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July 9, 2024
Can Gen Z Jumpstart JOANN’s Recovery?
JOANN, which emerged from bankruptcy proceedings in late April, launched a new campaign aimed at Gen Z to tap the generation’s budding interest in sewing.
With the help of influencer relationships and social media placement geared toward younger channels, the campaign’s goal is focused “on inspiring the next generation of creators to find happiness in the experience of creating and connecting with others.”
The campaign plays off the fabric and crafts retailer name with a twist: JO-AND.
“‘And’ is a powerful 3-letter word that represents the endless possibilities of product and inspiration that customers can find at JOANN,” said Chris DiTullio, chief customer officer, in a statement.
Existing platforms will continue to be used to reach its core consumer base.
JOANN’s business boomed during the COVID-19 pandemic, as Americans used the extra time amid stay-at-home orders and the extra money from stimulus payments to delve into crafts. The bankruptcy filing arrived amid both a slowdown in discretionary spending overall and as consumers stepped back from at-home crafts, but interest from younger consumers reportedly continues.
A recent article from UCL Pi Media attributed Gen Z’s interest in knitting, crocheting, sewing, and embroidering to the generation’s growing eco-consciousness. But it also said that the generation is “obsessed with wearing one-of-a-kind clothes and having a distinctive personal style, as highlighted by the resurgence of vintage clothes.”
Influencers and social media have also given Gen Zers the opportunity to be inspired and show off their handmade creations. UCL Pi Media stated, “Social media has, if not created, a constant need to stand out and belong to a certain aesthetic community (cottagecore, mermaidcore, rockstar girlfriend…), making mass-produced fast fashion a less appealing option.”
A Los Angeles Times article from last fall cited a number of Gen Z influencers helping drive the trend while likewise calling out the generation’s passions around sustainability and seeking originality. The article stated, “In order to stand out today among the Zara- and Shein-clad masses, intrepid fashion savants are experimenting with more handmade, custom looks as vehicles of self-expression.”
JOANN officials said on an analyst call last year that it had been tapping “more sophisticated digital marketing tactics” to expand its share with 18-to-24-year-olds.
JOANN’s bankruptcy reorganization eliminated roughly $505 million in debt and allowed all 815 retail locations to remain open. It’s now operating under an interim CEO with a new board of directors as a privately held company that’s owned by its creditors.
Beyond its Gen Z push, JOANN’s major initiative since exiting bankruptcy was permanently reducing prices on more than 15,000 items to compete better against rivals like Hobby Lobby and Michaels as well as the big boxes.
“We are excited to bring joy to more customers than ever, particularly those younger customers who are committed to finding happiness, mental health and connections to others, all of which are benefits of creating,” said DiTullio in a statement regarding the JO-AND campaign. “Through lowering prices and investing in this awareness campaign, we want everyone to know JOANN is here and committed as ever to inspiring happiness through creativity.”
Discussion Questions
What do you think of JOANN’s “JO-AND” campaign targeting Gen Zers?
Are there strong enough drivers behind Gen Z’s interest in sewing to support a long-term trend?
Poll
Loading …BrainTrust
Carlos Arámbula
Principal, Growth Genie Partners
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Clay Parnell
President and Managing Partner
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Aiming the campaign at younger consumers and using influencers and social channels is interesting. Crafting is an activity that Gen Z undertakes, but they tend to be much more digitally focused in their buying and content consumption. Joann is trying to move onto this turf with its focus on the joy of crafting and the sense of community it can foster. Pulling in a younger demographic will help offset the general decline in crafting activity that has squeezed sales.
However, though marketing is an important ingredient, there are other things Joann needs to be doing including investing in stores, improving its website, and ensuring prices are sharp. All of these things are important to Gen Z (and other shoppers).
I’m glad to see JOANN doing something to revitalize their brand. But I’m not thrilled with the GenZ target as the ad features the worst of crafting — projects leading friends to observe “oh, you made that yourself” (and not as an observation of admiration).
Seems to me that a Millenial target would have been wiser and more useful. The bulk of craft purchasing, after all, involved 40 yo’s and higher. Stepping forward to bring in more shoppers in their late 20s and 30s would be smarter. After all, they have the cash, interest, and kids to make them excellent JOANN shoppers.
This ad, though, reminds me of when LaZBoy created print ads featuring leopard skin love seats rather than focus on the smart step — their craftsman style reclining chairs. Of course, there are no end of advertising errors like this.
Giving and receiving handcrafted gifts is more popular than ever. Hearing “Oh, you made that yourself” is a good thing!
