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Retailers, Meet the Centennials

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Move over millennials. Centennials have just replaced you as Marketing's most sought-after consumers. These 70M people, born between 1996 and 2011, ar efast becoming a very important part of the shopping landscape,and this presentation will help retailers understand their attitudes toward money, how they shop, where to find them, and who influences them.

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Retailers, Meet the Centennials

  1. 1. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›1 • © Aptos, Inc. All rights reserved.© 2016 Aptos, Inc. All rights reserved. An Inside Look at Centennials Dave Bruno Marketing Director, Aptos
  2. 2. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›2 • © Aptos, Inc. All rights reserved. JUST When We Thought We Had a Finger on the Pulse of Gen Y Shoppers…
  3. 3. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›3 • © Aptos, Inc. All rights reserved. WHO THEY FOLLOW
  4. 4. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›4 • © Aptos, Inc. All rights reserved.
  5. 5. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›5 • © Aptos, Inc. All rights reserved.
  6. 6. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›6 • © Aptos, Inc. All rights reserved. WHERE TO FIND THEM
  7. 7. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›7 • © Aptos, Inc. All rights reserved.
  8. 8. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›8 • © Aptos, Inc. All rights reserved.
  9. 9. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›9 • © Aptos, Inc. All rights reserved.
  10. 10. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›10 • © Aptos, Inc. All rights reserved.
  11. 11. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›11 • © Aptos, Inc. All rights reserved. WHERE THEY SHOP
  12. 12. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›12 • © Aptos, Inc. All rights reserved.
  13. 13. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›13 • © Aptos, Inc. All rights reserved.
  14. 14. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›14 • © Aptos, Inc. All rights reserved.
  15. 15. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›15 • © Aptos, Inc. All rights reserved. BELIEVE IT OR NOT Millennials are already aging out of their position as “most sought-after” consumers
  16. 16. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›16 • © Aptos, Inc. All rights reserved. But fear not. The effort and money we spent studying Millennials was not in vain. IT WAS A WARM UP.
  17. 17. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›17 • © Aptos, Inc. All rights reserved. Meet the Centennials 1996 2011 born (roughly) between and Not just “digital” natives... 2007 mobile digital natives
  18. 18. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›18 • © Aptos, Inc. All rights reserved. They represent approximately 22% of the US Population 70Mpeople in this generation Source: US Census Bureau
  19. 19. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›19 • © Aptos, Inc. All rights reserved. The first wave of Centennials have Reached Adulthood 15Mare age eighteen or older
  20. 20. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›20 • © Aptos, Inc. All rights reserved. Already they have impressive Purchasing Power $200Bby 2018 Their spending will reach Source: Business Insider
  21. 21. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›21 • © Aptos, Inc. All rights reserved. 20%of the US workforce In just four short years, Centennials will comprise Source: US News & World Report
  22. 22. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›22 • © Aptos, Inc. All rights reserved. PERHAPS it’s time to get to know them better
  23. 23. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›23 • © Aptos, Inc. All rights reserved. DO YOU EVEN SPEAK THEIR LANGUAGE? BEFORE WE DIG TOO DEEP:
  24. 24. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›24 • © Aptos, Inc. All rights reserved. #FOMOEveryone’s at Coachella hanging with celebs and I’m stuck in my backyard… #PalmSprings #FOMO
  25. 25. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›25 • © Aptos, Inc. All rights reserved. BAE You are holding my heart as well as my hand… #MyOneAndOnly #BAE
  26. 26. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›26 • © Aptos, Inc. All rights reserved. On Fleek SLAY QUEEN!!! Her eyebrows totally slay me #LifeIsBeautiful #OnFleek
  27. 27. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›27 • © Aptos, Inc. All rights reserved. Stanning WOO HOO!!! Just scored tix to the upcoming Justin Bieber concert! #Stanning #Belieber
  28. 28. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›28 • © Aptos, Inc. All rights reserved. Extra Daaannng!!! This new Cap’n Crunch Frappuccino from Starbucks is TOO GOOD #HiddenMenu #Extra
  29. 29. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›29 • © Aptos, Inc. All rights reserved. Implications Deciphering shopper feedback and sentiment is only going to get more (and more) difficult TECH MKTG MERCH STORE
  30. 30. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›30 • © Aptos, Inc. All rights reserved. FOOD FOR THOUGHT… Is social sentiment analysis a meaningful part of your CRM and/or Merchandising toolkits?
