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Appealing to Gen Y Shoppers

9/26/2014

Increasingly, people are endlessly fascinated by the traits, values, work habits and shopping patterns of millennials, also called Generation Y. Why is all this attention being paid to people born between the early 1980s and 2000s? It’s quite simple: They are a generation of influence, in numbers similar to that of baby boomers, but with an outlook unlike one we have ever seen.



According to Javelin Strategy & Research, by 2015, Gen Y income is projected to exceed that of boomers. Making a Gen Y’er your customer — and just as importantly, keeping them engaged in your brand — calls for a completely fresh approach.



To better understand the millennial, you need to think about the technology-rich world in which they grew up. Research from Junco and Mastrodicasa notes that, of college students born between 1983 and 1992, a whopping 97% own a computer; 94% have their own cell phone; and 76% “IM,” or instant message, each other. And, 92% of those messaging do so while multitasking.



So, what do Gen Y shoppers crave when it’s time to put their purchase power to use? The exact opposite of what has become part of their typical day-to-day: a “live experience.” By that I mean a memorable experience filled with sight, touch, sound and sense, allowing them to interact with much more than a finger on glass.



A millennial seeks out animation and connection, not the static input of looking through a window at a display or staring at a screen. (They do enough of that already.) They can shop online and browse with the click of a mouse, which is all the more reason why they enjoy visiting a store, as long as the retailer makes it a sensory experience that speaks to, not at, them.



Gen Y shoppers have already dramatically changed the retail landscape. Many retailers are finding that 300 to 400 stores are not needed. Instead, the focus is on key locations that build awareness of, and an experience around, their brand. The strategy is one of quality rather than quantity.



H&M



How do you know, from a design perspective, that you’ve accomplished this goal? Here is a great example: A shopper walks into H&M on 5th Avenue in Manhattan and is immediately immersed in a happening lifestyle. Vignettes of lounge-like installations beckon shoppers to gather and socialize. These public spaces create a sense of place and give off an infectious vibe and energy that targets the Gen Y shopper. With its bright lights and upbeat music, H&M has created fast-moving “fast fashion” at its finest.



Space Ninety 8



Urban Outfitters’ Space Ninety 8 store in Williamsburg, Brooklyn, speaks eloquently to Gen Y’ers. Urban Outfitters has gone beyond the usual mix of apparel and keyed into the people who live in the surrounding neighborhood and their specific interests.



The first floor is a flexible retail gallery, continually changing and carefully curated. On my first visit, the space featured a bike shop with cutting-edge rides, hip accessories and even repair kits. Nearby was a collection of locally made items from Brooklyn craftsmen and old vinyl records. On my second visit, not even a month later, the space had totally changed.



In other touches that show Urban Outfitters gets its audience, Space Ninety 8 has areas to charge cell phones, a bar and restaurant to keep the shopper immersed in the experience. It’s not just real estate; it’s a place to come together and hang out with friends. You may never want to leave, and that’s the whole point.



Anthropologie



While an entirely different feel, Anthropologie (another Urban Outfitters brand) has also keyed in to Gen Y’s needs. The store’s visual merchandisers often have art degrees or are in school studying fine arts. Items are not displayed on the wall. They are artfully arranged, creating their version of a modern bazaar.



Rich materials, forms and colors set a tone, complementing the handmade pieces, apparel and housewares, and tying together the brand’s story. While there is an overarching vision, each location is local to the neighborhood and unique in its own right. This tactile experience is the antithesis of the digital world and draws the millennial back to a time of simplicity and discovery.



Though the aesthetics or brand vision of each of these examples may vary, they all have one very important thing in common: They tap into Gen Y’s under-met need for live, sensory input. With a little extra thought and design consideration, today’s retailer can meet this group’s needs well — both now and in the near future.



David Ashen is a principal and the founder of dash design, a New York City-based interior design and branding firm specializing in retail and hospitality projects.

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