Today’s marketing buzz is focused on Millennial consumers—the generation born between the early 1980s and early 2000s. Sometimes called “Echo Boomers”, or Generation Y, the specific traits and tendencies of this dynamic group are driving changes throughout the business world, including the retail industry.
Born to Boomers
Millennials are, for the most part, the children of Baby Boomer parents, but they represent a larger demographic than their boomer moms and dads—-80 million vs. 76 million in the U.S. As the new purchasing powerhouse entering the marketplace, they are projected to spend $1.4 trillion per year. Their shopping and spending habits vary significantly from those of the boomer generation, and to win their dollars, retailers need to understand what makes Millennials different.
Born to Text
Raised in the Digital Age, they are the first generation that is more adept at writing code than writing cursive. They communicate differently than boomers, replying on their laptops, smartphones and tables as the primary modes of staying in touch. Most would rather text than talk to someone in person. This is a connected generation that admits to going to bed with digital tools at their fingertips.
Friend Me
Millennials live, work and play online: on Facebook, Twitter, Flicker and other social sites. To attract Millennial consumers, retailers who fail to become multi-channel risk becoming irrelevant. Driven by consumer demand, the brick-and-mortar retail model favored by boomers is in transition, moving from single channel to multi-channel to omni-channel–heavily influenced by Millennial e-commerce expectations .
E-Commerce the New Model for Millennials
Today, e-commerce accounts for only a small share of total U.S. retail sales today, roughly 5% of the overall marketplace. Online sales of apparel and accessory sales represent about 18% of total sales while e-commerce sales of electronics and appliance count for about 21 percent of total purchasing activity. But this is changing. With Millennials dominating the landscape, the retail terrain is shifting. With their multiple e-gadgets regarded almost as body parts, Millennials are constantly online. They expect to browse for products both online and off, and have options for where to purchase. They share coupons, brand preferences and deal information with friends via social media apps, and hold strong opinions about business, brands and prices.
They rely on the word of mouth and new apps for their omnipresent smart phones to guide them to the best deals, whether online or in a physical store.
For this generation of consumers, “showrooming”—looking at products on the showroom floor, but using the internet to buy at the lowest price—is a way of life. With $1.4 trillion a year to spend, no retailer can afford to disappoint the Millennial. That means ensuring that what they see on the shop floor is readily available across all channels. Your inventory accuracy and item tracking data needs to be as precise and close to “perfect” as possible.
RFID, In Synch With Millennial Expectations
Going forward, Millennials are going to impact your retail business, and not just as customers. This is the generation you will be hiring as sales staff and management. They will expect your operational processes to be highly automated by technology. They grew up with digital, so are savvy about the efficiencies of wireless, NFC and RFID. Technology is the differentiator by which they define themselves. According to data from the Pew Research Center, 64% of Millennials think technology makes life and work easier, with 54% saying that technology enables greater workplace efficiency. The Millennial mindset is going to be more compatible counting and tracking items with advanced tools such as RFID than with hand counts or last generation bar codes. Are you ready?
We’d like to hear how your Millennial employees –or you as a member of this generation—view the use of technologies such as RFID. Leave your comments below or drop us an email at success@truecount.com.