Millennials. Reshaping the future retail


lector univ. dr. Sorin BLAGA

Autor: Daniela Lixandru

Iulie, 2016


Table of Contents
Chapter 1. Getting to know millennials from a millennial’s point of view....3
1.1. Introduction................................................................................................... 3
1.2. Objectives of the paper..................................................................................5
1.3. Studies and Authors used in the paper..........................................................6
1.4. The Methodology........................................................................................... 8
1.5. Research questions........................................................................................ 8
1.6. Limitation, Delimitation and Assumptions of the Study.................................9
Chapter 2. The retail Waves................................................................................10
2.1 Defining Retail................................................................................................. 10
2.2. The emergence of the retail industry: Wave I, Wave, II, Wave III....................11
Chapter 3. Knowing Millennials and why they matter as shoppers.............20
3.1. General Overview........................................................................................... 20
3.2. Demography................................................................................................... 22
3.3. Identities, Priorities and Outlook....................................................................23
3.4. Technology, Social Media and Millennial Generation......................................25
3.5. Millennials matter for retail industry..............................................................26
3.6. The Millennial shopper................................................................................... 28
Chapter 4. Millennial’s impact on the transformation of present Wave IV
and future of Retail.............................................................................................. 30
Chapter 5. New rules of approaching Millennials in retail sector.................36
Chapter 6. The Millennials, the shopper and the retail in Romania.............39
Chapter 7. Conclusions of the paper.................................................................43
Bibliography........................................................................................................... 46
I. Primary sources........................................................................................... 46
II. Studies.......................................................................................................... 47
III. Further reading......................................................................................... 47
IV. Online mentions....................................................................................... 48


Chapter 1. Getting to know millennials from a
millennial’s point of view
1.1. Introduction
As a millennial fellow, I started to see more and more brands and retailers that are shifting their
traditional position and tools to reach this generation. The Millennials are the largest generation,
over 80 million individuals that were born between 1980 and early 2000 are representing a
significant segment of consumers.

What I discovered when doing my dissertation research is that, they are not only impressive
regarding the individual number, but also because they represent a dose of power to influence
like no generation before.

They are powerful influencers on culture and brands, and it’s clearly why the world began to
study this generation on many levels: from consumption habits, behavior in the society, and
digital engagement. They are active and serious consumers, and they call the shots regarding
different trends when comes to shopping. From Accenture’s research, I discovered that
Millennials are expected to spend in 2020 around $200 billion annually, so
businesses/brand/retailers can’t ignore this generation taking in regard their spending power.

The influence that I was talking before was mostly felt in the retail industry where several types
of research, reveals that Millennials are redefining intention purchase trends or changing the rule
of brand marketing, not to mention they are upgrading the shopping experience as we know it.

Having as a benchmark a recent research taken by Pew Research Center (2010), I discovered that
Millennials are making the retailers rethink how they communicate with consumers and how
they attract them. When it comes to retail shopping, they are not traditional at all; instead, they
want retail strategies that make them more participative and engaged in the shopping experience.

Because they are digital savvies, born into an era where they speak a fluent digital language,
Millennials are more attracted for experiences that transform the offline interaction into an online
one, or the other way around. This leads to pressure for the in-store retailers when thinking that


brick and mortar store will be less preferable for the Millennials that will be more attracted by
the online purchases in the future.

That’s why retailers have to be aware of how they will create shopping experiences in-store that
can be converted in online too and how to satisfy the unique preferences of this pretentious
generation. The level of personalization the services for the Millennials have to be also taken into
consideration when delivering their services. With Millennials that are dictating the way they
want to shop, retailers need to make sure they will capture their style and personality and will
focus on having an Omni-channel presence to communicate with them and deliver to them a
personalized experience in the in-store phase.

Because the millennials are becoming the “dominant retail consumer” (Robin Lewis, Michael
Dart, 2014), I will emphasize in this paper how the retail industry changed to engage with these
new consumers.

I will go through all the stages of the retail industry process, the so-called Waves of Retail and
see how retail evolved nowadays together with the emergence of the technology and how it
changed to approach to this important target that I’ve mentioned before. By passing through the
III Waves of Retail, I will be able to observe the shifts that took place on upgrading the process
of today’s retail and also, I will be capable of forecasting new rules that should be considered by
the today retailers.

I must remind you that we live in a world that passes within a vertiginous speed and the retail
industry is a continual development. Companies have to adapt day by day to the needs and wants
of the consumers. The biggest challenge is for them to keep up with the new technology, but it’s
also critical to respect some important rules like the precise orientation on the consumer, creating
unique experiences of shopping and creativity on every level of their activities.

The biggest specialists of retail consider that 2016 is all about the hegemony of Omni-channel
retail, a business model that cannot be neglected and more than that it has to be completely
integrated into the sale strategies of the companies.

Like in every other type of business, the retail companies need some anticipation spirit to
facilitate their future mission. Because I am working in the advertising field and I am very


interested in the shopper experience and how this will evolve, the focus of my paper was to
gather information about the most dominant segment of consumers and find rules and trends for
the future that will help the businesses of retailers.

1.2. Objectives of the paper

The objectives of this dissertation are:

1. Compiling and classifying various research findings regarding who are the Millennials
generation and what are their shopper behaviors.

Since I started working in the communication field, I began to hear more and more about
millennials and how all the marketing trends are targeting this different generation. I wanted to
know more about them and how they are setting new trends on the market. Retailers also started
to be more alert concerning this consumer that have a shopping behavior pretty different than
previous generations.

2. To find factors that modified the traditional approach of shopping (The III Waves of
Retailing) and what correlation exists between these and the Millennials shopper behavior

3. To analyze the evolution of IV Waves of the retail and how Millennials had an impact on the
future waves of the retail by setting new rules and trends in this field.

This paper is relevant because the subject I want to tackle has shown importance in the retail
industry of nowadays. Retailers want to know more of whom they’re communicating and how
they can target the consumer in a more segmented way. By getting to know this type of
generation that has the most power of spending will be more aware of the evolution of this
industry through a dynamic period. With the vast amount of information, everywhere available,
Millennials are discerning shoppers that know how to compare price, quality, and experience so
that’s why retailers should keep pace within the trends context. The purpose of this paper is to
observe the changes and how Millennials created new practices in matters of retail shopping in
the last II Waves of Retail and how the future waves will embrace these changes.


Studies and Authors used in the paper Strauss and Howe (1991. Jeff Fromm and Christie Garton (2013) identified in the research they conducted some behaviors and attributes that Millennials will influence the next life stages of the retail. Their research also found that Millennials are leading indicators (if not the diverse) of media consumption. the Millennial Generation. Also. I wrote an article regarding Millennials that you can read it here: http://minio. on the hub of the company I’m working in present. Beyond their affinity for technology which we’ll see later in the further dissertation that represents an important factor for our key findings. p. advocacy. Power of Buying 6 . 1. and social media usage among all generations (Jeff Fromm.The subject I’ve approached interest me directly as a communication specialist. which Strauss and Howe argue is unraveling and is asserting itself among culture wars. Millennials are such early adopters of technology: They will upgrade to whatever it will appear regarding technology. p.ro/posts/portfolio-item/cum-pot- brandurile-sa-marketeze-mai-eficient-milenarii/ 1. postmodernism. and technology. 2000).48). Each generation is represented by persons whose birth dates is this 20-year time span. is a hero or civic generation born from 1982 to 2001. and they are willing more than any previous generation to try out the latest technology. The current generation. which Strauss and Howe refer to as an individual generational cohort. Brands and retail industry should seize the moment and implement what is new in technology in order to gain Millennials’ loyalty. 15) define a social generation as one phase of an individual’s life. and they rationalize as a new generation about every 20 years.3. To gather a substantial know-how as a communication specialist for future campaigns of the retail industry I’ve chosen this topic. 2013. Some key takeaways that I was able to delineate from their research about Millennials were: 1. Christie Garton. Millennials represent the most researched generation in the History of United Stated (Strauss & Howe.

