Welcome!

Web 2.0 Authors: Pat Romanski, Victoria Livschitz, Lori MacVittie, Liz McMillan, Larry Dragich

News Feed Item

Millennials Pose Challenge and Opportunity to Restaurants, Apparel Retailers, Malls

U.S. Millennials Outspend Older Generations on Away-From-Home Food and Fashion; They Love to Dine and Shop in Groups but Winning Them Over Requires Carefully Tailored Offerings, BCG Research Finds

BOSTON, MA -- (Marketwire) -- 11/08/12 -- Restaurants, apparel retailers, and shopping malls should provide more tailored offerings to capture the hearts and wallets of the Millennial Generation, also known as Generation Y, according to new research by The Boston Consulting Group (BCG).

BCG's Center for Consumer and Customer Insight, in partnership with Service Management Group (SMG) and Barkley, surveyed 4,000 U.S. Millennials (defined as those 16 to 34 years old) and 1,000 non-Millennials (ages 35 to 74) to find out how their attitudes and spending habits differ. The results appear in a new article Millennial Passions: Food, Fashion, and Friends, which is available at bcgperspectives.com.

According to the survey, U.S. Millennials love to spend on away-from-home food and fashion. They dine and shop in groups; crave exciting, exotic dining experiences and experiential, lifestyle shopping environments; want to share their experiences with friends; and exert a strong influence over others -- family, friends, and even total strangers -- thanks to their intense use of social media.

Their attitudes, needs, and preferences are often quite different from those of non-Millennials as well as those of one another, so restaurants, apparel chains and malls need to develop more tailored offerings to attract them, the survey found. Below are more detailed findings.

Restaurants Are High on Millennials' Spending List

Restaurant meals and drinks are high on the list of what Millennials like to spend their money on -- ranking above consumer electronics, apparel, footwear, beauty and cosmetic products, and accessories.

They eat out more often than non-Millennials (3.4 versus 2.8 times per week), regardless of their income or household composition, and they prefer fast, fast-casual, takeout, Asian, exotic, and organic foods more than non-Millennials do. They're more likely to get food to go than to dine at the restaurant -- particularly at breakfast. Millennials spend slightly more than non-Millennials on average; indeed, a subgroup spends considerably more.

Millennials are much more likely to eat out with friends and coworkers (reported by 65 percent of Millennials compared with 43 percent of non-Millennials). They want to feel that they are "exploring something new" and that they can "easily catch up with friends."

Millennials visit mainstream casual restaurants but prefer fast-casual options such as Panera Bread, Chipotle Mexican Grill, and Pei Wei Asian Diner. "Regardless of price point, Millennials expect a great dining experience," said Chris Egan, the chief operating officer at SMG and a coauthor of the report. "Affordable fast-casual and fast food restaurants with locally sourced goods, exotic flavors, and service levels historically reserved for higher-quality restaurants will most likely garner a disproportionate share of Millennial dining spending."

Shopping for Clothing -- in Groups -- Is a Favorite Millennial Activity

Forty-seven percent of Millennial women reported shopping more than twice a month, compared with 36 percent of non-Millennial women. This difference in shopping frequency was even more striking among men (38 percent for Millennial men versus 10 percent for non-Millennial men). Millennial men spend twice as much on apparel per year as non-Millennial men; Millennial women outspend non-Millennial women by a third.

Fashion magazine articles and editorials, retailer websites, apparel brand websites and social media, fashion blogs, and store associates are top sources of trusted information on trends, products, and brands for Millennials.

As with dining-out preferences, Millennials tend to shop in groups and consider the opinions of others more than non-Millennials.

Millennials and non-Millennials prefer different apparel brands. Among the Millennial favorites: for women, Old Navy, Forever 21, Target private brands, Express, Aéropostale, Hollister, and H&M; for men, Nike and adidas. "Dual gender" favorites are Gap, American Eagle Outfitters, and Abercrombie & Fitch. Levi's, a non-Millennial favorite, is popular among Millennials, but less so.

Millennials prefer an experiential, lifestyle environment (such as that offered by Hollister or Abercrombie & Fitch), like to receive help and approval from fashion consultants rather than just basic sales assistance, and value store environmental factors more than their non-Millennial counterparts.

