How to Entice Millennials to Shop at an Apparel Store

Abstract

The purpose of this research paper is to understand the features of Millennials in order to develop efficient methods for apparel retailers to entice this age cohort to make a purchase. For the quantitative aspect of this study, this paper will identify Millennials’ demographics, psychographics and lifestyle with the support of database resources. Due to the time compression, this research will have four Millennials interviewees responding twelve in-depth apparel shopping behavior questions (see fig. 1) in order to have the directly qualitative information. In the end, by combing all the gathering information, this study will provide three strategies for apparel retailers to attract their Millennials customer niche to make their business profitable and sustainable.

How to Entice Millennials to Shop at an Apparel Store

The 80 million members of the Milliennial generation represent 25% of the U.S. population, and more than $200 billion in annual buying power. It is the biggest age cohort, is greater in number than Baby Boomers (Barkley, n.d.). The retailers who want to win the business games should fawn and realize this tremendous group. What is the definition of Millennials? According to Beyond Design (2013), Millennials born between 1979 and 2000, currently aged 16 to 37, is also known as Generation Y or Echo Boomers. They experienced the time with the rise of the Internet, the September 11 terrorist attacks, wars with Iraq and Afghanistan, and the worst recession since the Great Depression.

Features of Millennials

One of the distinctive features of Millennials is, they like supporting good causes. According to Pew Research Center, Millennials are confident, self-expressive, liberal, connected, less religious, and are on track to become the most educated generation in American history. They embrace multiple modes of self-expression as one-in-five have posted a video of themselves online. 76 % believe they can truly make a difference with their actions. 63% will likely do business with a socially responsible company. They care about having a positive impact.

In addition, Millennials are open to change and upbeat adventurers. According to Pew Research Center, Millennials are more ethnically and racially diverse than older adults. 77% enjoy eating a variety of ethnic foods. 75% would like to travel abroad as much as possible. Even if they came into careers, and first jobs has been badly set back by the Great Recession, they are more optimistic than their elders about their own economic futures. About nine-in-ten either say that they currently have enough money or that they will eventually meet their long-term financial goals. A retailer can’t count on their brand loyalty, since only 43% continue to buy the brands they grew up with. 50% will go out of their way for frequent shopper reward programs.

Millennials are well-connected with social medias and technology. Electronic devices are not just their gadgets — it’s the way they’ve fused their social lives into them. For example, three-quarters of Millennials have created a profile on a social networking site (see fig. 2), compared with half of Xers, 30% of Boomers and 6% of Silents. Millennials are twice as likely to have 200 to 500 friends on Facebook than older generation. 61% Millennials also speak up rating products and services online. There are big generation gaps, as well, in using wireless technology, playing video games and posting self-created videos online. Millennials are also more likely than older adults to say technology makes life easier and brings family and friends closer together (Pew Research Center, 2010). 70% say they often asked for advice, 68% don’t make a major decision without discussing it with others. 70 & agree that having their friends’ approval on decisions is important.

Three Strategies

Technology has become a life necessity for Millennials. Hence, first strategy for apparel retailers is to utilize beacons technology. Beacons communicate with smart-phone apps over Bluetooth. Beacons enable targeting based on a person’s precise location, meaning a department store could alert a shopper to a new collection from Burberry when she is near women’s clothes, or an accessory brand could send a coupon or a personalized message to customers standing in front of its product. Macy's, for instance, has been using the beacon technology to track movements of customers around the store, and eventually provide coupons for relevant products, discounts, and information (Alex, 2015). Furthermore, the data collected by beacons can help plan more effective advertising campaigns and engage the customer.

Secondly, providing Millennials customers with seamless Omini-channel service can help protect a retailer’s competitive advantage. Based on the result of the interviews from this study, limited inventory is the biggest customer pain-points in both online and bricks and mortar stores. Once a retailer offers seamless customer experience, a customer can browse the inventory online first and purchase on mobile and pick it up in store. Since Millennials read reviews and write opinions online, gathering customer feedback is also crucial to prevent customer lost.

