by Gareth Pearson (@gareth_pearson) The Millennials are an important generation and are influencing brands, social media, politics, religion and trends in a new and powerful way.
Significant in size, forceful in their change potential, tech-savvy in how they engage with the world — they think globally, are eco-friendly and weigh heavily on causes which they see as having strong values.
Millennial culture is different, more liberal, more challenging, more opinionated and less shocked. They’re trying to make a difference and they get frustrated at how long the world is taking to understand the importance of the digital world.
Millennials are marketing-savvy and socially empowered — and, as consumers, can be ruthless with products and brands which they see as irrelevant, self-seeking, non-tech, shy and non-engaging.
They demand more from brands and they want more value, greater personalisation and better rewards. And if they get this, they become the greatest brand advocates. They’re also very aware of world developments and trends, and personal recommendations carry huge weight with brand and product adoption.
Millennials are expressive and want to share their ideas, thoughts and opinions — and when combined with their unprecedented interest in mobile apps, it makes for a hugely influential consumer group.
Digital media is a cornerstone in the millennial shopper’s journey and the group is not only looking to peers for assistance in making smart purchase decisions but also makes use of the digital world to influence and justify their purchases.
Showrooming
Smartphones are everything to millennials and the level of texting, calling, shopping and their general way of life is really a state of cellphone addiction.
What with mobility being a key pillar in millennial behaviour, retailers and brand owners are responding with more apps, m-commerce and engagement facilities available on mobile devices. And as we come to realise that the millennials are all about mobility, showrooming is becoming a more evident trend
Packaging changes
Millennials seek natural content in what they eat and drink — and recyclability and ability to keep food fresh are two key aspects of their packaging choices. Food trends include fresh, healthy, farmer markets and sushi with beverage trends, including craft beer and wine.
Product offerings are having to change fast in order to respond to their demands, changing tastes and attitudes.
For example, there’s been a major shift in the packaging of beer and ready-to-drink beverages from aluminium to glass, and ironically, on the food shelves, millennials are seeking shelf-stable cartons and powders which in turn are displacing canned goods.
So — millennials are driving shelf changes in supermarkets and, to meet their demands, packaging companies, CPG companies and retailers are having to be innovative and factor in these millennial changes in how they do business.
One-to-one marketing
Personalising the pack is an absolute delight to millennials. Having their name printed on the label of their favourite product pack is extremely powerful and hits the millennial sweet spot. More and more brands are doing this across the globe, and involving Facebook, families and products in a powerful, personalised way.
Aspirational
Millennials will spend more on a brand if they believe it will meet their brand aspirations.
Where brands are perceived to be able to offer millennials the type of life and image they require, it becomes tough and demanding on those brands that they select and associate with.
Brand-buying motives run deeper than the mere product and millennials expect brands to support larger causes than the brands themselves. Therefore, brand owners need to respond by creating more millennial attraction by carefully selecting causes that can be associated with their brands.
Value
Seeking value is a fundamental driver for millennials. They will pay a higher premium if there’s a perception of value — usually in the form of content and return.
Another interesting trait of millennials is that they’re frugal and price-conscious. Knowing that the net provides resources for price and cost comparisons means that, as a habit, millennials will research deals before making purchases.
Through the great recession, other generations have also become more frugal. This, together with the pre-existing millennials’ trends, has exacerbated the weight and gravity of this frugality trend on global purchasing habits as consumers focus on debt reduction.
Multi-channel marketing to millennials
Never before has omni-channel marketing been as important as a critical factor of success. Millennials need to be able to engage with brands and retailers using any channel they wish. In fact, they need the freedom to engage with a brand in one channel and move across different channels throughout the engagement.
Private labelling
Private-label adoption is another key trend for millennials. They have a higher propensity to buy and use private-label goods than other generations, and their key driver is that they’re seeking value for money.
Millennials are constantly seeking innovation in their lives, and brands which understand and bring something new and fresh to this generation will be liked and rewarded.
The ‘F’ word
Finally, millennials are all about F-words. Frugality, fast, fresh and fun.
Gareth Pearson (@gareth_pearson) is CEO and shareholder of BMi Research. As a market research specialist with particular focus in the industrial and fast-moving consumer goods (FMCG) markets in various sectors, including the retail market, Gareth has great insight into many workings of the retail world and has plenty information that is valuable to share.
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