their parents even if they were the inventors of the current technologies. Millennials are more into showroom experience while shopping These are only some few findings when talking about Millennials behavior and how can these represent a milestone for the new retail era. p. Eisner. behavior and other characteristics. The report made by Pew Research Center (2010) helped me in finding the information that I needed to portrait the Millennial generation was very broad and full of interesting data on their attitudes. Michael Dart (2014. 2001.” 7 . By classifying the retail model into V-Waves. They want to participate They are not passive consumer anymore. values. and also Retail Info System News and Cotton Inc. 3.5. to participate and be included in any interaction within their shopping experience. Technology is part of their day to day lives and understands it better than the previous generation. Tapscott. they are connected all the time and retailers should be present where these digital savvies are.They are influencing the household purchase decision each year within the amount of 500 billion $. The digital natives Born into an era where they speak digital fluently. easily and experientially only underlines the way that retailers market the millennial consumer. 2000). One of the attributes that define this different Generation as unique is their strong relationship to technology (Allerton. I discovered some key findings of the transformation of the old retail models into what is happening nowadays within this industry that reveals a strong connection within the millennial context. Accenture made other reports that I've used to gather data for this paper. they will not even be considered in terms of choice by this generation. Robin Lewis and Michael Dart (2014) explain the consumer power that is enabled by globalization and technology. So that’s why businesses cannot afford to lose Millennials attention. so they want to be engaged. to be active. (Zemke. 2005). Or else. 4. Robin Lewis. 1998.36) believe that “the expansion of the technologies and they're trying to connect with the consumer more quickly.

4. I’ve chosen to use a descriptive approach in which concerns the retail industry and then I started to know the subject of the case. 2012). to see exactly what is changes if it had an impact and how one another influences this. with the help of analyzing some statistical data. books. After explaining the process of retail that mentioned authors from the literature review have related to I’ve correlated the findings with the reports regarding the Millennials and tried to make a connection between these two. I will connect the dots into finding the new rules of the today & future retail. The Methodology For this paper. researches. They are also known as the Generation Y. the millennials “want it all” and “want it now”. (Ng.Regarding benefits. 2000). 1. Schweitzer & Lyons. 1999). (Der Hovanesian. rapid growth at the workplace.5. The study has a practical aspect of the methodology by using data already collected from already done researches to mark a characterization of the generation of Millennials. 2010). They comprise nearly a third of the population of the United States (Zemke. The used data is collected from secondary sources: reports. With the means of information taken from the literature review and by following the studies on the Millennials behavior and drawing some lines within the changes of the retail. Who are the Millennials and how this new breed of shoppers matters in the retail industry? 8 . Research questions 1. et al. especially on personal services and on consumer goods. To understand how the retail industry was born and then evolved I used different authors that helped me frame all the concepts. the Millennials. the ones born between 1986 and 2005 (Eastman and Liu. life balance and challenges.. 1. They are more and more aware of their shopping power and are more likely in spending their all new cash immediately.

I will try to trace some changes that happened in the Wave of Retail where the Millennial consumer where the principal target 3. I will base the demonstration of this question on several findings that I will show in depth in the next chapters that make Millennials matter in the retail industry. the history of the retail industry and how it evolved in the context will be mainly analyzed in America. The researches and the reports that I will take into consideration will be on the Millennials in the U. I need to have a clear view of how the retail industry was before Millennials would exist. How much has the retail experience changed in the last Waves of Retail in order to reach the millennials? For this research question. One of the assumptions that I fear for this paper is that the data from the chosen studies is the most relevant one for this.In order to show how the retail of today has changed. 9 .6. I first have to understand the concept of Millennials as a generation and then see some key features of who they are as a shopper. with the help of the literature review and the main findings of this paper I will try to forecast some rules that will come in hand for the retailers in order to have a long-lasting relationship with this unique consumer. Delimitation and Assumptions of the Study In this paper. It is true that I’ve tried to manage in getting the most interesting and reliable reports that were strongly connected with my subject. 2.S. Limitation. The Millennials.A. What are the new rules that retailers will consider for the future Waves of Retail in order to keep the millennial shopper engaged? By answering the two previous questions. I will be able to have some information to work on for the third question. Then. Also. 1. Seeing how the retail industry had functioned until now and how it started changing in order to reach the most dominant segment of consumers. I will frequently use the terms Millennials and Retail.

is related to these subjects. The Millennials. I must say that are some differences.1 Defining Retail To understand the concept of retailing I’m going to define it and mark some key elements that made me understand how the process of retailing is done. the studies that were updated were expensive. Another first delimitation of the study is that I only investigated the American Millennials and American retail industry.One of the limitations is that the found reports are from 2010-2011. Not to mention that are other factors which contribute to the Romanian Millennials practices: different purchasing power. and there are no relevant studies that could’ve helped me in getting in depth on the chosen subject of the paper. p. In Romania. and usually involves buying a larger volume of items and selling them in 10 . Even so. and I couldn’t point out from the Romanian literature or studies relevant information to develop this paper. The retail Waves 2. that I will present in Chapter 6. the shopper and the retail in Romania Chapter 2. Also to relate to the Romanian retail industry and how Millennials are having an impact on it. and I’ve only used the ones that were free on the internet. I tried to find some information regarding our Millennials shopper and the evolution of the retail industry not in books and reports but in how media. the online primarily. brand awareness. I must point the gap in knowledge in fairly suppose that their Millennials are different from our Romanian Millennials. and it is possible that some of the findings suffered changes in the time that passes. Also. Anthony Welfare (2011. I have spotted some similarities that are available for our Millennials and American Millennials also.12) defined retailing as the “process of selling goods or merchandise to the final customer. the term of “Millennials” it started to be used recently. availability and so on. The basic knowledge of retailing will help me in covering the main stages of retail (Waves) from the beginning until these days.

smaller quantities. or contracts or instruments. the wholesaler that is acquiring goods from the manufacturer and sell a large number at small price to the retailer. “Markets include mechanisms or means for (1) determining price of the traded item. The retailers sell the products from the wholesaler at a bigger price but in small quantities. other innovations were happening as well. called Levi Strauss 11 . department stores.) directly to the consumer in small quantities for his end use. the young immigrant from Germany. and the variety and just have fun by looking at products. services. the typewriter and the electric light were the major inventions that arisen during that period. The market for a particular item is made up of existing and potential customers who need it and have the ability and willingness to pay for it. According to Business Dictionary. Wave. 2. The emergence of the retail industry: Wave I. to check the options. (2) communicating the price information.” (Business Dictionary) Goods are things that can be touched in a physical way and can be transferred from a seller to a consumer to fulfill some needs.” It represents a simple process of acquiring products and then selling them to the customers at a bigger price to make a profit. In America. It’s true that nowadays the concept of shopping went beyond the actual buying of something. The supply chain consists of manufacturers. Also. the prices. markets. Wave III Wave I In the late 1800s the phonograph. etc. II. The so-called window shopping became an experience of just going in shops. Management Study Guide wrote that Retail involves the sale of goods from a single point (malls. and (4) effecting distribution. the telephone. Dr.2. the ones that manage the production of what we call goods/products. for money or barter. (3) facilitating deals and transactions. John Pemberton invented a mixture beverage called today the Coca-Cola and sold it in Atlanta’s pharmacies as a tonic. and where buyers and sellers interact (directly or through intermediaries) to trade goods. The process in which a consumer is taking goods from the retailer is called shopping. the market is an actual or nominal place where forces of demand and supply operate.

