Millennials are starting to grow up, move out, and have children, which has spelled disaster for certain industries vying for their business. As the largest and most lucrative market, millennials can make or break an industry’s ability to succeed.
Here’s a look at some of the industries most affected by the disinterest/disdain of the millennial generation and a look at how these industries can recover.
“Casual Dining” Chain Restaurants
Many of this generation feel that sitting down at a “casual dining” restaurant like Applebee’s or TGI Friday’s is a waste of time and effort, opting instead for more accessible options, both monetarily and logistically.
To revamp the industry, many of these chains have stopped referring to themselves as “casual dining” restaurants and tried to cater to the fast-paced lifestyle of their target base by offering “to go” options, curbside service, and shorter wait times for seating and service. Only time will tell if this strategy will pay off.
What was once a convenient and fast breakfast is now being cast as “inconvenient” due to the need for cleanup afterward. Millennials now demand more portable options for on-the-go eating. For cereal brands like Kellogg or General Mills to compete, they need to heighten their products’ ability to travel.
Toys and Games
The issue with toys is two-fold: millennials are not only growing up, but the birth rate has significantly dropped for this consumer group. The birthrate for women in 2016 hit a record-setting low with the rate of childbirth plummeting to 62 births for every 1000 women ages 15 to 44. Fewer babies equals a lesser need for toys and games to entertain them throughout their childhood.
Businesses like Toys-R-Us have already felt the impact of this, filing for bankruptcy in 2017. Other companies that have not yet been driven to bankruptcy are describing issues similar to what Toys-R-Us faced before their shutdown.
As one might guess, pushing to increase a declining birthrate in America is not in the wheelhouse of most toy stores. One solution would be to widen the customer base and evidence of this is already in play; board/card games for adults, as well as collectible action figures/dolls for nostalgic and investment value are on the rise.
Millennials are eschewing beverages like Coke and Pepsi in favor of healthier caffeine options such as specialty coffees and teas. This decline began in 2006 and has gone steadily downhill since.
To up the ante and increase sales, soda companies are targeting millennials specifically by putting lower/no-calorie options in the forefront (like Diet Coke and Pepsi One) as well as acquiring trendier drink brands like sparkling or coconut water companies.
Here at EJP, we understand millennials in depth because we are millennials. We have our fingers on the pulse of what drives the consumers of this particularly tricky generation and we can give a boost to any business currently seeing a downtick in sales from millennial withdrawal.
Contact us today if you think your marketing strategy could benefit from a spring makeover.