Yo-Chi and the Millennial Shopping Experience

In this article, I would like to share a personal experience that perfectly exemplifies the forces that shape the shopping behavior of today's millennial/ Gen-Z consumer.

As part of my ongoing Marketing MBA course at S P Jain School of Global Management , I was presented with an opportunity to create a market-making strategy for Unilever, under the mentorship of Ramanathan Vythilingam ?? . This was part of a corporate immersion project for our second semester, and alongside two of my batch mates ( Tejal Gohil and Pakhi Goel ), I conducted an extensive market research in Sydney Australia on understanding the evolving consumer behavior landscape. We finally narrowed down on the growing trends in health consciousness, and we explored the implications of this on the Ice Cream Industry.

Keeping in mind that a big part of my summer (Australian Winter) was spent researching all things healthy ice-creams, it was a real delight to walk into Australia’s very own Yo-Chi Frozen Yogurt ice cream parlor.

Yo-Chi came to me as a recommendation from several well trusted Australian Fitness Influencers (classic millennial moment, I know- I basically went to Yo-Chi for the GRAM). I already had tried and devoured Messina Gelato and felt curious to see how much Yo-Chi would stack/compare.

First Impressions: FOMO at Its Best

As I approached the store, I was immediately greeted by something unexpected—a?ticketing system- just to ENTER! (excuse me, what?) The line stretched far outside the door, which, if anything, amplified my desire to check the place out. There’s something almost magnetic about seeing a crowd gathering, especially for current generation Millennials—it taps into that fear of missing out (or?FOMO, as we like to call it). In case anyone was curious, my group’s token number was 56. Essentially, 56 other groups were made to wait to enter a line (It has been a month since this trip, and I still cannot get over this moment).

Waiting in line wasn’t tedious at all. In fact, it gave me time to observe the scene: families, groups of friends, couples—all excited in their wait to enter Yo-Chi. You could feel the buzz in the air, which set the perfect tone before even stepping inside. It made me realize that?social settings?matter more than we give credit for. For?Millennials?and?Gen-Z, an experience isn’t just about the product—it’s about the?vibe, the atmosphere, and the energy we get from the concept itself. In a world where social experiences are just as important as the product itself, Yo-Chi has nailed it very well!

The Yo-Chi Experience: Where Personalization Meets Indulgence

Once inside, it was clear why?Yo-Chi?had such a magnetic pull. The self-serve model gave customers complete control over their experience—a hallmark of what?both millennials and Gen-Z consumers seek out in the modern consumer landscape- Personalization. Yo-Chi delivered that by letting me create my own frozen yogurt dessert from start to finish. I could go as healthy or as indulgent as I desired, which leads me to a vital insight about?millennial shopping behavior:

We’re willing to?spend more for value.

If something offers flexibility, variety, and customization, we’re willing to pay for it all. Yo-Chi’s self-serve model tapped right into that. If I wanted to go indulgent, I would add in all the sugary add-ons- Nutella, cookie dough, chocolate brownie. If I was being healthy, I could size down the ice cream to an acai-flavor and top it with fruit and nuts. The control was in my hands—and this made all the difference.

Taste: The Ultimate Game Changer

The biggest hurdle that most?health-conscious?consumers face with frozen yogurt, or any healthy treat is its taste- typically, healthier alternatives never taste as good as the regular product. You can easily “taste the sacrifice” that you are making. One of my friends, who was not too happy with the taste of Fro-Yo (he had been burnt in the past), was extremely hesitant to even be in line, forget buying anything.

Once the free tastes were handed out, and we dipped into the various flavors, minds were immediately changed! The taste was creamy, indulgent, and satisfying—it felt more like?ice cream?than fro-yo. You wouldn’t believe it was healthier, lower in sugar, and packed with probiotics and antioxidants.

This addresses one of the main?barriers?for consumers in the healthy ice cream space:?flavor. Healthier alternatives often compromise taste, but Yo-Chi nailed it, offering indulgent, rich flavors without the guilt. For?Millennials?like me, who want to feel good about what we’re eating while still enjoying life’s indulgences, this was a major win.

Personalization and Profitability: More Than We Bargained For

As my friend? Suhani Khera ?pointed out during our visit, the self-serve model not only encourages?personalization, but it also tends to make customers indulge more. In traditional ice cream parlors, we’re used to ordering single scoops or set portions. But at Yo-Chi, we went a bit wild and ended up with?400 grams of fro-yo?topped with everything under the sun. The beauty—and the trap—of the self-serve model is that once it’s in your cup, you can’t put it back. You simply pay for what you’ve piled on. We ate far more than we should have and, honestly, paid more than expected—and we regretted nothing.

