|By Marketwired .||
|November 8, 2012 12:01 AM EST||
BOSTON, MA -- (Marketwire) -- 11/08/12 -- Restaurants, apparel retailers, and shopping malls should provide more tailored offerings to capture the hearts and wallets of the Millennial Generation, also known as Generation Y, according to new research by The Boston Consulting Group (BCG).
BCG's Center for Consumer and Customer Insight, in partnership with Service Management Group (SMG) and Barkley, surveyed 4,000 U.S. Millennials (defined as those 16 to 34 years old) and 1,000 non-Millennials (ages 35 to 74) to find out how their attitudes and spending habits differ. The results appear in a new article Millennial Passions: Food, Fashion, and Friends, which is available at bcgperspectives.com.
According to the survey, U.S. Millennials love to spend on away-from-home food and fashion. They dine and shop in groups; crave exciting, exotic dining experiences and experiential, lifestyle shopping environments; want to share their experiences with friends; and exert a strong influence over others -- family, friends, and even total strangers -- thanks to their intense use of social media.
Their attitudes, needs, and preferences are often quite different from those of non-Millennials as well as those of one another, so restaurants, apparel chains and malls need to develop more tailored offerings to attract them, the survey found. Below are more detailed findings.
Restaurants Are High on Millennials' Spending List
Restaurant meals and drinks are high on the list of what Millennials like to spend their money on -- ranking above consumer electronics, apparel, footwear, beauty and cosmetic products, and accessories.
They eat out more often than non-Millennials (3.4 versus 2.8 times per week), regardless of their income or household composition, and they prefer fast, fast-casual, takeout, Asian, exotic, and organic foods more than non-Millennials do. They're more likely to get food to go than to dine at the restaurant -- particularly at breakfast. Millennials spend slightly more than non-Millennials on average; indeed, a subgroup spends considerably more.
Millennials are much more likely to eat out with friends and coworkers (reported by 65 percent of Millennials compared with 43 percent of non-Millennials). They want to feel that they are "exploring something new" and that they can "easily catch up with friends."
Millennials visit mainstream casual restaurants but prefer fast-casual options such as Panera Bread, Chipotle Mexican Grill, and Pei Wei Asian Diner. "Regardless of price point, Millennials expect a great dining experience," said Chris Egan, the chief operating officer at SMG and a coauthor of the report. "Affordable fast-casual and fast food restaurants with locally sourced goods, exotic flavors, and service levels historically reserved for higher-quality restaurants will most likely garner a disproportionate share of Millennial dining spending."
Shopping for Clothing -- in Groups -- Is a Favorite Millennial Activity
Forty-seven percent of Millennial women reported shopping more than twice a month, compared with 36 percent of non-Millennial women. This difference in shopping frequency was even more striking among men (38 percent for Millennial men versus 10 percent for non-Millennial men). Millennial men spend twice as much on apparel per year as non-Millennial men; Millennial women outspend non-Millennial women by a third.
Fashion magazine articles and editorials, retailer websites, apparel brand websites and social media, fashion blogs, and store associates are top sources of trusted information on trends, products, and brands for Millennials.
As with dining-out preferences, Millennials tend to shop in groups and consider the opinions of others more than non-Millennials.
Millennials and non-Millennials prefer different apparel brands. Among the Millennial favorites: for women, Old Navy, Forever 21, Target private brands, Express, Aéropostale, Hollister, and H&M; for men, Nike and adidas. "Dual gender" favorites are Gap, American Eagle Outfitters, and Abercrombie & Fitch. Levi's, a non-Millennial favorite, is popular among Millennials, but less so.
Millennials prefer an experiential, lifestyle environment (such as that offered by Hollister or Abercrombie & Fitch), like to receive help and approval from fashion consultants rather than just basic sales assistance, and value store environmental factors more than their non-Millennial counterparts.
Retailers, Malls, and Restaurants Can Win Over Millennials
To win over Millennial consumers, the article says, retailers and shopping malls will need to consider several factors. They should emphasize group-shopping experiences, create in-store events and social forums, use mobile apps and social media, integrate their in-store and online offerings so that Millennials can compare prices on their smartphones or return their online purchases in stores, and in general make shopping fun, fast, and easy. Malls will want to ensure that they have the right mix of stores and restaurants to drive traffic.
For restaurants, the keys to success will include faster service (along with ready-to-eat and to-go options), fast-casual formats, and happy-hour, late-night, and bar experiences. Technology should again play a central role -- options such as online reservations and self-ordering systems will appeal to Millennials. And social media will matter to restaurants as well. Finally, menus themselves should include unusual, exotic, organic, or local ingredients, including "crowd sourced" options.
To stay relevant to Millennials over the next three to eight years and retain their popularity with the succeeding generation that will begin to emerge in stores and online in this time frame, stores and brands that target teens and young adults must reinvent themselves.
