Hot shots
By Pat Griffin Millennials not only account for nearly a quarter of the U.S. population, but also represent a sizable portion of annual consumer spend, with yearly pockets as deep as $200 billion. In light of this generation’s financial clout – as well as the rapidly approaching holiday season, in which sales are predicted to increase 3.6 percent from 2015 – it is important for retailers to think about meeting the needs of this critically important group of consumers. Tall order? As retail marketers look to standout over the coming months, especially among millennials, they must do so in a way that garners attention, as well as resonates with generational needs. Specific to millennials, research has identified a set of product attributes that overwhelmingly resonate with this age bracket. These features and values, collectively known as L.A.T.T.E. – local, authentic, transparent, traceable and ethical – can provide significant opportunity to brands and retailers this holiday season, if leveraged appropriately. Compared to other generations, millennials are 20 percent more likely to look at the elements of L.A.T.T.E. when making shopping decisions. Millennials want to know that the retailers they are buying from are honest about their brand and the story behind their products. In alignment with L.A.T.T.E principles, millennials shoppers care deeply about brand authenticity. In fact, 62 percent of millennial consumers are more likely to purchase from a brand that demonstrates a sincere commitment to its core values. REI, a leading sports retailer, made a moral stance that generated significant attention last holiday season with its “Opt Outside” campaign. With most retailers focused on door busters and opening early on Black Friday, REI announced that it would be closed to encourage both employees and customers to enjoy the outdoors. The campaign reinforced the perceived authenticity of the brand, ultimately fostering heightened favorability among millennial consumers. The REI movement received positive press throughout the 2015 holiday season, and is seeing fast followers this year.
Devising strategies
Pat Griffin is general manager of the retail and consumer practice at Catalant