What They Want: Insights into why Canadians Shop Direct

WHAT THEY WANT, insights into how Canadians shop direct

WHAT THEY WANT:
Insights into how
Canadians shop direct

-0-


TABLE of contents

INTRODUCTION 2

RETAIL outlook 3

ONLINE market 4

CATALOGUE market 4

CANADIAN MULTI-CHANNEL SHOPPERS are worth your attention 5
WHAT THEY WANT, isn’t what they are doing 5

EAST MEETS WEST, where all direct buyers are best 6

THE PROFILE of the direct apparel buyer 7

THE PROFILE of the direct footwear buyer 7

THE PROFILE of the direct health and beauty buyer 8

THE PROFILE of the home furnishings buyer 8

THE PROFILE of the cross-border direct buyer 9

RETAILER implications 10

RESEARCH methodology
Internet survey fielded to NPD’s Online Consumer Panel in Canada
• Adults: age 18 to 70, 55% females / 45% males
• Sample was demographically balanced to be nationally representative based on Canada Census
• Sample was balanced for age, gender, region, household composition, and income
• Sent to 5,000 with N = 2,304 ending sample (completed surveys)
• Conducted March 23 to March 30, 2007
• 22 survey questions
Note: 100% of sample is Internet connected

CATEGORIES reported

APPAREL / CLOTHING SHOES / FOOTWEAR
Men's Women's Casual
Women's Women's Dress
Children's Women's Athletic
Infant's Men's Casual
Maternity Men's Dress
Men's Athletic
Children's Shoes

HEALTH AND BEAUTY HOME FURNISHINGS
Skin Care Small Countertop Appliances
Health Care Small Home Electronics
Makeup Home Decor / Home Decorations
Perfume / Fragrance Furniture

-1-


INTRODUCTION
According to a recent report on B2C e-commerce in Canada, Canada’s online consumer spend is set to
double to $16 billion dollars by 2009. Yet as Canada’s direct retail market gains momentum, the market
remains largely underserved with a handful of pioneering retailers enjoying the lion’s share of what is
proving to be a lucrative market. The result is an inadequate supply of retailers required to provide the
breadth and depth of product selection and brands demanded by increasingly convenience-driven, net
savvy global shoppers.

As the Canadian sales environment evolves, retailers are constantly in search of ways to increase
sales, acquire new customers and reduce operational costs. Increasing inventory and hours of
operation without incurring the costs of traditional retailing, and expanding market share to include
customer segments previously unreachable presents significant value and strategic rationale for
retailers to implement a multi-channel strategy.

KEY HIGHLIGHTS OF THE CANADA POST STUDY ON What they Want: Insights into how
Canadians shop direct and implications for direct retailers
• Share of wallet is shifting away from traditional storefronts to the online and catalogue channels in
all four merchandise categories that represent growth opportunities for the direct channel – more
so in the footwear and health and beauty categories. While catalogue is reportedly the preferred
method of shopping direct, web is capturing a significant portion of the consumer spend.
• Across all merchandise categories, self-identified online shoppers spend an average of 47% more
than the average Canadian consumer (surveyed).
• The Atlantic provinces have the highest incidence of catalogue purchases (45% made a purchase
within the last year), while British Columbia recorded the highest online purchase rate (27% made a
purchase within the last year).
• Across all age categories, home decor and apparel are key growth opportunities for direct retailers.
• Consumers between the ages of 25 and 34 are the key segment driving direct purchases.

