December 16, 2014 § 1 Comment
There is a new study reported in The Chronicle of Philanthropy identifying a rising group of charitable donors. The study finds “Millennial and Generation X women who are single and unaffiliated with a religion give two-and-a-half times more money to charity than their older, similarly secular counterparts, according to the report, which looked exclusively at unmarried donors. Their giving also doubles that of peers who have loose ties to a religion.”
For many years, it has been reported that people of faith gave more than unchurched individuals, so this report indicates that intensity of faith may not be as strong an indicator of giving as previously thought.
It seems that young single women may be bucking the trend, but there may be other factors at play as well. Young single women may represent a growing group of highly educated, high income women who have decided to defer marriage. This group of Single Indies represent some 28 million women, or one out of three adult women, who spend around $1 trillion each year. They may have more disposable income and be predisposed to charitable interests.
The report also cites that one-third of Americans under 30 have no religious affiliation.
Clearly, for non-profits, this group of younger women represent an opportunity for both giving and volunteer activities. Marketing should recognize and speak to this power group.
December 16, 2014 § Leave a comment
Shopping local is more than a trend. It is growing for several reasons. Shopping local is good for business, good for the environment and good for our desire to find one-of-a-kind, meaningful products.
Good for Business
Local shopping is not insignificant. In a world of online shopping and big box retailers, the 23 million independent stores in America account for 54 percent of sales. These independent stores provide 55 percent of jobs, and 66 percent of all net new jobs since the 1970s.
One study says that local business generates 70% more local economic activity per square foot than big box retail. Keeping dollars in the local economy has been the rally cry for small business. My friend Linda Berry, owner of fine linen store Bella Linea in Nashville, Tennessee, recently shared some of the facts with her customers to reinforce the importance of keeping dollars in her community. She shared statistics showing that for every $100 spent at a locally owned store, $45 remains in the local economy, compared with about $13 per $100 spent at a big box and almost zero for online shopping.
A movement around Shopping Local has begun. American Express founded Small Business Saturday in 2010 to encourage consumers to visit small businesses in their community as part of the after Thanksgiving shopping. This year shopping local has grown double digits. A report from the National Federation of Independent Business (NFIB) and American Express – the Small Business Saturday Consumer Insights Survey – revealed that 88 million consumers “shopped small” this year, up 14.9 percent from just a year ago.
Good for Our Need for One-of-A-Kind Finds and One-of-A-Kind Experiences
Many retailers like Linda Berry also talk about the importance of meeting needs for today’s shoppers. Linda spends time traveling to find and create one-of-kind products that her customers can’t find anywhere else. Services like free designer consultation and free gift wrapping make small businesses like Bella Linea stand out among the mass marketers.
Trends like eating local and the Maker Movement also continue to provide unique goods and experiences that meet the desires of today’s consumer. The Maker Movement really captures the group of people creating individually made pieces for the home, small-batch food products, hand-knit, handmade and hand crafted items that can’t be mass produced.
Food has gone local with independent restaurants, local food purveyors, handmade food products and farmers markets proliferating. Beyond the food, food experiences have become custom as well. There are food tours, hands-on cooking lessons and small batch wine classes.
Good for the Environment
And, surprisingly, shopping local is also good for the environment. Shopping locally helps cut down on processing, packaging and transportation waste, leading to less pollution and less fuel consumption.
So, with just a few days of the shopping season left, visit a local store and make a difference in your community.
November 15, 2014 § Leave a comment
I don’t often talk about a single television spot but the Special K “More than a number” campaign has generated a spot that really defines women as more than sizes or numbers. Special K and their agency Leo Burnett actually created a pop-up store for women buying jeans. The proposition is real. Women fear only one thing more than shopping for jeans and that is shopping for a swimsuit. They talk about depressing feelings related to the shopping experience. Every woman I know talks about fat jeans, comfortable jeans and skinny jeans, but Special K has tried to change the language.
Hidden cameras capture women as they are shopping in the pop-up store. A surprising thing happens when they find out there are no sizes on the jeans. Their whole attitude changes when they find out that the jeans are not sized in numbers but in words like “fabulous”, “confident”, and “radiant”. The women were free from numbers and were affirmed that they were beautiful.
As women, our self-esteem and confidence is enhanced when we are not tied to old tapes we play in our head. And advertising can play a role in establishing new self affirming roles for women.
Research shows that if we feel more attractive, we are more confident. Jane Risen, an associate professor of behavioral science at the University of Chicago Booth School of Business, says “The most relevant study that comes to mind for me is a classic study looking at self-fulfilling prophecies,” she said. Men and women had a 10-minute conversation, via headphones and microphones so they couldn’t see each other. Before the chat, the men were given fake pictures, so half of them believed they were talking to an attractive woman, and the other half an unattractive woman.
