With Millennials projected to have an annual net income of more than $8 trillion by 2025, it's no wonder brands are increasing their marketing efforts to better engage them.
That goes beyond a traditional advertising experience and means communicating via mobile devices and similar channels. It also means creating meaningful content that emphasizes value, trustworthiness and authenticity.
A recent PricewaterhouseCoopers study found that 59% of Millennials consider themselves price-conscious compared to 73% of older shoppers. Also called GenY, Millennials were born between roughly 1980 and 2000.
This generation is the first to grow up with personal technology. It is more tech-savvy and mobile-friendly than others. The same study found that nearly a quarter of Millennials use their mobile devices for purchases compared to 15% of shoppers aged 35-44 and just 10% of shoppers over 44. Additionally, the report shows that all consumers define brand leaders as trustworthy, authentic, reliable and visionary.
Brands hoping to engage with millennials need to focus on creating and maintaining a rich brand experience with mobile top of mind. Here are three that excel in this regard. Consider what they are doing below.
Nike has long been known for its impressive branding and is making headlines again. It landed the No. 2 spot on Business Insider's November 2015 list of top 100 brands for Millennials. Nike is formidable when it comes to Millennial marketing. At the core of its success has been its ability to create a massive digital community of fans who truly believe they are living a certain lifestyle by interacting with the brand. Nike grows and fosters this community through content specifically tailored for this market. A recent example of this is its video series Margot vs Lily targeting Millennial women. The series is an offshoot of Nike's Better For It campaign that started in April 2015. To capitalize on the buzz from this initiative, Nike built a hub in its digital storefront for viewers to shop outfits that are in the series. The campaign offers a great example of how Nike has driven brand loyalty and attracted new customers.
Free People (owned by Urban Outfitters (URBN) )
Urban Outfitters shares are up nearly 17% thanks to strong sales from its beloved bohemian brand. Free People sales increased 2% in the final quarter of 2015. Savvy digital marketing efforts from the whimsical clothing line helped it land the 20th spot on a November Brand Affinity Index based on a Millennial-focused survey conducted by Teen Vogue and Goldman Sachs. Free People's website creates a visually stunning digital presence. Its online storefront leads with a Spring/Summer 2016 look book, carefully curated to communicate the brand's effortless yet feminine style. But where Free People excels is with its blog, Building 25. With three dedicated editorial staffers, Building 25 provides fresh content related to everything from fashion to music to home decór and food -- all topics that appeal to Millennial women. The blog offers readers an inside look at the culture behind the brand they already love. It conveys the sort of authenticity that Millennials crave. In addition, readers can easily shop the looks from every blog post, which increases digital conversions.
The Frye Company (privately held)
Established in 1863, The Frye Company is widely known for its durable, quintessentially American leather boots. The key word here is durable. A recent study from Elite Daily found that 48% of Millennials consider quality to be the most important factor when considering a purchase. To build off its reputation for quality, The Frye Company built sections on its website to delve into what kind of leathers it uses, as well as to provide a closer look at how each pair of boots is crafted. A company timeline underscores Frye's deep American roots and rich history. That has the added benefit of helping it capitalize on GenY's affinity for vintage clothing and footwear and desire to develop their own personal styles. Frye's spring 2016 campaign includes still photos and a brief video that captures the brand's iconic American style. Frye has also partnered with social influencers to create #TheFryeLife photo galleries that offer an insider's guide to exploring popular U.S. cities. The Frye Company excels at rolling out new marketing initiatives geared towards Millennials without deviating from its core values. Combined with the flawless functionality of its mobile site, that has positioned the brand for success with GenY shoppers.