Retailers work hard at attracting the Millennial customer because there are so many of them and they are approaching the age of having some discretionary income.
The media has painted this niche-brand-loving generation as being “shoppers with a conscience,” who want to purchase from stores that are giving back and making environmentally-smart decisions. This makes them a natural fit for local shops as buying there is an investment in the local community and helps decrease their environmental footprint.
However, it turns out it’s not that simple. In a surprising reveal AdAge reported at the beginning of the 2015 summer that the favorite store of Gen Y (the generation between 25-34), is Walmart, with Target coming in second. It seems they are more value-loving than anyone suspected.
Luring the Millennial Shopper
So how do local merchants get a piece of the estimated $200 billion buying power of the country’s largest living generation? It comes down to providing value and an experience.
With concerns about paying off student loans and putting off home ownership, this group is pinching pennies after all. Or are they?
When it comes to clothes, home decor, and other durable goods, less expensive seems to get their attention but what about services? Are they stalking the deals there as well?
Create an Experience
Not likely. 69% of the generation considers themselves adventurous and this factors into their buying patterns for services. Many buy on desired experience. Millennials will select the local coffee house even if it is more expensive than Starbucks (is that possible?), as long as it provides a desired experience in addition to the cup of joe.
53% of this generation also goes out to eat more than once a week. While they may be saving money on durable goods, they are spending a large amount on dining out, including (but not limited to) more expensive farm-to-table establishments. Restaurants that market their ethical commitments (be it to animals or the environment, for instance) are also popular with this generation.
Make It About Them
Another trend in buying that appeals to Millennials is making it about them. Use social media and encourage them to post pictures of themselves shopping locally. This was one of the reasons the ALS Ice Bucket Challenge was so popular. It gave Millennials the opportunity to give and receive attention.
How are you marketing to Millennials? Leave a comment below.
Photo credit: GraphicStock