“The most remarkable finding was that an independent set of coders who listened only to the women (and didn’t see a picture) also thought that the women who were supposedly more attractive were more friendly and sociable,” Riser said. “In other words, being perceived by the men as attractive lead the women to act differently such that other people came to believe the same thing that the men believed.”
October 21, 2014 § 1 Comment
The 2014 holiday shopping season will be a tipping point for online shopping. A PwC report finds that 41% of shoppers plan to spend more online this year than they did last year. In fact, more than two-thirds of today’s shoppers are omnichannel, easily shifting between their mobile technology and physical stores. There are conflicting reports on the size of this year’s holiday spending. The National Retail Federation is calling for holiday sales to rise 4.1%, the largest jump in three years. Online sales are expected to grow between 8-11%. PwC is not so optimistic, calling for an actual decrease in spending.
While you may think millennials are doing a lot of this online shopping, think again. Millennials only represent 18% of planned spending. It’s GenX and Boomer shoppers who will be leading the charge.
Estimates point to 43% of all spending will be online with 40% of consumers falling into a category called trade-off shoppers. Trade-off shoppers will do most of their research online and will buy online if the product is cheaper than in stores; another 32% are considered primary online shoppers; and 29% of shoppers will prefer going to the stores, after a little online browsing. Actual spending in-store will decrease from 55% in 2013 to 50% this year, but the individuals shopping in-store are likely to spend more. One important consideration is the whopping 15+ hours shoppers spend online researching purchases. Consider what that means for product descriptions, photography and selection.
Four Waves of Spending
The coming holiday season will have only 26 days between Black Friday and Christmas, just one more than last year and five fewer than 2012. That is important for all retailers as the compare same store sales. Black Friday is the #1 in-store shopping day during the holiday season. The next most important dates, according to a 2013 MasterCard SpendingPulse report, are December 21 and 23. Tuesdays and Wednesdays are the most popular days for online shopping, and Fridays and Saturdays are the top days overall for in-store holiday shopping. There are four distinct time periods for spending this year – Pre-Thanksgiving, Black Friday, Mid-Holiday, and Post-Holiday. Early shopping represents 21% of all holiday spending. The week of Black Friday will represent 21% of spending. Mid-Holiday is the traditional December shopping period where 50% of spending happens, with much of it in the last ten days before Christmas. And those bargain shoppers are 8% of the shopping dollars.
What Do People Want for the Holidays?
According to the National Retail Federation, for the eighth year in a row, gift cards will be the most requested gift item for the holidays. Sixty-two percent say they would like to receive a gift card, followed by clothing (52.5%), books, CDs, DVDs or video games (43.1%), and electronics (34.6%). And one-quarter (24.8%) would like to receive jewelry.
How to Be Prepared This Season
There are some important ways you can help this season’s shoppers.
1. Embrace online connectivity. Online experience means both your online presence but your connectedness in-store. Make sure Wi-Fi is available and sales staff are available with mobile devices to check out your customers. Make sure your cybersecurity is up-to-date. And make sure your online shopping is easy to navigate, informative and provides simple check-out. One-quarter of shoppers say easy-to-use mobile websites is an important factor in their decision to shop with a specific retailer, and 40% of Black Friday online shopping was mobile. And don’t forget free shipping. It is more important than the delivery date.
2. Create a differentiated in-store experience. Make sure your store personnel are knowledgeable, your merchandise is in-stock and easy to shop, the atmosphere is festive friendly, and your merchandising is distinctive and memorable. Think about personalization and special add-on services that simplify the gifting experience.
3. Make sure your offerings represent value. Shoppers still have a deal mindset based on best prices and seasonal deals, so your innovation, unique selections, bundling and convenient shopping experience will be important to take you from a commodity purchase to a brand purchase. Special deals will continue to be important to drive shoppers to your store. Reward your best customers with special perks for shopping with you.
4. Provide messaging consistent with your brand. A consistent promotional look and feel that reflects your brand is important in creating greater impact with your customer.
October 6, 2014 § 3 Comments
My daughter Katie often sends me pictures of her fabulous vintage finds like a folkloric skirt from the 50s or a cocktail dress from the 60s. She is one of many milliennials regularly frequenting shops that specialize in vintage, retro and thrift clothing.
