Marketing to the iGeneration - US - May 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Spending Power
Tweens/Teens
Figure 1: Typical product purchasers, by tween/teen iGens, December 2017
Young Adults
Figure 2: Typical product purchasers, by adult iGens, December 2017
Purchase Preferences
Tweens/Teens
Figure 3: Tween/teen iGen purchase considerations, December 2017
Young Adults
Figure 4: Adult iGen purchase considerations, December 2017
News Sources
Tweens/Teens
Figure 5: Tween/teen iGens and current events, December 2017
Young Adults
Figure 6: Adult iGens’ trust toward news sources, December 2017
Self-Perceptions
Figure 7: iGens’ attitudes toward interests, by tween/teen and adult iGens, December 2017
What it means
THE IGENERATION BY THE NUMBERS – WHAT YOU NEED TO KNOW
iGens are a small, but influential group
Racial diversity is a starting point
iGens are likely still living at home
A straight-laced group
Limited financial independence
THE IGENERATION BY THE NUMBERS
Who are the “iGens?”
Figure 8: Births in the US (millions), Mintel generational cut-offs, 1930-2016
iGeneration shifts into key spending years
Figure 9: US population by generation, 2013-23
Young Americans are most diverse
Figure 10: Generations, by race, 2018
Figure 11: Generations, by Hispanic origin, 2018
Two-parent households most common living arrangement
Figure 12: Living arrangements of children under age 18, 2017
Teen birth rate continues to drop
Figure 13: Birth rates per 1,000 females aged 15-19, by race and Hispanic origin, 2017
Unhealthy activities are avoided
Figure 14: Behaviors consumers avoid, by generation, April 2017
IGEN FINANCES AND SPENDING POWER 
iGens are financially pragmatic
Figure 15: iGens’ attitudes toward money and risk, by tween/teen iGens and adult iGens, December 2017
Education provides iGens with greater financial opportunities
Figure 16: Median usual weekly and annual earnings of full-time wage and salary workers, by age, 2017
The (student loan debt) struggle is real
Figure 17: Unsecured debt ownership, by generation, August 2017
Tween iGens are least likely to have an allowance
Figure 18: Allowance, by age, Fall 2007, 2012, 2017
The going rate for allowances
Figure 19: Allowance amount, by age, Fall 2007-17
Fewer teens spend their summer working
IGEN INFLUENCES
What’s on the minds of iGens right now?
Activism
Who’s doing this well?
Figure 20: How Ashley Judd Stood Up to Harvey Weinstein | Teen Vogue, October 2017
Gender fluidity
Who’s doing this well?
Figure 21: Save $2 on our New So Lashy! Mascara, email, November 2016
Figure 22: Fenty Beauty by Rihanna, September 2017
Body positivity
Who’s doing this well?
Figure 23: NEW Girl's Clothing Line | Obsess by Laurie Hernandez | JCPenney, February 2018
Figure 24: Aerie, emails, February-March 2018
Figure 25: Always #LikeAGirl – Keep Going, video, August, 2017
Figure 26: Cybersmile and Chessie King Body Positivity Campaign, April 2018
Authenticity
Who’s doing this well?
Figure 27: Pickup and Go!, February 2018
Figure 28: Get Ready With Me: feat. Paloma + Glossier, June 2017
Entrepreneurialism
Who’s doing this well?
Figure 29: The Yellowberry Company, March 2014
Figure 30: Sneak Peek at Target’s Art Class’ first collaboration, January 2017
KEY TRENDS – WHAT YOU NEED TO KNOW 
Music mainlined
Vice behaviors less appealing
Social media influencers are important – but for how long?
Adult options don’t always translate
Long view versus short-term wins
WHAT’S WORKING?
Music festival-influenced fashion
Figure 31: Too Faced Life's a Festival – Magic Crystal Mystical Effects Lip Topper
iGens’ international palate
Apple Music takes over where MTV left off
Goodbye “Millennial pink,” hello “Gen Z yellow”
Reaching the LGBTQ audience
WHAT TO WATCH
Big social media may be losing its luster with iGens
Smoking is out, vaping is in
Alcohol consumption down among the youngest drinkers
Figure 32: Share of adults who do not drink, by age, April 2017
Keeping it real with the news
What works for moms, doesn’t necessarily work for daughters
WHAT’S NEXT?