  31. 31. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›31 • © Aptos, Inc. All rights reserved. To really understand them, we must Look Beyond Slang & Stereotypes…
  32. 32. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›32 • © Aptos, Inc. All rights reserved. HOW DO THEY THINK ABOUT MONEY?
  33. 33. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›33 • © Aptos, Inc. All rights reserved. The 2008 recession has been their Dominant Financial Event
  34. 34. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›34 • © Aptos, Inc. All rights reserved. Perhaps it’s no surprise then, that Saving is Important 57%would rather save money than spend it immediately Source: Forbes even though most are still teenagers( )
  35. 35. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›35 • © Aptos, Inc. All rights reserved. They are equally Cautious About Credit 1/2the credit card debt of college age Millennials College-age Centennials maintain less than Source: Money
  36. 36. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›36 • © Aptos, Inc. All rights reserved. And we have seen a corresponding Reduction in Spending 31%from 1997 - 2014 US teen spending fell Source: The Futures Company
  37. 37. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›37 • © Aptos, Inc. All rights reserved. However, spending decisions are driven by More than Mere Price Source: Money Gen Z consumers cautiously weigh the practicality of purchases and critically consider the value equation of any purchase. “ Source: Ernst & Young
  38. 38. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›38 • © Aptos, Inc. All rights reserved. Spending patterns have also undergone Seismic Shifts I care a lot about whether my clothes are in style.“ 65%of teens agreed in 1997 47%of teens agreed in 2014 Source: The Futures Company
  39. 39. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›39 • © Aptos, Inc. All rights reserved. Spending patterns have undergone Seismic Shifts 15% Apparel share of teen wallets has fallen Source: Piper Jaffray in the last decade
  40. 40. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›40 • © Aptos, Inc. All rights reserved. Spending patterns have undergone Seismic Shifts While tech’s share has DOUBLEDSource: Piper Jaffray
  41. 41. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›41 • © Aptos, Inc. All rights reserved. Whatever you do… Don’t Cut their Cord! 90%would be upset if they had to give up their Internet connection Source: JWT
  42. 42. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›42 • © Aptos, Inc. All rights reserved. 76%would be upset if they had to give up their cable TV Source: JWT
  43. 43. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›43 • © Aptos, Inc. All rights reserved. 71%would be upset if they had to give up buying new clothes Source: JWT
  44. 44. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›44 • © Aptos, Inc. All rights reserved. 56%would be upset if they had to give up downloading music Source: JWT
  45. 45. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›45 • © Aptos, Inc. All rights reserved. 56%would be upset if they had to give up buying video games Source: JWT
  46. 46. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›46 • © Aptos, Inc. All rights reserved. Relevance, value and influencing influencers are critical to achieving sustainable success. Additionally, assortments may need to change to adapt to shifting consumer priorities TECH MKTG MERCH Implications
  47. 47. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›47 • © Aptos, Inc. All rights reserved. FOOD FOR THOUGHT Has your assortment strategy shifted to account for the growing share of wallet owned by technology?
  48. 48. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›48 • © Aptos, Inc. All rights reserved. WHEN THEY DO SPEND, HOW DO THEY SHOP?
  49. 49. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›49 • © Aptos, Inc. All rights reserved. Business as Usual • Stores are always open • Pricing is completely transparent • Inventory is always available • Amazon can deliver within hours Omni-channel shopping journeys: This is all these kids have ever known.
