Canada is largely close to the US border so most of the Canadian market is aware of American brands. E-commerce in Canada is continuously growing and Canadians living in remote parts of the region are more inclined to buy bulk when there are free shipping incentives. Canadians also prefer purchasing from outside of the country with roughly 70% of purchases in 2015 from outside merchants. This is a country of big earners and big spenders as well so businesses can do well and take advantage of this lucrative market. Industries that are currently booming in Canada include health, beauty, environmental, technology, manufacturing, and automotive. It’s also worth mentioning that Canadians are very receptive to products and services that benefit the environment. With the average household income at roughly $76 000 and most buyers importing from foreign countries, there are many opportunities for businesses and brands to thrive.
Social media influence
The Canadian market and consumers as a whole are predominantly influenced by social media marketing and social media in general. If you are running a business or a brand, social media is necessary to reach a wider audience. You should have a consistent social media presence and utilize all social media marketing tools and features including paid pads, organic marketing, and influencer marketing. You should focus on growing your social media presence as well as the number of followers on your platforms, especially where Instagram is concerned. This will enable you to reach a much wider audience and reach success in whatever market you are competing in. For businesses and brands who are unable to organically grow their Instagram followers independently, there are sites you can visit that will review the most reputable growth services and platforms where active organic Instagram followers can be bought. This will take pressure off of you and will enable your business to gain a larger following of real followers which means more visibility, brand awareness, and potential sales.
Understand the cultural differences
America might be on the border of Canada however, there are differences that businesses must be aware of. We’ve already mentioned that residents who live remotely are more likely to buy bulk orders if there is free shipping involved; however, there are other cultural differences to know as well. For example, a portion of people in Canada speaks French which means that many companies need to offer product packaging and customer service in both English and French.
When it comes to regulations, there are some complications to be aware of specifically regarding the shipping. If you are a business operating outside of Canada and you have to ship a package, be aware of the size of the country as well as the fact the population of Canada is thinly spread. The average delivery time exceeds 2 weeks and some companies don’t offer customers tracking codes which can be a problem. Canadian customers are expected to pay additional sales taxes and other additional duties when buying products outside of the U.S and there are other strict restrictions prohibiting the export of certain products such as GPS devices. This is important to know if you are operating a business within Canada. There are also strict cross-border shipping regulations issued by Health Canada that state health and beauty companies cannot ship inventory across the border that is worth more than 90 days of stock. This will only be permitted if the products being moved have been approved by Health Canada.
Partner with locals
If you are an entrepreneur looking to expand your business into Canada, it might be a great idea to find a suitable communications partner that will help facilitate your entry into the market. These people can also connect you with the right people and give you insight into any challenges that you may face along the way.
Canada has about 35 million citizens who have a strong desire to consume American products. This population also has purchasing power to satisfy all their needs which makes this market a lucrative target for businesses and brands all over the world. To fully take advantage of this market, you need to first understand the market and all relevant logistics including the social media influence, cultural differences in Canada, regulations, and how your business can partner with locals to help you effectively penetrate the Canadian market.