Gen BuY E-Book

Kit Yarrow

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 397

Veröffentlichungsjahr: 2009

Beschreibung

Discover the forces driving the decisions of today's most sought after consumers According to recent statistics, members of Generation Y shop 25 percent to 40 percent more than the average consumer. In Gen BuY, Yarrow and O'Donnell argue that these voracious and fearless consumers have revolutionized the way Americans shop by turning traditional sales and marketing strategies upside down. Based on solid research, the book offers an in-depth look at what motivates these young people to buy certain products and reject others. The authors reveal what makes these consumers tic-how they define power, why they loath manipulation, and why they rely on technology-and show marketers how they can tap into the buying power of this burgeoning group of consumers. * Shows what it takes to successfully woe and win young consumers with purchasing power * Filled with surprising insights into the psyche of Gen Y buyers * Written by an expert in consumer research and a well-connected media consumer author Gen Buy is a must-have resource for marketers, advertisers, retailers, and manufacturers who want to understand the new generation of consumers.

Leseprobe

Table of Contents

Praise

Title Page

Copyright Page

Dedication

Introduction

We Have to Go Shopping

Insights in the Bag

Chapter 1 - GENY IS FROM MERCURY

The Two Greatest Influences

The Big Four Gen Y Characteristics

Chapter 2 - THEY SHOP LIKE THEY’RE FROM A DIFFERENT PLANET FROM THEIR PARENTS, TOO

The Giant Force of Their Digital World

Brand Love

Transparency and Authenticity

It’s the Glue

Seeing Stars

Fast Fashion

Buying High——and Low

Chapter 3 - THE WHYS BEHIND THE BUYS

“Shopping” Is the New “Weather”

Things Create Community

Shopping Is a Mental Vacation

Shopping Is a Way to Prepare and Feel More in Control

Shopping Well: A New Olympic Sport?

Shopping Centers and Malls Are Increasingly Integrated Into Our Lives

We Buy for Hopefulness

From Bridezilla to . . . Promzilla!

The Dark Side

You Need to Know Y’s Whys

Chapter 4 - THE LIVES, MINDS, AND HEARTS OF TODAY’S TWEENS, TEENS, AND TWENTY-SOMETHINGS

Winning Y’s Heart Means Investing in a Relationship

Generation Chasm

Life’s Lessons and the Mall

It’s a Revolution!

A Generation Gaplet and The Facebook Factor

An Opportunity Through Empathy

Looking for Safe Harbor in a Sea of Hormones

Reason and Rebellion

Think Different

Socially and Psychologically

Money, Money, Money

KGOY or KGOL?

Sampling Roles to Find Your Style

Crafting Your Identity from the Reaction You Get from Others

The Kid-to-Marketer Relationship Is Like the Kid-to-Parent Relationship

Using Stuff to Manage Group Relationships

Celebrities Are Our Hometown Hotties

The Fame Game

Not Just Fame, But Influence——and Opportunity

Chapter 5 - SEX, LOVE, AND SHOPPING

Wanting More

No Substitutes, Please

Gender Convergence

Appearances and Technology

The Evolution of the Sexes——at the Mall

How to Woo a Man

The Truth About Men and Fashion

Women: It’s a Social Thing

Word of Mouth

Sex!

Sex! (Really, This Time)

Dating Starts at Twenty-Two

Can’t Buy Me Love

Chapter 6 - INFLUENCE: THE FORCE THAT IS GEN Y

How They Put Their Mark on Retail

Their Parental Push

Mommy Youngest

How Y Moves Marketing and Sales

Flip-Flop Phenomenon

The Gen Y Clerk Conundrum

The Y Factor

Chapter 7 - WHAT WORKS WITH GEN Y

The Emotional

Talking Technology

It’s Social, It’s Networking, and It Works

Associations, or “If You Like This, You’ll Love Our Product!”

Truth, Action, and Collaboration: How to Research and Reach Gen Y

In Conclusion: Our Top Four Tips for Marketing to Gen Y

Chapter 8 - ADAPTING TO GEN Y’S SHOPPING PREFERENCES AND POWER

Be True to Your “Cool”

How Retailers Can Reel Gen Y In

Activate the Store——and Make It “More than a Store”

Create Communication Communities

Reaching Gen Y Through Technology and Experience Design

Reaching Gen Y Customers by Engaging Gen Y Employees

Interactive, Not Reactive

The Future of Market Research

Reaching Their “Mirror Worlds”

The World of Commerce in Their Hands

Roadblocks on Easy Street

Notes

Acknowledgements

About the Authors

Index

Praise forGen BuY

“A telling look at how to truly understand and reach a demographic of those that won’t be fooled.”