in his living room. Sears. Al vah Roebuck and formed a classic model of a retailer that were heavily into mail order business. Roebuck and Co.5) Nowadays. the new catalog is the Internet. by functioning as a niche to not compete with the department stores that were growing into the big cities. Michael Dart. location”.” (Robin Lewis. the rise of global economic dominance. but that doesn’t mean that the old version was fully replaced. In that time. in fact. They began to open stores in the towns in which they’ve moved. Sears and other examples of selling distributors such as Montgomery Ward were still following the consumer and tried to adopt new strategies in placing their products near him. They were offering the consumer high-quality essential products for fair prices. of course. The catalogs that were delivered through the mail were such a brilliant idea of distribution strategy: “placing their store and all their products directly in the homes of all those farmers and people scattered across the country in small town. these were people who needed things and had no other place to get them. these catalogs were in the consumer’s face. while developing a multichannel distribution with stores and the well-known catalogs. the general store and the mail-order catalog. in-home selling events. p. 2014. This was the period which was considered for Americans. In 1886. Richard Sears got a partner. To turn back at the Sears story. 12 . airport stores. In the truest sense of the old age –location-location-location-. two retail distribution models were expected to replace the department stores. faster and more frequently than people were leaving the farm to the general store in town. vending machines and mobile devices. in 1920s. the population was starting to migrate from farms to small towns. Thus they were positioning themselves as on the go stores for the growing middle class. the major population that formed during that period. we’re targeting small down residents and farmers. door to door selling.opened a dry good store in San Francisco through which he was selling blue jeans or cotton twill pants to the miners and farmers. only the distribution strategy developed in addition number: kiosks. Now we live in an era where the consumer has full accessibility and the retail can’t find no more the success in the phrase “it’s all about location.

which refused to upgrade his distribution also in malls because it was expensive. these stores were providing good pricing power to have also profit margins that made them able to afford all that needed not to be only just stores. Even so. followed by B. In 1902.6) The examples above are the first retail models who grew out from small general stores that opened in small towns. the small towns became cities. Macy’s was found in New York City. John Wanamaker opened the first Wanamaker’s in Philadelphia in 1877.“In 1856. but entertainment destinations. Altman. To develop and to begin to differentiate one for another. p. The period that marked the first Wave. Later on. his primary competitor. Michael Dart. and the small stores were becoming the most dominant segment of retail in the second wave of the retail (1950 -2000). Marshall Field and Company was launched in Chicago. In 1858. 13 . Late in Wave I. James Cash Penney launched JCPenney. Because of the competition scarcity and the growing demands. it would prove to be a huge misstep that will stay at the beginning of his comedown. thanks to industrialization. “(Robin Lewis. At that time. Zion’s Cooperative Mercantile Institution (ZCMI) was opened in Salt Lake City in 19679 and became the first incorporated department store in 1870. from the early 1900s. Lord & Taylor. He was offering high- quality products while using the good value model. Sears began to develop its private brands (Craftsmen Tool. JCPenney became a ferocious competitor of Montgomery Ward and Sears. by opening three stores in small towns to chase the growing American Middle Class. 2014. Sears outcome Montgomery Ward. DieHard Batteries) and localize distribution long before these notions were put into practice. it was a one of the positive economic growth. the retail industry continued its progress into the Wave II. McCreary’s and Abraham & Straus. despite the Great Depression. that was initially offering soft goods without a distribution catalog. The palaces were designed beautifully with good building materials and other innovations and were the daylong destinations for the families back then. The modern infrastructure distribution led by the massive expansion of railroads and highways and it was all centered on the growing population and also its migration to suburbs and other cities Meanwhile. these department stores were called palaces of consumption or cathedrals.

Production/Retail Driven: Pricing power consisted with retailers and manufacturers due to the scarcity of competitor and a minimum level of services/products and also a fragmented infrastructure. were limiting the availability of brands and their constraint to single product categories. . the United States experienced major growth across all industries including retailing. Sears was one of the most powerful brands and one of the eight largest corporations in the world. expanding later into the emerging of the shopping mall. especially for that period. . By early 1970. From innovations in the aerospace industry to radar and FM war invention. I will point out the key features that Robin Lewis and Michael Dart were emphasizing as being the important key market aspects of the retail back then. Wave I key characteristics: . Production chasing demand: Retailers and producers/distributors were expanding and growing to capture business from shifting consumer markets. After seeing the first examples of how retailing was functioning back in the Wave I of Retail.The mail order catalogs and the apparition of the department stores.Sears was very proactive towards the changing world. but with a greater moment of rising. the so-called palace of consumption. . Supply continued to underserve demands. isolated markets: The distribution of good and services to retailers was a bit slow and inefficient because of the geographical dispersion of the rural and small town markets. Fragmented. many 14 . as well as the dearth of producers. Wave II Post World War II. . with some exceptions in the major cities. and this was helping him a lot by allowing its company to rise in the retail world. That’s why the consumers had to accept and buy what was available to them on the market. due to the growth of population. It was something associated with what Walmart represent today. Single product Specific Brands vs Cross-Category Brands: Lack of infrastructure in communication and well-connected marketing.

Within so. Another discounter that was introduced in that period that was a bit more upscale was Target that was standing for cheap and chic and it was selling products and brands at a price point level above Kmart and Walmart. highway and sea transportation as well as the creation of many channels of retail distribution. I don’t mean only the physical one for the circulation of products. and marketing. malls and shopping centers combined with the rise of automobiles and cheap gas to get to them lead to the growth of the retail chains. air. So. was representing the first discounter. Businesses back then needed a vast distribution infrastructure to serve the growing marketplace. This period represented the golden age of the advertising for the mass marketers. they were forming new ways of purchasing power. 15 . and the national brand creation helped by the emergence of the big media: access to television. advertising. and billboards. Marketers were developing new ways to market the customers and in that booming period took place the emergence of the two terms: mass marketing & mass communication. Wave II supported explosive growth in rail. Walmart was launched that was different from Kmart’s positioning in suburban shopping centers. The malls were to become the new specialty chains for the innovative branded retail model that was launched in 1960. A large combination of highways. the print media including niche magazines. As more the consumers were chasing their dream. Sears and JCPenney.advancements and changes that benefited the post-war industrial economy were accelerating. Gap or Macy’s. Sam Walton. In that period. the Americans were aspiring to services and products that would satisfy their dreams not only their necessities and this is how the term “American Dream” was coined. Kmart initiated in 1962 in Detroit. along with the pioneers as Esprit. direct marketing mediums. had a great vision that small towns from America needed basis products that have high value but low prices. in a rural context. the two original national chain department stores that were also the most expensive were anchored in the malls as consumer traffic builders. but also the strategical one based on the distribution of communication. When referring to this infrastructure.

Known as the golden age of the advertising. sporting. They also added that “The major paradigm shifts for all the consumer-facing industries from the production-driven to a marketing driven economy meant that marketing became the primary strategic driver across the entire marketplace. Toys “R” Us and Home Depot were introduced as the category killers. Their structures with lower pricing that were mixed with specialized products and services have a significant advantage to this new retail model. Borders. new and better services and products was creating significant demand that needed marketing. branding and advertising to drive this growth. began in Wave II to win over a significant share of loyalty that customers were offering to the departments’ stores. Ann Taylor. The desire of Americans for more. and this is how they gave rise to retail brands such as Bed Bath & Beyond. and glorified in the popular television show Mad Men. as their name suggests. More competitors were emerging in the late of the Wave II and the early 1980 markets already began to be increasingly saturated. that period was the 16 . wanted to “kill” all the competitors by having only one product category (toys. Disequilibrium started to be seen between the supply and the demand and most important a shift of power from the producers to the consumers.Also. The main issue for the retailers back then was how to compel the consumer to want and choose them. etc. Circuit City. specialized in single category products and the new discounters that were delivering essential goods as commodities. The category killers. electronics). Cosmopolitan. In that period the massive distribution machines were the value/discount stores and big box category killers. The branded apparel specialty chains and the category killers. later in Wave II. home goods. The consumers were the ones that were making the competitor to add more value to their innovation part and to differentiate on the market. Wave II was arguably the most commercially creative era in American History”. Power in the marketplace was shifting from the supply side to the demand side as Robin Lewis and Michael Dart (2014) were stating. Also. Sports Illustrated) and on the television networks such as NBC and CBS. how to create demand so to speak. where they gained an improved selection of different products and better access to them. the big-box retailers. In Wave II the promotion of goods was done in the today well-known magazines (Time.