Author Research
Paulina Sazon Kaileen Millard-Ruff
Direct Retail Strategy Director of Fashion
Canada Post NPD Group Canada

-2-
1. eMarketer, Canadian B2C Ecommerce Report, Jan. 2007


RETAIL state of the nation and a look ahead
The Canadian economy remains healthy, but the regional divergence between the booming West and
the East will continue to be the dominant economic trend in Canada in 2007. Consumers continue to be
generally optimistic about their future financial circumstances. The Ontario index of consumer
confidence is still above this time last year, while the British Columbia index increased by 8.6 points
after consecutive declines in December and January.1

During the 2006 holiday season, Canadian retail sales surged much higher than expected in December,
achieving the highest monthly sales gain in nine years, with increases in all retail sectors. In 2006,
retailers sold $391.4 billion worth of goods and services, up 6.4% from 2005 and the highest rate in nine
years. The second-fastest growing trade group was home furnishing stores, with a growth rate of
13.3%. Home centres and hardware stores came third, with 12.3% growth. Pharmacies and personal-
care stores sales grew 10.9%, the fastest growth rate since the series began. Sales at clothing stores
reached $17.3 billion, up 7.3%, the largest gain since 1994. 2

Profit growth in the retail sector is expected to be moderate in the medium term, averaging 7.7% in
2008. By 2008, the forecast calls for retail industry profits of $11.9 billion and overall revenue growth
averaging 4.9%. Driven by a booming housing market, the furniture, home furnishings, electronics and
3
appliance categories will see an average profit growth of 12% through 2008.

Retail Sales by Category Jan 06/Jan 07 Retail Sales per Region 2005 2006
($ millions) 2006 % Change ($ millions)
Total All Stores 391,389 6.4% Canada 367,829 391,389
Total Home Furnishings & Electronics 38,611 7.3% Newfoundland and Labrador 5,884 6,059
Total Building Supplies & Garden 25,115 12.2% Prince Edward Island 1,426 1,481
Pharmacies & Personal Care Stores 26,559 13.2% Nova Scotia 10,596 11,270
Total Apparel 22,661 12.2% New Brunswick 8,391 8,888
Total General Merchandise 46,729 6.6% Quebec 83,074 87,118
Total Sporting, Leisure & Miscellaneous 20,039 3.4% Ontario 135,164 140,749
Beer, Wine & Liquor Stores 15,234 9.0% Manitoba 12,441 13,177
Total Food & Convenience Stores 72,677 3.4% Saskatchewan 11,033 11,693
Total Automotive & Gasoline 137,606 5.1% Alberta 48,633 56,497
British Columbia 49,915 53,136
Yukon Territory 443 456
Northwest Territories 579 605
Nunavut 250 260

1. The Retail Council of Canada 2006 Annual Report
-3-
2. The Retail Council of Canada 2006 Annual Report
3. The Conference Board of Canada, 05 – 19


ONLINE market Key Canadian B2C E-commerce Numbers
Total B2C e-commerce sales in Canada in
In addition to the doubling of the overall value $16 billion 2009, up from $8 billion in 2006
of the B2C e-commerce channel by 2009 cited
Average annual spend per online buyer in
earlier, eMarketer has forecasted an increase
$1,295 Canada, up from $891 in 2006
in annual spending from $ 891 to $1,295 and an
increase of Canadian Internet users buying Percent of Canadian Internet users who
online from 53% to 63%. 63% will buy online in 2009, up from 53% in
2006
Canada is recognized for having a strong Note: Converted to USD at average annual exchange rates
broadband Internet infrastructure and ranks Source: eMarketer, December 2006
second only to South Korea in the percentage of broadband households, an important measure of a
country’s e-commerce readiness. As Canadians spend an average of 38.4 hours online per week,
Canada ranks among the top countries for Internet usage, ahead of Germany, France and the United
1
States.

According to our research, one of the major reasons why Canadians shop direct is brand and retailer
availability in their area. Direct shoppers have proven themselves to be informed consumers and easily
recognize major, global brands. This could be due, in part, to the fact that 80% of Canadians live within
2
100 kilometres (60 miles) of the U.S. border and consume the same media as their U.S. counterparts.
To that end, U.S. retailers have begun making inroads into Canada’s online space with lucrative results
3
– in some instances achieving order volume growth of up to 50% during the 2006holiday season. . Still,
Canadian retailers have a natural advantage competing for a share of this market, being familiar with
the tastes and sensitivities of local consumers. Canadians will also generally choose to buy from
domestic retailers if they offer the goods they need.

