For the third part of the LHBS series about young women, we have focused on consumption. While their purchasing power has diminished when compared to older generations, the sheer size of this consumer group is responsible for large­scale shifts in culture and consumption, and it is therefore imperative to describe how young women’s attitudes have evolved from previous generations.

1. 19.05.2015
CONSUMPTION
YOUNG WOMEN

2. LHBS constantly collects signs of changing behavior in culture,
markets, and technology. One of the key demographics involved
in these changes is young women.
For the third part of our series about young women, we have
focused on consumption.
INTRODUCTION
2

3. WHAT IS HAPPENING

4. YOUNG WOMEN: CONSUMPTION
4
While their purchasing power has diminished when compared to older generations, young
women still belong to the largest consumer group. The size of this consumer group is responsible
for large-scale shifts in culture and consumption, and it is therefore imperative to describe how
young women’s attitudes have evolved from previous generations.
THE BACKGROUND

5. YOUNG WOMEN: CONSUMPTION
5
Today, young women are active, informed consumers who rely on their network for feedback
and advice when seeking products and services that suit their needs. Therefore, it’s no longer
enough to provide products and services to young people; brands must be partners in building
lifestyles and personas out of authentic experiences.
These mutual relationships with brands that young women seek are facilitated by technology
and social media, which have a major influence on spending habits, cultural values, and consumer
expectations. This active, meaningful consumption is also one of the roots of the demographic’s
inclination towards do-it-yourself (DIY), which brands are now engaging with in order to help
young women become co-creators.
THE NARRATIVE

6. 6
YOUNG WOMEN:
CONSUMPTION FREEDOM AND
FLEXIBILITY
CLIMBING THE
CORPORATE
LADDER
WORK LIFE
BALANCE
CREATIVITY
6.
CRAFTSMANSHIP
& DIY
MINDFUL
CONSUMPTION
1.
TRY NOT
BUY
2.
SEARCH AND
CONFIRM
RESEARCH
3.
AUTHENTICITY
4.
GOOD
BRANDS
5.
ACTIVE
CONSUMPTION
From our continual research into the
intersection of culture, technology,
and markets, we have identified the
most significant categories to
describe young women’s mindful
consumption.

7. 1. TRY NOT BUY

8. TRY NOT BUY
Young women are increasingly living through
experiences rather than possessions, so
much that usership is the new ownership,
and sharing is the new having.
It is an on-demand generation, less likely to
make big investments in cars and houses, and
more likely to expect immediate– but high
quality– consumable experiences.

9. Sharing is the
new having.
68% of
young adults
believe we would
have a better society
if people shared
more and owned
less.
51% said they
prefer to share
things rather than
own them.
About 60% say
that they prefer
spending their money
on experiences rather
than on material
possessions.
*Source: http://www.slideshare.net/HavasWorldwide/hashtag-nation-marketing-to-the-selfie-generation-39427735 http://www.digital-trip.com/news-item/millennials+travel+more+than+generation+x-586.aspx

10. 2. SEARCH AND CONFIRM
RESEARCH

11. SEARCH AND CONFIRM
RESEARCH
Always connected, young women are
informed consumers who often combine
brick-and-mortar shopping with online
research, price checking as they browse the
aisles with smartphone in hand.
They are more likely to research brands and
products online before they buy, which
makes them not only more conscious of price
differences but also differences in quality.

12. 36% of U.S.
women said that they
first plan to visit the
brand or product site to
get a better sense of
what's available from
their favorite
brands.
53% of young
people plan to make
an online purchase
across every product
category.
87% said they
trust the products
only after doing their
own research involving
crowdsourcing with
peers.
*Source: http://insights.popsugar.com/Over-13-Women-Visit-Apparel-Brand-Product-Website-First-35626551 http://ir.nielsen.com/files/doc_financials/Nielsen-Global-E-commerce-Report-August-2014.pdf
http://www.mediapost.com/publications/article/228655/millennials-and-the-purchase-funnel-cake.html?print

13. 52% of U.S. women
(13-29) search
YouTube videos for how
best to wear or apply
the product.
50 % of young
women watch a
beauty video on
YouTube while they are
shopping for
products.
*Source: http://heidicohen.com/social-media-millennial-shopping-trends-research/ http://ssl.gstatic.com/think/docs/video-entertainment-and-information-for-shoppers_infographics.pdf

14. 3. MEANINGFUL
RELATIONSHIPS

15. MEANINGFUL RELATIONSHIPS
Young women look for authenticity in their
friends, in those who they follow on their
social media streams, as well as media and
entertainment.
When it comes to consumption, young
women are more influenced by
recommendations of their friends and family,
and are less influenced by direct marketing
than other generations. They want to build
authentic relationships with brands rather
than simply be sold products.

