Wang Gang Referral Consuming Fashion - Essay Example

?Wang Gang Referral Consuming Fashion Table of Contents Introduction 3 The Demographics & Psychographics of the Gen Y group 5 Demographic Characteristics of Gen Y 5 Psychographic Characteristics of Gen Y 6 Lifestyle Preferences of Gen Y 7 Key Motivations and Buying Behaviour of Gen Y 8 Future Opportunities and Challenges for a Marketer 9 Conclusion 11 References 12 Introduction Generation Y (Gen Y) principally refers to the demographic group of people born between the period of 1975 and 1995. The first group of echo-boomers was born in between 1977 and 1982 while the last group was born between the years 1994 and 2004. ‘Gen Y’ is also known as ‘Millennial’ and ‘Echo Boomers.’ This group is believed to be highly dependent on new media and digital technology along with intending to grab the concepts of such technologies within a short span of time in an effortless manner. They expect entertaining as well as advanced technology information to be offered by the media and are further assumed to be self-centred, demanding, and hard to amalgamate with communities. Furthermore, it has often been observed that their attitude, behaviour and lifestyle are considerably different from other generations in communities (The Financial Times Ltd, 2012). Stating precisely, there are various apparent characteristics deciphered by the Gen Y group. For instance, this group is learnt to be culturally and racially diverse. Additionally, this group is regarded to be highly independent, rendering meagre consideration towards collectivism approaches. The populace belonging to the Gen Y group also feels empowered to take every requirement according to their wants indicating a higher degree of consumer bargaining power in the international context (NAS, 2006). Focused on the significance of Gen Y customers in today’s international marketing phenomenon, the discussion presented henceforth will intend to render a comprehensive understanding of the behavioural traits deciphered by the populaces. In this regard, the demographic, psychographic and lifestyle choices of the customer group will be studied, which will further be analysed to identify the challenges and the opportunities rewarded to the marketers worldwide. The Demographics & Psychographics of the Gen Y group Demographic Characteristics of Gen Y In keeping with the recent market conditions, ‘Gen Y’ people are learnt to have an enormous potential as the prospective customers for various products and/or services. The people belonging to this group have grown up in the period of economic stability and affluence which, in turn, were quite effective in bringing up constancy as well as rapid advancement in their lifestyle. Therefore, the people belonging to this generation largely desire to pursue an affluent lifestyle. These people are often monitored to be highly persuaded towards entertainment and style deciphering lesser significance concerning the monetary attributes. Thus, it can be argued that people belonging to this age group can be more effectively lured with attractive features rather than offering price concessions (Aeffect, Inc., 2000). According to the US Census Bureau, in relation to the figures published in 2000, the Gen Y group comprised people who fundamentally belonged to the age group of 5 years to 22 years, including around 70 million people, i.e. 25.9% of entire population of the nation (Aeffect, Inc., 2000). From a generalised perspective, the families of Gen Y are observed to be very much culturally diverse and lead a busy life. For instance, according to the recent statistics of US demographics, the entire population of Gen Y customers include 15% of African-American, 5% of Asian and 14% of Hispanic citizens. Consequentially, this considerable diversity has resulted in creating a significant distinctness among the buying behaviours of the consumers belonging to this segment. Thus, in order to provide complementary products to the Gen Y buyer segment, the marketers need to come up with varied offerings to meet their needs (Aeffect, Inc., 2000). Therefore, it can be apparently observed that in the current day phenomenon, the demographic segmentations, life experiences and distinct structures of this group (born after 1980s) are learnt to be more culturally and ethnically diverse than previous generations. The Gen Y people are also considered to be more learning-oriented. To understand the Gen Y traits and to differentiate this generation from other subsequent as well as previous generations, it is necessary to consider the demographic segmentation as essential. According to Pew Research Center (2010), as of the year 2009, the consumer groups of Gen Y who were born between the years 1981 and 1991, are considered to be adults by the marketers. In the similar context, the consumer demographic group of ‘Gen X’ is identified to be born between 1965 and 1980. Moreover, ‘Baby Boomers’ are recognised to be born during 1946–1964 (Pew Research Center, 2010). Thus, proper evaluation of these demographic characteristics can assist the marketers in obtaining a proper understanding of the target market segment in relation to their products. Psychographic Characteristics of Gen Y The people belonging to the Gen Y group perceive a highly positive attitude being significantly concerned regarding the future endeavours. This generation is often identified