CATALOGUE market
4
In 2006, Canadians spent $32.7 billion with direct retailers. Much as it is for the online channel, the
main challenge for Canadian shoppers is that their demand for direct access is underserved. A look at
the top 10 Canadian retailers reveals that two-thirds of them do not sell online. Historically, retailers
have been hesitant to invest in a direct retail strategy, instead waiting for consumer demand to build.
Consumer spending is not stimulated due to the lack of retailers and lacklustre merchandise selection.
Direct r etailers cite that prospecting in Canada can be cost-prohibitive and that list availability makes
acquiring Canadian direct shoppers challenging. Catalogues tend to have a longer shelf life with
Canadians who can take more than four weeks to react. Yet Canadian catalogue shoppers can be
attractive to groom. Their average order value tends to be 20%5 more than American purchasers per
transaction. According to another study, “59% of consumers who shop direct prefer shopping by mail
order catalogue and 66% are driven to purchase by telephone after consulting one.”
Canadian Multi- Average Canadian
Channel Shoppers Consumer

% that made a catalogue purchase
within a month 25% 16%

Number of catalogue orders made by
catalogue purchasers over a year 26.4 18

Average spend per catalogue
purchaser over a year $2,877.60 $1,692.00

1. eMarketer, Canadian B2C Ecommerce, Jan. 2007
2. Statistics Canada, 2005
3. US retail partners using Canada Post’s Borderfree service experienced YoY order volume growth from 2005
4. Source: 2006 Catalogue Tracking Study, December 2006, CP MR # 06-27
5. Catalog Success, Stephen Lett, Lett Di ect, June 2006
r

-4-


CANADIAN MULTI-CHANNEL SHOPPERS are worth your attention
In all categories explored in this research, with the exception of home decor, where online sales are
primarily driven by home electronics, catalogue eclipses the web channel as the preferred method of
direct purchases. However, when considering the overall claimed spend, the web channel is strongly
gaining ground at the expense of traditional storefronts. In particular, share of wallet is growing online in
the footwear category, where online shoppers dedicate 45% of their spend to direct channels versus
6% among total respondents. The health and beauty category also presents an opportunity, as online
shoppers dedicate 53% of their spend to direct channels versus 18% among total respondents.

The total amount spent in all recorded Total Multi-Channel Spend per Category
categories by Canadian online shoppers
is an average of 47% higher than all $1,200
consumer respondents. This indicates $1,000
that the comfort level of purchasing $800
Online Shopper
among Canadians is expanding beyond $600
Average Consumer
the low-risk categories of books and $400
CDs to more difficult categories such as $200
footwear. $0
Apparel Shoes Home Health &
Decor Beauty
Multi-channel shoppers cite that
Category
convenience, brand, product availability
and, to a lesser extent, price, is what
drives their direct purchases across these categories. This is particularly true for high income earners
($100K+) who’s need for immediacy and convenience drives solid online purchase conversion in the
categories of home electronics, women’s clothing and dress shoes.

31% of direct shoppers between 35 and 55+ have a higher incidence of catalogue purchases
• Within apparel, men's clothing has a higher purchase incidence
• Within footwear, women’s casual footwear
• Within home decor, home decorations

28% of direct shoppers between 25 and 34 have the highest incidence of purchasing online
• Within home decor, small electronics
• Within apparel, men’s clothing
• Within health and beauty, skin care products

WHAT THEY WANT, isn’t what they are doing
Respondents in this research were also asked what products they would consider purchasing direct if
they were not already doing so. Results show that the greatest opportunity for online conversion is
among household income brackets of $70K and up. Specifically, women’s shopping desires exceed
their current purchasing behaviour in key categories of opportunity that include women’s clothing, home
decor, small home electronics and small countertop appliances. While men’s overall consideration to
purchase online is lower than women’s, they do show a high propensity to buy direct in vitamins/diet
aids, home decor, furniture, perfume/fragrance, small home electronics and small countertop
appliances.

