media update’s Aisling McCarthy chatted to Greg Potterton, director of Instant Grass, a market research consultancy, about how millennial shopper habits are changing the retail space.

How are millennial shopper habits different from previous generations?

Millennials have grown up as digital natives and the influence of the Internet has resulted in two major generational differences.

Firstly, they are always in shopping mode. Whilst they might not necessarily be buying online, social media has conditioned them to always be looking for inspiration.

Websites like Instagram, Pinterest, and, to some extent, Facebook are repositories for stuff that needs to be coveted, especially when it is being endorsed by a friend, role model, or celebrity.

The other way the Internet has conditioned millennial shopping habits is by offering instant gratification. The youth want things and they want them now. Once there is interest, then it is just a matter of clicks before the same product can be found at the best available price.

Online price comparison sites and cross-category shopping portals afford the youth instant access to the latest brands, at the best price, and in the least amount of time. This has conditioned the youth to become increasingly impatient and demanding in both the online and offline shopping space.

It has been said that Millennials value experiences over products. How does this affect the way in which retail is conducted?

Shopping needs to become an experience and the shopping mall needs to become a cultural, social, and experiential hub. For many young South Africans, the shopping mall is still a place to hang out and to see and be seen.

Food, entertainment, music, and activities are the 4 pillars that need to be included when targeting the youth. Essentially, they are looking for experiences that can be shared with their broader network online.

Equally, stores need to become an extension of the brand and shift from only selling products to offering a more interactive and hyper-personalised shopping experience. Technologies such as touchscreens and virtual reality allow the consumer to get involved and create their own experiences that they can then share.

What are three top trends you have noticed with millennial shoppers?

• Millennials are digital natives: Where Millennials shop and where they buy are two different places. Whilst they are online, the youth are always in a shopper mindset. The Internet is like a giant shop window where they are continuously exposed to the latest and best brand offerings. Although the youth are not necessarily buying online, they expect the brands they see online to be available at retail store level.

• Millennials want immediacy: Technology has allowed them to have whatever they need, immediately. This has created a consumer who is not used to waiting, who is impatient, and who demands gratification instantly. They expect a product to be available, at an affordable price, and at an accessible venue, without delay.

• Millennials value social approval: Social media has created a landscape where a brand or a person’s value is measured by the amount of likes they receive. What the youth buy and where they spend their money is being strongly influenced by social media posts and online influencers. Equally, millennials are looking for online approval to validate or endorse their own purchasing decisions.

How do brands balance meeting the needs of millennials without alienating shoppers of other generations?

There is no real threat, as the needs of millennials are not too dissimilar to those of other generations. Essentially, they are looking for great products at a great price.

The fundamental difference is that the youth are more involved in the process. Brands do not need to change their retail strategy; they just need to offer a more personalised journey for the youth market.

Do you think conferences, such as the Marketing Mix Shopper Insights Conference, are assisting in developing the way marketers reach out to consumers?

The world is moving faster than ever before and marketers need to understand these changes in order to capitalise on them.

The Marketing Mix Shopper Insights Conference is an ideal forum for marketers to be exposed to the latest thinking and best practices from a number of different disciplines and industries.

With digital technology rapidly evolving, how do you think it will shape the future of retail?

Virtual and augmented reality are the technologies that are disrupting the industry the most. Both VR and AR will allow consumers the opportunity to experience a brand without leaving the comfort of their homes. Consumers will be able to test drive a car, experience a resort, or try on a new outfit by just wearing a VR headset.

Brands will also be able to create virtual stores where, eventually, consumers will be able to walk down an aisle, place a product in their trolley and then pay for it whilst standing in their living room.

There will always be a need for in-person shopping, as consumers will always enjoy the tactile benefits of shopping. However, as the technology is becoming cheaper and more scalable, the VR headset will become a strong alternative to the shopping mall.

For more information, visit www.marketingmixconferences.co.za and www.instantgrass.com

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The retail market is rapidly changing, making it hard for marketers to keep up. Read more in our article, Eight lessons for retail marketers ahead of the changing shopper landscape.