Retailers, Malls, and Restaurants Can Win Over Millennials

To win over Millennial consumers, the article says, retailers and shopping malls will need to consider several factors. They should emphasize group-shopping experiences, create in-store events and social forums, use mobile apps and social media, integrate their in-store and online offerings so that Millennials can compare prices on their smartphones or return their online purchases in stores, and in general make shopping fun, fast, and easy. Malls will want to ensure that they have the right mix of stores and restaurants to drive traffic.

For restaurants, the keys to success will include faster service (along with ready-to-eat and to-go options), fast-casual formats, and happy-hour, late-night, and bar experiences. Technology should again play a central role -- options such as online reservations and self-ordering systems will appeal to Millennials. And social media will matter to restaurants as well. Finally, menus themselves should include unusual, exotic, organic, or local ingredients, including "crowd sourced" options.

To stay relevant to Millennials over the next three to eight years and retain their popularity with the succeeding generation that will begin to emerge in stores and online in this time frame, stores and brands that target teens and young adults must reinvent themselves.

"For brands that appeal more to non-Millennials, as well as luxury and accessible-luxury brands and multibrand, multicategory formats like department stores, the challenge is fundamentally different: how to introduce their goods and brands to Millennials at the appropriate life stage and with authentic and relevant products," Christine Barton, a partner at BCG and lead author of the article, said. "And, importantly, when to do so, given that Millennials are not their core customers today, but will be in ten years."

To succeed, all companies must use language, marketing messages, causes, and spokespersons that relate to members of this generation.

Millennials' Impact Will Be Significant -- and Not Just on Their Peers

Millennials have a strong influence on each other -- they value experts but have redefined "expert" to mean someone with firsthand experience, often a friend or peer, not a critic or academic. "Millennials' impact will extend beyond generational lines," said Jeff Fromm, an executive vice president at Barkley and a coauthor of the report. Millennial brand preferences and buying patterns are early indicators of trends among non-Millennial consumers. Millennials live their lives on social media. Their attitudes spread quickly among their peers, then reach across generational lines. For example, non-Millennials report influencing the spending and product and brand preferences of spouses and kids; by comparison, Millennials perceive their influence to be over parents, siblings, grandparents, classmates, coworkers, roommates, and even complete strangers.

"Interestingly," Barton said, "Millennials report more likelihood to broadcast negative experiences or to look for 'knockout' criteria on a brand or product online compared, for example, with non-Millennial women, who report willingness to post positive as well as negative reviews and stories."

Research on Millennials can begin close to home. "Most retailers and restaurants already have access to a powerful tool: the Millennials on their own staff, who can be a valuable source of advocacy, insights and new ideas," Barton said. "Quick research close to home can be the key to winning over the Millennial generation."

To arrange an interview with one of the authors, please contact Alexandra Corriveau at +1 212 446 3261 or [email protected].

About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 77 offices in 42 countries. For more information, please visit bcg.com.

About BCG's Center for Consumer and Customer Insight
The Boston Consulting Group's Center for Consumer and Customer Insight applies a unique, integrated approach that combines quantitative and qualitative consumer research with a deep understanding of business strategy and competitive dynamics. The center works closely with BCG's various practices to translate its insights into actionable strategies that lead to tangible economic impact for our clients. In the course of its work, the center has amassed a rich set of proprietary data on consumers from around the world, in both emerging and developed markets. The Center for Consumer and Customer Insight is sponsored by BCG's Marketing and Sales and Consumer practices, with support from the Global Advantage practice in emerging markets. For more information, please visit BCG - Center for Consumer and Customer Insight.

About Barkley
Barkley believes that creativity and innovation can change the world. As the nation's largest employee-owned advertising agency, they are fiercely independent and committed to adding GOOD. Barkley's goal is to help build the biggest future possible for their clients. They provide fully integrated advertising services as well as specialized services through four partner companies: Crossroads, PR and Cause Marketing; Blacktop, Branding and Design; Barkley REI, Interactive Marketing; and Grenadier, Strategic and Creative. For more information, please visit http://barkleyus.com/.

About Service Management Group
SMG helps its clients drive business results by improving customer loyalty and employee engagement. SMG has a rich history in innovation, providing proprietary data-collection, reporting, and insight tools for front-line and executive levels. Each year, SMG collects and evaluates over 70 million surveys in 65 countries and 29 languages for more than 225 brands. To request more information about SMG, email Joe Sciara at [email protected] or call 816-448-4500.

About bcgperspectives.com
Bcgperspectives.com is a new website -- available on PC, mobile phone, and iPad -- that features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back almost 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed via PC, mobile, iPad, Facebook, Twitter, and LinkedIn.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.