It’s no news that consumer demographics in America are changing rapidly. In order to maintain the competitive edge, retailers are scrambling to catch up by modifying their marketing strategies and adopting innovative new technologies. According to a recent McKinsey study, the three groups retailers should be targeting are the Baby Boomers, Hispanics and millennials. A recent article from Business Insider provides the following reasons why.
Baby Boomers are defined as those 55 and older and control approximately 70% of disposable income in the United States. The leading online retailer, Amazon created a website especially for these consumers; highlighting products like vaitamins and easy-to-use electronics. Another big brand, Dos Equis has also seen phenominal success with their “Most Interesting Man In The World” campaign.
McKinsey predicts that Hispanics will double retail spending in the next two years, reporting that they’ll spend over $1.5 trillion on United States goods and services before 2015. Retailers are securing hispanic spokesmen and women and taking note of cultural fashions and trends in order to garner the attention of this demographic. Target, a leading national retailer even claims to be adding Mexican groceries to its shelves in the near future.
These are arguably the most important demographic of our time and will account for nearly one-third of retail spending by 2020. These consumers are defined as those 24-37 and are extremely active online and on social media. Mobile devices are a large part of millennial shopping habits, making targeting them a little tougher.
Below is an infographic depicting the importance of each of these target audiences.
To further discuss the future of retail marketing, contact our Atlanta ad agency today, or learn more by downloading our newest white paper, Emerging Retail Trends – Part 2: How to Reach and Engage Today’s Consumers.
Learn more about the author here.