Millennials, Gen Zers Guide The New Retail Rules Of Engagement

By Alicia Fiorletta, Senior Editor 

During a special event at the Hearst Tower in New York City, Shannon Davenport, Head of Advisory for the U.S. division of Stylus Fashion, outlined the core behaviors of today’s connected consumers and what, to put it bluntly, makes them tick.

What I find most intriguing about the work Stylus does is that it focuses on the intersection between lifestyle, engagement and technology. The innovation research and advisory firm’s approach, overall, aligns with how brands and retailers should be doing business today.

Although the most prevalent shifts in preferences and shopping behaviors are seen among Millennials and Gen Zers, all consumers are really looking at the retail experience in whole new ways. For the sake of not turning this blog into a research report, let’s focus back on the younger consumers — the digital natives. 

While Millennials fall under the 20-33 year age bracket, Gen Z consumers are between 5 and 19 years old. But some sources indicate that the “target marketing group” is 11-16 years old.

They may be young, but Gen Zers are seemingly taking over; there are two billion of them in the world’s population and while they don’t have their own income, their allowance totals about $44 billion a year, according to Davenport. Beyond this potential spending power, Gen Z consumers are “super social networkers.” What does this mean? They are more demanding and impatient than other age groups.

But what about Millennials? They represent 25% of the population and more than $200 billion in annual buying power. They also rely on the social universe to guide their everyday lives. Up to 71% of Millennials engage with social media every day and 68% of 18-34 year olds say peer’s social posts will influence their behaviors. 

Both of these groups also really love more image-focused social networks. Many Millennials and Gen Zers are turning away from Facebook, according to Davenport, but they are increasingly turning to Instagram and another image-based network called IMOJI.

Some brands and retailers are capturing Millennial and Gen Z attention by creating fun, socially driven products and campaigns. For example, cosmetics brand Glossier packages its products with emoji-inspired stickers, which consumers can use to decorate their product bottles. Shoe designer Del Toro, meanwhile, created a whole line of emoji velvet slippers.

These examples “show us the type of cultural reference that is incorporated into actual products today,” Davenport said. “Gen Z is growing up in an entirely different world than the other age groups.”

Digital natives also have quickly grown accustomed to having information at their fingertips. They’re used to a constant stream of information and, in turn, expect to be able to “self-serve,” or accomplish tasks on their own.
For brands and retailers, that means big changes need to be made to their shopping experiences. For one, digital natives don’t see channels. Up to 30% of Millennials use more than four devices throughout the day, Davenport revealed. Because these shoppers are hopping across touch points throughout the day, that means businesses need to create “Millennial-friendly interfaces” that are big, loud and easy. No-hassle interactions equal better results.

Some brands and retailers also are striving to bring the best of Millennial-friendly tools and touch points to the store. Karl Lagerfeld, for instance, has set up “selfie” stations in stores using tablet devices. That’s right: The King of luxury is encouraging shoppers to share pics of themselves wearing items in the store! Rebecca Minkoff and Neiman Marcus also were spotlighted for their eagerness to incorporate cutting-edge technology such as interactive digital displays in store.

Does your brand or retail organization target Millennials and Gen Z consumers? What are you doing to engage with them? We’d love to hear your story!