The Drum Awards for Marketing - Extended Deadline

-d -h -min -sec

Black Friday Marketing

From WeCommerce to fauxsumerism – pay attention to these key words on Black Friday

Author

By Debbie Klein, UK CEO

November 24, 2016 | 5 min read

Black Friday is upon us again, but some industry analysts are saying that sales are expected to disappoint, with just 21% of Britons saying they are going to be fighting the crowds to snap up discounted products.

Debbie Klein

Part of the reason is that a lot of brands are ignoring the fact that millennials – a demographic that in the US alone is set to reach $1.4tr in annual spending by 2020 – just don’t care that much about discounts. With offers available online year round, every day is already Black Friday.

For brands that want to get Black Friday and other key retail dates right, understanding the millennial mindset is key. With their huge spending power and status as savvy digital natives, millennials have inevitably become a driving force of the current retail environment.

Recent research by The Cassandra Report, an Engine business which specialises in trend forecasting and research, provides a series of key insights into millennial shopping habits. Read on for my recommendations for any business trying to develop a presence in the millennial world.

1. Have a personality

With 70% of millennials in the UK describing our culture as “too consumerist”, brands can no longer just put products on shelves and expect people to come out and buy them. When millennials go shopping, they are increasingly interested in brands and products that they have an emotional connection with. Ultimately, shopping is no longer just about utility.

Nearly a quarter of UK millennials think that a store is more than just a place to buy things, with a further 23% saying that visiting their favourite store is like visiting a friend. What can retailers do to capitalize on this?

The first step is understanding that if you manage to keep people in one place for long enough, they will spend money. Samsung has jumped on this trend quickly, and it is paying off, with its “cultural destination” store concept, pioneering the idea that a store should be a place where people can just be with the brand.

Shopping is no longer just about transactions – millennials see brands as a part of their life.

2. Recyclability equals profitability

Perhaps contrary to popular belief, millennials regularly participate in the resale market. According to Cassandra’s report, 46% of US youth and 39% of UK youth feel guilty when they throw items away instead of donating or reselling them.

The rise of online reselling through platforms like Swapstyle and Vinted.co.uk to name a few are proof of this trend. In fact, nearly half of UK youth (44%) and 39% of US youth have bought and/or sold used items through an online resale platform in the past year.

Understanding this cyclical, personalised resale economy is fundamental for brands that want to appeal to a younger audience. Millennials have reconfigured the concept of ownership and the rise of a sharing or community economy should not be ignored.

Just like the tech world has been doing for many years through software updates and, more recently, Google’s modular phones, consumer retailers need to develop product updates and “tune ups” that allow consumers to upsell products via their own channels.

3. The rise of ‘fauxsumerism’

In the age of Instagram, it’s no surprise that the very act of browsing and discovering has now become as enjoyable as consumption. 24% of young people in the UK say they enjoy exploring food stores/venues even if they don’t intend to buy anything.

Technology has a huge role to play if brands want to stay ahead of the curve, offering shoppers the level of ease, accessibility and choice that they have online – in store. According to Cassandra, 30% of UK millennials would like to use virtual mirrors while 22% are keen to see more virtual reality when shopping.

The challenge for brands is to figure out how they can make browsing (both on and offline) enjoyable – and ultimately work out how this can be converted into a sale. Brands need to learn from digital innovators, like London’s WAH nail salon, and increasingly connect their physical and digital retail estate.

4. Community trumps commerce

Millennials are redefining the concept of luxury so that it better suits their modern needs and values.

Just as shopping has become an experience in and of itself, luxury is now seen to be inclusive - a sharp shift away from the exclusivity of luxury for previous generations.

Brands like Nike and Lululemon have successfully tapped into the experiential and inclusive trend that is transforming the luxury market. The good news for brands is that the luxury market isn’t dead – but only brands that adapt quickly have a chance to be successful.

Debbie Klein, chief executive of Engine Europe and Asia Pacific

Black Friday Marketing

More from Black Friday

View all

Trending

Industry insights

View all
Add your own content +