emerging consumer deck

INSIGHTS • IDEAS • RESULTS

THE MILLENNIAL WAY

EMERGING CONSUMER INSIGHTS 2016

August 4, 2016

RECOMMENDATIONCOMPETITIVE

AGENDA

2

PURCHASING REASONS

MEDIA TRAITS

WHO ARE THEY?

MEET ARTHUR

4

• Millennial (1977-2000)

• Socially connected

• Open to try new things

• Addicted to coffee and pizza

HI!

MILLENNIALS

92 MILLION IN POPULATION

HAVE THE BUYING POWER

Source: 2015 GfK MRI Doublebase

20% of Millennials spent $2,000+ on

home improvement in the past year

2015

2020

$600 Billion

$1.4 Trillion


WHAT ARE THEIR REASONS FOR PURCHASE?

THEY BUY FOR MULTIPLE REASONS

7

45% first hear about a product or brand based on what’s trendy or in style

AWARENESS CURIOSITY INFLUENCE COMPARISON

50% will research the product online

immediately

57% will compare prices for the

maximum convenience at the

lowest cost

45% want to buy products that are

approved by friends, families or strangers

Source: Mainstreet.com & Emarketer

PURCHASED

Millennials are more open to explore

trending topics and styles

The information sharing generation provide reviews for products to family, friends, and even

strangers

They enjoy a bargain and will compare

prices for even small purchases

If they are intrigued by something, they go online to learn

more about it

WHEN IT COMES TO BRANDS, MILLENIALS LIKE:

8Source: Moosylvania.com

61%Recommendations

53%Personalization

75%High-quality

products40%Social

responsibility

62%Social

Engagement

MILLENNIALS ARE INTERESTED IN BUYING NEW TECHNOLOGY

73% of Millennials are

interested in virtual reality

Millennials are 2.5x more

likely to be an adopter of new technology

56% of Millennials are

usually one of the first to try new technology

Source: Emarketer

THEY BUY FOR CONVENIENCE

There are more searches

performed on mobile than on

laptops

More than half of all web traffic comes from

smartphones and tablets

1.3X increase in mobile searches for

“where to buy/find/get” in the

past year

Source: Think With Google

THEY BUY TO TREAT THEMSELVES

They are 40x more likely to buy

a gift for themselves while out holiday shopping

Source: CNBC & Kelton 11

55% take advantage

of seasonal sales and discounts to make purchases

for themselves

Millennials plan to spend 24% of their holiday budgets on

themselves

Average spending on home decor will reach

$53


MILLENNIAL’S MEDIA HABITS

MILLENNIALS ARE KNOWN AS: Generation Y

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The Peter Pan Generation

The Net GenerationThe Information Sharing Generation

MILLENNIALS GREW UP WITH INTERNET

Use wireless internet

Own a computer

Own a phone94%

62%

97%

62%

14

Created social networking profile

Use instant messaging

97%

75%

Source: Pew Research

76%

THEY RELY HEAVILY ON SOCIAL MEDIA

15Source: Battery Venture August 2015

87%

65%60%

51%

44%

91%

57%61%

41%

74%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Facebook Twitter Instagram Snapchat Pinterest

75% have created at least one account

SOCIAL MEDIA HELPS THEM DISCOVER AND CONNECT WITH BRANDS

Source: Edelman 16

90% will share their brand preferences online

83%

66%

59%

learn about brands and products through social networking

like their favorite brands on Facebook

connect with companies on social media networks

MULTICULTURAL MILLENNIALS SHARE MORE OPINIONS ON SOCIAL MEDIA

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HISPANIC MILLENNIALS

73% 71% 45% 45%

AFRICAN-AMERICAN MILLENNIALS

66% 69% 46% 42%

More than half regularly comment and share opinions on

social media

Source: Sensis & 2015 GfK MRI Doublebase

THEIR ENGAGEMENT ON PINTEREST LEADS TO HOME DÉCOR PURCHASES

47% said they purchased

something online after pinning it or seeing it pinned

Source: MillwardBrown Digital 18

74% pin from a

company/brand to share their interest and lifestyles

44% pin to share their

personal good experiences

60% of those purchases

relate to home decor

WHEN IT COMES TO VIEWING CONTENT, MILLENNIALS PREFER OPTIONS AND FLEXIBILITY

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1 IN 4 MILLENNIALS ARE CORD-CUTTERS AND CABLE-NEVERS

77x more likely to be Cable-Nevers

67x more likely to be Cord-Cutters

Source: ComScore

THEIR ENGAGEMENT ON YOUTUBE LEADS TO INTEREST IN NEW BRANDS

20Source: Think with Google and Mashable

76% of Millennials

follow companies or brands on YouTube

Viewers are 23X more

likely to visit, subscribe, or share videos of a brand

channel

74% watch brand

channels on YouTube weekly

YouTube viewing is up by

74% since last year

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watch YouTube Stars’ videos weekly

will watch their favorite YouTube star’s video within 24 hours

of its release I would try a

product recommended by a YouTube Star!

