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Canada’s immigrant population is booming and now represents 21 percent of the population—the highest level in eighty years. But companies looking to connect with multicultural markets shouldn’t adopt a one-size-fits-all approach. Reaching diverse populations requires an understanding of the cultural nuances among the varied ethnic communities—and even communities within communities. To determine customers’ lifestyles and spending preferences, marketers must first examine their target consumers’ level of acculturation: Are they the Millennial children of Chinese immigrants who identify with Canadian culture? Are they older immigrants who still identify with their homeland or are they straddling two worlds along the culture continuum?
Fortunately, answering these questions has become easier thanks to new data-based products that give marketers insights for tailoring their messages, media and merchandise. An analytical tool called CultureCode®, developed by Environics Analytics and Geoscape®, classifies Canada’s largest cultural groups into five categories of acculturation based on their home language, knowledge of English or French and period of immigration. Every one of Canada’s neighbourhoods has received a CultureCode® score that indicates the level of acculturation for various communities and its effects on lifestyles, spending and language use.
The behavioural differences between segments can be stark. Consider an analysis of Chinese immigrants classified by three acculturation groups:
NextGen – Born in Canada to Chinese parents, these young, high-income singles speak English at home and identify with Canada. Reflecting their affluence, they index high for owning a vacation home, travelling on package tours and acquiring art and antiques. But this prosperous group is also philanthropic and often donates to charity. When marketing to this group, keep in mind that they’re well-educated and have high rates for reading newspapers—especially the arts, fashion, travel and health sections.
Bi-Cultural – This group consists of very young, low-income singles who were born in China, speak English at home and identify with Canada. With their entry-level positions, they live on tight budgets. But like other urban youth, they’re more likely than the Chinese average to spend their money on online activities, film festivals and—in an indication of a lack of apartment-sized washing machines—Laundromats and dry cleaners. As big users of public transit, they can be reached through ads on buses, subways and trains.
Traditionalists – These older, middle-income families came to Canada more than a decade ago but still speak Chinese at home in their Chinese neighbourhoods. They’re interested in furthering their modest educations by taking classes at universities and community colleges. And among all Chinese groups, they are the most likely to frequent casinos and bingo parlours. To reach them, marketers should use a mix of multicultural radio stations, direct mail and e-newsletters.
The importance of multicultural insights like these will only increase as Canada’s population continues to grow and diversify. With new analytical tools, marketers will be able to respond from a position of knowledge, rather than anecdote, and won’t treat all Chinese consumers the same.
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