and appraised to be self-reliant, confident and optimistic. The psychographic traits of the people belonging to this group also indicate them to be highly career oriented with the desire to achieve the set goals deciphering optimism and enthusiasm. One of the basic consumer features of this group is that the people possess an unlimited favourableness towards fashion, brand and innovative technology. Gen Y is further considered as a specific group of customers whose demands are quite high and variable, i.e. the preferences and influences of the customers are learnt to frequently keep changing. Stating precisely, the customers included in the group prefer to live their life with fun, learning, exploration and innovative experiences. This group is also examined to be highly image-driven with preferences following new fashion trends within their specific youth culture. However, the major characteristics for defining these groups are that they wish to grow up being connected with their community through social networking. It is in this context that the Internet has enabled the Gen Y consumer group to explore innovative avenues through corresponding by way of digital media. These groups easily connect with each other as well as the rest of the world deciphering a degree of comfort with these Internet technologies. Therefore, they expect and always desire instant gratifications through regular interactions and connectivity (Aeffect, Inc., 2000). An evaluation conducted by Digital Marketing Services (DMS) indicates that groups of ‘Gen Y’ still prefer to spend their time in moderately traditional way. For instance, the obtained statistics indicate that after spending their school hours, 27% of the young Gen Y people wish to enjoy and play video games with their friends while 15% prefer watching television as well as connecting with online friends, and 13% join in sports (Aeffect, Inc., 2000). Lifestyle Preferences of Gen Y Most of the millennial lifestyle choices are not very much different from those of the adults belonging to the previous generation. It is frequent that their attitude and lifestyle behaviour depend upon the socio-economic and ideological status, relatively at a higher degree than their age. In some positions of their life, they find an explicit and specific way to express themselves within the community (Pew Research Center, 2010). The millennial populace accepted more effectively new innovative technologies than the preceding generation. About 90% of European ‘Gen Y’ whose age is 15 to 24 have a mobile phone, related to 75% of all age of European societies. Millennial used online technologies to increase their social network and uphold communication with their families and relatives. For this group multi-tasking is a passion of life. These groups exist in such a world where choice is available and they are continuously seeking new experiences and opportunities (Pew Research Center, 2010). Key Motivations and Buying Behaviour of Gen Y One of the positive attributes that can be effectively identified among the Gen Y people is that they always tend to prefer and follow innovative technological advancement as well as quick gratification. Another behavioural trend witnessed amid this group can be identified as their dominating attitude toward the world to create advanced systems and techniques. It is also worth mentioning that adaptability traits of ‘Gen Y’ are quite flexible as they are learnt to adjust themselves in various situations in a risk-taking manner (NAS, 2006). There are different aspects of millennial behavior which are quite likely to have a significant impact on the entire society. The buying behaviors and preferences perceived by the people of Gen Y are also learnt to be different from those deciphered by the elder generation of the same age. It is in this context that the millennials are commonly learnt to decipher higher degree of preferences for new collection of products and selected services. It is in this regard that the people identified as millennials are often noted to purchase the latest and most expensive products from the market which they believe to be signifying their social position and achievements. Consequentially, their focus has always been on the latest trends and technologies indicating no or minimum degree of reluctance on making huge expenditures when satisfying their desire (Sweeney, 2006). Regarding technology, the customers included in the group of the Gen Y people, in the majority of instances attempt to purchase innovative commodities, with latest features and functions, especially in relation to those products which are attributed with information technology facilities such as laptop and mobile phones. Millennials can also be identified as the major consumer edge and is referred to as the inhabitant of ‘The Long Tail’ phenomenon. It is worth mentioning in this regard that according to Anderson (2006), ‘The Long Tail’ phenomenon in real terms indicates towards the significance of choices and the influences caused by the continuous changes. Stating precisely, the phenomenon states, ‘It is nothing more than infinite choice’ (Anderson, 2006). Future Opportunities and Challenges for a Marketer For millennials, marketers have benchmark opportunities to bring new innovative technologies and new fashion trends with exclusive prices. With due regard to the purchasing techniques deciphered by the