Consumers spending less, but small businesses can adapt: BDC report

Geopolitical tensions, environmental concerns, rising prices, and reduced spending power are motivating Canadians to cut back and entrepreneurs can respond, says BDC's ‘2023 Consumer Trends report.’ 

Back in 2016, when BDC conducted a similar study, Millennials were driving the hyper-connected consumer revolution, sharing platforms were just emerging and there was a need to better target consumers with personalized messages and experiences. 

"These trends have become part of our daily lives, and we realize that they are associated with the larger trend of consuming and owning less, whether it's a conscious choice or to save costs," says Pierre Cléroux, vice-president, research and chief economist at BDC. "Today's prudent consumers have different expectations; it's important to keep these in mind when adjusting to shifts in their behaviour." For example, bringing sustainability to all aspects of the business, as well as promoting sustainability efforts, can go a long way. 

Other trends highlighted in the report include the need for a simple and satisfying customer experience, personalized communication, and having trust in businesses.  

For more information, visit BDC's ‘2023 Consumer Trends report.’