I will sum up what were the key features of that period and how the demand creation was making the American brands and retailer used a unique approach. BBDO.” Wave II was not only about single product categories in the world of retail but also the beginning of using the power of emotional benefits that consumers could perceive through brands/products/experience. in Romania. The consumer experience was already taking into consideration as business models for the retailers back then. Spanish week. They started a strategy of having themed events that were inspired by different cultures in the world and transformed the stores into the experiential bazaar. That approach is also used now. Taking. for example. etc. 17 . Leo Burnett. the CEO of Bloomingdale. the beginning of apparel specialty retailing was launched to complete the spaces from those centers. I design dreams. To rewind on the emergence of retail in The Wave II. In the Wave II.emerging time for advertising agencies like DDB. McCann Erickson. Sears and JCPenny emerged the era of centers and malls and with that. This would have made him later to play a dominant role in the retailer examples. not just some products as he was stating back then: “I don’t design clothes. When talking about retail game-changers. Ogilvy & Mather. an experience. that represented the giants of this and that era. by Lidl a supermarket discounter that has different experiential themes (Greek week. And this is how Ralph Lauren was the first that created a brand that creates demand through the power of delivering the consumers a dream.) that involve selling exclusive and limited products from that region. Bloomingdale was the only one that brought lifestyle into the world of retail by upgrading the shopping experience and positioned itself with an advertising headline that broke new grounds: “Bloomingdale’s: Like no other store in the world. Wave II main features: . because he was delivering a sophisticated world. I will also give the example of Marvin Traub..”. Ralph Lauren’s Polo brand that grew because he had a vision of offering through his products a sort of Gatsby World.The dominant retail models from that period were still the discounters and specialty chains. etc.

Across all industries the competition was growing and in order for retailers to “steal” the consumers from the competitors. etc.The shift was created in Wave II from the chasing demand phase into promotion and marketing intending to build particular demand. the term “Walmart effect” because opening a Walmart store in the area is creating around the local businesses at an economic level. . Best Buy. etc. category killers and big-box stores like the ones that I’ve previously mentioned in Wave II: Walmart.The launch of television and print introduced the “mass marketing” process in advertising that was coined in that period. This wave that began in 1980 and lasted until 2010 was the so-called period of the consumer power. and the power of the company is what Robin Lewis and Michael Dart declaring it as “the raising bar for the definition of the operational excellence. outlet stores found the perfect way to grew 18 . as the Professor Rosabeth Moss Kanter from Harvard Business School stated: “an enormous global power shift from producers to consumers. It also retains the title of the most profitable retailer in the U. . lifestyle brands and experiences emerged. .The retailers started to look further than essential needs that consumers had and began to create reasons that will appeal the consumer to buy from their stores.” Substantial growth in retail space that emerged in Wave III also lead to the expansion of the discounters..S.” Dollars store will steal some of this retailer’s best practices and model and will try to differentiate it selves by taking new positioning while also trying to steal from the Walmart’s market share. Starbucks.) Taking Walmart as an example. from those who make to those who buy. Toys “R” Us. One critical moment that marks Wave III of retail consists within the importance of value and the craving of the Americans for the designer labels. Home Depot. it was declared the world’s largest retailer and that introduced in the economy vocabulary. This development increased the spread in other categories such as dollar stores (Dollar General or Family Dollar) and fast food suppliers (Dunkin Donuts.

Just because the consumers were getting more and more close to the products and they had instant access to an enormous range of everything they wanted from anywhere. a number that is now closer to a billion. With new technologies that emerged in that period. billboards was mandatory. They started to collect data from different loyalty products or special activations. The amount of information started to increase quickly. the retailers also used technology to find more about their type of consumers to attract them with new features. All the new technology enables the consumer to increase his power and let him be more pretentious.” (eBay's History) With the expansion of information and the explosion of the Internet-enabled business to deliver the consumer demands in a faster way and respond immediately to their needs. the customer service moved into the cross-selling of other products. and technology had a significant effect on facilitating it. and entertainment features. catalogs. and the classical promotion of products on TV. (Internetlivestats) 19 . that was founded in “Pierre Omidyar's San Jose living room back in September 1995. The consumer for Wave III was able to compare prices immediately. We will see later on in the Wave IV description of retail.along them. how millennials are the ones who are taking so much advantage of these new features and how they made retailers keep up pace with them and their needs. to search information and reviews about the quality of the products and turned them into more intelligent shoppers. They are an attractive retail option when it comes to excellent prices. a new distribution platform was taking off for a better and more rapid trading of goods: the internet retailing. Brands and retailers began to be present also in the online sector and by 2010. The most famous retail business model that took advantage of the new technology that was born in that period was Ebay. It was from the start meant to be a marketplace for the sale of goods and services for individuals. great findings. Communication was growing. In the late Wave III. there were an estimated 200 million websites and counting. and the recommendations are now made based on what they already bought.

General Overview To respond to the first research question. Knowing Millennials and why they matter as shoppers 3. Significant growth was produced in delivering direct mail catalogs. allowing the consumer to choose and have different preferences. The research was conducted in 20 . e-commerce and TV retailing were emerging substantially and were giving the customer the chance to know it all. .Wave III was more consumer driven. . Category Killers. values. Outlet Stores and Dollar Stores gain momentum and were driven in growing demand. behavior and other characteristics. Chapter 3.1. Mass Merchants. Wave III essential characteristics: .The number of products and sub-brands were increasing. I compiled data from different studies that helped me in revealing why their behavior matters as a buyer in the retail industry. . and it represented the critical moment where the power of the producers shifted to consumers. The report made by Pew Research Center (2010) helped me in finding the information that I needed to portrait the Millennial generation was very extensive and full of interesting data on their attitudes.Robin Lewis and Michael Dart marked some main features of the Wave III that will help me in going further with spotting the changes that future waves of retail already encountered or will approach within the Millennials consumer context. With that. I wanted to find out more about the millennials from a general perspective and discover relevant insights of who are they as shoppers.

I will characterize the millennial generation from the USA. Thus. Goldman Sachs and Accenture guided me in approaching insights that are relevant for my paper. the ones born between 1986 and 2005 (Eastman and Liu. labeled the generation as Millennials just because the individuals from it became adults of 18 years old in 2000. 2012). They are also known as the Generation Y. not Romania because of the lack of studies and analyses that could’ve offered me relevant data to conduct the study based on our country millennial shopper. authors that described this different generation and other studies made by Deloitte.9 million. Generation Y being the term used especially by the media even though the millennials were not attracted by this approach because they considered that is no different from the Generation X who represented the previous generation. 2000). Generation Me or Next generation where other terms used in literature for describing the Millennials. Millennials may number as many as the Baby Boomer. They comprise nearly a third of the population of the United States (lawstreetmedia). With a total population of 72. This generation is called in other ways besides millennials. Strauss and Howe (2000) that represented the most important researchers in findings of generations. Other authors (Table 1) are calling them Echo Boomers just because they are emotionally close with their parents and in many cases. In my opinion. Also.America. the term Millennials is the one that serves the best the context of this 21 . or they come back home after graduating college. Millennials represent the most researched generation in the History of United Stated (Strauss & Howe. they are leaving the house very late.

