In spite of the ongoing feud between the boomer and millennial generations, we need to admit that a few industries, which have hitherto been staunchly supported by boomers throughout the years, need to appeal to millennials if they want to survive.
The wine industry has always been a business relying on sophisticated boomers until recently when the mature population’s consumption of wines has been slowing down due to health concerns of an aging population. According to the San Francisco Chronicle, Napa Valley, the capital of wine tourism in California, has a millennial problem. The kids might be all grown up (the youngest millennial will be 23 by the end of this year) but they are not drinking wine the way their parents did.
Today, the millennials only make up 17 percent of the fine-wine market, according to the Silicon Valley Bank’s influential annual wine industry report. This number has not changed for years. While young wine drinkers may splurge on the occasional US$50 bottle, US$8 to US$12 remains their sweet spot, said Rob McMillan, author of the bank’s 2019 report. “The issue of greatest concern for the wine business today is the millennial generation’s lack of participation in the premium wine category,” the report warns.
Unlike baby boomers in their heyday, millennial consumers today have access to a broader selection of fine beverages. In the 1980s, Napa competed with high-end wines from France and Sonoma; today it competes with craft IPAs, traditional beers, mezcal, legal pot and hard seltzer. The big issue is the transition from the baby boomers to a totally different consumer with different values.The biggest mistake, according to McMillan, is for wineries to build a new tasting room that is your parents’ tasting room – you walk in and it’s all grey-haired people. Industry experts are now trying to create a different experience for younger people which may need to include the outdoors and some food-and-wine pairings as well. Similar to many other businesses, the wine industry is looking into using big data and social media to help create winery experiences that younger consumers want.
Some people think the problem lies with the wineries’ access and diversity. Millennials care about the environment, farm-to-table and connection. With money tight, they might want to support families, people they know, and wineries where they have tasted with the winemaker or owner. According to Wine Magazine, personal touch means everything to thirsty millennials who want to taste and learn more about wines. Michelle Lipa, who helps smaller Napa Valley producers and restaurants with brand strategy and public relations, believes that not all is lost with millennials. “It’s just going to take longer for most to come to Napa because of all the financial strife, sine 9/11 to the pandemic,” she said.
The performing arts industries have also been traditionally supported by mature audiences. But if they don’t appeal to younger patrons, their future will be dismal. Let’s focus only on the ballet industry today. One of the toughest moments in the world of ballet is watching a life-changing performance and then looking around to see that only half the seats were filled to witness it. The discussions about how ballet can stay relevant and build new audiences have been going on for decades. But perhaps the debates should be focusing on the sales and marketing rather than the relevance of the product.
According to DANCE magazine, a few US ballet companies have done exactly that, leading to full houses on week nights and proving that revenue growth is possible. To many millennials, ballet can be intimidating. According to Julie Loignon, director of audience engagement at Ballet Austin, the purpose of marketing used to be awareness. But now, the ballet company has to let people feel like they understand what they are seeing after they have invested in a ticket.
One way to do this is by getting rid of jargons such as “mixed rep” or “triple bill” and replacing them with words that are more universally understood, like “three one-act ballets.” Another is to communicate the “story” or meaning behind abstract work through content-focused marketing – that is, producing fun, educational behind-the-scene videos, images and articles in-house. Ballet Austin films a professional trailer for each ballet and projects it in the theatre lobby, so that their audience can preview coming attractions. Mobile-friendly ticket-buying sales also allow people to buy in the moment they feel inspired.
To target millennials and create the feeling of a big event, Ballet Austin also designs a fun lighting treatment for the facade of the theatre and hires a DJ to play popular music outside. It also creates social media stations in the theatre, designated spaces with a backdrop and themed props for people to take photos. The marketing team uses a “social media aggregator” to choose posts with the ballet’s hashtag to project onto screens. This encourages word-of-mouth advertising because millennial audiences love looking for their photos. After each show, Ballet Austin sends patrons out the door with treats themed to the show, like candy canes for Nutcracker with a small promotional card for the next show attached. According to Ballet Austin, ballet companies only have three or four opportunities a year to interact with customers and they have to make the most out of them.
Last but not least, millennials have changed our shopping habits and social media have killed the retail store. Mall mainstays like Victoria’s Secret and J.Crew have all declared bankruptcies during the pandemic while brands such as Abercrombie & Fitch and the Gap have pulled back.
According to Marsha Cohen, chief retail analyst at market research firm The NDP Group, Amazon has changed how retailers sell. The combination of fast and free delivery, giving third parties a platform to reach consumers directly and building their own stable of brands have created a major challenge.
But Amazon is only part of the culprit. There is a shift in spending more than necessary and some consumers are not spending at all. Cohen said that entertainment has become a big part of the spending power consumers have. Fashion apparel becomes less of a priority. According to NBC News, the influence of minimalism, best illustrated by the popularity of Marie Kondo and her message of eliminating clutter, plays a role, as does the persistent trend of activewear and athleisure apparel.
The popularity of sites like Rent the Runway offers another window into how North Americans, especially younger people, view fashion as something to be experienced rather than stockpiled. Urban Outfitters also announced last year that it is launching a clothing rental service that allows shoppers to borrow up to six items a month for US$88. Owning stuff and having stuff is not a priority of a younger demographic. In Canada also, there are at least nine fashion rental companies that are capitalizing on this trend, according to Style Democracy. They include Atelier Privé in Montreal; Rent Frock Repeat, The Fitzroy, and KukaMelon in Toronto; and Flauntbox in Coquitlam, BC.
Many apparel brands are still thriving because they are strong with social media marketing – engaging directly with consumers and selling products couched in the imagery and verbiage of experiences. Cohen said the influence in fashion has changed to social media’s ability to be able to share. People are gravitating toward friends or self-styled influencers rather than the traditional gatekeepers of fashion like designers or department stores.
Since the pandemic, it has become even tougher to sell to millennials. CNBC cited a recent survey by First Insight that found 54 percent of millennials in the US saying the new coronavirus has already significantly or somewhat impacted their purchase decisions. That is compared with 33 percent of baby boomers, 42 percent of Gen X, and 49 percent of Gen Z. The survey found that millennials are changing their spending habits and preparing to shop differently more than any other age group in order to cope. The harsh economic realty of millennials keeping their employment or getting new jobs will make it increasingly challenging for marketers to carve a share of their wallets.