This article is from the Australian Property Journal archive
IN my day, my clothes would have lasted me for years – is a thing of the past.
According to Jones Lang LaSalle’s latest white paper ‘Y’topia – Capturing Retailers’ Paradise’, retailers and shopping centres will need to embrace change to ‘Y’topia by 2015 to survice, because the future of retailing will be driven by Generation Y’s taste for lifestyle, entertainment and the unexpected.
JLL’s retail consultant and co-author of the white paper Matthew Khoo said Gen Y is set to hold the largest share of the consumer market by 2015 and particular aspects of Gen Y, such as their focus on lifestyle, their appetite for the new, and their pervasive use of technology means retailers and shopping centre owners and managers will need to provide new and innovative shopping experiences to meet their needs for years to come.
The white paper suggests that shopping centre managers looking to cater for Gen Y men should give greater focus to men’s fashion retailing.
“Firstly, the spending habits of Gen Y men are very different and are in fact catching up with their female counterparts. Many Gen Y men would think nothing of spending a few hundred dollars on a pair of jeans,” Khoo said.
But it is not only Gen Y men who need to be catered for. As more Gen Y’s start families there will be a growing demand for high quality children’s clothing.
“Generation Y parents are typically fashion conscious themselves, and want to dress their children in trendy clothing too. Where previous generations sought out durable and inexpensive children’s clothing, today’s parents want high quality brands.
“Traditional brands and dated shopping centres that are struggling to capture the attention of Gen Y have to realise that they need a fresh approach to their thinking. Brands need to reposition themselves, and retailers need to consider including new, upcoming brands in order to meet Gen Y’s demand for the cutting edge and unique,” he added.
And Gen Y also want better lifestyle-enhancing design and entertainment options.
“Many Gen Y’s see shopping as an experience, a place to socialise, hang out and spend a day. Shopping centres of the future will best cater for this need by incorporating cafes interspersed with fashion stores, with numerous spaces to sit and meet friends, places for children to play and entertainment options beyond the standard cinema complex,”
Khoo said that extended opening hours throughout the week would also appeal to Gen Y.
“Today’s culture is fast paced, instant and 24/7. Gen Y have grown up with technology that provides constant content and availability, and they will demand it from their retailers as well. Given the fact that shoppers can now make purchases online 24 hours a day, shopping centres will need to extend their opening hours to remain viable.
Khoo also suggests many retailers and shopping centres could better utilise technology such as targeted emails and SMS messages to alert key customers to great deals and fashion events.
“The key is that offers must be genuine, exclusive to loyal members and appeal to the individual.
“In order to ensure your communication is ‘on target’, it is vital to research and know your customer base inside-out,” he concluded.
Australian Property Journal