Young adults 18 to 24 have the highest consideration for purchasing any of the selected categories
online, largely driven by apparel and footwear. Consideration for purchasing online decreases with the
age of respondents, but ¼ of respondents 55+ report that they would consider purchasing apparel

-5-


online. Of this same age group, 26% of the respondents would consider purchasing health and beauty
products online and 37% would consider purchasing home furnishings online.

Respondents 25 to 44 show the greatest interest in purchasing health and beauty products online,
driven by skin care products. Over half of respondents 25 to 34 report they would consider purchasing
home furnishings online and show greater interest in purchasing every home furnishings subcategory
online than any other age group.
Q: What major Canadian retailers would you like to be able to purchase from on an online shopping
site?
Health & Home
Apparel Footwear
Beauty Furnishings
% % % %
Payless Shoppers 16
22 15 22
Wal-Mart Shoes Drug Mart Home Outfitters
Old Navy 18 Footlocker 9 Jean Coutu 7 Pier 1 16
The Shoe 14
17 8 6
HBC Company Loblaws The Brick
Sports 10
14 6 4
Winners Experts Aveda Leons
Marks Work Bombay 9
13 5 4
Warehouse Nine West GNC Company

In the case of apparel, outside of Old Navy, the retailers that Canadian direct buyers want online access
to is reflective of the top 10 apparel retailers in Canada yet, surprisingly, HBC is the only one that has a
direct channel. Across all categories, the choice of respondents is indicative of the general profile of
Canadian consumers who value price as a priority over style. It is also interesting to note that the
dotcoms of U.S. retailers Old Navy, Payless, Wal-Mart, Nine West and Pier 1 have very robust etail
strategies, some leveraging their web channels to exclusively retail merchandise not available in store,
for example, Old Navy offers its Women’s Plus line only through the web.

EAST MEETS WEST, where all direct buyers are best
Canada is the world’s largest country yet
one of the least populated, with an average Direct Purchases by Region
% of Purchase Incidence
of 8.3 people per square mile versus the
U.S. average of 80 people per square mile. 1 50

Canada’s central and more densely 40
populated provinces, Ontario and Quebec,
30 Catalogue
have a higher penetration of malls and
Online
traditional storefronts. The less populated 20

Atlantic provinces have the highest 10
incidence of catalogue purchases (46%) due 0
to the lack of accessible retail in their region. West Prairies Ontario Quebec Atlantic
British Columbia is the only region where
Regions Across Canada
direct purchases are greater through the
online channel versus a catalogue (27%).

• Consumers in the Atlantic (16%), Prairies (13%) and West (13%) were more likely to shop online for
apparel
• Consumers in the West (10%), Quebec (10%) and Ontario (9%) were more likely to shop online for
home furnishings
• Consumers across the country reported fewer incidences of health and beauty and footwear than
all other categories. This could signify that these categories are underserved, and this lack of
choice represents a merchandising opportunity for direct retailers.

1. Statistics Canada, 2006
-6-


THE PROFILE of the direct apparel buyer
The apparel category holds the most potential for purchase conversion, capturing over 40% of
consumers’ total spend. Particularly, women’s apparel dominates purchases through catalogues and
web above men’s or children’s apparel. This is evident in Canada’s apparel market, where the average
price per item is falling in-store but increasing for Internet orders by an average of $7. This indicates
that share of wallet is shifting and that the web channel is being augmented by purchases that would
have traditionally been made in-store. This positive development signifies multi-channel purchasing
behaviour and an opportunity for retailers in Canada who have a direct channel to increase spend with
their existing customer markets.