  50. 50. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›50 • © Aptos, Inc. All rights reserved. For these smartphone natives, mobile shopping is just Part of the Process 34%prefer to purchase via smartphone Source: GfK Future Buy 32%prefer to purchase via desktop PC
  51. 51. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›51 • © Aptos, Inc. All rights reserved. Compared to shopping in stores, They <Prefer> Digital A Slight Majority Prefer Online in Most Categories Sporting Goods 61% Accessories 57% Offline Games 56% Clothes 55% Shoes 55% Toys 54% Electronics 53% Beauty 51% Source: JWT 54%(all categories)
  52. 52. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›52 • © Aptos, Inc. All rights reserved. While they do prefer to shop online… There is an Asterisk* After Amazon, they generally choose sites with physical locations Source: Piper Jaffray Amazon Nike Forever 21 eBay Victoria’s Secret American Eagle Urban Outfitters Eastbay Brandy Melville Wanelo 1 2 3 4 5 6 7 8 9 10
  53. 53. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›53 • © Aptos, Inc. All rights reserved. Compared to Millennials… The Store Matters Much More 37%of Millennials prefer to shop in store Sources: Power Reviews, JWT (vs 46% of Centennials)
  54. 54. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›54 • © Aptos, Inc. All rights reserved. Integrated shopping journeys are Ubiquitous Behaviors Source: Center for Generational Kinetics 100%surf the Web on their phones looking for a better price when in a store
  55. 55. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›55 • © Aptos, Inc. All rights reserved. Implications Be prepared for rapid growth in mobile purchases. User experiences must be streamlined and optimized. While an active, engaging and vibrant digital experience is vital, effectively integrating stores presents an opportunity to build trust, enhance order size and grow loyalty (sound familiar at all?) TECH MKTG MERCH STORE
  56. 56. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›56 • © Aptos, Inc. All rights reserved. FOOD FOR THOUGHT What percentage of your digital orders are transacted on smartphones today?
  57. 57. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›57 • © Aptos, Inc. All rights reserved. DO YOU KNOW WHERE TO FIND THEM?
  58. 58. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›58 • © Aptos, Inc. All rights reserved. HELPFUL HINT #1 don’t waste time looking in these places…
  59. 59. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›59 • © Aptos, Inc. All rights reserved. R.I.P. 2011
  60. 60. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›60 • © Aptos, Inc. All rights reserved. R.I.P. 2011
  61. 61. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›61 • © Aptos, Inc. All rights reserved. R.I.P. 2010
  62. 62. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›62 • © Aptos, Inc. All rights reserved. R.I.P. 2006
  63. 63. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›63 • © Aptos, Inc. All rights reserved. HELPFUL HINT #2 start your search online
  64. 64. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›64 • © Aptos, Inc. All rights reserved. When it comes to connecting They Know No Boundaries 46%are actively online 10+ hours a day 74%are actively online 3+ hours a day Sources: Wikia / Ipsos MediaCT 56%are actively online while in church
  65. 65. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›65 • © Aptos, Inc. All rights reserved. You think you are a Slave to Your Screen(s)? Millennials multi-task using Source: Sprout Social 5screens Centennials? 2 Source: Sprout Social screens 1/2
  66. 66. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›66 • © Aptos, Inc. All rights reserved. Have all the screens (and all those cat videos) Diminished Attention Spans? 30%since just 2011 down Source: Bloomberg
  67. 67. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›67 • © Aptos, Inc. All rights reserved. Or have they instead (or perhaps also) Sharpened their Filters? While their options are limitless, their time is not. Gen Z has learned to quickly sort through and assess enormous amounts of information.