.Columbia. Figure 1: Terms used by different authors to describe the generation Source: The Millennials: Assessing the next generation of academic librarians by Emanuel. University of Missouri . Jennifer. Demography The life experience.generation and in my paper I’ve chosen to address to them only as Millennials. 2012.com/doc/1328137653. and living arrangements are quite different from the other important American generations: Boomers and Silent Generation.D. Millennials are more ethnically. In the Baby Boom generation.2.html?FMT=ABS&pubnum=3537868 pdf version 3. The report found that the Hispanic population grew in a fast way compared with black people and marked this new generation.proquest. racially diverse and more educated than the other generations. the demographic overview. Ed. 248 http://pqdtopen. the black (11%) and Hispanic (10%) shares of the population are quite similar. 22 .

2010. 43%. the millennials are less likely to get married or have children than earlier generations in age comparison. The Millennials are more educated than the generations before. than were the immediate two previous generations at the same age (Gen Xers. respectively) of Boomers at the same age. p. 36 & Boomers and 24% the Silent Generations when they were ages 18-28. 2010. born children of at least one immigrant parent.S. p. (Pew Research Center Report. That share is higher than for Generation Xers (7%) or Boomers (5%). Boomers. p. 11) The report also showed that Millennials are more likely to be living with other family members (47%). More than half of Millennials have at least some college education (54%) compared with 49 % of Gen X. 11% are U. Boomers (66%) and Millennials (63%). (Pew Research Center Report. such as their parents. half the proportions (42% and 26%. 2010. Just one-in-five Millennials is currently married (21%) and just one-in-eight (12%) is married with children at home. (Pew Research Center Report. Regarding nativity. Identities. They also are more likely than others had been at the same stage of life to be cohabiting with a partner or living with a roommate. 3. 10) Concerning education. 39%).3. 10) When talking about living arrangements. Priorities and Outlook 23 . Social trends and economic forces are defining patterns in differences regarding the labor force because the Millennials are less likely to be employed when comparing to the other generation: Gen X (70%). there are more Hispanics (19%) than blacks (13).Among the millennials. Millennials are more likely to be single parents living with their children (8%) than Boomers (4%).

2000). technology use is the single most popular response. Other ways in which Millennials see themselves as unique include their music. p 13 One of the attributes that defines this Generation as unique is their strong connection to technology (Allerton. pop culture and style (11%). Technology is part of their day to day lives and understands it better than previous generation. 37% do not. (Zemke. their parents. Tapscott. (Pew Research Center. Among Millennials who see their generation as unique. most Millennials say that their generation is unique. 13) Figure 2: Reasons of what makes generations unique Source: Pew Research Center Report on Millennials.Looking at themselves in relation to another individual. responses differ widely across age groups. Six-in-ten (61%) say they think of their age group as unique and distinct from other generations. 24 . 2010. 1998. and their liberalism and tolerance (7%). 2010. even if they were the inventors of the current technologies. 2001. p. Eisner. 2005). When asked to name some ways in which their generation is unique and distinct. Report. Roughly a quarter of those under age 30 (24%) say technology is what sets their generation apart.

50% of the public says this is one of the most important things in their lives. Social Media and Millennial Generation Technology enabled this generation to become a “curious generation”.The use of technology is one important factor that lead through what millennials are now and how it influenced the subject of my paper: the retail industry. p. being a good parent ranked at the top for all four generations. (Tapscott. 2010. This compares with 50% of those ages 30 and older. Overall. and fame and fortune are much less important. They grew up with the computer in their home. Technology.86). Only 5% say this is only somewhat important or not important at all. 1998. they are just as likely as their older counterparts to place high value on good parenting. Although only about a third of Millennials (34%) have children. not being somehow forced to adapt with them 25 . An additional 44% say this is very important but not the most important thing for them personally. p 18 3.4. p.” Figure 3: What matters in life for Millennials Source: Pew Research Center Report on Millennials. About half (52%) say being a good parent is one of the most important things to them. Regarding this aspect. Millennial women are even more likely than Millennial men to say being a good parent is one of the most important things to them (56% vs. 48%). Regarding what Millennials want from their life The Pew Research Center Report (2010.17) discovered through their research the following: “Family matters most. I will develop it ampler in the further chapter on Technology and Social Media. When asked to rate how important a series of life goals are to them personally.

but also in their social life. They can seek for different information on products they wanted. (Adweek) The same study 26 . (Clausing. feedback from the peers and in many cases being followed-up by a mobile shopping experience. Technology for them represents “an assimilation as for everyone else it is an accommodation. having the ability to do more things at once. the data shows us that 90 % of Millennials and 87% of Gen X are using the internet. compared with the ones (26%) that believe that is making life more complicated. 2003) because they don’t use it only as a tool. 2010).later on when they are older like the previous generations. 2003. 70 percent of 18-34 year-olds use smartphones in the bathroom and 51 percent use smartphones while eating with family. (Pew Research Center. more when compared with the Baby Boomers that only 79% use it. According to the Webby Research Report. Mobile is also an increased amount of using technology for Millennials (Clausing. and they are consuming more technologies simultaneously. In the Survey made by Pew Research Center. With the emergence of the social network sites. we can spot around 75% Millennials that already created accounts for this social network platform while Gen X only 50 %. More than twice Americans (64%) think that the new technology is making their lives much easier. They can surf the internet while watching TV and even check their emails in between. p. 374) They can multi-task.

5. 2013) 27 .com/our-thinking/pages/millennials/ 3. Figure 3: Motives of Millennials in being connected Source: http://www. Two of the main reasons that Millennials should awaken interest for the retailers is the generation size and their spending power. (Census. The retailer should understand their potential and how to benefit from knowing more details about who they are and what behavior have as shoppers. The Millennial population represents about 30 % from the United States population and is formed by 93 million individuals.goldmansachs. reveals that 85% of the Millennials aged between 18-34 use the internet for shopping. Millennials matter for retail industry After presenting some general aspects of this generation and know what they represent them. I will now emphasize some of the reasons that Millennials should receive attention from the retailers.

A more consistent estimate is $200 billion of direct purchasing power and $500 billion of indirect spending. US Chamber Foundation stated in a report about Millennials and the market potential that “Millennial annual purchasing power widely range between $125 billion and $890 billion. probably at this moment they already had their second or third promotion.” Their age is another important factor to be considered. they are very willing of doing great things in their careers and are very optimistic for the future despite the heavy times. The future growth of the wallet that Millennials will take for shopping. I emphasized in the previous chapter their connection with technology is so natural and powerful. consumer spending will hit $5. With Millennials’ peak buying power still decades away. Let’s take for example how much they spend on a shopping trip: “Amount spent per shopping trip was 55$. The rough start made them more ambitious in upgrading in their careers. 2013). in winning more and will be capable of spending more. Baby Boomers. Nielsen also projects that U.7 billion by 2020 in retail. so that is why they are more exposed to the consumerism. largely due to the influence on the spending of their mostly baby boomer parents. 2014) and they began shopping at a younger age than previous generations (Grotts and Johnson.S. Even if the younger cohort of this generation had a harder start.Retailers cannot ignore such a huge population that make their money and also have money from their parents. The elders from the previous generations rely on them in assisting them with all the new technologies. Since I already mentioned spending. marketers would do well to establish relationships with this consumer force. as Boomers only spend average 45$.” (Kim and Jang. it is important for the benefit of the retailers. seniors 35$ (Nielsen report). 2014). The recession impacted the potential careers of the Millennials negatively and affected their entering in the workforce. This generation was raised in a material way (Kim and Jang. They want to “fit in” and have a desire to purchase the status products they believe will allow them to do so more easily.” Generation Y is also susceptible to conforming to reference groups. What retailers should consider in their targeting strategies is that Millennials 28 . It is true that the older cohort of this generation is doing well on the workforce ladder. I will underline that spending habits are another important characteristic that retailers in their strategies should not avoid.

