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1 | © 2016 Aptos, Inc. All rights reserved.© 2016 Aptos, Inc. All rights reserved.
An Inside Look at CentennialsDave Bruno, Aptos
2:30 – 3:15
2 | © 2016 Aptos, Inc. All rights reserved.
JUSTWhen We Thought We Had a Finger on the Pulse of Gen Y Shoppers…
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WHO THEY FOLLOW
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WHERE TO FIND THEM
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WHERE THEY SHOP
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BELIEVE IT OR NOTMillennials are already aging out of their
position as “most sought-after” consumers
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But fear not. The effort and money you spent studying Millennials was not in vain.
IT WAS A WARM UP.
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Meet the
Centennials
1996 2011born (roughly) between
and
Not just “digital” natives...“mobile digital”’ natives
2007
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They represent approximately
22% of the US Population
70Mpeople in this generation
Source: US Census Bureau
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The first wave of Centennials haveReached Adulthood
14Mare age eighteen or older
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Already they have impressive
Purchasing Power
$200Bby 2018
Their spending will reach
Source: Business Insider
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And their influence
Extends their Reach
93%of Centennial parents say their children have some influence
on family spendingSource: Deep Focus
10%of Centennial parents say their
children influence 100% of family spending
Source: Upfront Analytics
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20%of the US workforceIn just four short years, Centennials will comprise
Source: US News & World Report
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PERHAPSit’s time to get to know them better
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AUDIENCE POLL
How much of your customer base is made up of Centennials?
<25% 25% - 50% 50% - 75% >75% Unsure
26 | © 2016 Aptos, Inc. All rights reserved.
AUDIENCE POLLDo you have a strategic marketing plan in place to study, target and cultivate Centennial shoppers?
YES NO PLANNED UNSURE
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DO YOU EVEN SPEAK THEIR LANGUAGE?
BEFORE WE DIG TOO DEEP
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#FOMOEveryone’s at Coachella hanging with celebs and I’m stuck in my backyard…
#PalmSprings #FOMO
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BAEYou are holding my heart as well as my hand…
#MyOneAndOnly #BAE
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On FleekSLAY QUEEN!!! Her eyebrows totally slay me
#LifeIsBeautiful #OnFleek
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Stanning
WOO HOO!!! Just scored tix to the upcomingJustin Bieber concert!#Stanning #Belieber
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Extra
Daaannng!!! This new Cap’n Crunch Frappuccino from Starbucks is TOO GOOD
#HiddenMenu #ExtraYep. That’s
a thing.
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ImplicationsDeciphering shopper
feedback and sentiment is only going to get more
(and more) difficult
TECH MKTG MERCH STORE
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AUDIENCE POLL
Is social sentiment analysis a meaningful part of your CRM and/or Merchandising toolkits?
YES, IN BOTH ONLY CRM ONLY MERCH NEITHER
CRM PLANNED MERCH PLANNED BOTH PLANNED
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To really understand them, we mustLook Beyond Slang & Stereotypes…
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HOW DO THEY THINK ABOUT MONEY?
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The 2008 recession has been theirDominant Financial Event
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Perhaps it’s no surprise then, thatSaving is Important
57%would rather save money than spend it immediately
Source: Forbes
even though most are still teenagers( )
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They are equallyCautious About Credit
1/2the credit card debt
of college age Millennials
College-age Centennials maintain less than
Source: Money
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And we have seen a correspondingReduction in Spending
31%from 1997 - 2014
US teen spending fell
Source: The Futures Company
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However, spending decisions are driven by
More than Mere Price
Source: Money
Gen Z consumers cautiously weigh the practicality of purchases and critically consider the value equation of any purchase.“ Source: Ernst & Young
42 | © 2016 Aptos, Inc. All rights reserved.
Spending patterns have also undergone
Seismic Shifts
I care a lot about whether my clothes are in style.“65%of teens
agreed in 1997
47%of teensagreed in 2014
Source: The Futures Company
43 | © 2016 Aptos, Inc. All rights reserved.
Spending patterns have undergone
Seismic Shifts
15%Apparel share of teen wallets has fallen
Source: Piper Jaffray
in the last decade
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Spending patterns have undergone
Seismic Shifts
While tech’s share has
DOUBLEDSource: Piper Jaffray
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Whatever you do…Don’t Cut their Cord!
90%would be upset if they had to
give up their Internet connectionSource: JWT
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76%would be upset if they had to
give up their cable TVSource: JWT
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71%would be upset if they had to give up buying new clothes
Source: JWT
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56%would be upset if they had to give up downloading music
Source: JWT
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56%would be upset if they had to give up buying video games
Source: JWT
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Relevance, value and influencing influencers are critical to achievingsustainable success.
