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How Millennials Impact Retail Shopping

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Research shows that Millennials (a generation of roughly 80 million individuals) are changing the rules of brand marketing, redefining purchase habits, and revolutionizing the shopping experience. They prefer being able to interact with brands through digital channels versus historical marketing tactics such as circulars or in-store advertisements and because of that they’re using technology and mobile communication to change how they interact with brands. Retailers interested in appealing to Millennial consumers will learn how to provide this young, but influential demographic, with a more shareable and social shopping experience.

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How Millennials Impact Retail Shopping

  1. 1. ><NAHFA | LAS VEGAS WINTER MARKET 2016 HOW MILLENNIALS IMPACT RETAIL SHOPPING MARISA PEACOCK 1
  2. 2. >< Millennials are the generation born between 1982 and sometime in the early 2000’s. Some definitions have the Millennial Generation starting as early as 1978 and starting as late as 1985. Described as social, collaborative, technological savvy, mobile, entitled, passionate AKA: Generation Y. Echo boomers. Digital natives. There are an estimated 83.1 million Millennials living in the United States. NAHFA | LAS VEGAS WINTER MARKET 2016 Millennial 2
  3. 3. ><NAHFA | LAS VEGAS WINTER MARKET 2016 01 02 03 They have spending money Millennials make up 21% of all consumer discretionary purchases They’re Parents 25% of Millennials are parents They believe in something Almost 50% of Millennials would rather purchase from a company if their purchase supports a cause 04 05 06 They have friends 46% of Millennials have more than 200 Facebook friends They live in urban areas Austin, Salt Lake City, San Diego, Los Angeles, and Denver have the highest concentration of Millennials They buy furniture Millennials comprised 37% of all households buying furniture and bedding in 2014. 6 Fun Facts about Millennials 3
  4. 4. ><NAHFA | LAS VEGAS WINTER MARKET 2016 Malls By late 80s, early 90s more than 60 malls were built annually; Average customer spent 80 minutes shopping, spending an average of $75. Online Shopping The World Wide Web comes online; amazon.com launches; most stores begin launch websites; Multi-Channel Customers shop using different channels made available by a company — a website, mobile applications, in store. Omni-Channel Consumers use multiple channels simultaneously; Show rooming & reverse show rooming; One-third of Americans have made a purchase on a mobile device in the past 6 months 80s 90s 00s 10s The evolution of retail Shopping, then and now. 4
  5. 5. >< f in t @ f in t @ f in t @ Boomers While tech-savvy, Boomers are less likely to use their devices as a shopping tool. Less motivated by price when making decisions; NAHFA | LAS VEGAS WINTER MARKET 2016 Gen X Gen X consumers need to research before buying; Skeptical about marketing tactics and use their extensive research to avoid being a target. Brand Loyal. Millennials Millennials use tech to make shopping easier, doing research on their smartphones and tablets before they buy; turn to technology to improve their in-store shopping. How Generations Shop 5
  6. 6. ><NAHFA | LAS VEGAS WINTER MARKET 2016 01 02 03 Mobile 87% of millennials use between two and three tech devices at least once on a daily basis. Social Media 62% of millennials say that if a brand engages with them on social networks, they’re more likely to become a loyal customer.  Collaboration interested in helping companies develop future products and services 04 05 06 Values Millennials connect best with people over logos; love brands that support their local communities Context 89% of millennials are likely to act on the notification received from their favorite brand Word of Mouth Seek the opinions of others; don’t make a major decision until they have discussed it with a few people they trust How Millennials Impact Retail Shopping 6
  7. 7. >< 01Mobile Mobile can be a map, a shopping list, a personal shopper, a salesperson and a product finder all at once. Devices can provide retailers context, helping them learn what matters to a consumer in a particular location and at a particular time. Constant connectivity, contextual relevance, and a multi-screen world 7
  8. 8. >< 02Social Media Socialize & Sell Online retailers need to provide a more shareable and social shopping experience. Integrate social media into marketing campaigns by focusing strategic efforts and creating unique social sharing opportunities around news, trends, flash sales, and relevant offers. 8
  9. 9. >< 03Collaboration Invite customers to contribute ideas for new projects, accessories, hacks or partnerships. Develop workflow that lets users submit ideas and receive valuable follow- up. Millennials enjoy the possibility of collaborating with businesses and brands, as long as they believe their say matters to the company. 9
  10. 10. >< 04Values Create an experience where shopping is more than a transaction and the pleasure of being in the store isn’t limited to the goods that customers take home. Give back. Support local communities. Invest in sustainable materials. Stand for something. Retailers are encouraged to build a relationship and deep connection with millennials. As a result, they will continue to purchase from you as they age.  Authenticity, Sustainability, Loyalty 10
  11. 11. >< 05Context Retailers can deliver personal, relevant suggestions at scale Give shoppers what they need to locate deals and current offers near them and successfully complete a local shopping trip. By understanding context, retailers can anticipate what a customer might need based on when, where and how they arrive at their site and help them decide how to respond to them 11
  12. 12. >< 06Word of Mouth In this age of social media, “valuable brand advocates” who  share opinions on- and off-line with peers  are arguably the most effective marketing tool. Retailers need to be there when inspiration strikes consumers and as they start researching purchases online. See something, say something 12
  13. 13. >< Generation Z is the most ethnically and racially diverse generation in the country’s history. They care about owning. Teens prefer to shop online versus in stores, but they prefer sites that have actual, physical stores versus retailers that operate on a strictly ecommerce basis. Teens — and Gen Z in general — will stay away from massive retailers. Value fun but value privacy more — use ephemeral apps like Snapchat, YikYak, Kik. They appreciate experiences, and marketers will have to think outside traditional tactics to get their attention. AKA: centennials, post-millennials Generation Z consists of those born between 1996 and 2010. NAHFA | LAS VEGAS WINTER MARKET 2016 Generation Z 13 What comes next?
  14. 14. ><NAHFA | LAS VEGAS WINTER MARKET 2016 14 WHO USES SOCIAL MEDIA? 18-29 30-49 50-64 65+ Urban Suburban African- American Hispanic White Male Female P I N T E R E S TFA C E B O O K T W I T T E RI N S TA G R A M L I N K E D I N Source: Pew Research Center, March 17 - April 12, 2015 T U M B L R
  15. 15. STRATEGICPEACOCK.COM @MARISACP51 MARISA@STRATEGICPEACOCK.COM 15 NAHFA | LAS VEGAS WINTER MARKET 2016

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