A recent article in ‘Jeweller’ magazine outlined the key challenges that luxury retailers face when trying to market to Millennials and Boomers. Should they be targeting one or the other, or both? How should they target them?
Key take-outs include:
Potential market size. Boomers (5.17M) and Millennials (5.22M) are Australia’s two largest demographic groups in terms of population.
Net wealth. Mark McCrindle, head of social research firm McCrindle, states that, “The 25-34 age group have [an average] net wealth of $268k, while the 55-64 age group have [an average] net wealth of $1.2M dollars.”.
Values. “For Baby Boomers, it’s all about quality and value, with a preparedness to pay more. They are influenced by traditional brands, and a sense of quality and reputation that is associated with a brand”, says McCrindle. Furthermore, as Gill Walker, founder and Managing Director of Evergreen explains, “As people get older they tend to buy things based on need or experience. Boomers might still buy luxury, but it will be a luxury experience over a luxury item.”.
In contrast for Millennials, Brian Mitchell, co-founder of HOW&Y says that a focus on self-esteem, celebrity culture, social media and technological saturation are the driving forces behind the emergence of the Millennials. “Millennial lifestyle decisions are driven by values, not needs, and that is the most fundamental difference.” In addition, Goldman Sachs states that Millennials are much more likely to be driven by price than Boomers.
Targeting. Given the fundamental differences between the two groups, the trick is to use different strategies and media to reach each segment, as it’s tricky to target both groups with the same approach.
“Targeting both of these markets is made easier by the fact that they frequent different media”, Mitchell explains. “It’s a question of targeting your messages to suit the target and appealing to them using different media and platforms. Don’t sacrifice one market for the other; have a strategy for Boomers and a strategy for Millennials.”
Contact Evergreen today for advice on how to bridge the generation gap for your brand.
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