millennials, marketers can earn huge profits along with rendering unique features of the commodity owing to the perception of the millennials to consume the products and/or services delivering the latest fashion and technologies. It has been generally observed in this regard that Gen Y customers rarely concentrate on a particular brand for a longer period of time indicating a lower degree of loyalty. Therefore, marketers of this niche customer group needs to keep striving for delivering continuously innovative products and/or services maintaining a pace with their altering demands and requirements (Ferguson, 2011). Another major challenge witnessed by the marketers of this group can be identified in terms of their demand for instant gratification. Therefore, marketers are forced to launch new fashion trends and innovative technologies maintaining a rapid frequency. Owing to the continuous requirement of innovation as a result of the constantly changing customer demand, the marketers have to witness a higher degree of competition. It is in this context that constantly introducing innovative products and/or services with advanced technologies and fashionable features within a lesser span of time emerges as a considerable challenge for the marketers, not only by increasing the competition level but also by augmenting the requirement of greater investments. As a consequence, it can also be stated that the product life cycle has a shorter span or duration which again imposes a significant limitation on the marketers to gain a considerable market share (W5, Inc., 2008). Conclusion From the overall study about millennials or ‘Gen Y,’ it can be concluded that people belonging to this particular group are quite effective in bringing about changes within the world markets and also in augmenting the effects of globalization to a large extent. The group is often identified to decipher a unique way of self-expression following rapidly altering lifestyle choices and attitudes with a significant concern towards fashionable features and technologies. Taking the virtues of globalization, the generation intends to take the greater opportunity of grabbing the new lifestyle and fashion trends influencing the marketers to introduce new technologies through innovation at frequent intervals. The people belonging to this particular generation are also identified to inspire their peers within the communities to follow the similar fashion, attitudes and lifestyle choices. The aspect is further observed to impose various opportunities and threats for the marketers worldwide who attempt to target the niche customer group of Gen Y. For instance, the continuously altering behavioral traits and higher inclination towards fashionable features tend to assist the companies in easily persuading the customers of the Gen Y group. However, the demand for continuous innovation also imposes threats in terms of increasing competition and greater investment requirements which again influence the market strategies implemented in the international context. References Aeffect, Inc., 2000. Review of literature and secondary research on generation Y lessons to apply in the development of a youth-targeted CDC web site. Resources. [Online] Available at: http://www.orau.gov/cdcynergy/web/ba/Content/activeinformation/resources/Draft_Web_Lit_Review.pdf [Accessed August 05, 2012]. Anderson, C., 2006. The Long Tail: why the future of business is selling less of more. Vershinabooks Publications. Foley, P. & Mitsis, A., n.d. Generation Y’s antecedents to the creative learning style. Keywords: creative learning style; generation Y; demographic factors; psychographic factors. [Online] Available at: http://anzmac.org/conference/2011/Papers%20by%20Presenting%20Author/Mitsis,%20Ann%20Paper%20350.pdf [Accessed August 05, 2012]. Ferguson, R., 2011. Born this way: the US millennial loyalty survey. How generation Y will reshape customer loyalty. [Online] Available at: http://www.aimia.com/Theme/Aimia/files/doc_downloads/Aimia_GenY_Nov9_US.pdf [Accessed August 05, 2012]. NAS, 2006. Generation Y: the millennials. Docs. [Online] Available at: http://www.nasrecruitment.com/docs/white_papers/Generation-Y.pdf [Accessed August 05, 2012]. Pew Research Center, 2010. Millennials: a portrait of generation next. Confident. Connected. Open to change. [Online] Available at: http://www.pewsocialtrends.org/files/2010/10/millennials-confident-connected-open-to-change.pdf [Accessed August 05, 2012]. Sweeney, R., 2006. Millennial behaviors & demographics. New Jersey Institute of Technology. [Online] Available at: http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CHAQFjAB&url=http%3A%2F%2Flibrary1.njit.edu%2Fstaff-folders%2Fsweeney%2FMillennials%2FArticle-Millennial-Behaviors.doc&ei=lc8fUMikCY-yrAfEmoGQDA&usg=AFQjCNEaGFMJ_yjHwMs7TCRtcAK3p8Y-Eg&sig2=l1zP_iBbHntv4rabCyGkNg [Accessed August 05, 2012]. The Financial Times Ltd, 2012. Generation Y. Recent changes. [Online] Available at: http://lexicon.ft.com/Term?term=generation-Y [Accessed August 05, 2012]. Williams, K. C. and Page, R. A., n.d. Marketing to the generations. Abstract. [Online] Available at: http://www.aabri.com/manuscripts/10575.pdf [Accessed August 05, 2012]. W5, Inc., 2008. W5 on millennials. Who are millennials? [Online] Available at: http://www.w5insight.com/cms/wp-content/uploads/2011/07/W5-on-Millennials.pdf [Accessed August 05, 2012]. Read More