  68. 68. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›68 • © Aptos, Inc. All rights reserved. So, despite continuous connectivity, they Practice <Selective> Consumption Centennials see being online as a tool for getting things done
  69. 69. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›69 • © Aptos, Inc. All rights reserved. To help filter, they typically Rely on Each Other
  70. 70. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›70 • © Aptos, Inc. All rights reserved. To help filter, they typically Rely on Each Other
  71. 71. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›71 • © Aptos, Inc. All rights reserved. To help filter, they typically Rely on Each Other
  72. 72. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›72 • © Aptos, Inc. All rights reserved. And they also rely upon Trusted, Authentic Sources 10MYouTube followers 6MInstagram followers 3MInstagram followers
  73. 73. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›73 • © Aptos, Inc. All rights reserved. This selectivity may help explain the Widespread Love for Snapchat 77%of college students use Snapchat every day Source: Sumpto
  74. 74. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›74 • © Aptos, Inc. All rights reserved. Selectivity may also help explain the Diminished Love for Facebook 14%of teens name Facebook their “most important” social network Source: BI Intelligence Only
  75. 75. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›75 • © Aptos, Inc. All rights reserved. As a rule, they are much less interested in chasing their 15 Minutes of Fame than were their predecessors Selective | Discreet | Authentic Andy Warhol
  76. 76. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›76 • © Aptos, Inc. All rights reserved. Authenticity may shine a spotlight on the Persistent Appeal of YouTube 93%once per week Source: Ipsos MediaCT multiple times/day 54% Source: Ipsos MediaCT
  77. 77. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›77 • © Aptos, Inc. All rights reserved. POP QUIZ! how well do you know the YouTube stars that Centennials love?
  78. 78. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›78 • © Aptos, Inc. All rights reserved. 12Msubscribers 2.4Bvideo views Source: VidStatsX ? Growing Up Online
  79. 79. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›79 • © Aptos, Inc. All rights reserved. 17Msubscribers 2.7Bvideo views Source: VidStatsX Comedic Lip Syncing
  80. 80. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›80 • © Aptos, Inc. All rights reserved. 17Msubscribers 4.5Bvideo views Source: VidStatsX Humorous Gaming Commentary
  81. 81. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›81 • © Aptos, Inc. All rights reserved. 21Msubscribers 5.4Bvideo views Sketch Comedy
  82. 82. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›82 • © Aptos, Inc. All rights reserved. 43Msubscribers 11Bvideo views Source: VidStatsX Yelling Over Video Games
  83. 83. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›83 • © Aptos, Inc. All rights reserved. LET THIS SINK IN Followers of the TOP 5 YouTube stars… Source: The Washington Post DOUBLE all U.S. cable television viewers
  84. 84. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›84 • © Aptos, Inc. All rights reserved. NOT ONLY are they wildly popular, but they wield Significant Influence with Centennials
  85. 85. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›85 • © Aptos, Inc. All rights reserved. Source: Variety 2015 Ages 13-17 Scores The recognized industry standard for measuring consumer appeal of personalities, characters, licensed properties, programs and brands. Source: Variety
  86. 86. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›86 • © Aptos, Inc. All rights reserved. Source: Variety
  87. 87. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›87 • © Aptos, Inc. All rights reserved. Social networks are far more important to this generation. Engaging, interactive and integrated social programs are a must-have for any omni-channel strategy. Leveraging social channels for outreach must be part of any marketing strategy. TECH MKTG MERCH Implications STORE
  88. 88. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›88 • © Aptos, Inc. All rights reserved. FOOD FOR THOUGHT Is YouTube marketing (not just video posting) a budgeted part of your marketing strategy?
  89. 89. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›89 • © Aptos, Inc. All rights reserved.© Aptos, Inc. All rights reserved. How Aptos Can Help
  90. 90. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›90 • © Aptos, Inc. All rights reserved. One Customer One Interaction One Order One Product One Truth One View of the Enterprise CRM • Clienteling POS • Mobile POS • Enterprise Order Management Planning • Merchandising Audit Operations Management Analytics Singular Commerce, Seamless Experiences. Digital Commerce
  91. 91. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›91 • © Aptos, Inc. All rights reserved. Coming Soon to Your Inbox Our latest eBook: MEET THE CENTENNIALS aptos.com
  92. 92. Copyright © 2015 Aptos, Inc. All rights reserved. ‹#›92 • © Aptos, Inc. All rights reserved. Outta Time. Gotta Dip.

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