In the business world, companies that stand still often get left behind. As a result, business owners always need to be forward-thinking and plan for the years ahead.
As Small Business Week in Canada took place at the end of October, now is the perfect time for Canadian businesses to assess their strategy for the busy Christmas season and beyond.
With this in mind, here are three trends that will have a significant impact on Canadian businesses in 2021.
1. E-Commerce goes international
Research shows that online auction and e-commerce businesses in Canada have seen their revenue grow by 30.2 per cent from 2019 to 2020. This makes e-commerce the fastest growing industry in Canada today. Due to the fact that the Canadian dollar is currently the sixth most-traded currency in the world, it appears as though many of these e-commerce businesses have grown by expanding beyond the country’s borders and begun to trade internationally.
Throughout 2021, as these businesses expand further, they’ll have to engage more with the forex trading market as they execute multi-national transactions. It’s important that business owners understand how to buy and sell forex currency pairs before they begin the process of taking their business to the international level. After all, the volatility of the forex market means that it takes time to understand it and the fact that the market operates on an over-the-counter exchange makes it different from the futures and stock markets. Business owners who do not arm themselves with the knowledge to trade internationally may be left behind in 2021.
2. Businesses continue to go green
Customers are increasingly considering their relationship with the planet. Many Canadian customers are becoming less price-conscious and are instead looking to buy from green, ethical and sustainable producers. As a result, towards the end of 2020 and into 2021, expect to see more Canadian businesses pledge to go carbon neutral.
At a political level, there’s already support for this and the NDP government have confirmed that, if they’re re-elected, they would commit to zero-carbon emissions by 2050.
Some experts believe that Canadian businesses, which integrate sustainability into their daily operations, will be able to treble their bottom line. This is because ‘going green’ can reduce costs, open up new markets and increase profit through innovation.
3. Widespread 5G implementation will help businesses and customers connect
2020 was the pilot year when 5G systems landed in Canada. However, the connection is spotty, and currently, only three carriers offer the technology in the country. In 2021, four new carriers are set to introduce it, and this will help 5G enter the broader market.
With 5G, customers and businesses will be able to use faster downloading speeds to connect instantaneously. Plus, it will increase the productivity of workers and make Canadian companies more competitive on a global scale.
5G networks promise to be 20 times faster than the current 4G systems, so faster download speeds, less lag time and a more stable connection are expected. In 2021, not only will this increase the speed of businesses, but it can also revolutionize the way businesses operate and interact with customers.
The business world is always changing, and business owners need to be constantly on the lookout for new opportunities. By incorporating the above three trends into a business plan, business owners will arm themselves with knowledge and ensure they’re at the cutting edge of business practices.
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