New consumer class influences core market strategies

LAHORE: Just as we see established industries disrupted badly by new innovations from startups in the 21st century, a new consumer class that has matured in this century has changed the way the companies used to sell their products.

Personality traits of this consuming class, known as the millennials, may differ depending on what segment of the society they belong to, but overall, their consumer preferences remain the same. These consumers aged 18-34 account for almost 40 percent of the entire population, and by nature are compulsive consumers. Most of them are tech savvy, diverse, individualistic and innovative. They are social, open minded, multitasking, creative, educated, and environmentally conscious.

We have seen that traditional markets do not attract as many customers as they did 20 years back.

The shopkeepers believe it is due to recession or economic gloom, while some of their colleagues that have changed their marketing strategies to attract real consumers are growing healthily.

These youngsters are distinguished from older generations by their spending habits. They prefer brands, respect values and are crazy about celebrities. Their outlook for life is different from the older generation.

They deeply engage themselves with brands extensively, personally, and emotionally. This involvement in brands is not as extensive in the earlier generations.

For instance, the older generation after developing brand loyalty sticks with it while the new consuming class wants the brands to engage with them and reciprocate the loyalty shown by them. These youngsters influence the purchases of other customers and potential customers. They also help define the brand itself.

The Internet, social media, and mobile devices greatly amplify their opinions and accelerate their impact. These consumers propagate a positive brand experience on behalf of their brand. However, a negative or slightly disappointing experience can turn these young consumers into a vocal critic.

They not only spread their displeasure verbally to the friends but will spread the negative word through social media, reviews, and blogs. Social media as we know is a medium where both positive and negative appraisals go viral in no time.

Millennials use portable devices more extensively. They use this ability to access the Internet even while physically visiting stores. Successful companies even in Pakistan ensure that when consumers enter their premises they must use the full array of available media to reach these consumers and build brand awareness as cost-effectively as possible.

In the conventional, linear framework, companies in the past have been able to manage brand engagement. This is not possible now.

The sales and marketing executives of the companies would have to embrace the new reality.

They must realise that marketing is an ecosystem of multidirectional engagement. It is no more a process that is controlled and pushed by the company.

Majority of retailers in Pakistan have failed to come to terms with new marketing realities. The big business houses in Pakistan also attributed decline in local sales to the poor economic conditions in the country.

However, about four years back, they realised that the consumers who matter were being ignored by the retailers. They started establishing retail outlets on modern lines keeping in mind the priorities of the consumers.

They now connect with every consumer that visits their shop through SMS, internet and social media.

The trick has paid rich dividends and now many big business houses have over 100 retail outlets each spread all over the country. Their sales have increased and are continuing to grow.  The conventional retail outlets have seen declining sales.

A good thing about the younger generation is that they want their brands to do something for the society, environment and be socially compliant. Successful enterprises tell their customers that a fraction of the purchases they made would be used for “doing good” for the society. It could be for education, healthcare or environment.

This gives the buyers a sense of satisfaction that their brand is helping the distressed segments of society.

The conventional retailers do not even pay the minimum wage to their employees and this factor repels new generation.  The change in marketing culture is a good omen for the society.