Retailers, Meet the Centennials

Copyright © 2015 Aptos, Inc. All rights
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‹#›1 • © Aptos, Inc. All rights reserved.© 2016 Aptos, Inc. All rights reserved.
An Inside Look
at Centennials
Dave Bruno
Marketing Director, Aptos

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‹#›2 • © Aptos, Inc. All rights reserved.
JUST
When We Thought We Had a Finger
on the Pulse of Gen Y Shoppers…

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WHO THEY FOLLOW

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WHERE TO FIND THEM

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WHERE THEY SHOP

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BELIEVE IT OR NOT
Millennials are already aging out of their
position as “most sought-after” consumers

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But fear not. The effort and money we
spent studying Millennials was not in vain.
IT WAS A WARM UP.

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Meet the
Centennials
1996 2011
born (roughly) between
and
Not just “digital” natives...
2007
mobile digital natives

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They represent approximately
22% of the US Population
70Mpeople in this generation
Source: US Census Bureau

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The first wave of Centennials have
Reached Adulthood
15Mare age eighteen or older

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Already they have impressive
Purchasing Power
$200Bby 2018
Their spending will reach
Source: Business Insider

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20%of the US workforce
In just four short years, Centennials will comprise
Source: US News & World Report

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PERHAPS
it’s time to get to know them better

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DO YOU EVEN SPEAK
THEIR LANGUAGE?
BEFORE WE DIG TOO DEEP:

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

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BAE
You are holding my heart
as well as my hand…
#MyOneAndOnly #BAE

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On Fleek
SLAY QUEEN!!! Her
eyebrows totally slay me
#LifeIsBeautiful #OnFleek

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

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

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Implications
Deciphering shopper
feedback and sentiment
is only going to get more
(and more) difficult
TECH MKTG MERCH STORE

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

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To really understand them, we must
Look Beyond Slang & Stereotypes…

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HOW DO THEY THINK
ABOUT MONEY?

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The 2008 recession has been their
Dominant Financial Event

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Perhaps it’s no surprise then, that
Saving is Important
57%would rather save money
than spend it immediately
Source: Forbes
even though most
are still teenagers( )

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They are equally
Cautious About Credit
1/2the credit card debt
of college age Millennials
College-age Centennials
maintain less than
Source: Money

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And we have seen a corresponding
Reduction in Spending
31%from 1997 - 2014
US teen spending fell
Source: The Futures Company

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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

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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 teens
agreed in 2014
Source: The Futures Company

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Spending patterns have undergone
Seismic Shifts
15%
Apparel share of teen wallets has fallen
Source: Piper Jaffray
in the last decade

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Spending patterns have undergone
Seismic Shifts
While tech’s share has
DOUBLEDSource: Piper Jaffray

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Whatever you do…
Don’t Cut their Cord!
90%would be upset if they had to
give up their Internet connection
Source: JWT

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give up their cable TV
Source: JWT

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give up buying new clothes
Source: JWT

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give up downloading music
Source: JWT

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give up buying video games
Source: JWT

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Relevance, value and
influencing influencers
are critical to achieving
sustainable success.
Additionally, assortments may
need to change to adapt to
shifting consumer priorities
TECH MKTG MERCH
Implications

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FOOD FOR THOUGHT
Has your assortment strategy shifted to
account for the growing share of wallet
owned by technology?

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WHEN THEY DO SPEND,
HOW DO THEY SHOP?

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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.

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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

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Compared to shopping in stores,
They <Prefer> Digital
A Slight Majority Prefer
Online 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)

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While they do prefer to shop online…
There is an Asterisk*
After Amazon, they generally choose
sites with physical locations
Source: Piper Jaffray
Amazon
Nike
Forever 21
eBay
Victoria’s Secret
American Eagle
Urban Outfitters
Eastbay
Brandy Melville
Wanelo
1
2
3
4
5
6
7
8
9
10

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Compared to Millennials…
The Store Matters Much More
37%of Millennials prefer
to shop in store
Sources: Power Reviews, JWT
(vs 46% of Centennials)

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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

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Implications
Be 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

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FOOD FOR THOUGHT
What percentage of your digital orders are
transacted on smartphones today?

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DO YOU KNOW WHERE
TO FIND THEM?

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HELPFUL HINT #1
don’t waste time looking
in these places…

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R.I.P.
2011

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R.I.P.
2010

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R.I.P.
2006

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HELPFUL HINT #2
start your search online

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When it comes to connecting
They Know No Boundaries
46%are actively online
10+ hours a day
3+ hours a day
Sources: Wikia / Ipsos MediaCT
while in church

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You think you are a
Slave to Your Screen(s)?
Millennials
multi-task using
Source: Sprout Social
5screens
Centennials?
2 Source: Sprout Social
screens
1/2

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Have all the screens (and all those cat videos)
Diminished Attention Spans?
30%since just 2011
down
Source: Bloomberg

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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 assess
enormous amounts of information.

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So, despite continuous connectivity, they
Practice <Selective> Consumption
Centennials see being online as
a tool for getting
things done

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To help filter, they typically
Rely on Each Other

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Rely on Each Other

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And they also rely upon
Trusted, Authentic Sources
10MYouTube followers
6MInstagram followers
3MInstagram followers

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This selectivity may help explain the
Widespread Love for Snapchat
77%of college students use
Snapchat every day
Source: Sumpto

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Selectivity may also help explain the
Diminished Love for Facebook
14%of teens name Facebook their
“most important” social network
Source: BI Intelligence
Only

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As a rule, they are much less
interested in chasing their
15 Minutes of Fame
than were their predecessors
Selective | Discreet | Authentic
Andy Warhol

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Authenticity may shine a spotlight on the
Persistent Appeal of YouTube
93%once per week
Source: Ipsos MediaCT
multiple times/day
54%
Source: Ipsos MediaCT

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POP QUIZ!
how well do you know the YouTube
stars that Centennials love?

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12Msubscribers
2.4Bvideo views
Source: VidStatsX
?
Growing Up Online

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17Msubscribers
2.7Bvideo views
Source: VidStatsX
Comedic Lip Syncing

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17Msubscribers
4.5Bvideo views
Source: VidStatsX
Humorous Gaming Commentary

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21Msubscribers
5.4Bvideo views
Sketch Comedy

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43Msubscribers
11Bvideo views
Source: VidStatsX
Yelling Over Video Games

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LET THIS SINK IN
Followers of the TOP 5 YouTube stars…
Source: The Washington Post
DOUBLE
all U.S. cable television viewers

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NOT ONLY
are they wildly popular, but they wield
Significant Influence
with Centennials

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Source: Variety
2015
Ages 13-17
Scores
The recognized industry standard for measuring
consumer appeal of personalities, characters,
licensed properties, programs and brands.
Source: Variety

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Source: Variety

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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

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FOOD FOR THOUGHT
Is YouTube marketing (not just video
posting) a budgeted part of your
marketing strategy?

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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

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Coming Soon
to Your Inbox
Our latest eBook:
MEET THE CENTENNIALS
aptos.com

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Outta Time. Gotta Dip.

Retailers, Meet the Centennials

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