Guess Who's Coming to Your Store

Call it the generation gap, or fear of the unknown, or whatever. The fact is that most gift retailers are content just to market to Baby Boomers, that huge demographic that has dominated our society for the past few decades. Of course, most gift retailers are Boomers themselves, and its always easier to deal with "one's own kind." But the demographics are a'changing, and the Boomers' children, also known as Generation Y, are becoming a major force to be reckoned with.

According to the 2000 United States Census, 25.7 percent of our population, 72.3 million people, is under the age of 18. That represents a growth of 13.7 percent over 1990, the last time the census was taken.

Of those kids, by far the fastest growing segment is the 10-to-14-year-old group, which increased by almost 20 percent. These kids are not babies, and most are not yet teens. They are what marketers are calling "tweens." While the precise age span of the tween demographic is a matter of debate, most experts include kids from 8 to 12 years of age. By that definition, there are more than 20 million tweens in the country, according to the authors of The Great Tween Buying Machine David L. Seigel, Timothy J. Coffey, and Gregory Livingston.

Tweens can be a profitable audience for the gift retailer, not only because there are so many of them, but also because they have deep pockets. Dr. James McNeal, president of McNeal & Kids Youth Marketing Consultants in College Station, Texas, says kids aged 4 to 12 had $33 billion in income in 2000, of which 45 percent came from an allowance and 55 percent from money gifts, part-time jobs, and handouts. According to McNeal, tweens spent an estimated $20 billion of their own money in 1999. (Seigel et al give a more conservative estimate of $10 billion.)

The most common item on the tween shopping list is candy, purchased by at least 64 percent of tweens. Next come games and toys (44 percent); nail polish or perfume among girls (42 percent); soda and books (tied at 39 percent); snack food (31 percent); and fast food (16 percent). Clothing ties with fast food, but rises sharply over time as kids' interests change, with 29 percent of older tweens (aged 10 to 12) purchasing apparel.

Despite the emphasis on inexpensive items, tweens shouldn't be written off as potential consumers of higher-priced merchandise. Seigel et al report that tweens commonly save for expensive items, or strike deals with their parents to pay part of the cost. And one category of more expensive merchandise that is likely to be a hit with tweens is tech accessories. Tweens are computer and technology friendly, familiar with e-mail, cell phones, and beepers. More than half have a radio, tape player, television, or CD player in their bedroom. Video games, VCRs, cable TV, and computers are also common tween appliances, although only 9 percent of them have Internet access in their rooms. Their plugged-in lifestyle makes tweens a fast-paced demographic group, even more accustomed to instant gratification than their Boomer parents.

But the purchasing power of these kids doesn't stop when their own pocket money runs out. According to Seigel, parents spend $176 billion annually on tweens. That's an average of $9,020 per child aged 9 to 14. And tweens have more influence over family purchasing choices than did children in the past due to changing social attitudes. Single parents and two-career households are a big factor: Both tend to consider shopping as a family activity, and they often try to make up for the lack of time spent with their children by spending more money at the mall.

When tweens choose and parents pay, the retailer has a delicate line to walk in targeting the buyer. While a product should offer features to satisfy mom — good price, sturdiness, or nutritional or educational value — products for tweens must appeal to them directly. And because tweens have a more positive attitude toward their families than teens do, merchandise that could be called "family product" can appeal to tween and parents alike.

In a 1996 report from the Yankelovich Youth Monitor, some 69 percent of 9-to-11-year-olds said they tend to stick with a product or brand they like. Marketers have taken note. Tween and teen brands, from Mary Kate and Ashley to MTV and YM magazine, are launching a wide variety of branded products.

Well-known adult brands are extending their franchises to younger audiences as well. In fashion, Gap Kids, Ralph Lauren for Kids, Donna Karan, and The Limited Too have all focused on tweens.

Furniture manufacturers have also brought out lines aimed at the teen and tween markets. Reflecting the consumer sophistication of today's kids, the designs of these lines are anything but juvenile. Stanley introduced UR Great, a sleek wood-look collection featuring aluminum hardware and bright plastic storage containers. Lexington teamed up with Bob Timberlake for a distressed-finish cherry collection called GrandKids, and debuted Lauren Olivia Too, a retro-metro, funkier version of the original Lauren Olivia collection. The Rooms to Dream Collection from PJ Kids can be updated by inserting fabric panels in drawer fronts. Vaughan Furniture has teamed up with an upscale New York children's retailer to introduce Pamela Scurry's Cottage Garden collection, designed to take girls from toddler to college.

Today's kids are more likely to come from a complex family structure, so old-fashioned is strictly out of the question for them. They are also a diverse group of many races and creeds and they expect to see that reflected in your advertising. They are environmentally aware, and interested in eco-friendly products.

When making your tween merchandise choices and creating your displays be aware that these kids have been saturated with marketing hype. Ideas that you might think are "with it" might already be stale to them. Seek out products that appeal to children, teens, and tweens by mirroring adult trends in brighter colors, lighter materials, and smaller sizes, with a hint of the unexpected. Accessories are key since they can add fun to the basics and come in price points low enough to be purchased by kids. The key to reaching tweens is to stay true to your basic style but add a "just for tweens" twist with brighter colors, fun products, and a touch of funk.

Baby Boomers still have a lot of shopping left in them, but the next generation is forming its shopping habits and loyalties right now. The smart retailer can cash in on that by laying out the (colorful) welcome mat, and saying, "Hey kids, come on into my store!"