New Ways to Connect with Different Customer Segments [REPORT]

With the recent downturn in performance by department stores and slow growth in total U.S. apparel sales, retailers and apparel brands are searching for innovative strategies to connect with consumers. While many retailers are targeting Millennials to drive growth, a new study from A.T. Kearney and The NPD Group highlights areas of opportunity across all generations and uncovers multiple purchase drivers within each generation.

“Everyone’s talking about Millennials now, but there’s real risk in ignoring other generations who still wield tremendous purchasing power,” explains NPD Chief Industry Analyst Marshal Cohen. “And, when it comes to Millennials, the other thing many retailers fail to understand is that not all Millennials are created equal. Depending on lifestyle and life stage, Millennials could be more—or less—likely to buy your brand.”

According to the study, “Age Isn’t Everything,” Millennials do surpass other generations in sheer volume of items purchased in key apparel categories.1 Compared to Boomers or Gen X, Millennials are 1.5 to 2.4 times more likely to have purchased three or more items in a category during the past six months. However, Millennials represent only 38 percent of total apparel spend in the United States, indicating that other generations should not be ignored.

Furthermore, the study illustrates that age alone does not drive purchasing. According to the study, the following factors drive greater purchasing for apparel in every generation:

•     Kids: Parents of all generations purchase more jeans and activewear compared to those without kids.
•     Active lifestyles: Consumers who are physically active purchase more—even in categories outside of activewear
•     Fashion-forward attitudes: They shop more for all brands, not just high fashion

To download report CLICK HERE.