Roadmap to Growth. The multicultural opportunity How c-stores can increase sales by meeting the needs of a growing ethnic customer base

Transcription

1 Roadmap to Growth The multicultural opportunity How c-stores can increase sales by meeting the needs of a growing ethnic customer base

2 What is the Roadmap to Growth? In our continuing effort to help convenience store retailers like you grow their sales, the Canadian Convenience Stores Association (CCSA) and the National Convenience Stores Distributors Association (NACDA) have embarked on an extensive project called the "Roadmap to Growth. The Roadmap project focuses on customer perception data collected about the industry that can be used to help retailers identify where they can improve operations to retain existing customers or attract new ones. This project has been broken down into bite-size pieces that can give retailers specific, easy to understand operational recommendations on various parts of their business. Why focus on ethnic customers? The CCSA commissioned a study by ethnicity market research experts, Ethnicity Matters. The report was developed for two reasons: to find out why ethnic customers are an important segment of the marketplace to capture, and how by doing so will boost a retailer s bottom line. New Immigrants (2006 to 2011) 3% 2% 2% 2% All Others 3% 3% Philippines China 4% India United States 10% 47% Pakistan United Kingdonm Iran 11% South Korea Colombia 13% Mexico Source: Stats Canada Percentage of Visible Minorities in Major Cities Total Population Visible Minority Population Top 3 Visible Minority Groups Number Number Percent Canada 32,852,325 6,264, South Asian, Chinese, Afro-Caribbean Toronto 5,521,235 2,596, South Asian, Chinese, Afro-Caribbean Montreal 3,752, , Afro-Caribbean, Arab, Latin American Vancouver 2,280,695 1,030, Chinese, South Asian, Filipino Ottawa-Gatineau 1,215, , Afro-Caribbean, Arab, Chinese Calgary 1,199, , South Asian, Chinese, Filipino Edmonton 1,139, , South Asian, Chinese, Filipino Winnipeg 714, , Filipino, South Asian, Afro-Caribbean Hamilton 708, , South Asian, Afro-Caribbean, Chinese 2

3 Self-Assessment Checklist In order to help you identify factors that can help your store increase sales to ethnic consumers, we provide the following self-assessment checklist. REGIONAL DEMOGRAPHICS o Do you know the major ethnic communities that reside in your neighbourhood? o Are representatives from these communities shopping at your c-store? o If yes, why? o If no, why not? EXTERIOR o Do you have welcome signage in appropriate languages? o Are you showcasing products and services in the windows that are relevant to your ethnic customers? o Do you have signage that tells ethnic customers what is on sale? INTERIOR General: o Is there an ethnic/international aisle for grocery? o Do you have in-store signage in appropriate languages? o Do you regularly speak to your ethnic employees about their ethnic community to understand them better? o Do you regularly speak to your suppliers about how to better serve ethnic customers? Products/Services o Do you know the product and services preferences of your ethnic customers? (note: guidelines can be found in full report) o Do you sell international calling cards? o Do you provide money transfers services? o Do you carry ethnic grocery items? o Do you carry ethnic-appropriate skin, hair, beauty products? o Do you carry ethnic-appropriate holiday products (Chinese New Year, Diwali, Eid, etc.)? Marketing/Advertising o Do you create flyers in multiple languages? o Do you celebrate ethnic holidays in store? (Chinese New Year, Diwali, Eid, etc.) o Do you advertise in ethnic media? NEXT STEPS Once you ve completed the checklist please see our recommendations on how to make your store more attractive to ethnic customers. 3

4 Ethnicity Multicultural Marketing Addressing the Ethnic Opportunity How we gathered our information Ethnicity Matters conducted a survey of 900 consumers across Canada asking them specific questions related to their shopping requirements and habits. These findings have helped us better understand the ethnic opportunity for convenience retailers and gain strategic insights into Canada s evolving marketplace. Based on these findings we've come up with the following recommendations to help convenience retailers satisfy this growing segment of the population. Chinese South Asian General Population Total Survey Numbers Five steps that can help you understand and satisfy your ethnic customers: STEP ONE: KNOW THE ETHNIC MAKE-UP OF YOUR CUSTOMER BASE It s probably so obvious that many don t recognize this point: know the ethnic make-up of the area you serve in order to make certain you are meeting the needs of your customers. The products you need to carry and how you market to these consumers will vary by ethnicity. You need to do your homework. Below we have listed a number of potential sources that can help you easily identify who lives in your market area. consumers. In Appendix A we provide information about what particular ethnic consumers like to purchase in areas we have surveyed for this report. Use this information to recognize that you will need to do some customer surveys in your area as well in order to ensure you have the right product mix for your local customer base. STEP TWO: RECOGNIZE THAT ONE SIZE DOES NOT FIT ALL Catering to the ethnic population in your area is not a one size fits all approach. The products that satisfy one customer base may not be what others need or desire. In order to increase sales, you need to match the products that meet the needs of your identified

