Millennial Generation Holds Promise for Prosperous Future in Christmas Decorating Market
Dallas, TX February 3, 2003 - "Our job today is to predict the future of Christmas 2003 and beyond," said Pam Danziger today in the keynote address at the Seasonal/Basic GM Efficient Promotion Planning Session, sponsored by ECRM (www.ecrm-online.com) at the Hotel Adolphus, Dallas, TX. In her speech, the president of Unity Marketing and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002) explained that the fortunes for consumer marketers lie in anticipating the shifting demographics of the American population.
"The two generations that will have the greatest impact on the consumer market over the next twenty years are the 76 million strong baby boomers, aged 39 to 57 years, many of whom are well into their empty-nesting life stage and the 71 million millennial generation, the babies of the baby boomers, born from 1977 to 1994. Today the leading edge of the millennials is 26 years old, the age associated with first marriage. This new generation will soon be forming young families and establishing new holiday decorating traditions."
"Over the next twenty years we are going to see growth at the two extremes of the market. The boomers, now in their highest income years, are going to drive demand at the luxury end, while the millennials will be looking for economy as they stretch limited pay checks across the many purchasing demands of a growing family," Danziger explains. "As a result, the consumer market is going to be split with huge potential at the high-end and the low-end and with not a lot in the middle."
Christmas marketers need to plan today for Christmas future
To help Christmas and seasonal decorations marketers and retailers plan for the future of their business, Unity Marketing offers Christmas and Seasonal Decorations Report, 2002. Based upon in-depth research from decorations companies, year-round seasonal retailers and consumers, the report helps companies "see over the horizon" to gain future vision of the Christmas and seasonal decorating market. (See press release.)
Here are key highlights from the report:
Christmas is American's favorite decorating holiday
More than half of American households (55%) purchased Christmas decorations or other seasonal decorations in the 2001 sales year spending about $6.4 billion buying holiday decorations, lights and trees to enhance their Christmas celebrations. Women tend to take the lead in holiday decorating traditions, so purchase incidence of Christmas and other seasonal decorations is higher among women than men. Purchase incidence of Christmas decorations peaks between ages 35-to-54 years, after beginning to rise from ages 25-to-34 years.
As the boomer generation starts to move beyond the prime years for Christmas decorations buying, the millennials will age right into the prime market for Christmas decorating. But this new younger generation will bring new traditions and expectations to the marketplace when they buy Christmas decorations.
Demand will grow for economy-priced decorations
Young families are budget conscious families. While Christmas ornament companies for years have pushed their price points higher and higher with the increasingly affluent baby boomers willing to spend $30 on a single Christmas ornament, the young millennials will look for something more economical. They might spend $30 for a box of 12 really spectacular ornaments, but they will demand far greater decorative value when they start to buy for their trees.
Key to success for Christmas marketers in targeting millennials: Translate the luxury ornaments that you are selling to the boomers down to the more youthful consumers with more modest means.
Build a brand and become part of future Christmas celebrations
There is a touch of brilliance in Hallmark's Keepsake Ornament program. They have built a brand that means "Christmas" to so many families across the country. Few other brands have been able to establish that kind of dominance and brand connection with the holiday, but the younger millennial consumers will search out brands that they can carry forward into their own holiday celebrations.
Key to success for Christmas marketers in targeting millennials: The younger generation will value a brand they can trust to become part of their future Christmas decorating traditions. Be that brand!
Follow the youthful consumers' shopping patterns
If you want to sell to the millennial generation, you must have your product shown in places where millennials are bound to shop. For Christmas they are much more likely to go to the mass merchandiser chains and the national do-it-yourself hardware stores, than the small independent gift stores or garden center. But the real winners in the Christmas decorating retail trade will be the national home furnishings stores, such as Pier 1, Pottery Barn, Crate & Barrel, Bed Bath and Beyond, Linens 'n Things, and Williams Sonoma. For example, the Swedish-based Ikea home furnishings chain goes right at the heart of this generational target with highly affordable, high design decor.
Key to success for Christmas marketers in targeting millennials: Be where the young people like to shop for home stuff, and that is likely to remain the national home furnishing chains.
Extend your brand's reach by participating in other aspects of consumers' Christmas celebrations
Over the past few years, the popular brand extension strategy among Christmas marketers was to try to push their way into other holiday celebrations, but with only limited success. Why has a strategy that seemed so logical done so poorly? Because the companies have ignored 'why people buy' insights. Consumers don't feel the need to decorate their homes at any other time of the year. Their passion for Halloween and Thanksgiving decorating is only a warm-up for the real thing - Christmas. Christmas is THE holiday for consumers to express their decorating passion and Christmas will ALWAYS be the holiday for that. So why not use 'why people buy' thinking to extend your brand into other aspects of the Christmas decorating celebration? If your business has been focused on the Christmas tree, why not "jump" off the tree to the walls...under the tree...into the kitchen...onto the tabletop or mantel...in the dining room...outdoors on the patio? That is where smart brand extension thinking takes you. Christopher Radko has got the right idea with the launch of holiday seasonal dinnerware in Target stores. Priced right at $12.99, Radko is building the kind of far-reaching holiday brand with which new millennial-generation families can grow.
Key to success for Christmas marketers targeting the millennials: Forget consumers spending heavy on other holiday celebrations. Millennials will focus their decorating passion on Christmas, so marketers must think beyond the tree to all the other places where families focus their holiday celebrations.
Expand beyond Anglo-European Christmas traditions
The key demographic distinctive that distinguishes the younger generation from others is their ethnic diversity. While our way of celebrating Christmas is uniquely American, to date it is strongly influenced by Anglo-European customs. As the millennials start to exert their influence, we can expect them to demand new decorations that reflect a wider cultural prism. Marketers need to go beyond cute red chili pepper lights to decorations that capture the emotional expression of different cultural traditions.
Key to success for Christmas marketers targeting the millennials: Take into account their greater ethnic diversity with decorations that respect different cultural backgrounds and ethnic traditions.
About Unity Marketing
Found in 1992, Unity Marketing is a marketing research and consulting firm that helps companies apply the concept of emotional marketing to corporate branding and marketing initiatives. Using its "why people buy" research strategy, Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002), uncovers the motivations, desires and emotional needs that drive consumers to buy. This approach turns consumer insights into actionable marketing and brand strategies and gives executives "future vision" to plan the direction of their business. Unity produces market research studies that are essential business planning tools for executives competing in the luxury market, jewelry, art, home furnishing, gifts and collectibles, toys, personal care/cosmetics industries among others. Unity also publishes the Luxury Business and Gifts & Collectibles Business newsletters. Pam is currently working on her next book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published in early 2004.
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