The caveat to success in the direct apparel market will be defined by those retailers who can mitigate
the concerns of all Canadian shopper segments across age and income that cite reasons relating to the
lack of a tactile experience as their main barriers to purchasing direct. This is especially important to
high income earners ($100K+). Retailers who can extend a good customer experience through their
direct channels – a convenient returns shipping process, enhanced product descriptions, and customer
reviews – stand to gain higher conversion and loyalty among consumers.

OTHER characteristics
• Catalogue spenders tend to be older than online spenders with the core group being 45+ and the
majority of purchases being made on women’s clothing. The 55+ segment highly rate experience
and convenience as reasons for which they shop online. “No salesperson pressure” ranks high
among this group (36%).
• The biggest online apparel buyer is 18 to 44 years old with the core in the 18 to 24 age segment.
This group considers the additional costs of shipping peripheral and is most concerned with the
accessibility to unavailable retailers (44%) than all other age groups.
• High income earners ($100K+) state “sells the brands I want” (37%) as an influential factor in their
decision to shop online.
• Consumers with incomes under $70K are much more concerned about the costs associated with
online shopping (shipping, duty fees and exchange rates), credit card security, and the possibility of
their purchase getting lost in the mail than families with higher incomes.
• In 2006, the women’s apparel market was estimated at $10.7B, up 2.5% over 2005 with the largest
growth among the 25 to 34 age segment, which recorded an annual spend of $1.5B, a 7.8% gain.

THE PROFILE of the direct footwear buyer
Footwear is the most underdeveloped segment relative to the other categories in incidence of catalogue
and online purchases. While the share may seem modest with only 12% of total annual spend, there is
growth in the online channel. Direct footwear buyers spend $5.50 more per item online than the
average shopper and “first purchase of a brand” has picked up considerably from 2005 with a 40% gain
1
in 2006. The reason for this may be that consumers are trying on a footwear brand in a store first, then
purchasing online because of lower prices or larger selection, OR it could mean that retailers are
leveraging the Internet as a “testing pad” for new brands.

Barriers to shopping direct for footwear mirror the apparel category, with all age and income shopping
groups citing that convenience and experience influence their decision to not shop online.

• Consumers 25 to 44 are the most important online group in terms of spending.
• According to the survey respondents, women’s casual and dress footwear are most likely to be
purchased via catalogue or online while, overall, boots, sandals and slippers present the greatest
opportunity for online footwear sales. 2
• Online footwear shoppers are looking for lower prices above all else. Other motivators of online
footwear purchases include product factors such as “lots of selection” and “brand I want.”
• In 2006, the footwear market gained a 6.9% increase over 2005, moving from $4.20B to $4.49B.

1. NPD Footwear Tracker Data
-7-
2. NPD Footwear Tracker Data


THE PROFILE of the direct health and beauty buyer
After apparel, the health and beauty category captures the second largest share (36%) of total spend
among the four merchandise categories. Online consumers report allocating 53% of their total health
and beauty spend through catalogues and online, and report the highest claimed spend online, 83%
more than the average consumer spend of $242.00. Substantial adoption of the direct channel may be
a result of low weight, price point and low variability of product. Within the segment, skin-care and
health-care products are the key drivers behind online health and beauty purchase incidence.
Consumers cite the lack of a tactile experience as the number one reason against shopping online for
health and beauty products, with 55% of respondents citing it as a deterrent. Concerns over quality are
ranked second for health and beauty with 37%. To increase conversion and market penetration,
enhancing the online experience with self-diagnosis tools and product sampling offers opportunities to
increase the comfort level among key spenders in this segment.

• Women spend slightly more through catalogues than men (9% vs. 8%), but men are more likely to
spend more of their health and beauty dollars online than women (11% vs. 9%) – driven by health
care products/vitamins/diet aids.
• Brand dominates the reasons for purchasing health and beauty products online. “Brand I want” is
rated very highly with consumers over 25 (1st or 2nd), while younger consumers are motivated by
lower prices and online discounts before brand.
• The 35+ demographic segment is spending the most on health and beauty products online or
through catalogues. “Not enough customer service” is a leading concern with women 45+ (based
on ranking number). “Not familiar with how to do it” also becomes a barrier to shopping online for
this age segment.
• In Canada, Avon, Yves Roche and Mary Kay have the highest market penetration in this category.

THE PROFILE of the home furnishings direct buyer
The proliferation of information online has been a boon for the home furnishing category with the advent
of search, comparison tools and customer reviews. Shoppers across all age and income brackets in
this category cite “lower price” and “lots of selection” as key motivators to shopping online or through a
catalogue. Online consumers are considerably more active, allocating 28% of their total home
furnishing spend through direct channels than the average consumers who claim to have made only 6%
of their home furnishing purchases online or through a catalogue. Online buyers are also spending 23%
more than average consumers, totalling $1,093.00. Online purchases of home electronics are driving
the high incidence of online shop ping for home furnishings. Small countertop appliances were also
more frequently purchased online than through a catalogue.

• Western Canada and Ontario lead past year incidence of purchase in home decor, with the Atlantic
and Prairies the least likely to purchase in this category.
• Those in the 35 to 44 age segment reported the highest purchase incidence in home décor.
• 12% of both the 25 to 34 and the 35 to 44 age segments are most likely to purchase small home
electronics online.
• Of those who purchased small home electronics, 11% fell into the $70K+ income bracket.
• 8% of the $100K+ income bracket report catalogue purchases in the home furnishings category
driven by home decor and small home electronics.
• Shipping costs become the number two reason against shopping online for this category.
• Men have a greater consideration for purchasing home furnishings online (driven by home
electronics).
• Women spend more through catalogues than men (3% vs. 1%), but men are much more likely than
women to spend money on home furnishings online (5% vs. 3%).

-8-


THE PROFILE of a cross-border direct buyer
High income earners drive the majority of online cross-border purchases, where 52% were made by
those with household income greater than $70,000. The 25 to 44 age segment is the most active group
of cross-border buyers v online or catalogue, and the regions that have the highest reported incidence
ia
in online cross-border shopping include Ontario (35%), Prairies (22%), and B.C. (19%). According to
Canada Post’s 2006 Multi-Channel Shopping – Canadian Style study, cross-border consumers cite a
guaranteed returns process (50%) and landed cost at the time of purchase (27%) as factors to increase
their spend with U.S. retailers.

Q: What major U.S. retailers would you like to be able to purchase from on an online shopping
site?
Health & Home
Apparel Footwear Beauty Furnishings
% % % %
Indigo (by Bath & Body Bed, Bath &
Target 15 4 11 14
Clarks) Works Beyond
Macys 10 Steve Madden 4 DHC 1 Crate & Barrel 7
Abercrombie &
8 Zappos.com 3 Dr. Leonards 1 Mikasa 5
Fitch
Saks Fifth
7 Via Spiga 1 Le Gourmet Chef 4
Avenue
Niemen Marcus 6

When asked of their online preference for U.S. retailers, the selection indicates a different profile and
potentially different market requirements when compared to the results of the Canadian retailers wanted
online. Domestically, the retailer choice is driven by price and basic needs while internationally,
Canadian direct buyers are looking for style, brands not available in Canada, and wider selection of
merchandise when shopping with popular U.S. retailers. The choice of U.S. retailers also demonstrates
that Canadian consumers have a high degree of brand awareness of U.S. retailers.

