retailers, meet the centennials

Copyright © 2015 Aptos, Inc. All rights reserved.

11 • © Aptos, Inc. All rights reserved.© 2016 Aptos, Inc. All rights reserved.

An Inside Look at CentennialsDave BrunoMarketing Director, Aptos


22 • © Aptos, Inc. All rights reserved.

JUSTWhen We Thought We Had a Finger on the Pulse of Gen Y Shoppers…



WHO THEY FOLLOW



WHERE TO FIND THEM



WHERE THEY SHOP



BELIEVE IT OR NOTMillennials are already aging out of their

position as “most sought-after” consumers



But fear not. The effort and money wespent studying Millennials was not in vain.

IT WAS A WARM UP.



Meet the

Centennials

1996 2011born (roughly) between

and

Not just “digital” natives...

2007

mobile digital natives



They represent approximately

22% of the US Population

70Mpeople in this generation

Source: US Census Bureau



The first wave of Centennials haveReached Adulthood

15Mare age eighteen or older



Already they have impressive

Purchasing Power

$200Bby 2018

Their spending will reach

Source: Business Insider



20%of the US workforceIn just four short years, Centennials will comprise

Source: US News & World Report



PERHAPSit’s time to get to know them better



DO YOU EVEN SPEAK THEIR LANGUAGE?

BEFORE WE DIG TOO DEEP:



#FOMOEveryone’s at Coachella hanging with celebs and I’m stuck in my backyard…

#PalmSprings #FOMO



BAEYou are holding my heart as well as my hand…

#MyOneAndOnly #BAE



On FleekSLAY QUEEN!!! Her eyebrows totally slay me

#LifeIsBeautiful #OnFleek



Stanning

WOO HOO!!! Just scored tix to the upcomingJustin Bieber concert!#Stanning #Belieber



Extra

Daaannng!!! This new Cap’n Crunch Frappuccino from Starbucks is TOO GOOD

#HiddenMenu #Extra



ImplicationsDeciphering shopper

feedback and sentiment is only going to get more

(and more) difficult

TECH MKTG MERCH STORE



FOOD FOR THOUGHT…

Is social sentiment analysis a meaningful part of your CRM and/or Merchandising toolkits?



To really understand them, we mustLook Beyond Slang & Stereotypes…



HOW DO THEY THINK ABOUT MONEY?



The 2008 recession has been theirDominant Financial Event



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( )



They are equallyCautious About Credit

1/2the credit card debt

of college age Millennials

College-age Centennials maintain less than

Source: Money



And we have seen a correspondingReduction in Spending

31%from 1997 - 2014

US teen spending fell

Source: The Futures Company



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



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



Spending patterns have undergone

Seismic Shifts

15%Apparel share of teen wallets has fallen

Source: Piper Jaffray

in the last decade



Spending patterns have undergone

Seismic Shifts

While tech’s share has

DOUBLEDSource: Piper Jaffray



Whatever you do…Don’t Cut their Cord!

90%would be upset if they had to

give up their Internet connectionSource: JWT



76%would be upset if they had to

give up their cable TVSource: JWT



71%would be upset if they had to give up buying new clothes

Source: JWT



56%would be upset if they had to give up downloading music

Source: JWT



56%would be upset if they had to give up buying video games

Source: JWT



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



FOOD FOR THOUGHTHas your assortment strategy shifted to account for the growing share of wallet

owned by technology?



WHEN THEY DO SPEND, HOW DO THEY SHOP?



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.



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 !



Compared to shopping in stores,

They <Prefer> Digital

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)



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



Compared to Millennials…The Store Matters Much More

37%of Millennials prefer

to shop in store

Sources: Power Reviews, JWT

(vs 46% of Centennials)



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



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



FOOD FOR THOUGHTWhat percentage of your digital orders are

transacted on smartphones today?



DO YOU KNOW WHERE TO FIND THEM?



HELPFUL HINT #1don’t waste time looking

in these places…



R.I.P.2011



R.I.P.2010



R.I.P.2006



HELPFUL HINT #2start your search online



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



You think you are a Slave to Your Screen(s)?

Millennialsmulti-task using

Source: Sprout Social5 screensCentennials?

2 Source: Sprout Socialscreens1/2



Have all the screens (and all those cat videos)

Diminished Attention Spans?

30%since just 2011

down

Source: Bloomberg



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.



So, despite continuous connectivity, theyPractice <Selective> Consumption

Centennials see being online as a tool for getting things done



To help filter, they typically

Rely on Each Other




Rely on Each Other



And they also rely uponTrusted, Authentic Sources

10MYouTube followers

6MInstagram followers

3MInstagram followers



This selectivity may help explain the Widespread Love for Snapchat

77%of college students use

Snapchat every daySource: Sumpto



Selectivity may also help explain the Diminished Love for Facebook

14%of teens name Facebook their

“most important” social networkSource: BI Intelligence

Only



As a rule, they are much less interested in chasing their

15 Minutes of Famethan were their predecessors

Selective | Discreet | AuthenticAndy Warhol



Authenticity may shine a spotlight on thePersistent Appeal of YouTube

93%once per week

Source: Ipsos MediaCT

multiple times/day54%

Source: Ipsos MediaCT



POP QUIZ!how well do you know the YouTube

stars that Centennials love?



12Msubscribers

2.4Bvideo views

Source: VidStatsX

?Growing Up Online



17Msubscribers

2.7Bvideo views

Source: VidStatsX

Comedic Lip Syncing



17Msubscribers

4.5Bvideo views

Source: VidStatsX

Humorous Gaming Commentary



21Msubscribers

5.4Bvideo views

Sketch Comedy



43Msubscribers

11Bvideo views

Source: VidStatsX

Yelling Over Video Games



LET THIS SINK INFollowers of the TOP 5 YouTube stars…

Source: The Washington Post

DOUBLEall U.S. cable television viewers



NOT ONLYare they wildly popular, but they wield

Significant Influencewith Centennials



Source: Variety

2015

Ages 13-17Scores

The recognized industry standard for measuring consumer appeal of personalities, characters, licensed properties, programs and brands.

Source: Variety



Source: Variety



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



FOOD FOR THOUGHTIs YouTube marketing (not just video

posting) a budgeted part of your marketing strategy?



One Customer One Interaction One Order

One Product One Truth One View of the Enterprise

CRM • Clienteling POS • Mobile POS • Enterprise Order Management

Planning • Merchandising Audit Operations Management Analytics

Singular Commerce, Seamless Experiences.Digital Commerce

#Extra



Coming Soon to Your Inbox

Our latest eBook:

MEET THE CENTENNIALS

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Outta Time. Gotta Dip.