1/ Demographic Time Bomb. Major brands are facing a demographic time bomb; a) an aging consumer base with fading spending power, and b) limited relevance with today’s youth consumers. For many brands, winning the youth market means they will still exist ten years from now.
2/ Market Size and Spending. Today, Millennial consumers, aged 18 to 34, represent 1/3 of Canadians, making them the largest and most influential consumer segment in history. If you’re wondering, yes, this audience is larger than the Baby Boomers. By 2019, Millennials will be responsible for $2.5 trillion in spending power.
3/ Influencers. Youth directly impact major house-hold purchases; particularly the case for technology and automotive sectors. It’s estimated that for every dollar spent by youth, they influence another $3.50. This multiplier effect seen across many major industries makes youth the prime target for many marketers.
4/ Brand Loyalty. According to a recent study, 64% claim they’re just as loyal, if not more loyal, than their parents. Youth are highly experimental; they’re willing to try new things, including new brands. You’re going to see a lot of variability in brand consideration and preference amongst this segment; but don’t be mistaken, they are building brand loyalties.
5/ Consumer Advocacy. To youth, brands are social badges. Youth are willing to act as true brand advocates, creating a tremendous opportunity for brands to build lifelong fans. Some youth consumers have gone to the extent of tattooing their favourite brands on their bodies. According to our latest POME study, 82% of Canadian youth will share their brand preferences online.
6/ Creators. Youth are natural creators; both independent and collaborative. Look at the success of crowd-sourcing campaigns and financing, where youth consumers have directly selected new product SKU’s and kick-started new companies. Give the youth audience the right platform, and they serve to both create and amplify your brand messaging.
7/ Re-Shaping the Workforce. Forbes published an article titled, “10 Things Millennial CEOs Will Reimagine In America”. It provides interesting insight into the fundamental shifts in North America’s corporate culture. As the article states, “Like it or not, Millennials will soon be running the place.” In 10 years, they will comprise 75% of the workforce.
8/ Mobile Commerce. Youth are embracing mobile commerce, which represents the future of retail. This platform allows retailers to exponentially grow profitability, as shopping continues to shift from the confines of brick and mortar to the global online marketplace. To a youth consumer, their smartphone is their single most valued possession. Leverage it as a 24/7 – 365, path to purchase.
9/ Campus marketing. Today, 18 to 24 year olds account for the largest share of the Millennial audience. On-campus marketing opportunities represent high density locations to reach this audience. With over 100 university and college campuses across the Canada, there’s a plethora of brand integration opportunities from sampling to events to ambassadors to media to strategic partnerships.
10/ Embracing of New Business Models. Youth are embracing new business models allow brands to boost their overall profitability. Youth have allowed subscription-based, sharing-platforms, and private shopping communities to gain strong traction within today’s marketplace. This is the perfect demographic to pilot new business models, which may just revolutionize your brand and/or industry.