Consumer behavior, spending and demographic profiles are changing with every passing day, and retailers are left scrambling to keep up.
Yet, 3 groups of consumers are emerging as the bright spots in the retail industry.
Who are the groups that retailers should be targeting, if they aren’t already, you ask?
The answer: Baby Boomers, Hispanics, and Millennials.
Want to know why retailers should be rushing to impress these groups? Keep reading.
Millennials: This elusive generation is bigger and harder to win over than previous generations, but is expected to have more spending power than any other generation by 2017 and will account for one-third of retail spending by 2020. Millennials have proved tricky for retailers as their mindsets are different from those of other generations, making past marketing approaches ineffective. In order to tap into this generation’s potential, retailers need a deep understanding of its members’ needs, mindsets, and preferences and how they differ not only from other generations, but also from each other.
Baby Boomers: Even while shrinking in size, the Baby Boomer generation makes up the same percentage of the U.S. population as Millennials and is still too big to be ignored. Not only are Baby Boomers the wealthiest generation, holding 70% of the disposable income in the U.S., but they also spend roughly 50% of all CPG dollars. Also, like Millennials, traditional marketing approaches are ineffective as they too are not a single, monolithic entity with lockstep needs and purchasing patterns.
Hispanics: Retailers can’t afford to miss out on a slice of consumer pie that represents the fastest-growing demographic in the entire country. Now representing 17% of the U.S. population, the Census Bureau expects that Hispanics will account for 23% of the population by 2050. Not only is the Hispanic presence in the U.S. exploding, but Hispanics’ purchasing power is on the rise. Hispanics will double retail spending in the next 2 years. The demographic will spend $1.5 trillion on U.S. goods and services by 2015 – a 50% increase from 2010.
But, the main point to take home is that while these are 3 distinct groups, they all have something in common.
They are all multifaceted.
And the retailers who learn who these customers are as consumers, understand what influences them and what their preferences are will benefit.
If you need help understanding these complex groups and how connecting with them will help your brand, take a seat and let’s talk.