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Youthculture in the 60 and 70s used to be counter culture. Young people used to fight against big government and big business. It was fringe culture.Today this is no different. The shifts are happening on the sidewalks, not in the board rooms.
Millennials are in control of the future of American Business. They are becoming the largest workforce, will soon have the greatest buying power, and are instrumental in driving influencer and disruption.
We’re going to talk about the principals of millenials, what are the things they are doing, how they are acting, the innovations they are driving that changing the landscape of American business.
One of the biggest shifts is the movement from the collection of physical items to the collection of experience.
Experience is the new social currency.
Even low involvement brands like toothbrushes need to focus on the experience. Even how you pay from snapchat making it rain to Venmo emojis has character and thought to the experience.
Sweetgreen doesn't like to be considered a QSR. They are exploding in the fast food space with healthy and natural foods.
It was built with millennials in mind. They dived into the experience economy with the Sweet Life festival
The Sweet Life festival happens every year for 9 years running. 23,000 attended last year.
This is the physical manifestation of the brand. They aren’t borrowing equity, they are owning it.
The experience economy is changing the soundtrack of our youth.
In the 90s with Gen X, Hip Hop filled the airwaves Hip Hop was about the collection of items – the Cadillacs and the bling, and the private jets
The financial collapse of 2008 made people question whether physical items really define me? We saw a movement away from hip hop to EDM as the driving force of our culture.
EDM is all about experiences – it’s about peace, love, unity and respect. It’s a throw back to the 60s
EDC (Electric Daisy Carnival) in Vegas attracts over 400k people every year which is much bigger than Woodstock which defined an entire generation Over $1bn in rev from outdoor festivals last year at a time when album sales are an all-time low
This is the color run. This is one of the fastest growing movements in the fitness space. Bally’s went out of business a few months ago. There wasn’t a experiential component to fitness. That was the Jack Lalanne era
Color run is a global movement. IT’s a 4k run. They show up in all white, get doused in color. It’s untimed – it’s about the experience. They have big name DJs perform at the end.
Now there santa cons, zombie runs, spartan races, tough mudders, rugged maniacs. Mission Peak has been around forever. But in the last few years has been swamped. There’s no parking. People are complaining about over crowding and pollution. But there’s this pole at the peak where you can take an iconic selfie.
Instagram has had a massive impact on the experience economy.
Arguably, Insta has had a bigger impact on culture than any social network.
Insta has changed consumer behavior that has changed how people spend their time and their money. It’s all about seeing and being seen.
Pre-meditated behavior: People aren’t doing things because they WANT to do them, but because they want the social currency that they did that thing.
We’re seeing this everywhere: sneaking into the DJ booth, rushing the court after the game, experiences are the new social currency.
Since people are spending more money on experiences, this comes out of the pie chart of other things. Which is driving the sharing economy of the p2p economy.
There’s a movement to access over ownership.
The best known example is in the biggest purchases: housing and transport
Uber offers access to everyone. GM is investing $500 million in Lyft to develop self-driving cars
In Housing, Airbnb is a huge disruptor having impact on hospitality industry. For every 1% increase in airbnb booking, hotels are down .5%. On any given night in NYC, there are more airbnbs rented than hotel rooms.
Share it on insta and give it back for a fraction of buying.
We’re seeing a gravitational pull back to the city.
For the first time, more people globally now live in cities than outside of them. Not retirees. The best jobs are increasingly in the most dynamic cities and not anywhere else. work in person not webexes
“By clustering near each other, innovators foster each other’s creative spirit. Historically, we merged around resources for the factory. furniture factories near forests; steel plants near coal mines. In an innovation economy, we move to what are essentially idea factories: cities full of people. Twitter, Visa, Google around corner
Services like Uber, and Amazon Prime make it easy to live in cities. We don’t need cars or garages or so much stuff. Can minimalize.
This is impacting marriage and family creation. This is the percentage of people btwn age 18-31 who are married today versus years passed.
People know they can be entrepreneurs, they are moving to cities, they can travel more easily. They have tools like Tinder - Spend 77 min/day
Marriage is on the back burner and it will impact the economy and other sectors. For example, in the financial sector, there are only a few times we change our behavior – those happen to be around life milestones: weddings, child births, moving – this is all happening later in life. The time from college graduation to the first behavioral shift is much longer than ever before.
Women are working longer in the workforce. Education is higher. $22 trillion, that’s 66% of all investable assets in the US
It’s also impacting the model of retail. Physical retailers who haven’t adopted e-commerce will go away.
Real estate costs are high. Millennials know they can get just about any product delivered to them in an hour so why go to retail?
If you’re a retail, why spend money on real estate if you can deliver and be in a more economical location at a fraction of the cost 1 or 2 miles away.
Amazon is the retail killer. 71% of in-store shoppers who use smart phones for online research say their device has become more important to their in-store experience
Stores like Bonobos will become showrooms. Carry no inventory. Just for people to try and order at home.
Everything is on demand.
“Silicon Valley is focused on one problem: what is my mother no longer doing for me.”
