Authenticity key new driver of revenue & loyalty for Canadian shoppers

27 March, 2023

E-Commerce News

Authenticity is now a key new driver of revenue and loyalty for Canadian shoppers

  • 69% of Canadian shoppers spend more with brands they perceive to be authentic
  • A further 69% of consumers in Canada are more loyal to authentic retailers
  • The Silent Generation and Millennials are the most likely Canadian cohorts to spend more based on authenticity (74% and 73% respectively)

Authenticity is now a key new driver for revenue and loyalty among Canadian shoppers as the trend for more mindful consumption continues, the latest research from Asendia, the leader in international e-commerce and mail delivery solutions, reveals.

Original research of over 8,000 global shoppers in Asendia’s 'How To Sell Direct In The Age Of The Conflicted Shopper' Report, including over 1,000 Canadian consumers, showed nearly seven in ten (69%) of Canadian shoppers would spend more money with retailers they perceived to be authentic, with 56% saying they would only shop exclusively with authentic retail brands.

The key values defining authenticity for Canadian shoppers were: being straightforward on delivering promises (70%); having a clear brand voice (49%); transparency within supply chains (45%); standing up for sustainability (38%); and acting upon brand values (34%).

Authenticity – the new currency for conversion, spend and loyalty

Nearly eight in ten (79%) Canadian shoppers also said authenticity made them more loyal to brands, with a further 63% saying they would switch to a competitor if they felt a retailer wasn’t authentic.

In the context of economic global headwinds and the rising cost-of-living putting extra pressure on household budgets and discretionary spend, authenticity is also helping retailers fend off rising price-sensitivity among shoppers. While 70% of shoppers in Canada plan to cut back on spending in 2023, 41% said a brand’s authenticity would make them less sensitive to inflationary price increases, rising to 66% of Millennials.

Renaud Marlière, Global Chief of Business Development of Asendia, commented: “Of course, we see that shoppers are acting with caution due to the rising cost-of-living, but invariably they are also consuming consciously and mindfully. Shoppers now want to engage and buy from brands who act authentically. Increasingly, shoppers are holding the retailers and brands they shop with to account - and it is clear that authenticity is now having a significant impact on share of wallet, revenue and loyalty.”

“Brands and retailers need to take control of their own destiny when it comes to shaping the authentic shopping journeys consumers are now demanding. Shoppers increasingly expect accountability and transparency from retailers, whether through greater transparency around supply chain emissions, delivery promises or offering low- or carbon-neutral shipping options,” Renaud Marlière continued.

In 2022 Asendia announced it had reached 100% carbon neutrality through its carbon offsetting projects. It now offers carbon neutrality across all shipments carried out for international retail customers via its e-PAQ solution, a specialist range of international packet and parcel services designed for online retailers.

Despite a perceived assumption that younger demographics are driving the demand for greater sustainability, ESG and Corporate Social Responsibility (CSR) – some key areas defining authenticity – Canada’s Silent Generation, those aged 76 years old or older, were the most likely to see an impact on spend with authentic brands (74%), closely followed by Millennials (73%).

Channel matters – the impact of DTC on authenticity perception

Canadian shoppers feel brands that operated Direct-To-Consumer (DTC) were more authentic than those retailers who just operated via marketplaces. Over half (54%) of Canadian consumers felt that retailers that operated their own DTC channels were more authentic, increasing to 73% of Millennials.

Combining global presence with local expertise, Asendia empowers online retailers to grow their cross-border operations by improving international shopping experiences. As well as its international parcel services and fulfilment solutions, it also offers sophisticated digital e- commerce platforms and solutions, including ESW, that deliver the seamless experiences online shoppers want when shopping DTC across borders, wherever they are located around the globe.

For further information on optimizing cross-border strategies for success and how brands can build international consumer relationships that better meet the needs of today’s shoppers, download the full report: 'How To Sell Direct In The Age Of The Conflicted Shopper'.

Asendia is committed to putting the customer at the center of everything it does, which is why it stands for trust, friendliness and ease of use as the key pillar representing its core values.

Download a free copy of this research report to learn global shopper demands and global retailer expectations for 2023 and beyond:

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