websites. Of those people, 43 percent are planning to buy more gifts from Canadian retailers than they did last year. Millennials are more inclined to shop online from domestic websites with 83 percent saying they plan to do so.
Shopping local is now officially in vogue. The research reveals that this trend is driven by a multitude of factors with more than half (56 percent) of Canadians revealing that they plan to shop online from Canadian retailers because they want to support local businesses and the economy. Canadians are also choosing to shop online from domestic retailers because they want to avoid the cost of international shipping, taxes and duties (51 percent), unfavourable exchange rates (44 percent) and many (32 percent) prefer goods that are made in Canada.
“Canadian retailers are embracing e-commerce more than ever before and offering greater choice to consumers who want to shop online this side of the border,” said Kerry Reynolds, head of consumer marketing at PayPal Canada. “Canadian-sold goods are in demand and the Canadian economy stands to benefit immensely from this trend.”
Social commerce is now trending
PayPal’s research revealed that Canadian online shoppers are warming up to ‘social commerce’ which is defined as buying directly from an advertisement on a social media platform. One in four (26 percent) Canadian online shoppers have already engaged in social commerce and half (54 percent) say they would consider it.
Canadians are the one of the most plugged-in social media users in the world, spending an average of two hours and 19 minutes on social media platforms everyday1. In the last two years, social media and e-commerce intersected when popular social media platforms launched “Shop Now” and “Buy” buttons making it easier for customers to purchase products without leaving their social media accounts.
Social media enables people to gather instant feedback on products and services from friends, family and peers. To connect with consumers more directly, many brands engage celebrities or ‘influencers’– with large social media followings – to promote products. Recognizing this trend, PayPal looked at consumer purchase behaviour to gather insights on Canadians’ attitudes towards influencer marketing and found that only seven percent of Canadian online shoppers would consider buying a celebrity-endorsed item on social media. Looking at millennials specifically, this number almost doubles to 13 percent.
Recommendations from friends and family have a greater influence on buying behavior. The study revealed that close to one in three (34 percent) Canadian online shoppers said they would consider buying an item directly from a brand’s advertisement on a social media platform if recommended by a peer, with Baby Boomers leading the way at 38 percent.
What else entices Canadians to buy directly from social media platforms? Some of the leading reasons Canadians would consider social commerce include discounts or promotions (56 percent), the item advertised would make a good holiday gift (45 percent), or they’ve shopped from the brand before (32 percent).
Millennials are shopping mindfully
Millennials are leading the way when it comes to ‘responsible shopping’ – buying an item where a portion of proceeds are donated to a social cause or charity. Nearly seven out of ten (67 percent) millennials are planning to shop online for gifts that give back this holiday season. Not only are millennials more likely to consider responsible shopping, one in four (26 percent) are willing to pay more for gifts that give back, compared to only 15 percent of 35-54 year olds and seven percent of those above 55 years of age.
tentree is a PayPal-powered, Regina-based lifestyle brand that for every item sold, plants 10 trees in areas where they can influence the greatest transformation both ecologically and socially. Offering an interactive experience, shoppers can enter a code found on their purchase tag to track where their ten trees have been planted by visiting www.tentree.com.
tentree’s business model has gained significant traction with Millennial shoppers. Kalen Emsley, co-founder of tentree, shared the following insight: “Millennials in particular want to do good and they want to invest in the give-back experience. Brands that invest in engaging their customers will earn greater brand loyalty, see the benefit to their bottom line, and ultimately will be better positioned to do more good for their chosen cause.”
The findings are based on an Ipsos poll conducted between October 26 and October 28, 2016, on behalf of PayPal. For this survey, a sample of 1,002 Canadian online shoppers from Ipsos' online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within / - 3.5 percentage points, 19 times out of 20, had all Canadian online shoppers aged 18 been polled.
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.