One of the shops Shareen Vintage of Los Angeles describes their vintage wonderland as the creative center of a secret society of women who love to be at the cutting edge of fashion trends. In their store, clothing is divided by decades, starting in the 1920s through the 1990s, providing a living retrospect to fashion. Another store Re-mix Classic Vintage Footwear actually started out selling vintage shoes, but when demand outpaced their stock, they began having their own 20s – 50s vintage designs manufactured for women demanding more of the vintage looks.
Millennials have embraced Thrift Style, a fashion movement that incorporates several trends with their desire to be an individual. Research by Ypulse shows that 36% of Millennials find thrift shopping cool and 56% of Millennials say that thrift shopping is a great way to find cheap and unique clothes.
Six Key Trends Shaping Millennial Shopping
1. The end of conspicuous branding and the rise of personal style. Some 55% of people between 13 and 34 say they don’t follow trends. Millennials want to stand out and prize individualism over “fitting in.” With access to global stores like Abercrombie and Fitch are having problems enticing millennials because their fashions are seen as ubiquitous and too high priced for their taste. A big logo is no longer a coveted status symbol. Finding something completely original is the goal of trendsetters today. A thrift store find is both unique and rare. Even celebrities have contributed to the vintage culture by wearing vintage couture to big events like the Oscars and Grammys.
2. Saving money is cool. There is no surprise that 60% of millennials worldwide feel personally influenced by the economic crisis. So the ability to save money and find a personl look are added bonuses of thrift shopping. Shoppers pride themselves on smart finds at great prices. In fact, because of the durability of the items, they are actually seen as an investment in higher quality goods.
3. Sustainability. There is a decided movement against the “disposable culture” of throwaway plastic bags and planned obsolescence of electronics. Shoppers don’t really care if their retail purchases are over-wrapped or put into paper or plastic for transport. They are fine with foregoing some of the traditional trappings of the retail environment. Vintage items are often seen as being constructed better and made out of high quality fabrics. And the ability to recycle things of the past helps cutdown on their personal footprint in society.
4. Nostalgia for better times. In an unconscious way, milllennials are drawn to simpler times. Those who lived during the first Strawberry Shortcake period remember it with fondness and positive memories. For those who did not experience the 50s and 60s, the vintage look recalls a time of stability and lack of stress. Here in Nashville you can buy and experience a little slice of Grand Ole Opry history by just shopping at Katy’s Western Wear.
5. Personalization and DIY. Personal style means personalization. And, influenced by programming such as Project Runway, millennials turn to online sites such as Etsy and eBay for fun finds. These shoppers and designers can express their own creativity by reworking clothes with sewing, knitting, embellishing and dying their finds. Some 22% of Millennials say they often modify, cut up or embellish their clothing.
6. Purchases with a Purpose. Thrift stores are getting a millennial makeover to appeal to young shoppers who like to shop with a purpose. The idea that the YWCA can help women, Goodwill trains disadvantaged for retail jobs or ThriftSmart actually gives their proceeds to real charities is an appealing proposition to millennials who want to make a difference in the world around them.
Retailers and marketers alike need to understand the way Millennials shop and how best to appeal to their interests.
September 8, 2014 § Leave a comment
Naming Gen Edge
A Guest Post by Amy Lynch
Recently demographers and gen theorists documented a clear shift–new behaviors and attitudes that signaled the start of a new generation. Technology plays a role here. For people 19 and under, social media and multi-tasking on five screens at once are the norm. In fact, many of them were read “Goodnight iPad” rather than “Goodnight Moon” at bedtime.
Now the question: what to call this new group? Names abound–Homelanders, iGen, Gen Z–but the name that sticks seems to be Gen Edge. Here’s why.
Each generation is born into a time of stability and belonging, a time of idealism and awakening, or into a period of skepticism and instability. And then (drum roll) once every 100 years or so a generation is born into a world that sees on the edge of collapse. Economically, socially, politically and technologically, things are changing so quickly that the whole era feels unpredictable, risky, edgy.
Of necessity, a generation of kids who grow up on the constant edge of change become edgy themselves. Resourceful and resilient, they find their way through minefields of uncertainty and figure out new ways of making things work.
Parenting comes into the mix as well. Today’s kids are being raised by Gen X parents who have nurtured without coddling. Unlike Millennials, Gen Edge has not been overprotected. They’ve known about adult problems, like unemployment and bills to pay, from early on. So they navigate the work with savvy beyond their years. Realists to the core, they have an edge. Gen Edge just fits.
Amy Lynch is president of Generational Edge, helping companies move beyond generational awareness to generational strategies that increase innovation, engagement and sales. She has talked with groups as diverse as MTV, Boeing, Johnson and Johnson, and the Staff of the US Senate.