Through special arrangement, what follows is an excerpt of a current article from Chain Store Age magazine, presented here for discussion.
Tracy D. spends her weekends surfing online, hanging out with friends, text messaging on her cell, watching TV and movies, and shopping - many of these activities simultaneously. A high-school senior, she has little free time. Not that she minds. She's been programmed since birth, from play-dates to soccer practice to sleepovers and after-school SAT prep courses.
Tracy hasn't been spoiled as much as indulged by her baby-boomer parents eager to expose her to the best of everything. She's had input into her family's buying decisions for as long as she can remember. Allowing her a generous amount of freedoms, her parents are never out of touch. Tracy calls her mother several times a day - just to say hi and see what's up - and text-messages her father equally often. As she looks to college, she is amazingly confident about who she is and her relationships. "I plan to stay connected to my friends and family back home," she said.
Technologically adept, unfailingly optimistic and immersed online, she is a rough composite of the Gen Y generation poised to overtake Baby Boomers in size and marketing clout. With most demographers placing their birth dates between 1982 to 2000, the elders of this generation are just starting to enter the workforce and flex their spending power.
For retailers that have long cast their fortunes with Boomers, Gen Y, also known as Millennial, is a wake-up call to a new type of consumer, one that expects information to be tailored to its individual needs and delivered digitally. Media- and brand-savvy, they can quickly see through the hype.
"For Millennials, being fake is worse than being uncool," said Nita Rollins, director of thought leadership, Resource Interactive, a Columbus, OH-based interactive agency focusing on the digital experience.
But Gen Y is probably best defined as the first generation born in the age of the Internet. As opposed to traditional advertising, grassroots marketing, local events, whacky promotions, online interactive campaigns and pop-up stores catch their eye.
A critical point to understand is Gen Y's connectivity in cyberspace. From texting to podcasting to posting on MySpace, members are perpetually connected to each other, constantly sharing opinions and influencing one another.
"Retailers have to learn how to market to a community and tap into Millennials' social networks," said Ms. Rollins.
Other insights found by Resource Interactive include that Gen Y thinks of themselves as highly expressive, seeking out creativity and products that show some individuality. As a generation accustomed to getting what it wants when it wants, Gen Y values immediacy. They won't stand for long lines and or even long waits for online buys. They want broad access to information, particularly online reviews of products from their peers. Finally, Gen Y members constantly filter through messages and media it finds irrelevant and have zero tolerance for intrusive ads, but humor can be a big draw.
"If you don't want to get filtered out, make sure your messages are fun and entertaining," Ms. Rollins said.
Discussion question: What should retailers and vendors be doing to prepare themselves as the Gen Y generation increasingly gains spending power? What will retailers have to do to connect with a generation that some call the most narcissistic ever?