Millenials Taking Over
FOR the first time a recent census report has shown that millenials (those between 18-to-32
year olds has outnumbered even baby boomers. As the buying power of these millenials increases,
marketers seeking their business must understand that members of this sector are a new breed of
shopper and expect to be treated as individuals.
THE new group is very tech savvy and media connected and tend to be more independent
politically, a trait that carries over into their personal lives. Many are postponing marriage and record
numbers of them say that they have no religious affiliations. They also appear to not be a trusting
lot as a group, but most seem optimistic about the future.
DEFINITELY a tough group to market to and retain customer loyalty! Because of deep ties to
technology it is very hard to keep their attention. So, when you are marketing it needs to be interactive.
If they are not participating they will move on to the next pitch. They have a high sense of “self”
bordering on narcissistic (hello, Selfie!) and fashion marketers have been encouraging shoppers to
buy their clothing and post pictures of themselves in the outfits. Apparently, it’s all about ME, ME,
ME! Good luck retailers - this is your next challenge.
Free Shipping Not So Free To Retailers
I know, everyone wants free shipping when they buy things online. And it is very challenging for
retailers who can easily lose sales because they don’t off it. But shipping costs money and it needs
to be absorbed into the price somewhere along the line.
EIGHT in 10 Americans who made an online purchase this year said free shipping was the deciding
factor in closing the deal. It’s become a real competitive hot spot and one that your business cannot
ignore.
HERE are a few tips when considering free shipping. Consider the financial implications of free
shipping to your bottom line. If your product can ship standard priority you are between $5.05 and
$6.50 for flat rate shipping. Do you have enough margins in your item to make this pay?
TEST your offers. Try free shipping on all orders over $50 or $75 and monitor sales. Often a
customer will buy a little more to make the minimum. This is a win-win and often shoppers will go
through your offerings carefully to find another item or two to buy.
BE wary of raising prices and offering free shipping. With the internet everyone knows everything
and shoppers know the value of goods they are buying. So keep things in line and you’ll do fine.
Retailing Tidbits
PINTEREST cannot be ignored by retailers! It has been doing extremely well for fashion companies
hawking clothing and accessories. In fact, the average order that comes through because of Pinterest
is $169 as compared to facebook $95 and Twitter $70. Nordstrom is one retailer that has harnessed
the power of Pinterest and now has 4.4 million followers.
TARGET is testing mannequins to see whether or not they help sell more clothing while Uniglo is
experimenting with clear mannequins to display new clothing lines. Other retailers are experimenting
with mannequins in odd and novel poses and in some cases with tattoos and crow’s feet. Were you
at the ASD show last month and saw the mannequins that had the rotating signs attached to their
mid-sections? When mannequins hit the end of their usefulness you can throw a motor in their midsections and make human signs out of them. More jobs lost to automation!
For Late-Breaking Industry News Visit: www.RetailersForum.com
If It Affects Retailing We Report On It!