A new survey of 18 to 35 year olds provides an insight into the thinking of the age group dubbed Generation Y and, according to its joint author, it provides good news for the property industry.
The survey, Generation Y: Shopping and Entertainment in the Digital Age, was commissioned by the Urban Land Institute and conducted by the ULI Foundation. It sought the views of 1,251 18 to 35 year olds, a demographic group which is estimated to include 80 million Americans.
However, given the cultural impact of globalisation, and the fact that a literature search was also carried out, there is nothing to suggest the views expressed will differ greatly from those of their UK peers.
The study reveals that, despite growing up with computers and experiencing unprecedented exposure to the media, they have not given up shopping in bricks and mortar stores which they view as a social activity to be shared with family and friends.
On the other hand, Generation Y is a savvy and fickle consumer group constantly searching for originality and excitement. They are multi-channel shoppers yet still make most of their purchase in stores As a result the report warns that commercial developers, owners and investors must be prepared to take new approaches in order to engage them.
Brand-strategy consultant Linda Berman believes that a successful strategy involves more than simply finding tenants.
“Today’s smart developers are not leasing space – rather, they are curating tenants. Ethos is as important as creditworthiness. We spend as much time looking at what retailers stand for as what they sell.
“The type of people you hire to do your retail leasing need to be in touch with Gen Y. We recruit people from entertainment, fashion and sports.
“Instead of being on time and on budget, retailers need to be on trend and on target,” she says.
One suggestion for owners of empty property is to seek to attract pop-up stores and restaurants. Traditional retail tenants can also learn a thing or two about design from the pop-up phenomenon, which they can incorporate into their own spaces. This might involve being prepared to continually change the look of stores, the services they offer and the merchandise they sell.
For Berman, the ‘e’ in e-commerce signifies three vital dynamics – excitement, engagement and entertainment. And these are key factors in attracting Generation Y.