Additionally, assortments may need to change to adapt to shifting consumer priorities
TECH MKTG MERCH
Implications
51 | © 2016 Aptos, Inc. All rights reserved.
AUDIENCE POLL
Has your assortment strategy shifted to account for the growing share of wallet owned by technology?
YES NO PLANNED UNSURE
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WHEN THEY DO SPEND, HOW DO THEY SHOP?
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Business as Usual
• Stores are always open• Pricing is completely transparent • Inventory is always available• Amazon can deliver within hours
Omni-channel shopping journeys:
This is all these kids have ever known.
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For these smartphone natives, mobile shopping is just
Part of the Process
34%prefer to purchase
via smartphone
Source: GfK Future Buy
32%prefer to purchase
via desktop PC !
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Compared to shopping in stores,
They <Prefer> Online
A Slight Majority PreferOnline in Most Categories
Sporting Goods 61%Accessories 57%Offline Games 56%Clothes 55%Shoes 55%Toys 54%Electronics 53%Beauty 51%
Source: JWT
}54%(all categories)
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While they do prefer to shop online…
There is an Asterisk*
After Amazon, they generally choose sites with physical locations
Source: Piper Jaffray
AmazonNikeForever 21eBayVictoria’s SecretAmerican EagleUrban OutfittersEastbayBrandy MelvilleWanelo
123456789
10
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Compared to Millennials…The Store Matters Much More
37%of Millennials prefer
to shop in store
Sources: Power Reviews, JWT
(vs 46% for Centennials)
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Integrated shopping journeys are
Ubiquitous Behaviors
Source: Center for Generational Kinetics
100%surf the Web on their phones looking
for a better price when in a store
59 | © 2016 Aptos, Inc. All rights reserved.
ImplicationsBe prepared for rapid growth in mobile purchases. User experiences must be streamlined and optimized.
While an active, engaging and vibrant digital experience is vital, effectively integrating stores presents an opportunity to build trust, enhance order size and grow loyalty (sound familiar at all?)
TECH MKTG MERCH STORE
60 | © 2016 Aptos, Inc. All rights reserved.
AUDIENCE POLL
What percentage of your digital orders are transacted on smartphones today?
<5% 5% - 10% 10% - 25% 25% - 40% >40% Unsure
61 | © 2016 Aptos, Inc. All rights reserved.
DO YOU KNOW WHERE TO FIND THEM?
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HELPFUL HINT #1don’t waste time looking
in these places…
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R.I.P.2011
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R.I.P.2011
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R.I.P.2010
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R.I.P.2006
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HELPFUL HINT #2start your search online
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When it comes to connectingThey Know No Boundaries
46% are actively online10+ hours a day
74% are actively online3+ hours a day
Sources: Wikia / Ipsos MediaCT
56% are actively online while in church
69 | © 2016 Aptos, Inc. All rights reserved.
You think you are a Slave to Your Screen(s)?
Source: Sprout Social5Centennialsmulti-task using screens
Millennials? 21/2Source: Sprout Social
screens
70 | © 2016 Aptos, Inc. All rights reserved.
Have all the screens (and all those cat videos)
Diminished Attention Spans?
30%since just 2011
Teen attention spans are down
Source: Bloomberg
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Or have they instead (or perhaps also)
Sharpened their Filters?
While their options are limitless,
their time is not.
Gen Z has learned to
quickly sort through and assessenormous amounts of information.
72 | © 2016 Aptos, Inc. All rights reserved.
So, despite continuous connectivity, theyPractice <Selective> Consumption
Centennials see being online as a tool for getting things done
73 | © 2016 Aptos, Inc. All rights reserved.
To help filter, they typically
Rely on Each Other
74 | © 2016 Aptos, Inc. All rights reserved.
To help filter, they typically
Rely on Each Other
75 | © 2016 Aptos, Inc. All rights reserved.
To help filter, they typically
Rely on Each Other
76 | © 2016 Aptos, Inc. All rights reserved.
And they also rely uponTrusted, Authentic Sources
10MYouTube followers
6MInstagram followers
3MInstagram followers
77 | © 2016 Aptos, Inc. All rights reserved.
This selectivity may help explain the Widespread Love for Snapchat
77%of college students use
Snapchat every daySource: Sumpto
78 | © 2016 Aptos, Inc. All rights reserved.
Selectivity may also help explain the Diminished Love for Facebook
14%of teens name Facebook their
“most important” social networkSource: BI Intelligence
Only
79 | © 2016 Aptos, Inc. All rights reserved.
As a rule, they are much less interested in chasing their
15 Minutes of Famethan were their predecessors
Selective | Discreet | AuthenticAndy Warhol
80 | © 2016 Aptos, Inc. All rights reserved.
Discretion (and humor) may be the secret behind the
Rapid Growth of Whisper
20MJan 2016 monthly users
(2x Jun 2015)Source: International Business Times
81 | © 2016 Aptos, Inc. All rights reserved.
Authenticity may shine a spotlight on thePersistent Appeal of YouTube
93%once per week
Source: Ipsos MediaCT
multiple times/day54%
Source: Ipsos MediaCT
82 | © 2016 Aptos, Inc. All rights reserved.
POP QUIZ!how well do you know the YouTube
stars that Centennials love?
83 | © 2016 Aptos, Inc. All rights reserved.
12Msubscribers
2.4Bvideo views
Source: VidStatsX
Growing Up Online
84 | © 2016 Aptos, Inc. All rights reserved.
17Msubscribers
2.7Bvideo views
Source: VidStatsX
Comedic Lip Syncing
85 | © 2016 Aptos, Inc. All rights reserved.
17Msubscribers
4.5Bvideo views
Source: VidStatsX
Humorous Gaming Commentary (???)
86 | © 2016 Aptos, Inc. All rights reserved.
21Msubscribers
5.4Bvideo views
Sketch Comedy
87 | © 2016 Aptos, Inc. All rights reserved.
43Msubscribers
11Bvideo views
Source: VidStatsX
Yelling Over Video Games
Oh, and “Brofists”
88 | © 2016 Aptos, Inc. All rights reserved.
LET THIS SINK INFollowers of the TOP 5 YouTube stars…
Source: The Washington Post
DOUBLEall U.S. cable television viewers
89 | © 2016 Aptos, Inc. All rights reserved.
NOT ONLYare they wildly popular, but they wield
Significant Influencewith Centennials
90 | © 2016 Aptos, Inc. All rights reserved.
Source: Variety
$12M
$8.5M
$4.5M $1.3M$3.6M
2015
Ages 13-17Scores
The recognized industry standard for measuring consumer appeal of personalities, characters, licensed properties, programs and brands.
Source: Variety
91 | © 2016 Aptos, Inc. All rights reserved.
Source: Variety
$12M
$8.5M
$4.5M $1.3M$3.6M
Source: Variety
92 | © 2016 Aptos, Inc. All rights reserved.
AND ANOTHER THING:YouTube content has a growing
influence over purchases for (and by) kids
93 | © 2016 Aptos, Inc. All rights reserved.
THE MYSTERIOUS APPEAL OF UNBOXING VIDEOS
94 | © 2016 Aptos, Inc. All rights reserved.
Many YouTube “Stars”Simply. Open. Boxes.
60Mof unboxing footage was viewed onYouTube in 2015
hours
Source: LA Times
6,850 yearsYeah. I did the math. That’s
95 | © 2016 Aptos, Inc. All rights reserved.
Many, many unboxing videos are Developed for Kids
10Bvideo views
107,378,447 VIEWS“Angry Birds Toy Surprise Jake NeverLand Pirates Disney Pixar Cars2 Sponge Bob”
96 | © 2016 Aptos, Inc. All rights reserved.
Now, many unboxing videos are Developed <BY> Kids
1.8Bvideo views
Source: VidStatsX
$1.3M2015 earnings
Source: Business Insider 8years old
97 | © 2016 Aptos, Inc. All rights reserved.
We now fast-forward to the end of this ad.
Going Up: Fast Forward – GEICOby GEICO Insurance
i
Millennial Marketing? While Evan targets kids,
His Ads Target <Parents>
You can skip tovideo in 1
98 | © 2016 Aptos, Inc. All rights reserved.
REALITY CHECKa couple data points to consider when
considering how to reach Centennials…
99 | © 2016 Aptos, Inc. All rights reserved.
17,904,619
Evan, Mom and Sis…“Playing with Doggie Doo!!!!”
views of this single episode
100 | © 2016 Aptos, Inc. All rights reserved.
America’s Pop Culture Queens
1.9Mviewers of one episode (01/24/2016 )
Source: The Nielsen Company
101 | © 2016 Aptos, Inc. All rights reserved.
Social networks are far more important to this generation.
Engaging, interactive and integrated social programs are a must-have for any omni-channel strategy.
Leveraging social channels for outreach must be part of any marketing strategy.
TECH MKTG MERCH
Implications
STORE
102 | © 2016 Aptos, Inc. All rights reserved.
AUDIENCE POLL
Is YouTube marketing (not just video posting) a budgeted part of your marketing strategy?
YES NO PLANNED UNSURE
103 | © 2016 Aptos, Inc. All rights reserved.
Outta Time. Gotta Dip.