The combination of 18 to 29 year-olds living independently and 30 to 39 year-olds together make up what Eric Johnson, senior director of marketing, Kraft Foods, Northfield, Ill., calls "GenNOW," in reference to their immediate and nontraditional buying power.
Though in different stages of life, the groups are similar to each other in attitude and [image-nocss] behavior, Johnson told the attendees at last week's CSP 2009 Consumer Insights Forum in Phoenix. It's a formidable group, numbering 110 million and in the next five years, set to represent 42% of the U.S. population.
"They live and eat differently than any other group that has come before them," Johnson said. "They live 24/7 lives."
As a demographic, these consumers are technologically savvy, have a high "food I.Q." and are health focused. But they're not elitists or intellectuals. Nor are they particularly wealthy. And while they're health conscious, they're not extremists. "In other words, they're pretty normal."
Many GenNOW consumers are settled singles or newly coupled. They may be new parents setting up their growing households. Generally, they are very engaged in life, but seek simplicity and balance.
That yearning for simplicity can translate into the retail environment, with simple, clean store designs and brand messages that are transparent and compelling, Johnson noted.
In terms of food, he said fad diets are out with this consumer group. Healthy eatingportion control and nutrient-dense foodsis becoming a lifestyle. "They also want real food," he added. "Nothing tainted or processed and [products] that celebrate cultural aspects.... In many ways they're saying 'I want to eat like my grandparents did."
Typically, the GenNOW consumer shops over a wide range of channels, going to five or six different places vs. simply going to the grocery store. In addition, they shop in different channels for specific purposes. For instance, a GenNOW consumer may only go to a Trader Joe's for wine and cheese.
To capture those shoppers, Johnson advised retailers to "stand for something."
In addition, mid-day eating presents a strong opportunity. He said options are limited in general, so c-stores are in a strong position, being able to offer both convenience and portability. Items on a dollar menu are quickly becoming mid-day snacks. Along these lines, products that can "give back time" or make the task of eating easier have strong potential for success.
In the end, Johnson said retailing is experiential and retailers not only have to have the right products, they've got to tell a story and define for consumers what they stand for.Watch for a full report from CSP's 2009 Consumer Insights Forum in the December issue of CSP magazine.
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