This model is genius for two reasons:

1. Consumers get exactly what they want.?We’re all about?personalization, and the more choices we have, the better.
2. Businesses benefit from higher profit margins.?When people are in control, they tend to splurge more. The combination of self-service and personalization not only builds loyalty but also encourages consumers to spend more than they might in a traditional setup.

The Social and Health-Conscious Mindset

What I love about Yo-Chi is how?Millennial shopping behaviors?align so perfectly with their business model. As?Millennials, we’re health-conscious but still love indulgent, memorable experiences. We value?social settings, and Yo-Chi’s chill, relaxed ambiance made us want to stay longer, enjoy our yogurt, and soak up the atmosphere. It’s no surprise that this setup appeals not just to Millennials but also to?Gen-Z, who are equally drawn to?experiential marketing?and personalization.

Let’s talk about another critical value Yo-Chi champions:?sustainability. As?consumers who care about the environment, we’re more inclined to support brands that align with our ethics. Yo-Chi’s commitment to?compostable packaging,?vegan options, and local sourcing is right in line with the values we hold dear. As a family-owned Australian business, they take pride in reducing their carbon footprint—be it by using?reusable silicone bowl coverings?or by offering?recycled napkins. In 2024, they’re even planning to introduce?reusable fro-yo cups, aiming to make them as trendy as reusable coffee cups.

Community-Driven: Building Loyalty from the Ground Up

Yo-Chi isn’t just about serving frozen yogurt—they’ve created a community. Through their?Communi-Chi program, they actively give back to local sports clubs, charities, and fundraising initiatives. Their?Change for Change Donation Boxes?are a thoughtful touch, and they even match every dollar donated.

This focus on community extends beyond financial support. They host?coloring competitions?for young artists, sponsor local junior sports teams, and foster a sense of belonging and pride among their customers. Yo-Chi knows that?Millennials?and?Gen-Z?value brands that are authentic, community-driven, and contribute to a cause greater than themselves.

Maslow's Hierarchy and the Yo-Chi Experience

To dive deeper into how Yo-Chi resonates with?Millennial consumers, let’s explore?Maslow’s Hierarchy of Needs and how Yo-Chi meets each level of this pyramid:

1. Physiological Needs: At the base, Yo-Chi satisfies our fundamental need for food, but in a healthier way. With lower sugar and added benefits like probiotics, it feeds both our bodies and our desire to make better choices.
2. Safety Needs: Yo-Chi takes care of cleanliness and safety, offering hand sanitizers at every station and ensuring each self-serve area is cleaned frequently. Their eco-friendly practices make us feel good about our choices, knowing they’re helping the planet.
3. Belongingness and Love Needs: The vibrant, welcoming ambiance and sense of community at Yo-Chi invite us to stay longer, socialize, and share the experience with our loved ones. It’s a place where everyone feels welcome, from families to groups of friends.
4. Esteem Needs: Personalization is a big part of why we love Yo-Chi. Being able to create our own bespoke fro-yo masterpiece boosts our confidence and sense of individuality. The brand also provides opportunities to give back to the community, fostering a sense of pride.
5. Self-Actualization: Yo-Chi’s commitment to sustainability and their?positive energy (Chi)?philosophy allows us to contribute to something bigger. Whether it’s supporting local communities or making environmentally friendly choices, Yo-Chi lets us feel like we’re part of a movement to create more positive energy in the world.

Now, here’s the kicker:

When a product taps into the?higher levels of Maslow’s pyramid—like belonging, esteem, or self-actualization—consumers are willing to pay a premium.

Why? Because the product isn’t just fulfilling a basic hunger need anymore; it’s addressing the higher-order emotional and psychological needs of the consumer. This explains why we Millennials, who value both personalization and community-driven experiences, are often willing to spend more on brand which resonate adequately with our?core values.

Yo-Chi ticks all the boxes by offering not only a delicious product but also an experience that feels aligned with who we are and what we stand for. When a product connects on that deeper level,?premium pricing becomes not only justified but?well-accepted?by the consumer, as it satisfies far more than just the craving for a sweet treat.

In a world where?Millennial shopping behaviors?are driven by personalization, social influence, value, and sustainability,?Yo-Chi?has created a space where indulgence meets responsibility, where personalization drives profits, and where community and sustainability are at the heart of the brand. To more brands like this to enter and dominate the market!

If you liked this article, please do take some time to comment your thoughts/opinions. I would love to engage in a discussion with you!

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P.S. Attaching other pictures of the place and branding captured when I was waiting in line....

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