Millennials drive Change in Retail

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2017 is the year Millennials overtake GenX; and it is a headache for retailers.

According to McKinsey Retail Report, it is going to be the year when Millennials will have more buying power than any generation ever. Almost 70% of them say they are influenced by friends’ social-media posts; 83% say they trust recommendations by friends and family.

Millennials increasingly discover products online before going out to shop.

68% research offers on-line before going shopping. Moreover, this generation spends more time on personal hand-held and wearable devices then any preceding one. “Who needs a computer if you’ve got phablet, iPad or Android smartphone?” You can read more on this here.

The need, then, is to create a seamless experience between on-screen and on-site shopping.

Fortunately, technology today offers several viable solutions:
  • Using smartphone for e-checkins, e-communication and e-engagement with shoppers and consumers, to blend the offline and online shopping experience. There are successful startups that offer such experience already.
  • Creating “virtu-real” formats to provide consumers with a more interactive retail experience, for example, through the use of virtual fitting rooms and augmented-reality zones. Burberry flagship store in London does exactly that.
Millennial consumers want to shop for experiences as well as products. They expect personalised interaction and offers. And through an App on the smartphone.
These changing shopping habits pose a real threat for traditional retailers and brands. However, as always, there are innovative ways to capitalise on these demographic trends. Startups like RLClub help business do it today… I suspect — this will become a new trend in marketing.

 

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Millennials are here. Are you ready?

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I am from Generation X… I still search for the phone number on the ‘Contact Us’ section of a corporate website. Millennials though are the ones, who were born in Dot Com era and grew up with Internet. Judging by my own children, these are the people who chose Snapchat, Twitter and WatsApp over phone. And if you Skype them , you must be their grandpa or granny.

According to PwC report, 48% of population are those born between 1977 and today and by 2020 50% global workforce will be Millennials. What’s more important – those Gen y and Gen Z are increasingly becoming your customers and consumers. Accenture reports that Millennials already spend $600 bln every year in the US alone. Continue reading “Millennials are here. Are you ready?”