Over the next 10 years, Millenials are predicted to become the biggest spenders when it comes to groceries and foodservice. So it makes sense that they should be a prime target for retailers.
Here, we take a look at some retail strategies that can help appeal to the Millennial market.
Investigate new store formats
When it comes to Food and Beverage, new retail formats are seeing success. Grocery-restaurants combinations (the ‘Grocerant’), kitchen-only outlets and delivery services are all experiencing growth and grabbing the attention of Millenials. Take a look at ‘The Drug Story’―an innovative new concept where anyone can walk in, grab a $10 activated-charcoal drink and leave. But the drinks are not free―paying is based on an ‘honor’ system. The company has made a bet that customers will pay the same way they order the drinks for home delivery―by sending the company a text message, receiving a link to pay from a representative, and then paying by their phone (though there are a few safety precautions including cameras, a heat map tracker and RFID tracker to see what products are taken out of the refrigerator). The space is small―and can fit inside other retail stores. It features a large, selfie friendly mirror, and stark black-and-white striped penny tiles. This radically different format has attracted a lot of attention (with mostly women as it’s customers). The lesson for retailers? Think outside the traditional retail placements, explore new formats, and new purchase options. They will help you get the attention you deserve.
Tell the story behind the ingredients
Millenials are increasingly health and nutrition conscious. They are very interested in what they put in their body―and the impact of products on animal welfare and the planet at large. As Richard Hall ofZenith Global and FoodBev Media Chairman says “Beverages have always been about taste, convenience, value and identity. The two new dimensions over the past 20 years have been added benefits and ethical values. Not only do more of us want to know what a product will do for us, we also want it to represent our point of view. It’s almost a new form of consumerism democracy.”
This presents an opportunity for retailers to focus on telling the story behind the ingredients in their products in clever, creative ways. Take a look at Juice Press―a juicing company that boasts natural and organic, healthy juice options for customers. Online, it’s easy to see and read about all of the nutrition and product information―from where products are sourced, all the way through to the detailed health benefits of each ingredient. But how do they take this instore? Through the use of digital displays at the point of sale. With beautiful, colorful moving storyboards, the story behind products is brought to life for customers, right at the point of purchase in-store.
Convenience and adventure.
We know Millennials are driven by experience, but they are also motivated by convenience. As evidence, they allocate the highest share of their food budget to prepared food (7.5% vs 6.6-6.9% for the other generations), and unlike other age groups, they continue to eat prepared foods even as they grow richer. They are also highly experimental.
What does this mean? Retailers can use technology to bring in the convenience of online ordering into stores, allow shoppers to order using kiosks in-store, provide delivery services, and allow shoppers to browse many menu suggestions on their mobile, while they are in-store.
But they are also experimental and will partake in increased food experimentation. A study found that nearly 8 in 10 millennials consider themselves adventurous eaters, and half believe ‘interesting and exotic foods’ are a must-have at their local grocery stores. How can retailers make the most of this? Offering interesting examples of adventurous recipes or wildly creative combinations is one sure-fire way to get Millenials attention.