By Tony DeMasi, editor
aby boomers may make up the biggest share of the consumer market
but retailing experts are advising that “Y” is now the way to go.
That is, direct your marketing attention to consumers that create
“Generation Y.” The 82 million strong, those born from 1982 to
2000 are influencing family purchases at a very high rate on everything in
and about their families and households. As parents, Gen Y-ers are their
kids “Friends,” thus encouraging another generation to interact accordingly.
Product wise, this should trigger more family oriented games, designs and
merchandise.
Because of the 18-year time span, Gen Y encompasses a lot of layers of consumers.
The oldest are out of college, establishing careers, and developing
households. As such, they may soon realize that taking care of “needs” first
can use up a lot of income they once thought was strictly for “wants.” At the
other end of the spectrum, the youngest are being lathered with apparel,
accessories, and “wants” gladly paid for by their parents and grandparents. As
retailers, you have to determine the spending priorities of the different age
groups.
Gen Y consumers tend to avoid the middle of the road when it comes to
spending. They prefer high or low in every way. This is causing retailers to
rethink their prices and product scales. Why continue to aim toward the middle
if the middle is missing? Market watchers predict that retailers who continue
trying to be everything to everyone will soon be nothing to anyone.
Pick your products, prices and market accordingly.
Some market analysts are referring to Gen Y’s shopping habits as
“Demandments.” They are making demands and want them met. Be ready
to sell, serve and smile. This does not mean however that you ignore customers
in other demographics.
Baby boomers still add up to 78 million strong, and spend $2 trillion a
year.
Older Boomers were born between 1946 and 1955 and Younger Boomers
between 1956 and 1964. While both groups are nearly the same size and have
almost the same household income, each have their own substantially different
needs.
Younger Boomers still have responsibilities for other family members still
at home while the Older Boomers are focused on taking care of themselves.
The majority of consumers in all age brackets and generations are electronically
charged when it comes to getting and sharing information. I hope
your marketing methods are plugged into that fact.
Advertising to the masses is over. You have to communicate to the changing
consumer. More age diversity, more ethnic diversity, more economic
diversity and more media choices are spreading marketing and advertising
dollars too thin to be effective.
MySpace, the social network phenom now counts 90 plus million members
and is selling its advertising as high as a $40 CPM. When young
Americans meet today in social situations, the question isn't usually, “Can I
have your phone number?” ... it’s, “Are you on
MySpace?” A new study by Forrester Research assessing
consumer technology adoption reports that
GenY spends 12.2 hours online each week, 28 percent
longer than GenX and nearly twice as long as
Boomers.
While the Internet is a rapidly growing medium
of socializing for this demographic, GenY surfers are
less likely to spend their time watching television
than they are found blogging, exchanging videos on
sites like youtube.com, downloading podcasts, trading
and buying digital music, and gathering research
for offline shopping. The Forrester report shows
that GenY are 73 percent more likely to research
online what they want to buy and then actually
make their purchases in the store - a true testament
to the value of savvy and up-to-date Web sites to
attract these young consumers.
Forty-one percent of North American households
now have broadband Internet access at home - up
from 29 percent at the end of 2004.
Seventy-five percent of North American households
have mobile phones, and almost half of them
make the bulk of their long-distance phone calls on
these mobile phones.
Forty-five percent of GenYers, 27 percent of
GenXers, and 17 percent of 41- to 50-year-old Baby
Boomers who have a mobile phone use it for data
services, led by text messaging, ring tones, and
games.
Ninety-one percent of online households use a
search engine once a week or more. Seventy-eight
percent of online GenYers and 61 percent of online
seniors aged 62 and up book or research travel
online.
A few other tips whether looking to Boomers as
customers:
Feature Boomers in your advertising and marketing
material. Include photos of people in their
50s.
Aim for Boomers in your help-wanted ads.
Indicate that you value workers of all ages. Be open
to older applicants.
Boomers see themselves as environmentally and
socially conscious. Feature more “green” products and
adopt more socially-responsible business practices.
Be careful about the terms you use. Boomers
don’t think of themselves as “senior citizens,” or
even “middle aged.”
So, look at your marketing plans and ask yourself
“Y.”
It’s Showtime Again!
Here come the shows! Be ready to face a lot more
products and promotions than ever before. I’ve
spoken with many exhibitors and there seems to be
a prevailing trend of more “mores” and less “lesses”
Expect to see more special offers and buying
incentives. Also expect to see less new product.
Quite a few manufacturers are playing it safe this
time and expanding already existing successful
lines rather than unveiling new products. As
expected, licensed designs will dominate much of
the market.
I’ll be attending a dozen or so shows across the
country, plus will do seminars at these events:
Philadelphia Gift Show, January 6, Hot Trends
for 2007, 11:30 a.m., Greater Reading Expo Center,
Reading, Pa.
Philadelphia Gift Show, January 6, Hot Trends
for 2007, 11:30 a.m., Greater Reading Expo Center,
Reading, Pa.
California Market Center, LA, January 17,
Hospital Gift Shop Retailing Xcellence, 2:30 p.m.
New York International Gift Fair, January 29,
Spring Into Selling, 8:30 a.m., Javits Center.
Orlando Gift Show, February 4, Hot Trends for
2007, 10 a.m., Orange County Convention Center.
Memphis Gift Show, February 17, 9 a.m.,
Counter Intelligence, Memphis Cook Convention
Ctr.
Virginia Beach Gift Show, March 5, Gone With
The Window - For Spring, 9:30 a.m., Virginia Beach
Convention Center.
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