Finally, developing corporate social responsibility will affect Millennials to make a purchase. Ralph Lauren supports the Hope Help & Relief, a campaign which helps ShelterBox to send tents and shelter survival boxes to Haiti. The mission creates a community of leaders in music, fashion, film, finance and art to become agents of change for the renewal of Haiti. (ITM, 2011) When a retailer is supporting good causes, Millennials are willing to spend more dollars on their products.

Conclusion

Nowadays, customer-centricity is the biggest issue for every apparel retailer. Millennials, the biggest population age cohort who has huge shopping power as a group were raised during the longest bull market in history. However, they are positive about their future and willing to change for a bright future. Since they were born in the age of the computer, technology plays an important role in their lives. They are quite tech-savvy. An apparel retailer should leverage the fact that Millennials are engaged with their mobile devices almost 24 hours a day (see fig. 3). If an apparel retailer works to continue to gain profits from Millennials, the retailer should keep developing its business strategies as establishing promising beacons technology in their store, providing seamless Omni-channel shopping experience, and developing excellent corporate social responsibilities.

References

Alex Senn. (2015). Retrieved February 15, 2016, from https://www.linkedin.com/pulse/10-retailers-using-beacons-right-how-can-do-better-alex-senn

Barkley. (n.d.). Retrieved February 15, 2016, from https://www.barkleyus.com/millennials

Keiser, S. J., & Garner, M. B. (2013). Beyond design: The synergy of apparel product development.

Omni-Channel Apparel Shopping - Cotton Incorporated. (2013). Retrieved February 15, 2016, from http://www.cottoninc.com/corporate/Market-Data/SupplyChainInsights/Retail-Everywhere-Omn_Channel-Apparel-Shopping/

Ralph Lauren's Corporate Social Responsibility. (2011). Retrieved February 15, 2016, from https://fashionwithaheart.wordpress.com/2011/05/18/ralph-laurens-corporate-social-responsibility/

Retailers look to beacons to help in-store shopping mirror online - FT.com. (2015). Retrieved February 15, 2016, from http://www.ft.com/cms/s/0/658a5f98-0103-11e5-a60e-00144feabdc0.html#axzz406xxtZhJ

Appendix

Figure 1. Sheet of interview questions

In-depth The Millennial Apparel shopping Behavior Questions

Name /

Age /

Sex /

Ethnicity /

Location /

Marital status /

Occupation /

Family Size /

Education /

Half-length photo /

1.What are your pain-points while shopping online and store? List three for each.

2.Where do you usually shop for clothing? Name three stores? Do you like to see the retailer developing? How?

3.What is your budget when you do a monthly shop?

4.What is your priority while purchasing?

5.Have you ever had a bad shopping experience? Where? How?

6.Have you ever had a good shopping experience? Where? How?

7.Would you want to shop in a store with all technology without human contact?

8.How do you like salesperson coming up to you?

9.Would you shop in store and buy it online (Compare pricing)?

10.Have you ever tried Omni-channel shopping? How was it?

11.What do you do for pleasure?

12. Have you ever tried an interactive technology in a store? How was it? If not, what kind of interactive technology you’d like to see in a retailer store?

Figure 2. Rate of age cohorts who have profile on a social networking site

Figure 3. Rate of age cohorts who sleep with cell phone

Figure 4. Interviewee one

The Millennial In-depth Apparel Shopping Behavior Questionnaire

Name / Dylan Stone

Age / 28

Sex / male

Ethnicity / American

Location / NYC

Marital status / single

Occupation / model

Family Size / 6 immediate family

Education / college degree

1.What are your pain-points while shopping online and store? List three for each.

In store I hate waiting in line to pay, hard to find what you’re looking for, slow walking people.

Online having to type in too much info like credit card number and address, when stuff is out of stock its annoying and hard to find what you’re looking for.

