Generation Next

She's a consumer whose social calendar is packed with gift-giving and card-needing occasions. Her level of disposable income is enviable. She is trend-aware, image-sensitive, and willing to pay a premium for just the right gift. She may even be living in your own home. And yet, because she's a teenager, she is being ignored.

The teen consumer represents an under-addressed — perhaps even totally shunned — segment of the shopping population. Everyone from developers to retailers has put out the unwelcome mat for this group. They have done everything from restricting the hours teens may shop to limiting the number of companions teens can bring into a store. Many mall developers have jumped on the preteen bandwagon, but the teen market is subject to various vendettas in the guise of community standards. That attitude has led retailers to ban certain teen merchandise, only to see the same products become mainstream the following year.

Admittedly, you may not relish the thought of sharing your space with packs of raucous teenagers. But those feelings shouldn't cause you to restrict teenage shoppers. The trick is to find the commonalities between your existing customer base and these kids that will allow you to tap into the energy and trend awareness that the teen customer brings.

To begin with, you may have to alter your impression of the average teenager. Teens aren't a uniform pierced, tattooed mob wearing Marilyn Manson and Limp Bizkit T-shirts. For the most part, they are quite the opposite. The vast majority of teenagers are mainstream and, if anything, a bit sentimental. They are just as traditional as their parents, or even more so. They are looking to fit in and be accepted.

Even kids who participate in extreme sports such as bungee jumping, skydiving, and mountain biking are not the yahoos many adults suspect them to be. According to a recent study Yankelovich Partners published in its newsletter "Monitor Minute," these adventurous types have very eclectic interests. They are more likely than the general public to enjoy cooking (41 percent vs. 32 percent), to listen to classical music (26 percent vs. 18 percent), to visit museums (24 percent vs. 13 percent), or to do arts and crafts (23 percent vs. 13 percent). So don't assume that all teens are only interested in rock music. Before you judge Generation Y by its proverbial cover, discover how varied its tastes and interests can be.

The teen members of Generation Next are looking for respect and, most of all, a place where the products, the environment, and the value proposition suit them. (In that way, they are no different from the rest of us.) For teens, shopping serves many purposes. Sometimes expeditions are pre-planned (e.g., gift-buying for an upcoming occasion). However, much of the time, shopping trips are organized around the social component, and purchasing is the price of admission — purely impulse, and often tribal. You witness it everyday: Ashley convinces Brittany that the item in question — a candle, a bracelet, or a new piece of room decor — is definitely a need, not a want.

There are retailers who have intelligently tapped into this market. They include mall-based stores like Bath & Body Worksand mass-market outlets like Target. In these stores, teens love to discover newness, a sense of humor, whimsy, and of-the-moment styles. Innovative and unique packaging, lively in-store graphics and communication, and product displays that say "Touch me" (never "You break it, you bought it") help make them a teen magnet.

Whether a particular retail venue is suited to the most conventional members of Generation Y or to the most alternative-music–loving members, the teen market represents a great opportunity. To get in on the action, you should take a look at your own store environment, your product selections, and, last but not least, your attitude toward this consumer. Successful retailers with upscale reputations, such as Nordstrom, have found ways to cater to both the teen customer and more mature generations. They appreciate the immediate benefits of teen consumers, as well as the goodwill they are generating with their customers of the future.