Image and personality key to branding Gen Y appeal

NEW YORK —Targeting the Generation Y customer is much like targeting a multicultural group: A narrow-minded approach that lacks distinction will surely result in sour sales. With approximately 70 million Gen Y’ers or “millennials” residing in the United States, retailers have their work cut out for them.

In order to appeal to this group (born between 1978 and 2000), brands must develop a clear image and personality that is tailored to a specific customer. A study by Maritz Retail Research group showed that the success of Express is largely attributed to knowing its niche. Gen Y shoppers have a plan for who they want to be. Similarly, brands with a unique personality complement the shoppers’ self images. A cookie-cutter mentality—and, in turn, apparel—fail to fit in with this generation. “Brands need to know who they are and what they want to be, then go after a certain group,” said Kyle Langley, Ph.D., senior research manager at Maritz.

To convey a specific image, retail space needs to elicit an emotion in customers. Hollister has done well in this area. The brand encompasses a surfer lifestyle through merchandise selection and decor, which includes surfboards, a lounge area stocked with alternative magazines and music listening stations. Men in the Gen Y group prefer apparel that’s tied to music and action sports, as opposed to heroes or celebrities, said retail analyst Eric Beder of Brean Murray, Carret & Co. Clearly, Hollister has done its homework, because its merchandise easily fits with such a lifestyle.

One commonality that spans the entire Gen Y generation is technology use. Unlike generations past, Gen Y’ers heavily rely on e-mails, the Internet, instant messages and cell phones to communicate and gather information. Since word-of-mouth carries a lot of weight, retailers need to pay attention to their marketing strategies.

Although text messaging promotions appear to be a logical venue, the strategy won’t sit well with this group. “We know several things from the study [Maritz Comprehensive Brand Audit], said Langley. “While they are the most tech savvy group and text message a lot, they are not interested in receiving text messages from retailers. It’s a personal interaction, when they talk amongst each other.”

The study showed that 65% of Gen Y shoppers were “un-likely to would definitely not subscribe” to cell phone or PDA offers. Only 5% of those polled signed up to receive text promotions. Instead of wasting effort on finding texting loopholes, brands should pour resources into online groups. The same study reported that 48% of Gen Y respondents belong to an online group posted by retailers.

“They are not only posting, they are seeing what other people are posting and it carries with a lot of weight on what they are determined to buy,” said Langley. “This is certainly going to have an affect on what the successful products may be.” Close to two-thirds stated that they use online reviews when making a purchasing decision.

Using blogs and online message boards also strengthens brand personality. Gen Y’ers who pick up on positive brand emotions will inadvertently take part in the retailer’s marketing efforts.

At the mall, Gen Y shoppers prefer specialty retailers to department stores. “When they shop in the store, they want experience that stimulates them,” said Beder. The encompassing atmosphere of department stores fails to make this customer feel unique, even when specialty sections are present. “Retailers have to create a smaller area that these customers may want to go to,” he added. “It’s really tough.”