Generation Y —Why?
In the last issue of the Textile Consumer, the lead article, "Assessing the Consumer Gap Between Baby Boomers and Generation X," discussed the differences and similarities between these two population segments. Another segment, Generation Y, represents 29% of the U.S. population, or approximately 61 million consumers. Generation Y is defined as consumers between the ages of 4 and 21; many are the children of Baby Boomers (aged 34 to 51). Responsible for $40 billion in apparel sales last year, Generation Y is having an impact on retailers’ marketing methods. Retailers such as The Gap, Banana Republic, and numerous other specialty stores have successfully responded and marketed to this younger generation through nontraditional advertising and media placement, such as on the Internet. Some of the retail channels developed to satisfy the needs of Baby Boomers may find it more challenging to respond to the new attitudes and preferences of Generation Y.
 Who makes the apparel-buying decisions for Generation Y, and what differentiates this generation from other consumers? According to Cotton Incorporated’s Lifestyle Monitor™, consumers begin selecting most or all of their own clothing when they reach the age of 13. Of younger children, only 22% make their own apparel decisions. More than half of teenagers aged 13 to 15 choose what they wear, and over 75% of those aged 16 to 18 make their clothing decisions without parental input.
Members of Generation Y between the ages of 16 and 19 care about what their peers think and want to dress to make an impression. In the Lifestyle Monitor, 74% of teens say they feel better when they get a second opinion about their clothes. In addition, 78% report that people often comment on their wardrobe, and 53% often are asked for advice about clothes. These percentages are significantly higher than for the other age groups.
Preferred Item to Shop For
|
| |
| Clothes |
49 |
38 |
34 |
| Home electronics |
24 |
20 |
17 |
| Shoes |
12 |
5 |
5 |
| Groceries |
7 |
19 |
25 |
| Furniture |
7 |
12 |
21 |
|
Members of Generation Y also differ from other consumers in their shopping patterns. When given a choice of what to shop for, almost half (49%) prefer to shop for clothes. Another 24% prefer to shop for home electronics, such as computers, compared with 18% of all other consumers. When purchasing clothes, 73% of Generation Y consumers buy new and different styles, compared with 52% of all other consumers.
Members of Generation Y tend to shop for clothes 2.6 times per month, twice as often as Baby Boomers. Specialty stores (such as The Limited and The Gap) are their first choice for clothes shopping, whereas chain and department stores rank first and second for other generations. However, one-third of Generation Y members say they also shop at department stores, and 24% shop at chain stores. Although the Internet is not a current threat to traditional retailers, the percentage of Generation Y browsing the Web has grown from 8% in 1997 to 13% in 1999. Only 10% of other consumers browse the Web.
Like other consumers, those of Generation Y are willing to shop different retail outlets in search of the best value and to obtain the best "outfit." Over 70% (compared with 46% of all other consumers) prefer to buy separate pieces of apparel at different stores to make an outfit, rather than buying an entire outfit at one store.
 Top
Attributes Considered Important When Shopping for Apparel
|
Attribute |
Gen-Y |
Gen-X |
Baby Boomers |
|
| Price |
66 |
75 |
68 |
| Brand name |
48 |
26 |
21 |
| Environmentally friendly |
26 |
31 |
32 |
| Fabric content |
23 |
50 |
56 |
| Where it is made |
23 |
37 |
50 |
| Laundry instructions |
18 |
37 |
52 |
|
What is important to these young consumers when they shop for apparel? As with other age groups, most members of Generation Y (66%) say it is important to consider price before purchasing an item. But almost half (48%) also cite brand name as an important factor to consider when buying apparel. In contrast, Baby Boomers and Gen-X shoppers are much more likely to care about fabric content and care instructions than about brand name. These differing attitudes reflect the fact that Generation Y has not yet reached the lifestage when taking care of garments is a primary concern. Rather than focusing on functional attributes, Generation Y is much more concerned with fashion.
The growing purchasing power of younger consumers means that Generation Y will become an increasingly important target market for retailers. At the same time, these consumers face a proliferation of purchasing choices — more than any generation in history. The challenge to the apparel industry will be to compete for Generation Y’s dollar against an increasing array of spending options in footwear, electronics, cosmetics, entertainment, and other products appealing to this segment. Success will depend on choosing the right marketing tools to attract and retain this emerging market.
|