5 STEP THREE: CARRY THE PRODUCTS THAT ETHNIC CONSUMERS DESIRE It s important to understand which products you should carry to attract ethnic consumers within your community. In the Appendix to this report we provide information that can help you identify how to create the right product mix to satisfy ethnic customers. STEP FOUR: MARKETING How can you identify the best way to market to the ethnic consumers in your area? The easiest way is to speak to your ethnic staff and consumers to find out which mainstream and ethnic media they follow so that you can best reach them. In the following pages we give you additional tips on how best to market your products to your ethnic customers. STEP FIVE: MAKE SURE YOU HAVE THE RIGHT IN- STORE EXPERIENCE The final step in the journey is making sure the store experience you provide to your ethnic customers (all your customers for that matter) lives up to their expectation and makes them feel welcome. Some easy tips on how to do this include having exterior signage in their language and grouping ethnic products together in a designated area of your store. So is having ethnic staff. As a general principle, it is always best to hire staff reflective of your community

6 Here s where you can find out about the demographic make-up of the trading area of your convenience store Canada Post can detail ethnic information down to the postal code. Under the Postal Code tab, search the postal code in the trading area of your convenience store. Under census tracts, it will provide detailed data for the trading area. Stats Canada - While Stats Canada can provide more granular data, macro information is readilyavailable for free at this link. Under the Postal Code tab, search the postal code in the trading area of your convenience store. Under Census tracts, it will provide detailed data for the trading area. Ethnic media sources including OMNI Television, Sing Tao newspaper, Ming Pao newspaper, Metroland Media, Asian Television Network, Ethnic Channels Group or Fairchild TV Environics can provide more granular data for the trading area of your convenience store. Contact Rupen Seoni, Vice President & Practice Leader at (416) or rupen.seoni@environicsanalytics.ca for more details. Municipal Websites like City of Toronto, City of Calgary, City of Vancouver, etc.

7 Here are some additional marketing recommendations that can help you attract ethnic customers to your store and increase your sales to them 1. PRICE AND PROMOTIONS Ethnic consumers like deals and are willing to shop around for the best price. They need to know what s on sale at your store so make sure you re communicating with them. 3. FLYERS Both Chinese and South Asian consumers like flyers. Try inserting your flyers in ethnic newspapers or distributing them at places where ethnic communities may gather including community events, places of worship and community centres. 4. LOYALTY PROGRAMS Ethnic consumers like loyalty programs and are willing to sign up for them. Creating a loyalty program is not only a driver to your store but also a way to collect ethnic consumer information. 2. MEDIA HABITS Media consumption habits are different for ethnic consumers. Ethnic media is hugely popular including ethnic newspapers, which are widely read. Consider these papers not only as a communication vehicle to let consumers know about promotions and sale items but also as an item to stock to attract ethnic consumers to your stores. 5. MARKETING Creating an opt-in database with contact information for your consumers is a good marketing habit. Besides loyalty programs, contests are also a great way to develop a database. Ethnic consumers will give you permission to contact them if you are providing valuable information like notifying them about deals and promotions. 6. MOBILE MARKETING Mobile marketing and text messaging are also good marketing vehicles. Ethnic consumers are very tech-savvy. Again, the database is key and communication should be valuable and relevant to them.

8 7. LANGUAGE IS IMPORTANT Language considerations are more important for Chinese consumers than South Asians. This is because many South Asian immigrants have grown up learning English back home. This is not necessarily the case for the Chinese. Chinese have a strong preference and need for Mandarin or Cantonese communication over English. Therefore, it is recommended to communicate with the Chinese community in their native tongue. South Asians also have a preference for various South Asian dialects including Hindi, Punjabi, Urdu and Tamil. 9. SURVEYS AND RESEARCH Your current ethnic consumers and staff can provide great insights into what ethnic consumers are seeking. Use them as resources and connection to new growth opportunities. Surveys and contests would be a great way to collect information for your what your consumers want. 10. OTHER FACTORS FOR SUCCESS AND INCREASING SALES Have friendly employees Support local community events as well as ethnic community events Have longer opening hours Have clean, accessible washrooms Stock ethnic products and group them together Stock healthy choices Offer fresh food services/prepared foods 8. SIGNAGE By simply displaying exterior signage in ethnic languages, ethnic consumers feel welcome to your shop. Something as simple as the words Welcome, Open/Closed in Chinese or South Asian dialects creates relevancy for consumers. Signage on the interior of the store is not always necessary but having employees that speak the languages of your consumers would be helpful.