If the extent of the campaign is the ad we saw, I’m afraid I’ll have to go with “not much” (a remarkably generic slogan and a cluttered presentation, consistent with squeezing your entire raison d’être into a 61″ commercial) So hopefully it’s a beginning, rather than a finished product. As for the broader hope that Gen Z will rediscover the wheel, well…much like the fancy food “trend” from yesterday, absent any hard numbers I’m inclined to think it’s wishing more than reality. A marketing plan tha begins with “during the Pandemic…” should raise a red flag (and not the good, crafts-project kind).
Im not around Gen Z people all that often, but when I am, crafts are rarely a hot topic (unless it’s Swifite friendship bracelets, but that has a shelf life).
some things are just related to demographics like age. I just don’t see Gen Z as the savior
Joanne can capitalize on Gen Z’s interest in sewing, but they need to be more aggressive with digital marketing, YouTube and Tiktok video production, and influencer marketing.
Without these dynamics Joanne is counting on Gen Z to find to make their own discovery, which is less likely to happen. – Db
Jo-Ann needs to get down on the floor of the many anime and gaming conventions all over this country, where cosplay is a passion and crafters drop serious coin. Have the conversations with these people, as they’ll be lifetime customers from teenagers all the way through adulthood, even making clothes for their kids. It is a massive cohort, knowledgeable and of course digital media savvy. They watch the fashion competitions, and make everyday clothing as well – the ideal target market served up on a plate. Jo-Ann must do everything possible to be their store of choice (especially as Hobby Lobby’s ideology stands against them.)
I love the Jo-And tagline. And although a Gen Z maker is the star of the commercial, I like that the campaign connects several generations, showing them sharing ideas and crafting together. Chris DiTullio has been leading Joann’s for a while now. He’s a smart guy, the company is lucky to have him onboard.
I like this for JOANN’s.
When your core consumers are unable to keep you in business, you must find new ones.
There are plenty of drivers for Gen Z to visit JOANN’s — the wrap-around-the-block long lines by DIY customed attendees of LA’s Comic Con this past weekend are just one of many compelling reasons. And you can’t beat the customer lifetime value!
A caveat to my enthusiasm, JOANN’s need to commit to the Gen Zers. The strategy needs to permeate the whole brand experience — especially customer service.
I like the idea of Joann marketing to younger generations, as long as they also continue to focus on their core demographic. Leveraging social media and influencers in ways they likely have never done may push Joann outside their comfort zone, but it’s a necessary step both to work with younger shoppers as well as to revitalize their brand. In addition, there’s also likely opportunity between Gen Z and their older core consumers!
Joann’s win over the pandemic is over because people have returned to their normal activities and distractions. Joann looked around and asked who we could target. If there is an opening there, it will be shallow and short. In today’s world, there are too many distractions for other activities, both active and passive. Gen Z is a generation raised on electronic dopamine. I just don’t see crafts competing in the long term.
JOANN’s is smart to be strategically viewing Gen Z as an important and emerging customer base, and over time, this segment may indeed become a meaningful source of revenue. Gen Z can supplement JOANN’s rebound, though a robust and sustained recovery will require a commitment to meeting the needs of every customer segment and continuing to compete against the likes of Michael’s.
Sewing and craft purchases are primarily in-store experiences – with an emphasis on the experience. Attracting Gen Z customers will demand a fresh, creative take on what the Joann store experience looks and feels like – and can it create a sense of discovery, learning and excitement about the possibilities in a way that drives larger basket size.
Gen Z is fickle. I know, I know-a big general statement with no data, totally subjective. I feel I have some credibility here because I have worked with Gen zer’s for a while. This will help and they need to do it now, because the next fad is right around the corner!
What great positioning for JOANN in the post-COVID world where spend is no longer concentrated on the home or hobbies you can do at home. Experience with my two Gen Zers aligns on the desire for individuality and social responsibility. My daughter is especially creative and would be squarely in their bullseye. The other reason this positioning is great is that they then get to grow and evolve as this generation grows and evolves. Finally, social media is such a powerful platform for creative influencers speaking directly to their peers so aligning with Influencers who can authentically represent the brand is a great way to go.
JOANN’s “JO-AND” campaign is a solid strategy to attract Gen Z. This generation’s interest in unique, handmade items and sustainability aligns well with JOANN’s products. But, simply targeting Gen Z with influencers might not be enough for long-term success; JOANN needs to continuously innovate and offer compelling reasons to shop both online and offline.
Lowering prices helps, but without fresh, exciting products and experiences, Gen Z might lose interest quickly. The campaign is a good start, but JOANN must stay aggressive and adaptive to keep this generation engaged.