2.Where do you usually shop for clothing? Name three stores? Do you like to see the retailer developing? How? Saks 5th ave, H&M, Zara. Yes, I like to see there new line of clothes each season to see what new styles they have come out with. Yes, I like to see the stores develop and grow bigger and continue to come up with new styles each season. H&M has really taken off over the past few years I think because they have such a good variety of styles and really good prices.

3.What is your budget when you do a monthly shop? I don’t have a budget I just buy the things I want to have.

4.What is your priority while purchasing? Buying articles of clothing that fit me properly.

5.Have you ever had a bad shopping experience? Where? How? Once at Saks I was buying a large amount of clothes and when they ran my credit card to pay they put a stop on the payment then I had to wait over an hour before the hold was taken off and I was able to get my things.

6.Have you ever had a good shopping experience? Where? How? Yes, at Saks I was giving a 30 percent off coupon.

7.Would you want to shop in a store with all technology without human contact? No, I wouldn’t like that. I don’t think it would be good to have to try and find what you’re looking for without the help of a salesperson. Also, a friendly salesperson can persuade you into buying more things.

8.How do you like salesperson coming up to you? I don’t like when they keep coming up to you and bothering you every ten minutes, but they can be helpful as well when you cant find what you are looking for.

9.Would you shop in store and buy it online (Compare pricing)? No, if I am already in the store, I would want to just buy it there rather then hassle with going home and purchasing it online.

10.Have you ever tried omni-channel shopping? How was it? Yes, I’ve tried it. I liked it cuz I was able to save on shipping costs and also it was nice to be able to try on the clothes in the store to make sure they all fit properly.

11.What do you do for pleasure? I buy nice clothes so I am able to impress beautiful girls.

12. Have you ever tried an interactive technology in a store? How was it? If not, what kind of interactive technology you’d like to see in a retailer store? No I never have. I would like to be able to try on clothes in one color and then have a picture taken and be able to interchange the colors to see what they look like on me without having to actually try on the different colors of clothing.

Figure 5. Interviewee two

The Millennial In-depth Apparel Shopping Behavior Questionnaire

Name / Brandon Stim

Age / 23

Sex / Male

Ethnicity / Moroccan, Lithuanian and Ukrainian

Location / New York City

Marital status / Single

Occupation / Director of Business Affairs

Family Size / Seven

Education / BS in Accounting

1.What are your pain-points while shopping online and store? List three for each.

Online:

1. Delivery time

2. Not being able to try on clothing

3. Customer service

Store:

1. Limited inventory

2. Can't always find my size

3. Sometimes more expensive than online

2.Where do you usually shop for clothing? Name three stores? Do you like to see the retailer developing? How?

1. H & M 2. Zara 3. All saints

If these stores can show a product line before its launched and get feedback between some products that might be helpful.

3.What is your budget when you do a monthly shop?

$300-400

4.What is your priority while purchasing?

Depends on the season but I like unique styles.

5.Have you ever had a bad shopping experience? Where? How?

Not really.

6.Have you ever had a good shopping experience? Where? How?

Nothing in particular. All saints gives me a 10% student discount so I guess that counts as a good experience

7.Would you want to shop in a store with all technology without human contact?

Yeah that's fine by me.

8.How do you like salesperson coming up to you?

They're more annoying than anything.

9.Would you shop in store and buy it online (Compare pricing)?

Usually I look at prices online while I'm shopping in a store and if they're very similar than I'll get it at the store.

10.Have you ever tried Omni-channel shopping? How was it?

No, I never tried that before, I usually just get the items delivered if anything.

11.What do you do for pleasure?

Travel or try new things with people I care about.

12. Have you ever tried an interactive technology in a store? How was it? If not, what kind of interactive technology you’d like to see in a retailer store?

Haven't seen anything used in stores but definitely clothing stores can use some sort of technology that lets you do virtual fitting.