16. Top brand
attributes globally for
young people (25-34), are:
Trustworthiness (31%);
Creativeness (29%);
Intelligence (23%);
Authenticity (22%); and
Confidence (21%).
*Source: http://www.marketingcharts.com/traditional/which-brand-attributes-matter-most-to-millennials-46236/

17. 5 out of 6 Millennials
Sleep Next to Their
Mobile Phones
43% of U.S.
consumers (18-35)
rank authenticity over
content in their news
consumption.
63% of global
consumers would buy
from a company they
consider to be
authentic.
*Source: http://www.cohnwolfe.com/en/authenticbrands/keyfindings http://elitedaily.com/news/business/elite-daily-millennial-consumer-survey-2015/

18. 4. GOOD BRANDS

19. GOOD BRANDS
Young women want to see their values
reflected in the brands they consume. Since
they want to change the world for the better,
they want to have relationships with brands
that want that change too.
Social responsibility, then, becomes a key
factor for young women’s approval of
brands. They prioritize firms who give back
through social programs and charities, as
well as those who prioritize environmental
causes like sustainability.

20. 76% think progress is
not about consuming
more but consuming
better.
Toms Shoes,
Patagonia, and Warby
Parker are good
examples of brands
that “give back.”
52% of global
respondents say they
have purchased at least one
product or service in the
past six months from a
socially responsible
company.
75% said that it’s
either fairly or very
important that a
company gives back to
society.
*Source: http://www.nielsen.com/us/en/press-room/2014/global-consumers-are-willing-to-put-their-money-where-their-heart-is.html
http://www.inc.com/jeff-hoffman/marketing-values-patagonia-warby-parker-toms-shoes.html http://www.slideshare.net/HavasWorldwide/hashtag-nation-marketing-to-the-selfie-generation-39427735

21. 5. ACTIVE CONSUMPTION

22. ACTIVE CONSUMPTION
As young women are looking more towards
“what a brand says about me,” brands now
serve the strong sense of individualism
rather than dominating.
As active consumers, young women are
finding a more equal balance of power
between themselves and brands, with many
feeling they have the power to help a brand
succeed or fail. Many have the urge to have
an active influence on the brands products.

23. When deciding between
two brands young people’s
first choice was “It has a solid
reputation and reflects positively
on me,” followed closely by “It
listens to me, asks my opinion
and takes my views into
consideration.”
*Source: http://www.prosumer-report.com/blog/wp-content/uploads/2011/04/MGv16no%20crops.pdf

24. 78 percent of U.S.
women follows or
posts content about
beauty brands.
87% of 18-24s in the
UK want brands to
entertain, inform and
inspire them.
86% are willing to
share information
about their brand
preferences online.
*Source: http://www.shespeaks.com/pages/img/insightreports/SheSpeaks%20WMI%20Connected http://www.marketingmagazine.co.uk/article/1207773/brands-build-sustain-relationships-18--24-year-olds
http://www.uschamberfoundation.org/millennial-generation-research-review

25. 6. CRAFTSMANSHIP & DIY

26. CRAFTSMANSHIP & DIY
Young women are looking for manufacturers
that offer quality, sustainability, and
integrity. But they also want the personal
touch. Or they do it themselves.
The rise of DIY and artisanal products can be
seen in the rise of platforms like Etsy and
Pinterest. These sites promote the do-it-
yourself ethos as well cater to young
women’s love of self-curation and craft.

27. 57% like to take a
break from
technology to make
things with their hands.
#sthash.LYq7Aphl.dp
uf
8 in 10 say that they
need to unplug and take
a break from
technology.
*Source: http://blog.viacom.com/2013/10/mtvs-the-new-millennials-will-keep-calm-and-carry-on/

28. Etsy has over 60
million unique visitors
each month.
*Source: http://www.forbes.com/sites/stevedenning/2014/04/04/at-etsy-the-future-workplace-is-now-thirty-innovations-per-day/

29. WHY IS IT RELEVANT

30. YOUNG WOMEN: CONSUMPTION
30
Brands must be not for everyone, but rather for each one. Rather than faceless advertising
campaigns, young women favor brand-led initiatives are transparent, and most importantly, have
the capacity to build authentic relationships. These relationships should not only deliver
products and services that young women really want, but also create meaning in their lives.
It is in this way that brands are interacting with young women in ways that take their active,
social, mindful consumption to the next level. Whether by creating shareable products or
socially-engaging services, brands are creating platforms for co-creation that help young women
make their do-it-yourself ethos into a do-it-together reality.
SUMMARY