Schweitzer & Lyons. and they are influencing them especially on different reviews regarding products. I want to emphasize the fact that millennials have distinctive patterns from Baby Boomers regarding shopping behavior. 3. “Gen Yers demand an authentic relationship based on deep knowledge of who they are and what makes them busy (Yarrow & O’Donnel. They want to be seen. The Millennial shopper In terms of benefits. 2010). they can be important opinion leaders to influence their families in purchasing terms. Thus. life balance and challenges. respected and known and that retailers invest in a relationship through understanding and empathy to grow a connection and future spending for this type of consumer. 2009).are always helping the older generation to decide when shopping. He searches for latest trends and invests in knowledge information about the image of the retailers. especially on personal services and on consumer goods. (Ng. the millennials “want it all” and “want it now”. he wants to offer trust for a long term relationship when we are talking about his gratification. They are more and more aware of their shopping power and are more likely in spending their all new cash immediately. Through the next figure.6. They do not want to be seen by the retailers like someone that spends and buys. 1999). 29 . He wants to make the investment for the future and doesn’t look only at a good price and good quality. (Der Hovanesian. rapid growth at the workplace. brands and products. The Millennial consumer wants to buy products that represent him and helps him define who he really is.

192) When talking about their shopping behavior and his spending habits. (Cotton Inc. 2013)..000 – $49. The range of minimum and maximum hours spent by each cohort will reveal that the young cohort spends 105 hours in only and by the older ones a smaller time of 89 hours.5 hours on shopping in-store while in online they gather about 97 hours for shopping.Millennials that earn about $25.000 annually were surveyed by Cotton Inc (2013) in order to make an average to see how much they spent on apparel in one month. The 30 . Figure 3: Decisional Patterns for Millennials Source: Parment (2013. Millennials spend in a month about 96. p.

claim that products reviews for clothing are believable.S. Figure 3: Decisional Patterns for Millennials. and 45 % go to e-commerce sites. 2013) Representing the biggest population in America and constantly developing on every stage. These reviews are written by 68 % of online purchasers. the millennial shopper cannot be ignored by the retailers. To answer the first research question. shoppers look for reviews directly on the retailer’s site.majority spends from a range between $0-$100 as the figure below reveal. 192) Another important aspect that describes Millennials as shoppers is the high dependence on what peers are reviewing. Social media and blogs are two less popular options. Source: Parment (2013. I first found the general information about how is living this emerging generation and then I found the main reasons that represent them as consumers/shoppers to show why retailers should build a strong relationship with Millennials. A huge percentage of the U. 31 . p.. “(Cotton Inc. “About 71 % of U. A study shows us what are the primary sources through which millennial take and trust the information. 81 %.S shoppers. at 17 % and 8 %.

“(Robin Lewis.The size of the generation cumulated with all the optimism of young and fresh individuals that embrace new things every day. and the pursuit of sustainability is present in everything that this growing and powerful group does. emotional when choosing products but rational when it comes to purchasing them. Michael Dart. characteristics that are creating him a demand for more technological experiences. Millennials are somehow forcing retailers in improving their experiences. 53). more available quality and more value-driven luxury. opinion leaders for the previous generations and feedback seekers. Apple was extending it retail expansion creating stores that deliver a great technological experience. Social networking. Amazon was growing substantially and invested in cloud technologies that allowed supporting its acceleration. In the next chapter I will focus on the transformation of the present retail moment that consists by Wave IV as Robin Lewis and Michael Dart (2014) captured in their book „The new Rules of Retail. by extending the PayPal services and offer other technologies to connect with the millennials. 2014. eBay repositioned from the initial auction model just to keep up the pace with Amazon by also creating eBay Enterprise. 32 . As I mentioned before. to upgrade their services in online too and to “offer more high-tech and high-touch engagement. caused based retailing. So the retailers started upgrading their services. Chapter 4.” With the explosion of the technology and with new dominant retail consumers. The Millennials. the Millennials generation became the primary target for retailers. greater personalization. the Millennial consumer is more educated and elevated and very tech savvy. In Wave IV the internet and the new technology were on the edge and these represent the main factors that retailers embrace in order to change their way of getting to the new consumer. and high touch participation. p. Millennial’s impact on the transformation of present Wave IV and future of Retail To respond to the second research question. in retail also. I will emphasize on how much the retail experience has changed today towards the other III Retail Waves that mentioned in Chapter 2. community involvement.

there are advantages for retailers too. This strongly suggests that once their basic needs are met consumers are increasingly apt to spend more of their wealth on experiences rather than things” (Robin Lewis. with all this new technology he has the chance to know better his consumer to segment his target in a proper way and develop marketing strategies that are relevant for the wanted shopper. Nowadays.The phone was becoming so smart that it was no longer a tool of getting in contact with someone else. Millennials are more conscious consumers and want to know everything about the services and products they acquire. Robin Lewis and Michael Dart (2014. “ Millennials have now a wide range of products and services on every way. p. Thus retailers. they are not happier only with material goods. 44) gave some examples of technologies that work this way: “There are technologies that will also tell the retailer where and who the consumer is and how he or she is feeling. 2014. Even so. p. and companies will be more transparent within the emergence of the internet and information-driven processes. 54). p. 55) framed six major shifts from the previous Waves that Millennials have driven in the Wave IV. Retailers are already embedding technologies in every process that will benefit both consumer and retailer. 2014. Smartphones gave birth to different applications that helped users in doing many daily activities and not only that. Facial recognition technology can be used to identify high-value consumers when they enter a store. and I quote: 33 . It can also be used to read their shopping body language to determine whether they’ve got time to browse or are in a hurry and need of immediate help. The authors (Robin Lewis. to watch and engage with brands. to be connected. One retailer said it was like Google Analytics but for a physical store. on many levels and contacts and just because they are becoming satiated about all those choices. Michael Dart. “As how the American psychologist Abraham Maslow’s broadly defined the term self-actualization now holds the key to consumers’ happiness and well-being. Michael Dart. The power of the consumer will enable retailers to develop and try lots of experience driven technologies. There is now a heat mapping technology that retailers can use to track and analyze traffic patterns in their brick and mortar stores. apps are allowing the millennial consumer to be informed. brands.

Entertaining events. the convenience of e-commerce. people are working during their off hours and playing during their work hours. From Needing Stuff to demanding experiences – The thrill of the hunt offered to brand savvy bargain hunters at T. From conformity to customization – specialized. global initiatives like human rights and safety. From technology for work to technology for life – technology enabling the blurring lines between life and work. getting what they need to get done whenever and however they can. 3. 2. 5. 4. and the apple Store turning electronics shopping on its head. the differentiation it’s done by elevating the selling experience.1. personalized and localized niche brands like Nike ID and Keurig single serve coffee machines begin to gain share from large megabrands. From wanting New to Demanding New and Now – what’s new today is cloned tomorrow. In the present Wave. Millennials are demanding experience and retailers should not forget that. 6. Vera Wang at Kohl’s. games and engaging promotions that will connect at an emotional level with the consumer. value of the products. using technology to save time and money.J. no longer simply commercial promotional gimmicks. From Self to Community – proliferation of social media. community interests such as sustainability. audio-visual effects. social shopping. The differentiation on the market of nowadays it is not like in the previous Waves when it could have been achieved only through the distribution and quality vs. Maxx and Marshalls. the continued growth of limited sizes in apparel and clothing and footwear and the rapid growth of 3D printing. favoring fast fashion brands like Zara and Forever 21 that create two new lines every week. When creating this type of connection with the customer. all are trends. Karl Lagerfeld at Macy’s. From plutocracy to democracy – accessible luxury for all: Missoni for Target. hey will spend much time to live that experience and he will enjoy it so much that he will come back to buy other products. free delivery and neighborhood stores. 34 .

