Connecting with Emerging Markets to Boost Store Sales
Emerging markets can mean a boom for your business; find out how to connect with new segments Baby Boomers, Hispanics and Millennials, to bring more customers to your store.
As the population of the US ages, baby boomers are increasingly becoming a target market for small retailers. But according to McKinsey & Company there are two other emerging markets which complete the trifecta of new shoppers who retailers should consider attracting. These are: Hispanic and Millennial consumers. In this blog we’ll share 3 key strategies to attract each of these markets to your store.
Why Boomers, Hispanics and Millennials?
~ Boomers: According to McKinsey, in the next 10 years households headed by people over age 55 will drive 73 percent of housewares growth and 56 percent of apparel growth.
~ Hispanics: According to smallbusinesstrends.com: Hispanic consumers’ retail spending is projected to almost double in the next decade. This group will be responsible for nearly one-fifth of all U.S. retail spending.
~ Millennials: According to McKinsey, by 2020 Millennials will account for nearly one-third of total retail spending. And, because this group is actually larger than the Baby Boom generation, this trend is expected to continue as the population ages. Read more in this article from smallbusinesstrends.com.
Three strategies for attracting these groups
Trying to change your store to attract three separate shopper groups with differing interests is probably not feasible. However, there are 3 key areas that you can consider fine tuning for each segment—be it Boomer, Hispanic or Millennial. McKinsey suggests taking the 1, 2, 3 approach below.
- Personalize your marketing
Consider adjusting your marketing to make it more personal to the segment(s) you are trying to reach. You can do this with customized Facebook posts (read more in our Facebook ads for small retailers blog) or personalized emails for each group. Also, consider asking your customers to review your store on sites like Yelp, Google and Facebook—according to McKinsey, all three groups respond well to peer recommendations.
- Think Small
As shoppers increasingly use ecommerce to purchase everyday goods, the onus falls on retailers to sell specialized product that shoppers can’t, or don’t want to, buy online. According to smallbusinesstrends.com, “A smaller, but more carefully edited and curated store is more likely to succeed than a midsized location with a hodge-podge of items.” Stop and take a look around your business, taking in the inventory from each perspective. What changes need to be made to appeal to these groups?
- Create an Experience
Shopping for Boomers, Hispanics and Millennials, according to McKinsey, is a social activity. Use this to your advantage and create a retail setting that is an experience. Consider offering specialized in-store services like home décor consultation, personalized gift guides or floral arrangement along with deep product knowledge that caters to one or all of these groups. Make each and every customer walk out having had a memorable visit. Hopefully they will spread the word and plan to return!
As you consider adjusting your retail store to reach these new shoppers by personalizing your marketing, creating a more highly edited set of product or recreating your store as an experience, you might feel overwhelmed with the idea of reaching all three groups at once. Perhaps you realize that Boomers want different product than Hispanics than Millennials and personalizing three sets of marketing for these groups is a big job. We suggest you start by looking at which group is already shopping your store, or have a large population in your neighborhood, and then making adjustments to appeal to that group. Take your personalized marketing changes with one step at a time and you will find what works best for you and your business.
How are you adjusting your retail style to reach new shoppers? Do you utilize sites like Yelp, Google and Facebook? We’d love to hear about your plans in the comments below!