Jayne O’Donnell shared the anecdote today that Cosmo Girl Magazine asked girls aged 13-24 if they considered a store a friend and 60% said yes. In an age where brands have interactive websites, built-in personal shoppers and notable personalities, why can’t a retail store be viewed as a close, personal friend?
Jayne O'Donnell
If the Cosmo answer surprises you, it may have something to do with the age of the consumer. Today I had the opportunity to sit in on NRF’s Internal Audit & Compliance Council meeting where USA Today reporter and author Jayne O’Donnell spoke on her new book, “Gen BuY: How Tweens, Teens and Twenty-Somethings Are Revolutionizing Retail.” You may wonder why a group of retail auditors’ interest was piqued by the subject of Gen Yers and their lifestyles, but take one peek into Gen Y buying habits and ability to influence, and retail professionals–no matter the sector or department–are listening up.
O’Donnell and her co-author Kit Yarrow spent three years researching Gen Y, which comprises present-day 10- to 31-year-olds. And this is why retailers are paying attention:
- Generation Y is 84 million strong
- By 2017, they’ll have more spending power than Baby Boomers
- Gen Yer’s decreased their spending less than any other generation during the recession
- Half of Gen Y are already adults–buying first homes, having children and building brand relationships
According to O’Donnell, there are three main areas of Generation Y trending that should be studied by retailers–technology, the techno personality and Gen Y confidence. With technology, retailers have already pinpointed success in mobile commerce and social media efforts to reach younger buyers. And immediate site access through cell phones, text messaged deals, and location-finding applications are bringing the store to the consumer. Techno-savvy retailers are reaping the benefits of a young, loyal consumer who appreciates new ways to shop and influences others by word-of-mouth or online sharing.
And the above feeds into the techno personality, which O’Donnell describes as “I want what I want when I want it.” Immediate gratification is the goal, and impulse buying, without a budget are becoming the trend among younger shoppers. But the techno personality means more than that–it’s visually oriented, looking for the latest and greatest products, or a store or website that will actively engage.
Finally, O’Donnell says, Gen Y’s super-confidence is changing the retailer-consumer relationship. The new confident consumer expects more, wants personalized products (for example, Nike id or Threadless.com t-shirts) and wants to be acknowledged. Gen Yer’s live in homes that allow them to be part of decision making, which spills over into expectations in other parts of their lives. O’Donnell mentioned, for example, how Wet Seal allows customers to become stylists on their website. Gen Yer’s like to engage in the shopping experience as much as possible to be part of the process.
In the end, brands that work to connect with Gen Yer’s will thrive as the recession continues to rebound. It’s the almost-present future in consumer shopping trends.
7 Comments
article worth reading.
Jayne’s right that GenY Millennials are a growing force in retail. Catering to their needs will soon overwhelm the focus long afforded GenX and Baby Boomers. She also recognizes the power of technology-enabled retail. People of all ages want to interact with their purchases. Yes, you can order those shoes online @ Zappos or LLBean and have a wonderful buying experience but there’s little romance to delayed satisfaction – even with next day delivery. Better to try on multiple pairs of shoes before settling on the one to take home that same day.
We’ll see more use of technology to find, compare and evaluate potential purchases but it won’t replace the thrill of scoring a good buy of a great product with the help of a knowledgeable, engaged sales associate in a terrific store. The point of purchase will remain the retail store for most products for the foreseeable future.
Nice article–I’m glad I read it. My favorite quote was: “And the above feeds into the techno personality, which O’Donnell describes as “I want what I want when I want it.” Immediate gratification is the goal, and impulse buying, without a budget are becoming the trend among younger shoppers”.
In about 10 years, I’ll be shorting the financial markets again as the Gen Y generation overspends, defaults on their mortgages and sinks in credit card debt. Thanks for the heads up.
From what I’ve seen we are on the cusp of a new hedonistic materialism sparked by the young. To reach them in many ways though is the same as ever – you have to earn it.
Good article. I just attended a seminar last month for organizations who exhibit at trade shows and a lot of the focus was on Gen Y. The presenter told the audience if you don’t have a plan yet to market to Gen Y you need to get one. They are just entering the workforce playing field will be a powerful player due to their numbers. Gen Y is describe as tech savy individuals, who are skeptical and want to be entertained. They live in the world of Twitter wanting clear, concise and meaningful communication in 140 characters or less.
I’m a GenY female myself. Love the article. Slightly resent this phrase: “asked girls aged 13-24″. Since a certain number of the females asked were women, it would be nice to see that acknowledged. They may be young women, but they’re women nonetheless – even if their lifestyles, buying patterns, and interests don’t reflect standard ideas of what ‘women’ are like. Just a thought.
I don’t tend to view stores as friends, though I’m particular about customer service. I am more interested in seeing retail open up as much as possible to allow for the complete customization of my life. At the touch of a button wherever possible. :)
Relating to GenY is going to be very important for all retailers if they want to keep up with competitors. Victoria Secret does a great job creating a mood with something as simple as their pink striped bags and pink tissue paper. Store Supply Warehouse has created their own line of bags and other specialty items that can create a mood to entice GenY to shop at your store. Visit their website to check out their new collections.
http://www.storesupplyblog.com/
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[...] brands. Young people today assume they have relationships with commercial entities, they think they are friends with stores. Or rather, perhaps it is more accurate to say that the boundaries of what relationships mean, are [...]