2014. The convergence with the consumers must be done by maximizing the ways in which he will seek for experience in order to realize his true identity. so the retailer can think about also doing some social commerce. encouraging customers to visit more frequently. The growth of new technologies and social network enables the consumer to enter communities that represent commercial targets. same day delivery. 67) Another example that delivering the now and new experience is happening on all channels distribution is Amazon Prime. (Robin Lewis. One of the most powerful 35 . seeking the dopamine surge that will accompany the discovery of fun new products”. online retailers can customize their experiences and offerings into a more personalized way. Another thing that retailers are starting to use is the neuroscientific science in order to provide experiences and “new and now” value that I previously mentioned. Emag is a good example for the online shop in Romania. are two retailers that have adjusted their strategy to their consumer’s desire for new and now. In the future. it is harder to give an experience to the customers when you cannot relate to physical approach. that also has a brick and mortar showroom where people can experience the products. Thanks to their huge database gathered from the customers in order to spot their preferences.This is also available for the online retail. p. The site should be experience driven and should be fun and engaging to keep the consumer much longer on it and convince him to buy because he liked his staying. having a showroom will increase for sure the engagement of the consumer. Amazon Prime is the program in which the customers can get free and fast (2 days) delivery. Michael Dart. It is true that having an online shop is more about convenience. Both ship new merchandise to their stores every few weeks. and other services as well. Through online. but ultimately I believe that retailers such as eBay or Amazon will open a showroom so that consumer will connect and feel with the products. “Urban Outfitters which operates the Anthropologie brand of home. This caused an example in the industry and made eBay launching a similar project of eBay now that have Instacart.

The Boston Consulting Group. liking and sharing in terms of brands. “American Millennials: Deciphering the Enigma Generation. they can activate consumer’s interest. This social commerce it is also called F-Commerce.Millennials have more online connections Source Barkley. Millennials are big CSR supporters.” September 2011. Being present on Facebook a big amount of the time. and they can awake a shopping feeling while a Millennials is hanging with friends at a bar and scrolling through his news feed. and Service Management Group.influences on the purchasing decision when talking about Millennials is the word of mouth. he is seeing what others are posting. Retailers should keep in mind that they have to be socially 36 . and they are finding satisfaction when doing charity work or engaging in environmental causes. Fig 4 . products or services. Retailers can be aware that with Facebook.

Retailers envision new business models and strategies that will allow them to get closer to this new consumer. Walmart is an example of a retailer that delivers sustainability initiatives. This was a result of the explosion of the technology and internet and how Millennials do not want to miss a social interaction. The retailers should be smart in the future and capitalize on the FOMO idea in order to deliver what a Millennial want in this Omni-channel world. moving forward on an online interaction and being present also on his mobile. As I got further in this paper by discovering findings of the reports regarding characteristics of the Millennials I can now point out some important takeaways that will help me in responding to the third research question regarding new rules that retailers would have in account when targeting millennials. The success of a retailer will come in the next phase if they will create a complete experience for their consumer: starting with a neurological connection in the store. The retailers that want to raise the bars in this industry will use science and art in order to create powerful experiences to Millennials that will make their shopping behavior a must from their store. they forced the vendors in reducing the amount of used packaging.aware and function as a caused related retailer. New rules of approaching Millennials in retail sector The transformation regarding retail industry had already begun. or an invitation to an event or other experiences that are happening on the web. All the new technologies and the science of experience that Wave IV is encountering should be understood by the retailer as essential components of new strategies and new business models because retailing is facing an incredible and beautiful transformation. They are selling only economical fluorescent bulbs. Another aspect that characterizes the Millennials is FOMO (Fear of Missing Out). Chapter 5. 37 . and they are reducing a lot of emissions when using the delivery trucks.

Their peers influence millennials. they want to cocreate and be included as partners in the process of shopping. Millennials have a lot of social friends that can receive feedback or they can share ideas with. Millennials are more likely to adopt new technologies and are eager to try the latest in this industry. Millennials want to participate as a consumer. 3. not as passive consumers. Before making a purchase decision. Fig 4 . 4.Millennials on new technology 38 .1. 2. they are likely to turn for a piece of advice from their friends. Retailers should seize this opportunity and start using this insight as an advantage of gaining Millennials as consumers from the outset. Millennials speak fluently the digital language being born in an era where the online connection is part of their lives.

The Boston Consulting Group. and Service Management Group.” (Content Marketing Institute.” September 2011. “stated Jeff Fromm and Christie Garton. they are more likely to take the shopping process as a showroom experience and by that. In the past. Coca-Cola’s Jonathan Mildenhall. social media gave them also a voice and can turn a millennial consumer into a brand advocate. p. (2013. 2012) “Not all young people want to be friends with brands. a strategy that Coca Cola developed in order to ensure that for 100 years the brand remains relevant in the consumer mind: “All advertisers need a lot more content so that they can keep the engagement with consumers fresh and relevant. you have to have fat and fertile ideas at the core. Millennials demand a higher degree of engagement and retailers should focus on not creating only messages to market them but also strategies of brand relevance for their minds. This calls for a “listening” strategy—a more nuanced approach to engaging with Millennials online. because of the 24/7 connectivity. Rather than bombarding Millennials with brand messages. I mean he will use different price comparison apps while in store to find better deals. Also. explains the philosophy behind Content 2020. consumers were involved in just only one-way communication with the brands and were passive participants regarding the media. As I already mentioned.56) 39 . The retailer should set up and develop relevant content that will attract and engage the millennial consumer. especially when talking about Social Media. retailers will gain a millennial attention. vice president for global advertising strategy and creative excellence and visionary behind the strategy. Recent research on younger Millennials found that almost half do not believe brands should have a social presence. If you’re going to be successful around the world. “American Millennials: Deciphering the Enigma Generation. Source Barkley. January 4. Now. listen first and then engage after a thorough understanding of their wants and needs is acquired. Millennials have to be engaged in their shopping experience and providing satisfying and stimulating experiences. Retailers should develop a mobile strategy for Millennials to spend more time in connecting with the brand that will lead to fidelization.

Also. The consumer data should be more analyzed in the future in order for retailers to understand the best insights of this new breed of shoppers in this way the retailing experience can be optimized to exceed the customer expectation. They have to personalize the experience for the Millennials and recommend (not force) in real-time products and services that are relevant to them. Facilitating the Omni-channel commerce will be in focus in the future. retailers should start building a relationship for a long lasting staying along with this consumer. • Retailers should engage and monitor the interaction in Social Media. etc. through collected information about this new consumer. so it should be constructed in a dynamic and engaging way no matter of the medium where is posted (The Web. By complementing the online and offline experiences on a common platform. I would point some so-called rules for retailers to implement their strategies: • Retailers should track the Millennials digital journey and try to implement purchasing triggers that will create a neurological connectivity. Social Media.) • Retailers should not forget in the future that they have to optimize the prices and to merchandise constantly to the needs of a Millennial consumer. retailers will be able to upgrade categories and assortments that will fit the “now and new” moment of a Millennial. 40 . By anticipating the demands. So based on their characterization. • One of the most important trends that started to grow and will develop consistently in the future will be the Omni-channel retail. the content is very powerful these days. Only by creating an investment in a relationship with a Millennials he will also invest in your brand. the data from the mentioned reports and all the essential key findings that I’ve managed to spot by answering the two previous research questions. the Millennial will be easily reached. • The focus will not be only in gaining new consumers. but retailer should think about how they will maintain the Millennial’s loyalty towards he is products/services. Email.So after listening to the Millennials. The delivered services should be consistent and still alternate knowledge with creative experiences.