—Andrea Learned, coauthor,Don’t Think Pink

“Technically savvy (with the world at their keyboards!) and more privileged than previous generations, today’s teens and twenty-somethings are the driving force behind our consumer culture. Gen BuY is an insightful and fascinating look at how this generation is transforming the retail landscape.”

—Meredith Barnett, founder and CEO, StoreAdore.com

“An insightful trip into the heart of consumption. I read the book with fascinated horror.”

—Paco Underhill, author,Why We Buy: The Science of Shopping

“Technology, research, and psychographics combine to give us an excellent primer on the honesty and transparency needed to motivate and reach the Millennials. Yarrow and O’Donnell merge two streams of thinking to effectively build the case that Gen Yers are savvy to every tactic in the marketing equation. To bring them into our customer base, we must respect them every step of the way.”

—Peter Stringham, chairman and chief executive officer, Young & Rubicam Brands

“Thanks to extensive research, including one-on-one interviews, focus groups, and a national online survey, the authors offer an astute look at the motivations and influence of these powerful consumers. This enlightening book is a must-read for all who hope to keep their companies relevant and viable.”

—Publishers Weekly

“Compelling and important reading, especially in today’s economy. The headlines tell you the numbers. This book tells you how to make them better.”

—Ben Stein, economist, actor, andNew York Timescolumnist

“This book is a must-read for anyone who wants to appeal to the most powerful consumers of all time. Yarrow and O’Donnell capture the essence of a generation that, fortunately for retailers, really loves to shop!”

—Tracy Mullin, president and CEO, National Retail Federation

“Gen BuY unlocks the secrets of learning about and understanding the youth of America and their purchasing patterns. It’s time well spent.”

—Keith Crain, chairman, Crain Communications

Copyright © 2009 by Kit Yarrow and Jayne O’Donnell. All rights reserved.

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Library of Congress Cataloging-in-Publication Data

Yarrow, Kit, 1958-

Gen buY : how tweens, teens, and twenty-somethings are revolutionizing retail / Kit Yarrow,

p. cm.

Includes bibliographical references and index.

eISBN : 978-0-470-52363-6

1. Young adult consumers—Attitudes. 2. Generation Y—Attitudes. 3. Marketing. I. O’Donnell, Jayne. II. Title.

HF5415.332.Y66Y37 2009

658.8’340835—dc22

2009017419

HB Printing

For Russ, my husband and hero

—Kit

For Richard and Cate, with love

—Jayne

Introduction

Generation Y, those born between 1978 and 2000, has overtaken baby boomers in sheer numbers and is poised to do the same with its incomes by 2017. Often called Millennials, these tween, teen, and twenty-somethings have become the nation’s tastemakers, holding unprecedented sway over almost every aspect of shopping. From their own—and their parents’—clothing styles, to the design of everything from cars to fitting rooms, and the way we learn about products and evaluate options, Gen Y’s stamp is everywhere.

The economic downturn that began in earnest in 2008 has resulted in nothing short of a new American consumer, and Gen Y, always on the forefront, has already mastered the mentality and expertise that other generations will mimic—notably the confidence to demand that retailers bow to their needs, and the ability to capitalize on the expanded purchase, pricing, and customization options made possible by our digital world. Likewise, American consumers are becoming more confident of their power and more skeptical of businesses, more willing to use technology to find bargains, more demanding and exacting in their standards, and paradoxically more eager than ever to find solutions in the products, brands, and retailers that earn their trust. Today’s consumers won’t be “sold”; they want to be seen, known, and respected—and only those marketers and retailers that invest in relationships through empathy, deep understanding, and insight will prevail.

Gen Yers’ confidence, knowledge of and interest in the marketplace, and love of technology have long made them a force to be reckoned with. Today those standards are even higher as Gen Yers, along with the rest of the nation, more carefully consider their purchases and loyalties and search for collaboration and partnerships with brands and retailers.

