2020As the largest generation, Millennials will account for one third of retail spending by 20201. 2000-1980 1980-1965 1965-1945

BOOMERSGEN XMILLENNIALS

1980-2000This twenty-year generation consists of teens, newlyweds & parents, making it difficult for brands & retailers to appeal to

all Millennials at once.

77 M61 M

92 M

POPULATION2

INFO: MarketInformation@cottoninc.com lifestylemonitor.cottoninc.com © 2015

INSIGHTSCOTTON INCORPORATED SUPPLY CHAIN

THE NOW OF RETAIL: MILLENIALS

Millennials are currently the largest generation and are

projected to comprise one third of retail spending by 20201.

Brands and retailers have taken notice of their importance and

are evolving business models and offerings to win Millennials’

loyalty. Fashion and versatility, omnichannel experiences,

and customer education are essential components of the

Millennial shopping experience.

Millennials are the most racially-diverse generation yet2.

Thus multi-cultural and ambi-cultural marketing efforts

should be particularly successful among them. Millennials

are extremely diverse in their life circumstances due to the

fact that they were born over a twenty year span of time

and consist of teens, newlyweds, parents, etc. This may

seem like an obstacle for brands and retailers when it comes

to appealing to all Millennials at once; however, targeted

marketing efforts geared towards parents (often more

scrutinizing shoppers) could yield benefits.

Meeting Millennial expectations will require an

omnichannel business model and engaging social media

content. However, this does not mean that brands and

retailers should eliminate brick and mortar stores since

93% of millennial shopping is still in-store.

KEY INSIGHTS• Faster fashion, omnichannel approaches, and product education

are instrumental to win all Millennial segments.

• Offer innovative digital platforms and customization options to capture elusive shoppers.

• Use targeted marketing to reach minority segments of this generation - the most-diverse generation ever.

Omnichannel means appealing to customers and capturing

their attention through all shopping channels and along every

consumer touchpoint from online browsing to the final point

of sale and beyond. Offering innovative digital platforms

will make it easier for savvy shoppers to discover new

brands and stores and will help retailers remain competitive.

Through engaging digital content and customer education,

Cotton Incorporated’s current consumer marketing campaign

focuses on inspiring Millennials to buy and authenticate their

cotton purchases.

3 in 5 Millennials would be more loyal to brands offering product education compared to 39% of Gen X & Boomers.

• Anticipate fashion trends. Peruse Cotton Incorporated’s FABRICASTTM collection of turnkey cotton fabrics.

• Engage consumers through social media. Visit Discover Cotton on Pinterest for ideas and inspiration.

• Provide products education. Browse The Fabric of Our Lives® website for cotton clothing care tips and more.

of Millennial purchases are in-store, but they browse for clothes online (61%) & shop on smartphones (47%) more than older generations.

deals & coupons

Meeting Millennial expectations will require an omnichannel business model & engaging social media content.

WHAT THEY WANT FROM SOCIAL MEDIA

of Millennials shop for clothes at department stores, likely due to their omnichannel initiatives, youth-focused brands, & faster fashion.

22%

INSPIRATION & ACTION STEPS

HALF

newest styles

videos

buy on site

45%

45%

60%

18%

Millennials love or enjoy clothes shopping (63%) & prefer to buy new & different styles (65%) – significantly higher than older generations.6 in 10

93%

style tips

SUPPLY CHAIN INSIGHTS

HOW MILLENNIALS DIFFER FROM OTHER GENERATIONS

What do Millennials say about clothing stores once they become parents?

64%

Although Millennials are often viewed as apathetic shoppers, Millenials who are parents tend to be more scrutinizing shoppers. In fact, these consumers find factors like fit, comfort, price, & quality more important to their purchases than their counterparts.

of Millennials without kids would be interested in trying a customized clothing website or subscription box service versus only 49% of Millenials with kids.

• Offer innovative digital

platforms. This will make it easy

for online shoppers to discover

your brand & help you remain

competitive.

• Provide more customization

options. Other industries have

already moved in this direction

with success – apparel is next.

• Offer higher-end products.

Many Millennials who are

parents are more discerning

shoppers and are looking for

higher-quality merchandise for

them and their growing families.

• Don’t ignore niche marketing.

Minority populations have a lot

of buying power and Millennials

are the most diverse generation

ever. Catering to diverse

markets will pay off in the long

run.

For more information, contact

MarketInformation@cottoninc.com.

MORE INSPIRATION & ACTION STEPS

30%

CLOTHING STORES

17%

26%

51%

41%

43%

Why go to a store when you can shop anywhere, anytime online?

There is no need buy in-store, it is easier to buy online.

Clothing stores are boring.

W/O KIDS W/KIDS

SUPPLY CHAIN INSIGHTS

INFO: MarketInformation@cottoninc.com lifestylemonitor.cottoninc.com © 2015

DIFFERENCES AMONG MILLENNIALS

Sources: Cotton Incorporated Lifestyle MonitorTM survey, an ongoing consumer survey among 6,000 U.S. consumers annually. External Data Sources: McKinsey & Company1, U.S. Census Bureau2

Hispanic Millennials spend about

20+ minutes shopping for clothing in-store AND online. Use the extra time to engage them & help build long-term relationships & loyalty.

49% of Hispanic Millennials shop for clothes at off-price retailers. Department stores’ shift towards off-price outlets may appeal this demographic.

70% fit

IMPORTANT APPAREL PURCHASE FACTORS FOR MILLENNIAL PARENTS

74%of Hispanic Millennials are looking for new & different styles, significantly higher than non-Hispanic Millennials (62%). Brands & retailers should be fashion forward when courting this demographic.

62% comfort59% price

47% quality

45% durability

44% style

SUPPLY CHAIN INSIGHTS

INFO: MarketInformation@cottoninc.com lifestylemonitor.cottoninc.com © 2015

DIFFERENCES AMONG MILLENNIALS