Millennials Aren’t The Answer, But May Hold The Key To Retail Growth
Richard Honiball
Seasoned C-Suite Executive | Award Winning CMO, Marketer, & Brand Builder | Top Retail Influencer | Innovative Strategist | Team Builder | Educator & Mentor | Customer Focused | Ally | Most importantly, Husband & Dad!
Retailers and brands covet the Millennial customer and are going to great lengths to capture their attention. Dollars are being shifted from traditional marketing to social, digital and experiential marketing. New programs are being developed and introduced. Some retailers are actually investing in a “Millennial” infrastructure, bringing on board specialized positions to speak exclusively to this younger customer, and with good reason. Millennials are now the largest generational group in the United States, and are also the most culturally diverse. While unemployment within Millennials remains higher than other generations, this group is more likely to be college educated and also more likely to attend graduate school than previous generations. Soon Millennials will represent a higher percentage of our economy compared to other generations. Given that, brands and retailers that attract Millennials are fighting harder to remain relevant, and the legacy brands and retailers that attract an older consumer need to figure out how to attract this younger generation. But simply focusing attention on Millennials is not the answer. Millennials are simply the first generation to adapt to the new economic realities that ALL generations now face, and the key to future retail success is creating brand and shopping experiences that are multi-generational in their appeal.
(photo credit 123rf.com)
We now live in a world that is digitally & socially connected. Millennials are often referred to as the first “digital natives”, the first generation to grow up in a digital world. The mistake though, is thinking that all Millennials are fascinated with technology – more embrace how technology can make their lives easier, enriched, and more enjoyable. At the same time, this is a discovery that ALL generations are making. The idea of multiple “channels” has given way to connected, seamless experiences, where it doesn’t matter how the consumer is looking at your brand, it simply matters that they are. Much in the same way that decades ago, it didn’t matter if a customer purchased from you by catalog, phone, in store, or in their office, it simply mattered that they made the purchase.
As for social connectivity, consider this fact from AdAge – 35.4% of social media users in this country are between the ages of 18 to 34. Those in the 35 to 55 age group, they represent 31.2% of the total. Even more telling, 19.1% of social media users are over the age of 55, and those over the age of 65 are expected to see the highest increase in number of social media users over the coming years. As channels like Facebook mature, so do their audiences, as is noted by the rise of “silver surfers.” Social media isn’t a form of communication reserved just for the younger generation, it is a way to connect with all consumers, and needs to be targeted as such.
(photo credit: theguardian.com)
Over consumption is giving way to conscious consumerism. People are buying less “stuff.” Some might say that this is a period of frugality driven by current economic conditions, and that Millennials, who are driving this trend, will start buying more as their disposable income increases. Maybe. Or maybe we have entered into a new reality where people are “right sizing” their lives, focusing on quality over quantity and long-term style over short-term fads. The “tiny home” trend may be extreme, but housing sales and building trends show that people are buying smaller homes and making better use of the square footage that they have. Every generation is starting to care about quality more, and even beyond the quality of the product, is paying attention to how and where things are made, and what purpose they serve. Any way you look at it, consumers of all ages are less focused on how much they will save, and more that the item purchased will provide true value, and not be predestined for Goodwill.
(photo credit: modern8.com)
Brands matter less. Authenticity and customer experience matters more. Brands still matter, but Millennials are proving to be less “brand loyal”, and recent studies have shown that other generations are following their lead. Ask McDonalds if it is enough for a brand to trade on the strength of their name, or if they have to reinvent themselves to answer the new demands of the changing consumer. Consumers are more and more seeing through the allure of a tenured brand name, and instead paying attention to the quality that the brand offers, the authenticity in how the brand acts, and the experiences that it offers its consumers. Millennials aren’t the first generation to pay attention to how things are made, or how a brand or retailer conducts itself, or contributes back to the community. This generation just has at their disposal more social tools to ensure greater transparency and the ability to communicate with others that feel the same way. The same tools that all generations have and are starting to use more and more.
(photo credit: businessspeaker.com)
Five generations are now working side by side. Jobs, career paths, retirement ages and pensions are all shifting right now. Millennials are more apt to embrace freelance, start-ups, or the idea of working multiple jobs to fashion the right living for themselves. This generation is in many ways forced to do so given the economic climate. But think about this for a second, the generation emerging on the heals of Millennials, Gen Z, is now coming into the workforce, and the Silent Generation, the group that preceeded the Baby Boomers, are now often working side by side. Each generation, learning from each other. Those that feel that Millennials are carefree don’t appreciate that study after study shows that they care about the same things that the rest of us do – security, prosperity, family. The older workforce, influenced by shifting priorities, disappearing functions, and postponed retirement are now behaving in a “Millennial” fashion, looking at new types of opportunities in freelance, start-ups, or holding multiple positions. And the new income realities are in turn influencing how each generation consumes products and services.
Every emerging generation provides an opportunity for brands and retailers to earn a new platform of loyal consumers. Tailored and formal driven brands jumped at the chance to introduce casual, relaxed styles in apparel, furniture and other categories when Generation X came of age. Boomers provided the same opportunities, the same as every generation prior. What makes Millennials different isn’t that this generation is behaving differently, it is that they are growing up in a time that provides particular opportunities to connect and communicate, and particular challenges as our economy evolves rapidly. While it may seem nostalgic to think that Generation X’ers slopped around in khakis and t-shirts while Boomers remained suited up, the reality is that what was seen as a “Gen X” trend in fact impacted all generations.
What can happen if brands and retailers pay too much attention to the emerging generations? A few weeks ago, Whole Foods announced their intent to open a new chain of stores dedicated to the Millennial consumer. As Fortune Magazine stated in their article on May 7th, “Food marketers continue to be challenged by millennials’ discerning demands. They want high taste at great value. They respond to gorgeous, high-tech packaging but don’t want to pay a premium for it. They crave the new shiny thing and are easily bored, so they are inherently not brand loyal. They love ethnic and artisanal “finds,” and tend to dismiss those very same products when they get too popular.” Sounds logical. Except as they soon learned from the feedback of many consumers that it isn’t just Millennials who desire those things, it is ALL consumers. And their stock dropped as several analysts believe that introducing one chain will merely cannibalize the existing one.
One very important point that many brands and retailers are overlooking – with Baby Boomers and even those in the Silent Generation postponing their retirement and seeking to remain relevant, their share of the economic engine isn’t waning as previously anticipated. This group wants to be appreciated for what they do and what they offer, and be respected by the brands that they frequent. If slighted by a brand or retailer that is trying to hard to be younger, this older consumer could likely move on.
Millennials may hold the key to how consumers are evolving, but successful brands will be the ones that understand that all consumers, both young and old, often desire the same things. And all want to be respected.
Organizational Change Strategy & Communications Expert| C-Suite Advisor |Digital Transformation and Innovation Enabler
9 年Agreed! Millennials are changing/enhancing the retail landscape and now is the time for organizations to assess their customer experience- tools, processes and the people delivering on the brand promise. Is your company ready???
MERCHANDISER,BUSINESS DEVELOPMENT & COST ANALYST at VISION EXPORTS INDIA
9 年I am very happy to see this Mr.Richard If you are looking for your retail products we will provide you as per your requirement. Best Quality Costly or competitive prices are available here. our brands sells in whole world. for any query don't hesitate send us a email at:- [email protected] We will assist you and will be very happy to give feedback as soon as possible. Thanks & regards MS Alam
Regional Vice-President, Brand Recruiter at Ann Taylor Factory and Loft Outlet stores
9 年Once again, Mr. Honiball you've nailed it... Great perspective!