On Thursday, I visited Toronto to deliver a speech to the Food and Consumer Products Association of Canada. In the 24 hours I was there I had dinner with a client, saw the executive team for breakfast, took a selfie with the Toronto office and got to see the legendary Lake Muskoka. Here are a few observations from my day in Canada:
- The Federal Election is a Toss Up — The current polls show the Conservative party (incumbent Stephen Harper) at 32 percent, the Liberal Party at 30 percent and the NDP at 26 percent. So the possibilities include Harper holding on, Justin Trudeau of the Liberal Party getting a chance later in the year to form a coalition government or the NDP making a surprise showing and moving into second place then being asked to form the government. If the Liberal NDP coalition gets the nod, expect some leftward movement in policy, including a likely withdrawal of troops from foreign assignments and implementation of mandatory green policies.
- The Toronto Blue Jays Win the American League East Pennant — For the first time in 22 years, the Jays are back in the playoffs. The team is likely to be the favorite to win the World Series and may end up having to face the hated New York Yankees in round one of the playoffs.
- Demise of Global Ad Agencies — Young & Rubicam (Y&R), TBWA and Lowe have all folded their operations in Canada. As recently as five years ago, Y&R is said to have had 200 people in the region.
- The Rise of Private Label/Own Brand — The quality of the private label has risen substantially. In certain categories, the private label has over 50 percent share at retail. Companies that manufacture in the U.S. and import to Canada are hurt badly by the decline in the Canadian dollar.
- End of the Commodity Economy — Canada has funded its generous social programs on the back of booming commodity prices, especially oil, lumber and precious metals. With the 50 percent or more decline in prices, expected to last for the next five years, the hope is for a renaissance of local manufacturing and a vibrant entrepreneurial sector with sharing economy concepts.
- Diversity — Canada now claims to be the most diverse nation in the world. It has attracted immigrants in droves, largely from Asia.
- Media Must Localize — Neither Vice nor BuzzFeed has made significant penetration in the Canadian market so they are launching local editions. They are following the model of The Huffington Post, which now has a very real following in the market. The newspaper business is under siege, with layoffs in the newsrooms at major metropolitan dailies.
- Demise of National Icons — Other than Shopify, there aren’t many star local brands at the moment, with Blackberry, Lululemon and Roots all in retreat mode and Tim Horton’s taken over by a private equity firm. But with the Canadian brand being the most trusted in the world, according to the Edelman Trust Barometer, the time is right for entrepreneurs in Canada to get going on the next icon.
- Canada as Innovation Hub for Multinationals — While delivering my speech to the Food and Consumer Products Association I suggested that Canada become an innovation hub. It has the diverse population, digital penetration, R&D potential in its universities and a farm to fork supply chain advantage.
I no longer buy into the stereotype of the stoic reticent Canadian who will endure the inefficient and uncomfortable. The new Canada is multi-cultural, globally minded and determined to get ahead. Our Toronto office is one of Edelman’s star performers, having achieved a complete integration of digital into the PR core business, offering excellent creative and first class crisis counsel. The team in Toronto is on par with any of our offices; they want to compete with the usual competition but also with ad agencies, digital firms and media buyers. On this, the 63rd anniversary of my father opening up Edelman and Associates with three account staff and a secretary in Chicago’s Merchandise Mart, it was a great way to celebrate the entrepreneurial spirit that is alive and well at our firm.
Richard Edelman is president and CEO.