Marketers that know what works with Gen Y are poised to thrive in the new economy. Gen Yers are the young adults and soon-to-be young adults, feathering their nests, outfitting their interests, and establishing relationships with the brands and retailers that will serve them for years to come. Additionally, all age groups hoping to maximize their dollars in the new economy will cultivate their own versions of Gen Y’s confidence and technologically enhanced shopping expertise—out of necessity. What works with Gen Y will increasingly work with all generations—which is why we say they’re revolutionizing retail.

There’s a sliver of a silver lining for those retailers and marketers catering to Gen Y—though these consumers have tightened their (low-slung) belts along with the rest of the population, they (and the parents and grandparents spending for them) have also kept shopping at a slightly higher rate and most certainly with a greater joie de vivre. From Starbucks lattés to plastic surgery, Gen Yers have reduced their spending less than other generations.

Nevertheless, when consumer spending dips, marketers and retailers fight for fewer dollars. But it won’t be just the brands with the biggest marketing budgets or splashy ads that will win, especially with young consumers. Courting Gen Y can be cost effective—given the appeal, for example, of text-messaged pitches and counterintuitive approaches—you just need to know how to do it.

That’s where we come in. As an acclaimed consumer psychologist, professor, and consultant (Kit), and an award-winning USA Today retail and automotive reporter (Jayne), we’re here to explain all the whys behind the buys of this seemingly fickle generation. Gen Yers demand an authentic relationship based on a deep knowledge of who they are and what makes them tick (and buy). We’ll help marketers get there—and give some insights to anyone else who wants to get to know this unique generation better.

Between their own spending and the influence they have on their families and both in-person and virtual friends, Gen Yers’ importance to retailers and marketers is undeniable. As they move into their prime adult spending years, the consumer clout of this group will only increase. They are, in short, the future of every company. So we’d best get to know them now.

Here’s a peek at a couple of the people we interviewed who underscore our points:

• Isabel, eighteen, of Glen Burnie, Maryland, instant messages her mother frequently with pictures of clothes she wants and the website addresses where her mom can buy them. Isabel says shopping has a “calming effect” on her and she often just “window shops” online when she doesn’t have a car to go to the mall. Like many in her generation, closet turnover is part of the equation: “I just always get tired of what I have,” she says. Sure, she likes higher-end offerings from BCBG or Ralph Lauren, but she’s happy to mix them with discount apparel. “I really do think that clothes can tell a lot about a person, and I love having really nice pieces paired with something I got for $7.99 at Target,” she says. “I’ve always thought if it looks good it doesn’t matter where you got it.” Like many of the parents of Gen Y, this University of Maryland student’s mother is a trusted shopping partner and an active participant in her daughter’s acquisitions. Isabel and her generation are less ambivalent about shopping and brands than previous generations were, and they confidently acquire and mix the pieces most likely to satisfy their personal aesthetic and create a persona with impact. After all, people—just like brands—have less time to make an impression these days.

• Lawrence, twenty-five, of Washington, D.C., says his former girlfriend used to say he was a “metrosexual” because he liked to shop almost as much as she did. Lawrence and Gen Y men everywhere are certainly shopping more—and having a better time doing it—but they still have something in common with the more senior members of their gender: they spend little or no time browsing, and they rarely make impulse buys, except in the grocery aisles. Unlike previous generations, however, Lawrence is a typical Gen Yer in that he has as many female friends as guy friends. A chiseled, six-foot-three former clerk for J. Crew, he makes up to 40 percent of his purchases on the Internet, with half of that on eBay. At work, Lawrence says, “Just because someone’s above you doesn’t mean they’re smarter,” and in retail he’s true to his brands—Sony, Samsung, and Banana Republic—but only if they live up to his high expectations. He’s in Internet marketing by day, so he demands a lot of his Internet retailers at night: he wants product and vendor reviews, price comparisons, and speedy connections. And better prices than he’s finding at J. Crew these days.

Lawrence and his generation have revolutionized shopping for all of us. Their “prove it to me” attitudes about employers are the same with retailers and brands. For example, those attitudes have contributed to an online shopping experience whose scope of offerings and services mushrooms each year, restaurants that live or die by the comments of consumers—not reviewers—and the ability for anyone to be a retailer through websites such as craigslist and eBay.

We Have to Go Shopping

Few women have a permanent excuse to leave work early or skip out on family chores so they can check out the latest at Bloomingdale’s or take a trip to T.J. Maxx. But we two authors do have one, because it’s our job to go shopping—or at least part of it. Admittedly the smallest part, but it’s still a pretty sweet way to earn a living. It definitely makes us the envy of our friends—who forget the fact that we actually spend a lot more time interviewing shoppers and retailers, reading research, and analyzing data than we do visiting malls.

