At 80 million members, the millennial generation makes up more than one-fourth of the U.S. population. And a new report notes that the annual direct spending power of this generation is estimated to be $200 billion.
The report, “American Millennials: Deciphering the Enigma Generation” — is based on study conducted in partnership among three organizations: Barkley, Kansas City, Mo.; Service Management Group, Kansas City, Mo.; and Boston Consulting Group, Boston — involving 3,896 millennials (eligible ages 16-34) and 1,129 non-millennials as a comparison group (eligible ages 35-74). According to the report, millennials have grown up with a greater degree of affluence than any generation before them, leading to very high spending expectations throughout their lives. And the generation’s spending habits are projected to increasingly heighten as members age and become even more affluent.
In terms of grocery shopping, the report names several purchase decision factors for millennials: child-friendliness, interesting or exotic foods, loyalty programs, online ordering and product sampling. But national brands do not appear to be a major factor in decision-making: Sixty percent of millennials believe store brand product quality is just as good as that of the national brands.
The study also found that millennials enjoy cooking. Brad Hanna, Barkley’s senior vice president, consumer packaged goods/group practice leader, found this discovery surprising, as cooking skills have been declining with each generation since the Silent Generation (those born between 1925 and 1945).
These discoveries point to a strong opportunity to capitalize on millennials’ penchant for cooking while promoting store brand products. Hanna told Progressive Grocer’s Store Brands that retailers could do both by:
Developing a digitally based millennial communications plan — a robust social media presence should include a Facebook “like” strategy built around recipes, store brand product suggestions and stories behind private label items; a social media couponing strategy; a Twitter strategy to announce prepared items and new store brand product promotions; a geo-location strategy built around promotions and programs for check-ins; and QR code placement on packaging for linking to recipe videos. “Millennials are more likely to trust brands that are connected to social media,” Hanna said. “And nearly half of millennials believe it is important for a brand they choose to have a Facebook profile.”
Identifying which categories could best differentiate their chain with millennials — shopping card data or a simple survey could be used to identify which categories are the most popular with millennials. Retailers then could use the data to find which categories offer the best store brand opportunities. And if a retailer is looking to capitalize on perishables, it should consider offering locally grown/procured foods, organic options or even a farmers’ market concept that incorporates these products. “Millennials tend to shop larger, one-stop shopping formats for stock-up items,” Hanna said. “For these outlets, variety of selection, improved quality standards and exotic flavor offerings are key.”
Aligning their chain and own brands with important social causes — while non-millennials would rather donate items or money to a social program or cause, millennials would rather get involved through volunteering. Retailers should align their brands and banner with programs that are built around active involvement, Hanna said.
Sampling, sampling, sampling — and don’t just sample your private label products; sample your private label products with a purpose. Items should be sampled in the context of a prepared food, thus showcasing creative menu ideas and recipes. “This sounds so trivial, but sampling is actually a key differentiator for millennials in selecting a store,” Hanna said. “This could be an opportunity for private brands to partner with branded products on shared sampling events in-store to maximize impact and value.”
2010 Meat and Seafood Operations Reviews: Value on a Platter and Seafood Hits Its Stride
In these separate reports incorporating exclusive Progressive Grocer research, we shed light on the latest trends in both categories.
Progressive Grocer's Category Captains 2009
Category management took on a new level of importance in the past year, as smart suppliers recognized that tuning in to consumer data and retailer partner' needs was the safest bet for all to succeed.
Total supermarket sales were $430.3 billion, up $13.2 billion from the $417.2 billion recorded in 2007 continuing the trend of slightly higher percentage increases in each of the past five years, according to the results of Progressive Grocer's 62nd Annual Consumer Expenditures Study (CES)
Progressive Grocer's 2009 Annual Produce Operations Review
Against a trying backdrop of persistently weak economic conditions, fierce competition and financially wary shoppers, supermarket produce departments faced muchharsher headwinds during the past 12- month period than they have in recent years, as evidenced by marginal comparable-sales gains and a tentative outlook for the balance of the year
Progressive Grocer's 2009 Super 50
At first glance, the bulk of statistical information in Progressive Grocer's Super 50 report appears similar to last year, but a deeper look shows there are clearly plenty of change afoot within the ranks of these leading players, many of which are presently immersed in aggressive campaigns aimed at redefining their brands - and reasserting their cost/value propositions - for shoppers.
New Product Spotlight
Claritin-D 12-Hour Equivalent
Perrigo Co. began shipping Loratadine-D 12-hour extended release tablets.
