By Nicole Staffiere, Mars UnitedSM Commerce
According to Statistics Canada (2024), immigration is driving 92% of the nation’s population growth — which means the race is on for CPG brands to connect with the 500,000+ new consumers who are settling here each year. For retailers and brands, it’s no longer an opportunity but a necessity to build lasting consumer relationships with these new Canadians.
By successfully integrating new Canadians into your marketing and shopper strategies, marketers can win with a consumer segment that is undecided about their brand loyalties within the Canadian landscape.
This article will first explore the shopper mindset of “Canadian Newcomers” and then dive into strategies that CPG brands can implement to secure their loyalty.
Meet the Canadian Newcomer
The unique shopping habits of New Canadians are shaped by their pre-arrival research and first shopping experiences. Before arriving in Canada, they take a digital-first approach, often turning to platforms such as YouTube, WeChat, and alternative media, common to their native country, to learn and familiarize themselves with brands and product offerings, according to MIQ.
Upon arrival, their openness to discovery is evident: Google finds that three in four like to try new brands, compared to just 40% of longstanding Canadians. This willingness to explore products is also evident when they visit a store, where their shopping baskets are roughly 15% larger than those of average Canadians, according to Strategy Online.
But their priorities on price, product, quality, and store selection clearly indicate a need to balance affordability with associated value. Since they have just journeyed to a new country where everything is new, they tend to seek familiarity by heading to stores that carry a diverse, multicultural selection of products, according to a study from Leger.
Having this level of understanding into the mindset of your consumer target is the key to effective shopper engagement. (Learn more here.)
Building Brand Loyalty with Canadian Newcomers
Pre-Arrival: Drive Awareness
Engage early by meeting them where they are: Imagine that you are heading on a month-long trip. For most, this requires extensive planning, consideration, research, and networking to get firsthand reviews and recommendations to build your itinerary and prepare for travel. It’s similar for soon-to-be newcomers researching, although many are travelling abroad and planning to start a new long-term chapter in their lives.
Be part of their welcoming committee: Brands that engage early through digital advertising, content marketing, and social media have a greater chance of becoming their go-to choice upon arrival.
STRATEGIES FOR ENGAGEMENT
- Optimize for online search: SEO, programmatic advertising, and targeted social campaigns boost the likelihood of branded content being shown to your intended audience.
- Leverage multicultural media native to their home country: This will be key to building awareness, brand familiarity, and trust. Statistic Canada reports Canada’s immigration population based on place of birth. More than half of recent Canadian immigrants hail from Asian nations.
- Speak the native tongue: Google finds that 68% of newcomers feel a sense of belonging to brands that advertise in their language.
- Ensure cultural relevance: Don’t just translate. Create deeper connections by ensuring all elements positively reflect the values of your audience. Every detail here matters (colour, iconography, representation, language, seasonality, etc.). For example, a brand could show its relevant support by releasing a special-edition product or campaign in celebration of a local-culture holiday. If received well by the target audience, this can foster a sense of belonging and positive association with the brand moving forward.
Arrival: Convert Awareness into Loyalty
STRATEGIES FOR ENGAGEMENT
Create personalized, authentic, and inclusive shopping experiences: Heading into an unfamiliar store in a new country can be intimidating. Creating a comfortable, inclusive shopping experience is essential for earning their trust and fostering long-term loyalty. One critical factor is embracing the newcomer mindset outlined earlier while taking into account their unique differences. Various cultures celebrate different holidays, and brands that take the time to understand the nuances of each group will develop authentic marketing strategies that deliver a sense of community to the audience.
And to get the brand message across, brands must be present in the stores frequented by newcomers. Leger’s research indicates that 82% of newcomers prefer shopping at top retailers including Walmart, Costco, and No Frills.
Offer loyalty and rewards programs: A compelling 75% of newcomers say they are more likely to shop at stores with a loyalty program, compared to 54% of long-term Canadians, according to Google. Leger’s research found Loblaws’ PC Optimum (62%), Costco (45%), Scene Plus (44%), Amazon (33%) and Canadian staple Tim Hortons (32%) to be the retail loyalty program’s best at winning with newcomers. (Unfamiliar with the Costco shopper? Learn more here.)
Brands should tailor rewards to newcomer needs by discounting essential items, encouraging repeat purchases, incentivizing referrals, and delivering other first-time-shopper benefits.
By taking a proactive and culturally intelligent approach, brands can win the hearts of Canadian newcomers. Engaging early is a critical first step, as is creating inclusive experiences and offering strong incentives.
Census figures forecast that newcomers could represent up to 34% of Canada’s population by 2041. Building brand loyalty among newcomers should therefore be high on the objective list for all brands when considering their future opportunities in Canada.
To learn about maximizing your retail media strategy in Canada, check out our latest findings here.
About the Author
Nicole Staffiere is Senior Account Executive at Mars United Commerce, based out of Toronto, where she specializes in working with CPG clients. Her daily goal is to provide exceptional client service and deliver impactful, results-driven strategic campaigns.