STARS ARE BECOMING MORE INFLUENTIAL THAN TRADITIONAL CELEBRITIES

4 out of 10have been influenced to

change their opinions about a brand by a YouTube star

Source: http://variety.com/2015/digital/news/millennials-find-youtube-content-more-entertaining-relatable-than-tv-study-1201445092/


HOW ARE OTHER BRANDS REACHING THEM?

TOP 10 MILLENNIAL BRANDS (2013-2015)

Source: Moosylvania.com

1

2

3

5

24 27

4

14

54

100

1

2

3

4

5

6

7

8

9

10

0

20

40

60

80

100

120 2014 2015

NIKE ENCOURAGES MILLENNIALS TO EXPRESS INVIDUALITY

40% of Millennials want to be involved

in co-creation of both brand and products

53% want a brand or product to reflect their

personality

Source: MillennialMarketing

“Margot vs. Lily” web series shows range of emotions that

are a part of the personal fitness journey

100k customers received personalized training videos

“Da Da Ding” music video aims to break stereotypes of

Indian women

APPLE’S FANATIC FOLLOWERS VALUE QUALITY AND COMMUNITY

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70% of Millennials feel a

responsibility to share feedbacks and recommendations

Source: USAToday, TrackMaven and BazaarVoice

64% feel that

companies should offer more ways to share opinions online

The foundation of Apple is based on the quality of their products. But the positive reviews and recommendations of

the Apple community increase sales significantly.

My family’s opinions are

important to me!

WAYFAIR INVESTS IN YOUTUBE AND VIRTUAL REALITY

26

Wayfair taps into virtual reality with a VR lab opening in Boston and a VR app

partnership with Google Tango

Wayfair partners with YouTube star Joey Graceffa to redesign his office

space.

Source: https://www.internetretailer.com/2016/05/12/wayfair-opens-innovation-lab-focused-virtual-reality

CONSUMERS VALUE HOME DEPOT FOR ITS CONVENIENCE

27

Lowe’s1,857

Home Depot 2,274

Store Count

Households Within 5 Miles of Stores

Home Depot Avg. 79,000

Lowe’s 51,000

Source: Fortune.com

Home Depot partners with PayPal for more user friendly payments.


STRATEGY RECOMMENDATION

REACHING THEIR HEART, MIND AND WALLET:

Drive in-store traffic through promotions

and sales

Build a community of people with similar

interests on a platform they trust to create top

of mind awareness

Increase affinity and emotional connection with brand through

partnership with popular influencers

“DIY SERIES” WITH YOUTUBE STAR JENNA MARBLES

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Goal: Create brand affinity by inform of Lowe’s variety of styles and low prices

Insight: YouTube stars are becoming more influential than traditional celebrities

Tactics: •Tap into Jenna Marble’s audience and create a series of “How To” original video series where she transforms spaces in her home using Lowe’s Pinterest DIY instructions and products

•Engage with her viewers and create conversations for what they are looking for in their homes

•Sample video concepts: How to makeover your closet, how to build a deck

“COMMUNITY ACTIVATION” WITH PINTEREST

Goal: Create a supportive and friendly community for Lowe’s consumers that will ultimately evolve into the go to place for inspirations and answers on home improvement

Insight: Millennials want to engage with brands and trust reviews from their community

Tactics:

• Provide a wide range of content through partnership with Pinterest

• Contents include DIY editorial collabs with bloggers and influencers to interactive videos on projects

• Encourage frequent interactions and communications among DIYers and professionals through Q&A sessions and live streams

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“SELF-GIFT” HOLIDAY SALE

Goal: Drive in-store traffic by providing “2 for 1” or “buy 1 get 2nd half off” sales during holidays.

Insight: Millennials like to self-gift when purchasing gifts for others

Tactics:

• Attract Millennials this season by providing the opportunity to appeal to their “Treat Yo Self” mindset.

• Drive sales on items of particular style value or complementary goods.

• Promote holiday sale through digital ad placements on social sites that are frequented by Millennials, such as Refinery29, Mashable, etc.

• Sample sale concepts: Holiday gold mirror sale, kitchen complementary goods sale.

Source: Kelton 32

SUMMARY

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YouTube provides entertainment that resonates with Millennial

consumers

Establish endemic partnerships with popular influencers on YouTube

Millennials want engaging, social, and interactive brand

experience

Millennials take advantage of saving benefits and deals during the holiday season

Make Lowe’s Pinterest page the go-to destination for ideas and answers on home improvement

Create sales offers during the holiday season that tend to Millennial’s wish to self-gift

Insight 1

Insight 2

Insight 3

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THANK YOU

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