The on demand experiment – 3 learnings. It makes life easier, but only to a point
1. Software vs. Service benefit of the UX or focus on the activity There is a balance between those where the benefit is the software and those with service. For me, uber is about the UX. Sure, I want to a good car, but you never talk about the car or driver, you talk about how easy it is. Then there are companies that bring in dog walkers or haircuts or massages. what matters more than the ease of booking. This will be a behavior shift to improve on the existing cost benefit exchange.
2.Curation or choice Uber eats or Maple vs. Seamless.
3.Which experience is better? The experience of the service must outweigh the benefit of the prior experience. You can miss the experience of eating out if all your food is delivered to your home
All these changes are empowering consumers to becoming entrepreneurs, strike out on their own. We now glorify the entreprenuer. We have a genuine fear of being left behind.
We are living in a free agent economy. This is ideal for Millennials.
Research firm Edelman Berland estimates the U.S. already holds a whopping 53.7 million independent workers. To put that number in perspective, that's more than 40 percent of the 121.8 million full-time employees in the U.S. counted in September.
Task Rabbit - 70% Upwork makes easier
There was a promise that you’d go to school, get a job, buy a house. People are seeing more lucrative futures working for themselves. Or do one thing and create supplemental income. It’s far more lucrative and flexible and allows you to sell your services to multiple employers instead of just one.
For example, Task Rabbit - Over 70% of people providing services have a college education. They are menial services like furniture assembly, helping cook, taking photos, writing, and they are offering services to people locally.
Upwork is a marketplace for over 8mm private contractors, of free agents, to provide professional services like youtube optimization, humor writing. there are over 2mm companies using this around the world.
You need to be specialist today.
This is from Hour of Code (Code.org) Mark Zuck and Bill Gates are behind. Teaches kids age 7 how to code!
Zuckerberg happens to think in the next 10 years programming is going to be a more important language than english.
So specialized skills will make people more marketable.
It’s making an impact on real estate.
WeWork is the leader in a movement called Collaborative Economy. They can rent desks for $150 and work with other entrepenuers. They share reception, barista, exercise classes, and services. It’s now a $5bn company and started five years ago. They are the largest commercial tenant in NYC.
It’s exactly how a millennial would design an office, if they could pick their own office. Example of Israel’s old stock exchange building is turned into a shared work space and coke embedded program: The Bridge by Coca-Cola, Coca-Cola's unique commercialization/innovation platform in Rothschild street in Tel-Aviv and will consist of some of the leading innovation centers and hubs in Israel.
Independence in the work force, leads to independence in how we consumer media.
We are moving to a single screen, single device. Phones are getting bigger, TVs are just becoming displays on a wall. It’s the same device we can pay with on the go, or stream to a TV as that becomes the 2nd screen.
All personal, work, and entertainment content will be in one device. For brands, it’s going to be really simple – if you can’t get on the consumer’s screen, they won’t see you.
Right now, we are shifting how we think about creating content, knowing it will be consumed on a phone. Meaning it should be more interactive, be easier to see on a screen, be flickable, be enjoyable without sound or with subtitles instead
TV will be disrupted. The NFL is carrying TV – there’s nothing else carrying scale, except single events - Oscars and Grammy’s.
More people watch pre-season NFL than watch Game 7 of the Baseball world series.
NFL has deals with CBS, Fox, and NBC. They expire in 2022.
2022: This is the year OTT will officially kill the cable network. We will see programming shift to digital distribution.
Yahoo just paid $20 million for 1 shitty game.
Apple's $202.8 billion cash hoard is so mammoth that it's larger than the market capitalizations of all but 14 companies in the Standard & Poor's 500 Index. It’s market cap is bigger than Disney, Comcast, Viacom, and Fox combined
¼ of Millennials have cut the cord or never had cable ever
18 percent are cord-nevers—people who have never paid for a cable subscription—while 6 percent are cord cutters, meaning they have canceled their cable subscriptions.
New Study Says by 2025, Half of Consumers Under 32 Won't Pay for Cable
Netflix is currently the 2nd most watched network in minutes delivered per month compared to all US TV networks.
Next year it should be #1 in terms of all ratings, ahead of ABC, CBS, Fox, and NBC.
In addition to the dominance of Netflix, Twitch, Amazon, and Hulu – the largest MCNs on YouTube are now competing with major cable networks.
We’re watching as much television as ever, but we’re rapidly shifting from a strict programming grid to search, social, and feed-based discovery, in the living room and across our devices.
“Appified TV” brings us digital measurement and real attribution, empowers new kinds of content, advertising, and virality.
As a result, brands are behaving like media companies shifting from filler to source. This means branded content will live alongside the best of Hollywood. That’s a big mental shift. It means that what we make has to be of the same or better caliber as original content or no one will watch it, let alone binge watch.
People are more open than ever before: 62% Feel that branded content makes them feel more connected and loyal to brands 5x: more likely to make purchase decisions based on trusted branded content
Bridge the gap between your brand’s desire and audience needs
So, MANY MANY Changes happening all driven by millennials.
It’s amazing to see the disconnect between the big business decision makers, spending billions on media, R&D and marketing. And younger people dictating the future of this country.
VP, Group Strategy Director
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