Figure 6. Interviewee three

The Millennial In-depth Apparel shopping Behavior Questionnaire

Name / d. p. Duncan

Age / 26

Sex / male

Ethnicity / mixed

Location / New York City

Marital status / single

Occupation / business entrepreneurial/real estate, media, hospitality

Family Size / 1

Education /4 years bachelor's in finance

1.What are your pain-points while shopping online and store? List three for each.

too many choices

Unable to see and try

some of the long payment processing that seek ways to further capture marketing data from me

2.Where do you usually shop for clothing? Name three stores? Do you like to see the retailer developing? How?

Barneys

Bergdorf Goodman

vintage thrift stores

3.What is your budget when you do a monthly shop?

5k

4.What is your priority while purchasing?

Quality and sizing

5.Have you ever had a bad shopping experience? Where? How?

Yes, when a salesperson intentionally sold me a wrong perform at a rare scents store in Greenwich village because the one I wanted was out of stock. Didn't know until got home. Potentially thought I was a tourist that won't be back to return it in order to get the commissions

6.Have you ever had a good shopping experience? Where? How?

Yes, in Taiwan I bought a coat that I really wanted and agreed to buy it at the price I was shown then when I went to the checkout the salesperson gave me a 40% off and even had a concierge walk me to get my VAT back immediately after

7.Would you want to shop in a store with all technology without human contact?

No, it would feel empty and I would mind as well as shop online. I feel people naturally when out, would like some type of human interaction. Friendly service can brighten a shopping day.

8.How do you like salesperson coming up to you?

Depends sometimes annoying sometimes helpful

9.Would you shop in store and buy it online (Compare pricing)?

Yes, on occasions.

10.Have you ever tried Omni-channel shopping? How was it?

Seamless is ok. Nothing wrong with more options.

11.What do you do for pleasure?

Read newspapers and exercise. Dine in new and exciting restaurants

12. Have you ever tried an interactive technology in a store? How was it? If not, what kind of interactive technology you’d like to see in a retailer store?

Yes, but depends what you mean by interactive tech. Information screens yes. Some are engaging

Figure 7. Interviewee four

The Millennial In-depth Apparel shopping Behavior Questionnaire

Name / Matthew Nalan

Age / 33

Sex / Male

Ethnicity / Caucasian

Location / Arizona

Marital status / Single

Occupation / Director of Operations

Family Size / 1

Education / Master’s Degree

1.What are your pain-points while shopping online and store? List three for each.

Online- products out of stock, too many clicks between products on websites and shipping charges.

Store- products out of stock, fighting crowds and walking too much between stores

2. Where do you usually shop for clothing? Name three stores? Do you like to see the retailer developing? How? I usually shop at Macy’s, Nordstroms, sports stores. Yes, it would be nice to see new products being developed to stay relevant in the market. Newer fashion trends in the industry being developed by my stores would be great instead of continuing to sell the same old products.

3.What is your budget when you do a monthly shop? $500 if I spend that much.

4. What is your priority while purchasing? Convenience, price and style.

5. Have you ever had a bad shopping experience? Where? How? I have bad shopping experiences all the time, but mainly in stores because of crowds and the last of assistance with questions.

6. Have you ever had a good shopping experience? Where? How? Online when I can do it from the comfort of my own home.

7. Would you want to shop in a store with all technology without human contact? No, because many times there are questions that computers cannot answer and that can become frustrating.

8. How do you like salesperson coming up to you? I appreciate them coming up to ask if I have questions and if I do then they address them. If I do not have questions then they do not keep trying to sell me on product I don’t want.

9. Would you shop in store and buy it online (Compare pricing)? I prefer online, but if there is a difference in the in store and online prices I would think about it. I prefer the convenience of online without crowds though.

10. Have you ever tried Omni-channel shopping? How was it? I like looking item online, purchase mobile and delivery to my home.

11.What do you do for pleasure? Travel

12. Have you ever tried an interactive technology in a store? How was it? If not, what kind of interactive technology you’d like to see in a retailer store? No, maybe some voice activated, interactive computers that could give descriptions and details of each product when it was selected.

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