31. IMPLICATIONS
31
1. GO GOOD OR GO HOME 2. MEANINGFUL RELATIONSHIPS
3. SHARING IS THE NEW HAVING 4. GENERATION DIY

32. IMPLICATIONS
32
1. GO GOOD OR GO HOME
As Nielsen has found in a global study that 55 percent say they are
willing to pay more for products and services provided by companies
that are committed to positive social and environmental impact, being
a Good Brand has a lot of power and potential when it comes to
engaging young women as loyal, active consumers.
- Sustainability has long been appeals to environmentally
conscious consumers, but also can be leveraged as a key factor in
driving a brand into the future. Patagonia’s "Worn Wear" repair
van engages with loyal consumers and rejuvenates Patagonia
clothes to a better than new state, one that is sustainable.
Meanwhile, Pharrell is collaborating with G-Star for a line of jeans
made exclusively from plastic that has polluted the ocean.
- JetBlue’s Fly It Forward campaign that awards tickets to
humanitarian passengers, allowing them to pass them on to
people in need. The campaign also featured “causevertising”
which spotlighted several individuals that inspired the campaign.
- Brands are changing some of their manufacturing processes to
not only be more sustainable but also considerate of factory
conditions. The slow fashion movement is urging retailers to
reconsider the sometimes harsh realities of global supply chains.
-
2. MEANINGFUL RELATIONSHIPS
As Havas’s 2015 Meaningful Brands study has pointed out, millennial
consumers value brands that provide them with not only products but
meaningful experiences that provide fulfilment and add a sense of
purpose to their lives. This meaning is created through authentic,
meaningful brand communication that young women can not only
believe in and trust, but actually creates a tangible way of improving
their lives and those they care about.
- Nike has been a leader in creating meaningful relationships with
its consumers, especially young women. Recent campaigns such
as #betterforit and Chase Summer emphasize connecting and
empowering women through communication that explicitly
relates to their realities. The brand also launched a Food Truck to
mark the Nike Women’s 10k Run in Berlin, allowing women who
participate to meet up at a local street market and pay with
kilometers from their fitness tracker for an ultra-healthy
selection of raw foods.

33. IMPLICATIONS
33
3. SHARING IS THE NEW HAVING
In the time of Peak Car, the emergence of the Sharing Economy taking
over many industries reflects young consumers prioritizing social
value and products and services that help them to interact with their
peers. In this experience economy, ownership is being replaced by
usership: value is shifting from showing to doing. In turn, brands are
engaging with consumers on sharing platforms, and even creating
their own to facilitate young consumers’ tendency to share the value
of their consumption.
- Brands are partnering with sharing economy services to make
their products more shareable, such as Spotify’s recent
partnership with Uber, which turns Spotify users into backseat
DJs, sharing their music with those they share rides with.
- Brands are giving us tools to share and communicate with their
products: prime examples being Foot Locker’s Shoemoji app,
which lets us communicate with emoji of the shoe retailer’s
inventory; nail polish brand opi’s Color Alphabet app, which
assigns a color from their product range to every layer in the
alphabet, allowing users to communicate with branded color; and
Burger King’s emoji keyboard which was released to celebrate the
return of Chicken Fries to their menu, giving them familiar emoji
faces for fans to send back and forth.
4. GENERATION DIY
As young women are the backbone of the DIY culture (or rather,
industry, with the crafting market estimated to be worth $29 billion
alone), this generation is not only doing things themselves, they are
starting a movement. As conscious consumers have become makers,
brands are helping young prosumers by providing customizable
products and services, or even informative educational content that
allows makers to do it themselves.
- Brands are giving consumers the tools to customize their
products themselves. The cosmetic brand Origins is co-creating
with millennials and beauty brand SILK + HONEY has embraced
the recent trend of women’s DIY beauty routines and produced a
line of customizable, DIY-friendly beauty products. To further
integrate generation DIY into brand ecosystems, we can see from
Nike’s patented for virtual reality shoe design that the notion of
the prosumer will be taken to the next level through technology
that will allow consumers to work with brands in designing
products exactly as they want them.
- Other brands are adapting to provide educational content for
generation DIY, such as Time magazine’s The Snug community.

34. GET IN TOUCH
34
Our summary of the theme Consumption is only one aspect of the extensive research we have
done into the major trends, values, and needs of young women today. If you would like to know
more about this influential demographic, from insights to opportunities for brands and business,
please get in touch.
LHBS Consulting Berlin GmbH
Köpenickerstraße 154
10997 Berlin
Germany
http://www.lhbs.com

35. Impressum
Die in dieser Präsentation dokumentierten Gedanken und Vorschläge sind geistiges Eigentum der
LHBS Consulting Berlin GmbH und unterliegen den geltenden Urhebergesetzen. Die unautorisierte Nutzung,
die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet.
LHBS Consulting Berlin GmbH
Köpenicker Straße 154
10997 Berlin Germany
lhbs.com