Still, there’s no denying that we have spent an enormous amount of time in stores, on retail websites, and at hundreds of malls across the country. In the process, we’ve acquired national reputations as consumer experts—and some pretty nice shoes too.

Research and reporting for our day jobs—such as Kit’s consulting work for businesses including General Electric, Del Monte, and Nokia, and Jayne’s coverage of issues ranging from the demise and comeback of department stores to declining auto sales to shopaholism—have given us an impressive platform on which to build this book.

We’ve written Gen BuY in a light and lively style, but don’t let the fun fool you: our foundation is rock-solid research. We’re releasing our proprietary research for the first time in these pages.

Our data and our sources—many of whom are named in the Acknowledgments—include

• Hundreds of one-on-one interviews with young people aged eight to twenty-nine

• Eleven focus groups representing the range of Gen Y ages in ten U.S. cities—Atlanta; Murfreesboro, Tennessee; Westerly, Rhode Island; San Francisco; Columbus, Ohio; Portland, Oregon; Coral Springs, Florida; Wheeling, West Virginia; Chicago; and Columbia, Maryland

• More than two hundred mall and shopping venue visits in over three dozen cities

• A national online survey of more than two thousand shoppers, including a thousand Gen Yers and respondents from every U.S. state

• Scores of interviews with experts

• Insights from the team of young sleuths we’ve sent out to connect with other Gen Yers

• Review and analysis of hundreds of popular and academic articles, surveys, and studies

But why shopping? Well, for starters, shopping is our national collective pastime. In surveys of favorite leisure activities, shopping comes in first or second for nearly every demographic group in the United States. Consumer spending is a central force in the economic health of our nation. Never has this been clearer than it was in the latter part of 2008 when spending stalled and contributed to a recession of dramatic proportions. Though consumers are still shopping, they’re even more particular about what they buy, and retailers are reminded of the importance of meeting consumer needs.

What we buy and have is one of the primary ways that we communicate who we are to others in today’s speedy and more visual society (which also makes shopping a juicy source of celebrity—and community—gossip). It’s a way to explore roles, connect with others, and socialize. Everything from the way we bling, to where we shop, to what we don’t buy is a way to define ourselves. Similarly, what a generation buys and how it shops offers us deep insights into that group of people and, by comparison or contrast, a way for all of us to see ourselves more clearly.

Shopping is pervasive. Internationally, 73 percent of people say they shop recreationally, and, believe it or not, that figure is slightly lower in the United States—68 percent.1 And though we may think we’ve just recently become a nation of shoppers, the truth is that shopping is, and always has been, an important part of every culture from the time that cultures first began. Be it selecting a particular brand of soda from a vending machine, picking up a pair of flip-flops while hanging out at the mall, planning and purchasing a new car or even electing a candidate to office—we all make brand and product selections every day.

From eighteen-year-old Robert’s delight with a brand of sneakers he feels are totally him to twenty-seven-year-old Anna’s angst at her inability to resist buying new clothes, shopping and buying are hugely emotional and deeply psychological. Through shopping and buying, we can see clearly into the minds, hearts, and lives of individuals, cultures, and generations. After all, possessions have the ability to hold such great meaning that even mummies are found buried with favorite and symbolic objects.

The tweens, teens, and twenty-somethings that are the focus of this book are upstaging baby boomers, who are often their parents, at the mall. For example, the average teen visits the mall four times a month and stays over ninety minutes per visit (nearly one full trip and twenty minutes longer than the average shopper). In January 2009, when most retailers were posting double-digit sales declines, several retailers that cater to teens outperformed even Wal-Mart.

U.S. households with at least one member of Gen Y represent the third largest buying group in this country. These households account for 37 percent of total dollars spent, 31 percent of total trips, and 15 percent more dollars spent than the average household.2 Gen Yers are enthusiastic shoppers—and there are more of them than any other generation. At nearly eighty-four million, they are the largest segment of the U.S. population (boomers account for seventy-eight million). Today over 26 percent of American adults are Gen Yers.3 The most conservative estimates of Gen Y spending exceed $200 billion a year, and this generation’s spending will top $10 trillion in its lifetime.4

Not only are they big spenders themselves, but they hold great sway over what their mothers and fathers buy. And as the most powerful trendsetters in our increasingly youth- and technology-oriented society, their influence is pervasive. In other words, the economic impact of Gen Yers extends well beyond their own financial means—they’re influencing every generation, whether others realize it or not.