the mediums that are spending the most of the time on.ro. Angela Țiboc. 2016). enough to afford luxury categories when it comes to shopping. In the article of Capital. In Romania.Chapter 6. (Infocs. a study showed that prestige of a company and the quality of the products and services offered by a company are important aspects for the young millennials. 2014) In Romania the Millennials are characterized as representatives of Y generation. the shopper and the retail in Romania The term Millennial is something that has been used by the Romanian media quite late. The fact that they are tech savvy and digital lovers it is available for the Romanian Millennial also. Retail Metrics. When it comes to their experiences. Even if the Romanian Millennials are not the main topic of my thesis. DTZ Echinox has provided to Wall Street Romania some relevant data in which they discovered that this generation is integrating the mall experience in all their activities. Some common findings can be seen when describing a millennial. I wanted to investigate some similarities on our retail market that are influenced by this type of consumer. and most of the articles that I found in the Romanian online press regarding this subject are using information also gathered from global reports. the young Millennials are not loyal to a certain brand. they are declared digital natives and shoppers they need to express their opinions about products and services. Also. but they are selecting products that will serve their elitist behavior (capital. The Millennials. Wall-street Romania (2014) remarked that Y generation has a major impact on the modern retail of Romania. 41 .ro. their parents. The media is still relating to this generation at the Y generation. thus they are also earning more. From their studies results that Millennials are using the commercial centers primarily as socializing points and way of experiences and secondary the consumption aspects. was talking about the fact that most attractive brands for the new generation are the ones that have a high presence on the social media. director of Fashion and Lifestyle division of Sole. Romanian millennials are also looking for social responsibility from the companies that interact with. born between 1980-200 that have a superior education up against the previous generation.

Consumer Barometer by Google.Cristina Ungureanu (Geometry Global) defined the generation Y in an article provided by Revista Piata (2013) as the generation interconnected at a global level. They have unlimited access to information. The filter that I’ve used in searching the trending data that Barometer provided was segmented for people in Romania aged 25-34 years. I observed that this our millennials are major consumers of internet quite like the American Millennials. considering the relevant cohort of Millennial generation. aged 25-24 From the figures above. They are living in a digital world and learned to use the technology on their own. presented me some relevant data concerning the Romanian consumer and this helped me in tracing some connections within the evolvement of modern retail in our country. and this leads to the paradox of choice because they have too many options when choosing brands. in which he states that internet will change fundamentally the way people will buy. provided information in an article presented by Electro Retail (2014). Romania. Representatives of Manhattan Associates Inc present on the Romanian Market. products or services. Results from 42 . Figure 3: The usage of internet by Romanian Millennials Source: Consumer Barometer Google.

the general director of Immochan stated in an article provided by Retail FMCG (2014). Retailers in Romania are starting to know all this information and are making progress in getting to the consumer acknowledging this relevant data of his behavior. Retailers should see this as an important component for their development and an extension of the traditional retailing. Tatian Diaconu. that digital is occupying a much more important place in our retail and for consumers this represents a big interest. and the traditional stores will become showrooms of experiences when it comes to online shopping. aged 25-24 The barometer is showing a significantly increase of the online Romanian searches when it comes in finding information about shops 54% are researching and purchasing online and they are making the pre-purchase researched is considerably high. 43 .their analysis show that it is an increased purchase decision because of the using of smartphones and social media. Figure 3: The usage of internet by Romanian Millennials Source: Consumer Barometer Google. Romania. getting close to the 56% that are still using the traditional shops in looking at information products and services.

lead to forcing retailers in reevaluating their connection with consumers and upgrade their traditional way of marketing. They are not passive consumer anymore. communicating or engaging the Millennials. To sum up. to be active.ro and Samsung is implementing technologies for the showrooms in order to provide appealing experiences for their consumers. creation of showrooms that provide experiences. relevant content in online. engagement in socials media are some findings that should be rules in our country also not only abroad Chapter 7. allowed me to reveal that Millennials are revolutionizing the purchase habits while also redefining the shopping experience. Carrefour developed a digital payment with the smartphone. Retailers in our country are already developing new changes for getting closer for the new generation of consumers. they are connected all the time and retailers should be present where these digital savvies are. The data and the used information. Cora is developing the online shopping in a better way and extending online driving such as CoraDrive.The expansion of the online and the transformation of the offline shops into showrooms of experience are the two most discussed issues in the retail specialty media. so they want to be engaged. They are aware of the fact that consumers in our country are looking for experiences and for their own engagement in the story of the brand. Multichannel. Born into an era where they speak digital fluently. I have reached the 44 . Conclusions of the paper By compiling different studies of the Millennials of the America and studying different researches I was able to extract relevant data that helped me in shaping a profile of the Millennials generation and how this is transposed in their shopping behavior. All these. the retail is trying to keep pace with this consumer and is making changes in order to offer him the best experiences. to participate and be included in any interaction within their shopping experience.

creating unique experiences of shopping and creativity on every level of their activities. I must remind you that we live in a world that passes within a vertiginous speed and the retail industry is a permanent development. was changed and improved in experiences and force to upgrade these experiences also in the online segment. 45 . Wave IW. To see how the present retail experience has changed in order to reach this generation I’ve studied the III past Waves of retail. Is how I got to the conclusion that the present in retail. then I’ve tracked the innovations that arisen within the context of Millennials becoming the most relevant segment of consumers. The data that I gathered from the studies. The biggest challenge is for retailers to keep up with the new technology. As I mentioned before. but in this case. I was able to conclude that retailers should definitely have a digital journey and start using omni channel as a business model for the future in order to connect with the Millennial consumers.conclusion that they cannot be ignored by the retailers because of their powerful spending power and because their shopping behavior really matter for the evolvement of this industry. the changes that were produced in the Waves of Retail. not Romania ones because of the lack on the literature review and studies that could’ve helped me with relevant data. thus leading to evolvement of the retail companies in keeping up with this kind of consumer. showed me how much time this type of consumer is spending on the internet and how retailers should seize this opportunity in constructing a way of communicating with Millennials. but it’s also very important to respect some important rules like: the clear orientation on the consumer. By correlating the shopping behavior. These changes in Retail that were marked by Millennials and I’ve spotted thought this paper. the focus of this paper was on researching the American millennials and retail. It is true that factors like internet and the apparition of the new technologies have influenced many industries. helped me in forecasting some important rules that retailers should not avoid when comes to their business model. how is the behavior of the Millennial consumer and how the retail is changing also to keep up with this consumer. it influences the behavior of millennial shopper. I tried to shortly point out some key findings of how the Romanian press is relating to this generation. Even so.

quality and experience so that’s why retailers should keep pace within the trends context.My findings lead me to conclusion in which I have to state that our Millennial consumer is quite similar with the one from abroad and I could trace some similarities in which retail industry in Romania is changing towards its behavior. I must say that this paper can be very helpful for the retailers in order to facilitate their future mission and also could be relevant in understanding why the Millennials are the most dominant segment of consumers. brand awareness. 46 . behavior that is also influenced by the internet and new technology as important factors. With vast amount of information. Millennials are discerning shoppers that know how to compare price. because in the end the Romanian Millennial will still differ on some aspects by the global millennial due to some factors like: different purchasing power. This paper is relevant because the subject I want to tackle has showed importance in the retail industry of nowadays. availability and so on. For the Romanian industry I have to say that more research is needed in order to forecast relevant and more accurate rules for the future of retail. My opinion is that retailers should know more of whom they’re communicating and how they can target the consumer in a more segmented way. everywhere available.

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