09 Mar 2008 03:50:23 | John Stanley
This is the second in our series of articles on selling to
different generations.
A retailer recently responded to our first article saying that
independent stores just had to provide customer service, as the
box stores didn't and all would be well in the retail world.
That each generation required customer service in the same way
and our future would be bright.
I love the sentiment, but don't agree with such a bland approach
to retailing. One of the real challenges for many retailers is
to sell to Generation Y, the Teenagers, especially as many of us
are well passed those years and find teenagers the most
difficult group to understand.
This generation claims to be different to the previous groups of
the past, this is true, but it is true of every group of
teenagers. They key is how do you retail to this group of
teenagers?
Firstly, why bother. Research by Teenage Research Unlimited in
Northbrock, Illinois, USA shows that they make up 11% of the
population and are the largest segment of the population. This
means that retailers should be aiming to get their loyalty now
and aim to build on it in the future.
Plus, in the USA, according to research carried out by
Kent-Dychtwald Inc. of California, the majority of these kids
get over US$50 per week pocket money. This leads to a lot of
impulse spending opportunities.
Whilst the generation before this group of teenagers were a doom
and gloom generation, this group of teenagers are generally
optimistic and want to be involved in the community.
This generation have been over-exposed to the traditional
advertising aimed at their parents and as a result they are
market savvy and don't even take note of traditional market
messages. At the same time the mobile phone and computer area
standard pieces of equipment to get them through life.
To get this generation's attention you need to rely on SMS
messaging and promotions via the computer. Plus, this group will
purchase products from their computer. Retailers aiming at this
generation need to be computer literate when it comes to
marketing.
I recently went to a restaurant in Perth, Western Australia
aimed at this generation. The menu was on SMS for this
generation to order their meal, prior to entering the restaurant.
In Holland and New Zealand some new shopping malls are
clustering retailers together based on generational marketing.
This saves shoppers having to travel from one end of the mall to
another to get to their favourite shops.
The Mall of Georgia in the USA has introduced Generation Y theme
days and theme events. These include an educational centre and
IMAX theatre. Plus, cyber cafes in the shopping centre are key
elements of the retail mix if you are to attract this generation.
Boredom Comes Easily
To this generation boredom comes easily. This is something we
have found in our own business when employing young people. Give
them a task for half a day and they get bored; give them a
number of tasks where they can swap around jobs and their
productivity goes up.
The same applies when they go shopping, boredom comes quickly.
They would much prefer to pre-shop and then go in, purchase the
product and leave.
Macerich Co. in California introduced a pre-shopping game "Know
before you go" aimed at this generation.
This was linked to shops in a shopping mall and allowed
consumers to surf the net prior to going to the shop. One shop
registered that 80% of its consumers had used the pre-shopping
game prior to purchasing product.
Sponsor Extreme Sports
Retailers aiming at this generation have found that extreme
sports sponsorship is one way to get your name across to the
target consumer.
The skateboard park may be an ideal opportunity to get your name
across.
Teenagers are getting more money to spend, but like every other
group their spending patterns are changing.
Most of the research on this group comes out of the USA from
Teenage Research Unlimited, but it has a message for all
retailers across the globe.
In 1997 72% of teenagers went to a mall within the last 30 days.
This, in 1999, had dropped to 69% and I expect it has continued
to decline. The feeling of many of this generation is that
shopping malls are not generally targeting them as a consumer.
In 1997 68% of them visited a discount store, but that had
climbed to 78% in 1999. I only need to look at my own Generation
Y daughter and our local discount store is one of her favourite
shopping locations. What Can you do as a Retailer to Attract
Generation Y?
1. Provide makeup classes for teenage girls if you are in the
cosmetics industry. This proved to be highly successful when
Nordstrom did it in the USA.
2. Have a look alike 'pop star' competition. Pete Luckett, the
Canadian food retailer, introduced this when the Spice Girls
were at their peak and was inundated with competitors . 3. Make
sure you have internet access within your retail location.
Cyberspace retail facilities will really attract Generation Y.
4. Provide interactive 'how to' classes in store. This group
will not sit and listen; they want to get involved with the
activities on offer.
5. Get involved with 'cool' community events. This age group do
get involved with community events they can relate to and this
is an opportunity to build a relationship with this market.
6. Create a teenager niche. Don't mix products related to this
age group with other age groups. Create a teenage zone and make
it 'funky'. If baby boomers feel comfortable in the zone, you
have got it wrong.
7. Employ Generation Y sales members to sell to Generation Y
consumers.
Ref. In writing this article I have referred to "The In Crowd :
Retail Rushes to Keep Pace with Generation Y" by Lauren Keating
from Retail Traffic magazine 1 May 2000.
About Author :
20 years experience in 15 countries. He regularly contributes to
retail magazines around the world and has authored several
successful marketing and retail books including the best seller
Just About Everything a Retail Manager Needs to Know.
www.johnstanley.cc