Percentage of all reported incidence per category purchased in the U.S.
• Clothes – 44% driven by women’s apparel
• Shoes/footwear – 50% driven by women’s dress shoes
• Health and beauty – 45% driven by health-care aids (diet, vitamins)
• Home furnishings – 31% driven by small home electronics

-9-


RETAILER implications

Strategy
• Key decision makers need to recognize the thriving global commerce market and implement retail innovation
and best practices to be competitive and grow market share. Early adopters of multi-channel strategies will
reap the benefits of pent-up consumer demand in an underserved Canadian market. A multi-channel strategy
can increase overall consumer spend by at least 20% more than single-channel strategies.
• Understand the retailer-specific market opportunity and develop a phased approach to implementation. The
key is to leverage existing infrastructure and marketing tools, such as “magalogues,” website and back-end
operations, and partner with vendors where internal resources or capabilities aren’t to scale.
• Canadian retailers have a natural advantage in attracting consumers who indicate that their first preference is
to shop domestically.

For international retailers expanding to Canada
• Entering an international market is an investment. If initial marketing efforts produce less than stellar results,
don’t take that as a market indicator. It can take more time to convert a Canadian shopper, but higher average
order values (AOVs) and frequency of purchases can potentially offset those investments.
• The introduction of a new brand to a market requires effort to build a trust factor with new customers. It would
not be uncommon to market to a Canadian consumer three times before purchase conversion. But prolonged
strategies can yield higher average order values – 20% (on average) more than American purchasers.
• Ensure that your marketing message is relevant, that the product is available, and set delivery expectations, as
it takes longer to move things across the border.
• Canada is an international market; the more localized the shopping experience, pricing in Canadian dollars,
use of local language, and duties and taxes upfront will increase the conversion rate and incite purchase
frequency.

Online
• Young adults 18 to 24 have the highest consideration for purchasing any of the selected categories online,
largely driven by apparel and footwear. This group is driven by retailers not available in area and availability of
brands.
• While the propensity to shop online is lower among the 55+ age segment, one-quarter report that they would
consider purchasing apparel online. Of this same age group, 26% of the respondents would consider
purchasing health and beauty products online, and 37% would consider purchasing home furnishings online –
showing that there is still opportunity to sell to older consumers online.
• High household income earners ($70K+) are the most active online purchasers.
• The web channel is a good launch pad to test new merchandise and brands.

Catalogue
• As catalogue purchasers tend to be of an older demographic (45+), this group is concerned with relevancy and
customer experience. Niche marketing, such as a merchandise category, lifestyle-specific catalogues or other
targeted, direct marketing offers through database modelling, is an opportunity for retailers to reach this
segment and incite loyalty and frequency of purchases.
• As in the online channel, catalogue is an excellent way to expand merchandise selection without incurring the
cost related to traditional retail.
• Response rates in Canada tend to have a longer cycle than in the U.S., averaging responses up to four weeks
after receiving the book.

Store
• Clearly, in-store shopping is still the preferred channel of shopping among all age, income and channel groups.
Still, as share of wallet indicates, in-store spend is shifting to the direct channels. Retailers in Canada who
implement a multi-channel strategy can potentially grow market and customer share by 23% to 83%.
• Customer service and brand continuity are key in implementing a multi-channel strategy, as consumers expect
a seamless experience and quality care when it comes to product information and return methods (buy online,
return in-store).

Merchandise
• Canadian direct shoppers indicate that the lack of retailers and merchandise selection does not meet their
current shopping expectations and buying patterns. Key categories of opportunity for retailers in Canada:
o Apparel – women’s clothing
o Home decor – small home electronics and small countertop appliances
o Health and beauty – vitamins/diet aids, perfume/fragrance

- 10 -


o

CONTACT us:
Monday to Friday
8:00 a.m. to 6:00 p.m. EST

General Information
1-866-607-6301
(Outside of Canada
1-416-979-8822)

canadapost.ca

- 11 -

What They Want: Insights into why Canadians Shop Direct

Recommandé

Recommandé

Contenu connexe

En vedette

En vedette (12)

Similaire à What They Want: Insights into why Canadians Shop Direct

Similaire à What They Want: Insights into why Canadians Shop Direct (20)

Dernier

Dernier (20)

What They Want: Insights into why Canadians Shop Direct