"For brands that appeal more to non-Millennials, as well as luxury and accessible-luxury brands and multibrand, multicategory formats like department stores, the challenge is fundamentally different: how to introduce their goods and brands to Millennials at the appropriate life stage and with authentic and relevant products," Christine Barton, a partner at BCG and lead author of the article, said. "And, importantly, when to do so, given that Millennials are not their core customers today, but will be in ten years."
To succeed, all companies must use language, marketing messages, causes, and spokespersons that relate to members of this generation.
Millennials' Impact Will Be Significant -- and Not Just on Their Peers
Millennials have a strong influence on each other -- they value experts but have redefined "expert" to mean someone with firsthand experience, often a friend or peer, not a critic or academic. "Millennials' impact will extend beyond generational lines," said Jeff Fromm, an executive vice president at Barkley and a coauthor of the report. Millennial brand preferences and buying patterns are early indicators of trends among non-Millennial consumers. Millennials live their lives on social media. Their attitudes spread quickly among their peers, then reach across generational lines. For example, non-Millennials report influencing the spending and product and brand preferences of spouses and kids; by comparison, Millennials perceive their influence to be over parents, siblings, grandparents, classmates, coworkers, roommates, and even complete strangers.
"Interestingly," Barton said, "Millennials report more likelihood to broadcast negative experiences or to look for 'knockout' criteria on a brand or product online compared, for example, with non-Millennial women, who report willingness to post positive as well as negative reviews and stories."
Research on Millennials can begin close to home. "Most retailers and restaurants already have access to a powerful tool: the Millennials on their own staff, who can be a valuable source of advocacy, insights and new ideas," Barton said. "Quick research close to home can be the key to winning over the Millennial generation."
To arrange an interview with one of the authors, please contact Alexandra Corriveau at +1 212 446 3261 or [email protected].
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 77 offices in 42 countries. For more information, please visit bcg.com.
About BCG's Center for Consumer and Customer Insight
The Boston Consulting Group's Center for Consumer and Customer Insight applies a unique, integrated approach that combines quantitative and qualitative consumer research with a deep understanding of business strategy and competitive dynamics. The center works closely with BCG's various practices to translate its insights into actionable strategies that lead to tangible economic impact for our clients. In the course of its work, the center has amassed a rich set of proprietary data on consumers from around the world, in both emerging and developed markets. The Center for Consumer and Customer Insight is sponsored by BCG's Marketing and Sales and Consumer practices, with support from the Global Advantage practice in emerging markets. For more information, please visit BCG - Center for Consumer and Customer Insight.
Barkley believes that creativity and innovation can change the world. As the nation's largest employee-owned advertising agency, they are fiercely independent and committed to adding GOOD. Barkley's goal is to help build the biggest future possible for their clients. They provide fully integrated advertising services as well as specialized services through four partner companies: Crossroads, PR and Cause Marketing; Blacktop, Branding and Design; Barkley REI, Interactive Marketing; and Grenadier, Strategic and Creative. For more information, please visit http://barkleyus.com/.
About Service Management Group
SMG helps its clients drive business results by improving customer loyalty and employee engagement. SMG has a rich history in innovation, providing proprietary data-collection, reporting, and insight tools for front-line and executive levels. Each year, SMG collects and evaluates over 70 million surveys in 65 countries and 29 languages for more than 225 brands. To request more information about SMG, email Joe Sciara at [email protected] or call 816-448-4500.
Bcgperspectives.com is a new website -- available on PC, mobile phone, and iPad -- that features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back almost 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed via PC, mobile, iPad, Facebook, Twitter, and LinkedIn.
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
May. 6, 2016 06:00 AM EDT Reads: 1,516
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 6, 2016 04:00 AM EDT Reads: 1,338
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
May. 6, 2016 02:00 AM EDT Reads: 1,411
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
May. 6, 2016 01:45 AM EDT Reads: 1,435
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
May. 6, 2016 01:00 AM EDT Reads: 1,262
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 6, 2016 12:00 AM EDT Reads: 1,490
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
May. 5, 2016 11:30 PM EDT Reads: 1,362
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 5, 2016 06:00 PM EDT Reads: 1,062
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
May. 5, 2016 04:00 PM EDT Reads: 798
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
May. 5, 2016 03:45 PM EDT Reads: 769
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
May. 5, 2016 02:45 PM EDT Reads: 1,088
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 5, 2016 02:30 PM EDT Reads: 1,496
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
May. 5, 2016 01:45 PM EDT Reads: 784
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
May. 5, 2016 01:30 PM EDT Reads: 628
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
May. 5, 2016 12:30 PM EDT Reads: 1,343
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
May. 5, 2016 12:30 PM EDT Reads: 1,374
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 5, 2016 10:15 AM EDT Reads: 1,585
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 5, 2016 09:00 AM EDT Reads: 1,300
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
May. 5, 2016 08:45 AM EDT Reads: 1,414
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
May. 3, 2016 12:15 PM EDT Reads: 1,666