Netflix wants to gamify the streaming process
Driving impulse purchases for online shoppers
YouTube competes as an audiobook resource
iGens want to discover small brands
THE CONSUMER – WHAT YOU NEED TO KNOW 
iGens are good with money, but don’t have any
iGens want to fit in, and stand out
iGens want what’s new, from familiar brands
iGens are against discrimination, but really against bad customer service
iGens aren’t experts in the news, but they do read social feeds
iGens enjoy sports, but may also consider themselves “nerds”
iGens trust the news, unless it comes from their friends
POSITIONING PRODUCTS FOR IGENS
Deal seeking starts early
Figure 33: Positioning products for iGens, tween/teen and adult iGens, December 2017
iGens are the new trendsetters
Figure 34: Positioning products for iGens – select items, by generation, December 2017
Good deals matter, but sales appeal more to iGens than Millennials
Figure 35: Desirable product qualities – deal and sale items, by generation, December 2017
WHO PAYS FOR WHAT?
Parents shoulder most purchases for tween/teen iGens
Figure 36: Typical product purchasers, by tween/teen iGens, December 2017
Adult iGens still lean on their parents for most purchases…
Figure 37: Typical product purchasers, by adult iGens, December 2017
…but are slowly transitioning toward financial independence
Figure 38: Typical product purchasers – net of all purchases, by tween/teen and adult iGens, December 2017
TWEEN/TEEN IGEN PURCHASE CONSIDERATIONS
Peers push purchase more than brands
Figure 39: Tween/teen iGen purchase considerations, December 2017
TV influential for Black audience
Figure 40: Tween/teen iGen purchase considerations – select items, by race, December 2017
Importance of affordability increases with age
Figure 41: Tween/teen iGen purchase considerations – affordability items, by age, December 2017
ADULT IGEN PURCHASE CONSIDERATIONS
Erosion of trust can impact adult iGen shoppers
Figure 42: Adult iGen purchase considerations, December 2017
Friend recommendations outweigh online recommendations
Figure 43: Purchase considerations – select items, by adult iGens and Millennials, December 2017
Affordability key for adult iGen women
Figure 44: Adult iGen purchase considerations – affordability and online recommendation, by gender, December 2017
Hispanic adult iGens are drawn to environmentally friendly products
Figure 45: Adult iGen purchase considerations – environmentally friendly and organic items, by Hispanic origin, December 2017
KEEPING THE ADULT IGEN CONSUMER
What do iGens take issue with?
Customer service
Discrimination
Figure 46: Move Mountains, April 2018
Privacy
Politics
Figure 47: Reasons adult iGens avoid companies, December 2017
Adult iGens care more than Millennials about company missteps
Figure 48: Reasons adult iGens avoid companies – select items, by iGens and Millennials, December 2017
Brand reputation matters more to adult iGen women
Figure 49: Reasons adult iGens avoid companies – select items, by gender, December 2017
AREAS OF INTEREST AND EXPERTISE
Being a nerd is a point of pride for most adult iGens
Figure 50: iGens’ attitudes toward interests, by tween/teen and adult iGens, December 2017
Sports are still important to iGens
Figure 51: iGens’ attitudes toward sports, by tween/teen and adult iGens, December 2017
Music, movies, tech, and TV are a few of iGens’ favorite things
Figure 52: Tween/teen iGen areas of expertise, December 2017
Older iGens have music knowledge, TV and movies for younger iGens
Figure 53: Tween/teen iGen areas of expertise, by age, December 2017
Hispanic iGens savvy about media, fashion, and new products
Figure 54: Tween/teen iGen areas of expertise – select items, by Hispanic origin, December 2017
TRUST IN THE NEWS
iGens are skeptical of what they see online, even stories from friends
Figure 55: iGens’ attitudes toward news and trust, by tween/teen and adult iGens, December 2017
TWEEN/TEEN IGENS’ NEWS SOURCES
Social media reigns as primary source for current event knowledge
Figure 56: Tween/teen iGens and current events, December 2017
Boys more likely to turn to news-specific sources
Figure 57: Tween/teen iGens and current events – select items, by gender, December 2017
Hispanic tween/teen iGens favor TV news
Figure 58: Tween/teen iGens and current events – TV news, by Hispanic origin, December 2017
ADULT IGENS’ NEWS SOURCES
iGens may read BuzzFeed, but they trust The New York Times
Figure 59: Adult iGens’ trust toward news sources, December 2017
NYT stands out among the crowd
Figure 60: Adult iGens’ trust toward news sources – select items, December 2017
Business-oriented news sources more trusted by higher earning iGens
Figure 61: Adult iGens’ trust toward news sources – select items, by household income, December 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms