One-third of new category entrants are newcomers: IMI

One third of new category entrants are people born outside of Canada, a new IMI report shows.

IMI’s “From Newcomers to New Consumers” included a survey of approximately 12,700 Canadians born outside of the country, and its insights reveal that the new category entrant proportion for Canada (33%) is even higher than the UK (23%) or the U.S. (13%) for 150 categories identified.

The results reveal that the percentage of new market potential from people born outside of Canada is robust in three categories: hydration beverages (27%), gym memberships (22%) and live concertgoing (22%).

The percentage of people who buy snacks is nearly identical between those born inside and outside of Canada. But IMI finds that newcomers to Toronto are less likely to buy Hershey, Frito Lay and Tostitos brands. Marketers, it says, need to know how to engage and drive purchase consideration for newcomers to have long-term success.

Marketers need to know where their brand stands and where the opportunity lies.

Other examples of brands that resonate more with Canadian-born shoppers are Ritz and Triscuits brands from Mondelez, as well as Conagra’s Orville Redenbacher.

IMI also notes that there is opportunity to drive momentum for brands like Fanta or Nescafe, which resonate more deeply with newcomers.

Coca-Cola has strength globally, and has done a robust job connecting with those born outside and in Canada, as has Starbucks and Tim Hortons. PepsiCo’s beverage portfolio, by contrast, reveals opportunity, particularly for Gatorade.

Keurig, as well as Kraft brand Maxwell House and Smucker’s Folgers, have to make up ground when it comes to driving purchase with newcomers, IMI finds.

As IMI points out, Canada has an annual immigration rate of half a million people, which is one of the highest anywhere in the world. Thus, it behooves marketers to think specifically and strategically about to reach these consumers.

That means undertaking lots of work to understand the core audience, and understanding, for example, that those born outside Canada are far more likely to use platforms such as WeChat, Skype and LinkedIn.