While few baby boomers could ever have imagined their parents choosing a car or clothes that their kids steered them to (case in point: the leisure suits kids weren’t able to stop their parents from buying!), Gen Y is influencing at least half of auto purchases and 90 percent of the apparel buys in their homes, according to 2007 research conducted for the digital marketing agency Resource Interactive.5 At last, a partial explanation for all the skinny, low-cut jeans on not-so-skinny midlife moms.

So why is shopping so central for our well-educated, highly connected society, and especially its youth? Just as it is for their parents—but even more so—shopping serves as a mental vacation, a social activity, and a conversation starter for Gen Y. And the opportunities for this sort of escape abound as shopping centers and malls are ever more integrated into their lives. Against that backdrop, all those “things” young people acquire on their shopping jaunts become the currency of their conversation and a way to tell others who they are.

Despite (or perhaps because of) all of those reasons, it bears noting here that our book is intended to be neither a celebration nor a condemnation of consumerism, but rather a deep dive into the motivations and influences of this powerful generation of consumers. Along with helping retailers and other marketers understand—and sell to—Gen Y, we think this book will also help everyone understand why they buy and how to be better shoppers.

Insights in the Bag

Gen BuY helps explain how finding yourself, snagging a bargain, and falling in love all fit together at the mall (real or virtual). We describe how society has shaped this generation, and consequently their shopping behavior—and then, the tremendous impact Millennials in turn have had on society and the way that all Americans shop. From mobile shopping to hybrid cars, custom Keds to fast fashion, not to mention the institution of advertising now struggling to reinvent itself—it’s a whole new world, and Gen Yers helped make it.

We also detail things like how technology, the Gen Y connector, has influenced the psychology of young adults (and made online shopping better for the rest of us). And how indulgent parents have set great expectations for Gen Yers and also left many dissatisfied with their choices—a dissatisfaction sometimes eased by a trip to the mall.

Retailers have responded to their buying power, shorter attention spans, optimism, individuality, and impulsive natures with great new options for all of us. Consider, for starters, the eagerness of the world’s foremost designers to sell their apparel for as little as $19.99 at Target. From consumer-generated video ads to text promotions to phenomena like www.zebo.com, where young people can chronicle how many of everything they own, we investigate how branding and marketing messages are received by this group.

In Gen BuY, Kit and Jayne use their own proprietary research—and the best of that provided by other leading experts in the field—to help explain the psychological forces driving today’s most sought-after consumers and their far-reaching impact on shoppers of all ages. All professional experts are quoted using their full names and titles, but our Gen Yers are quoted using pseudonyms because many preferred it that way, and we didn’t want to compromise anyone’s privacy.

Each chapter builds on the information and anecdotes in the previous one, but our book is written in a way that allows the reader to jump around if his or her interest lies more in retail strategies, sexually suggestive advertising, or, say, what’s up with that shop-happy tween at home.

Here’s a chapter-by-chapter look at what Gen BuY will cover:

• Chapter 1: The whos and whys of Gen Y explained, with an emphasis on how societal shifts contributed to a generation that’s powerfully connected to shopping

• Chapter 2: The unique shopping and buying behaviors of this generation, especially the what, where, and how of their shopping

• Chapter 3: The whys behind the buys—the psychological secrets behind the purchases we all make, with a drill-down on Gen Y’s whys

• Chapter 4: The lives, minds, and hearts of today’s tweens, teens, and twenty-somethings—the key to understanding their needs and wants and shopping styles and how to communicate with them

• Chapter 5: How and why guys and gals shop differently, how shifting gender roles are affecting who buys what when and turning age-old courtship rules upside down, and the inside scoop on all that sex!

• Chapter 6: Gen Y’s tremendous influence in retail, be it through their parents, the tastes and shopping styles of society, or the ways that their demands have transformed in-store and online retail—for everyone

• Chapter 7: What savvy marketers and retailers are doing that has captured the powerful purchasing power of Gen Y

• Chapter 8: Insights from some of the cleverest people we met while researching this book

So get ready—we’re going shopping!

1

GENY IS FROM MERCURY