America's youth are consumers with an identifiable mark for shopping. This generation has raised the bar for consumerism. Their sights are noticeably different because they are a generation with economic power unlike any youth before them. Today's teens and the early twenty-something generation were born in an era of technological and media advances that affords them limitless access to consumer markets. And this group is astute at maximizing the utility of these markets. So much so, until they are distinguished by names that clearly borrow their inferences from the "Techno-World." They are lovingly referred to as "Echo Boomers, or the Digital, Wired or Gen-Y Generation". Having been born between 1977 and 1987, they are between 16 and 26 years-of-age. This age group is growing approximately twice as fast as the general population, and is projected to number 35 million by 2010. It is no surprise that America is paying attention to this generation's buying habits.
Why are they buying? Why? Because young people in this age category are dealing with fundamental development issues as they make the transition from childhood to adulthood. The need to belong is ranked high on their list of priorities, and "looks" are crucial to social acceptance. Feelings of uncertainty abound relative to who they are; many times their self-identity is wrapped up in being identified with the "right" group. To a large degree they look to their peers, their idols, and to advertising for the "right" look, the "right" products, and for the "right" way to conduct themselves.
Additionally, Generation Y has easy access to shopping and are taking advantage of this access. They are a prime Internet audience as one of the fastest growing group of computer users. It is estimated that 62 percent log on from home for at least four hours a week. The Wired Generation is expected to spend $1.2 billion online in one year, and retail firms understand and are marketing via Web sites and other high tech venues. Retailers also understand that many in this group own credit cards in their own name, or have access to a parent's card. Both retailers and parents realize the advantages and disadvantages of credit access to youth. And to counteract parents' concern, many creative forms of start-up accounts are available from digital wallets to prepaid pocket cards and/or gift cards. These techniques have proved appealing to retailers and to parents; however, it is a win-win situation for Generation Y.
What are they buying? Most teens and young adults are avid consumers of products related to appearance and personal entertainment. According to a market research report of youth purchases, 34 percent bought clothing, 22 percent bought entertainment items, including computers, and food accounted for 15 percent of their purchases. Another 8 percent was spent on cosmetics and personal care items; sporting goods and related clothing accounted for another 6 percent; 3 percent was spent on reading materials; and another 11 percent was spent on other items. (Note: percentages will not add up to 100 percent because of rounding).
Today's marketplace for today's youth abounds in a multiplicity of forms. In an informal discussion recently held with several young adults, it was related that they expect super customer service, big discounts, high-speed e-trading, speedy deliveries, and excellent return policies.
So there you have it!!!
References
Hofman, Mike Hofman. (April 10, 2003). Tapping generation y. Inc.com. Retrieved June 13, 2003.
Oelkers, Dotty. (2004). Fashion marketing. Stamford, CT: South-Western, pg. 54-74.
Young, Vicki M. (February 3, 2003). Teen shopping heats up online. Women's Wear Daily, pg. 26.