9 By being more ethnically aware and friendly, you ll attract other customers as well Perhaps the most interesting finding in this study is the fact that the general population is shopping at ethnic grocery stores more and more for both their weekly groceries as well as for specific products. This would indicate that you shouldn t be afraid to stock specific ethnic products because not will ethnic consumers buy them, so will your general population consumers. It all boils down to understanding the needs and wants of all your consumers and providing them with the products and services they desire. By following the recommendations outlined in this report, you will not only grow consumers and sales amongst ethnic consumers, but also make your c-store a more inclusive environment for all. For More Information For more information or to get a copy of the detailed research report, please contact us at info@ccsa.ca or call us at

10 APPENDIX Appendix A: There is an opportunity to attract ethnic consumers to your store. In order to do this, there is a need to understand that all consumers are not alike and that there are differences in their buying preferences. The following charts identify some of those differences that we have found in our studies. Top 10 items for attracting Chinese shoppers Rank Gen pop Chinese 1 Lottery tickets 35% 41% 2 Candy 47% 41% 3 Brads 15% 41% 4 Bottled water 21% 35% 5 Chocolate bars or pieces 35% 35% 6 Cookies 26% 35% 7 Gum 38% 35% 8 White milk 21% 29% 9 Dairy (yogurt, cheese, etc. 29% 29% 10 Pre-paid calling cards 29% 24% 10 Iced Tea 21% 24% Significant difference between Chinese and general populations who do not shop in convenience stores Gen pop Chinese Fruits and vegetables 12% 18% Nuts and seeds 9% 18% Frozen pizza 12% 18% Money transfers 0% 12% Fresh meats, poultry, seafood 6% 12% Baby care - baby food, baby formula 3% 12% Health and beauty 3% 12% Baby care - diapers 3% 1 12% Top 10 items for attracting South Asian shoppers Rank Gen pop South Asian 1 Soft drink 35% 37% 2 Bottled water 21% 37% 3 Salty snacks 24% 37% 4 Lottery tickets 35% 33% 5 Gum 38% 33% 6 White milk 21% 33% 7 Ice cream/frozen treats 26% 33% 8 Pre-paid calling cards 29% 30% 9 Breads 15% 30% 10 Ready-to-drink hot coffee/tea 26% 30%

11 Significant difference between South Asian and general populations who do not shop in convenience stores Gen pop South Asian Energy drinks 21% 26% Money transfers 0% 22% Household goods 3% 11% Appendix B: When are convenience stores top-of-mind Top 5 Items for General Population 1. Lottery tickets 45% 2. Candy 40% 3. Gum 32% 4. Chocolate bars 29% 5. Soft drinks 27% Top 5 items for Chinese Top 5 items for South Asians 1 Lottery tickets 42% 1. Bottled water 37% 2. Gum 40% 2. Lottery tickets 36% 3. Bottled water 38% 3. Soft drinks 35% 4.Canday 34% 4. Gum 34% 5. Energy drinks 32% 5. Energy drinks 34% Top 3 Items for Chinese and General Population Chinese Gen pop Beverages 49% Snacks 56% Snacks 47% Lottery tickets 45% Lottery tickets 33% Beverage 41% Top 3 Items for Chinese and General Population Chinese Gen pop Beverages 49% Snacks 56% Snacks 47% Lottery ticket 45% Lottery tickets 33% Beverage 41%

12 Top 3 Items for South Asians and General Population South Asians Gen pop Beverages 52% Snacks 56% Grab a few items 45% Lottery ticket 45% Snacks 42% Beverage - 41% APPENDIX C: Top 10 Items ethnic consumers are buying Top 10 items Chinese are buying Rank Gen pop Chinese 1 Instant, ground or coffee/tea pods 33% 29% 2 Pre-paid calling cards 14% 27% 3 Frozen pizza 32% 25% 4 Candy 17% 25% 5 Fresh meats, poultry, seafood 26% 24% 6 Salty snacks (Potato chips, tortilla chips, cheesies, etc.) 33% 24% 7 Frozen meals 14% 22% 8 Fruits and vegetables 29% 21% 9 Spices, sauces, condiments 30% 21% 10 Bottled water 22% 19% Top 10 items South Asians are buying Rank Gen pop Chinese 1 Newspapers / magazines 33% 29% 2 Pre-paid calling cards 14% 27% 3 Lottery tickets 32% 25% 4 Ready-to-drink hot coffee/tea 17% 25% 5 Bottled water 26% 24% 6 Salty snacks (potato chips, tortilla chips, cheesies, etc. 33% 24% 7 Cigarettes 14% 22% 8 Gums 29% 21%

13 9 Soft drinks 30% 21% 10 Tobacco 22% 19%

14 APPENDIX D: Ethnic consumers are open to innovation Top 10 items Top 10 Items for Innovation 1. Instant coffee 6. Pre-packaged rice/noodles 2. Ready-to-drink coffee 7. Gum 3. Pizza slices 8. Chocolate 4. Prepared food 9. Granola bars 5. Cookies 10. Fruit juices