Imagine a young man out at sea, intending to fish. He decides upon a random spot in the vast ocean to cast a net, where he is disappointed to discover that only a few small fish are caught. The following day he returns to sea, but this time he looks for an area where flocks of seagulls frequent. The young man casts his net there and to his delight, he catches schools of fish.
Like this young fisherman, retailers have eventually come to learn the wealth of casting their marketing net onto specific demographics. Many successful businesses know that the consumer market is anything but stagnant, constantly changing with each generation. In their struggle to remain relevant and attractive today, many retailers are re-positioning their brand to capture the attention of the millennials, the current reigning demographic.
Making up 24% of the US population and expected to dominate 30% of all retail sales by 2020, it is no wonder retailers are refocusing their brand to attract millennials[1][2]. But businesses are soon discovering that these 18-33 year olds are an entirely different crowd of their own. Unlike their predecessors, millennials are more burdened by the economy and are therefore delaying large financial commitments like getting married or purchasing a house. But don’t get them wrong, they are still spending money; in fact millennials are expected to spend $2.45 trillion worldwide by 2015[3]. Decidedly, they are choosing to spend a sizeable portion of their money on recreational experiences and material goods instead. Yet, that isn’t the only reason this demographic is important to retail businesses. Positioned significantly as the middle child between generation x and generation z, millennials are also influencing an additional 48% of the US population. The consumer power on a combined 72% of the US population is enough to understand why retailers are repositioning themselves for the attention of this generation. But the question is how are they achieving it?
While the ways people connect with one another have changed throughout the years, the need to has not. One of the defining aspects of millennials is that they are incredibly social. But establishing a relationship with them require a little more effort since this generation is less trusting than the previous[4]. Consistently, retailers that have taken the time in creating company culture have found popularity among millennials. They are more likely to trust brands such as Zappos, Chipotle and Toms, who have all adopted company cultures that promote transparency with their employees and consumers. Their preference for companies supporting a cause or individuals like themselves may also have resulted from the economic difficulties this generation has encountered. Additionally, millennials favor the availability of options and are generally environmentally conscious, valuing companies that provide them choices to reflect their way of life. But regardless of which angle retailers take, be it company culture, transparency or community impact, it is without a doubt that millennials are the catch of this day and age.
ReachOut is committed to offering effective marketing strategies and providing avenues your business can explore to further distinguish your product. As a business consulting firm that assists international companies achieve success entering the US market, ReachOut is an expert in the areas of sales and marketing, technology, e-commerce, operations, distribution, accounting and human resources.
[1] according to Nielsen
[2] according to Business Insider
[3] according to Javelin Strategy and Research 2009
[4] according to Pew Research Center
