BEAUTY CARE

Generation Z likely won’t be the death of brick-and-mortar

BY Marianne Wilson
NEW YORK — The most digitally savvy generation to date has a soft side for physical stores. 
 
Despite being digital natives, 57% of Generation Z say they prefer to shop in-store rather than online, according to a report from CrowdTwist, a provider of multi-channel loyalty and engagement solutions. 
 
The study, "Generation Z vs. Millennials: The Changing Landscape of Loyalty," found that in order to encourage loyalty among younger generations, brands must build personalized experiences, facilitate engagement across all channels, and provide a wide range of opportunities to earn loyalty program points. The study also finds a growing opportunity for non-traditional industries such as beauty and entertainment to adopt loyalty programs.
 
Key findings include:
  • 57% of Generation Z prefer shopping in-store: Despite being digital natives, Generation Z prefer to shop in-store rather than online, and a slightly larger percentage of them compared to Millennials prefer to do so. 
  • Seventy-five percent of Millennials and Generation Z are willing to share personal data in exchange for a personalized experience.
  • Sixty-three percent of Generation Z are active in at least one loyalty program. And 71% of Millennials are also active in at least one program. 
  • Generation Z consumers rank beauty and media & entertainment in the top five categories for loyalty programs.  
  • Loyalty programs provide a competitive advantage: The majority (64%) of both Generation Z and Millennials could be persuaded to shop with brand if they have a loyalty program.
  • Almost 40% of Generation Z ranked playing games as their preferred way of earning points as part of a loyalty program. Generation Z are also almost 50% more likely than Millennials to write a review for a brand in exchange for points. 
"Loyalty programs remain one of the biggest drivers of brand choice across both generations," said Scott Matthews, CEO of CrowdTwist. "In fact, the younger generations are driving the success of loyalty programs. In order for brands to succeed in meeting the expectations of these young consumers, they must adopt a data-driven, omnichannel approach to customer loyalty."

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BEAUTY CARE

Brick-and-mortar beauty growth shakes up industry

BY Marianne Wilson
PARSIPPANY, N.J. — Multi-brand and vertically integrated beauty stores are shaking up the beauty industry — and growing at a rapid rate.
 
With hundreds of new doors opening in various formats, such cosmetics specialty and vertically integrated stores as Ulta, Sephora, Bluemercury, NYX, Kiko Milano, and e.l.f., have grown at a compound annual growth rate of nearly 19% over the past five years, according to a report by research and consulting firm Kline. Such stores now account for an estimated 20% of total beauty market sales.
 
Kline's "Beauty Retailing USA: Channel Analysis and Opportunities Report" cites such examples as Bluemercury, which recently opened a digitally enhanced flagship location in New York City, with plans to open 40 more stores by the end of the year, and Sephora, which recently opened its largest store in North America, in New York City, and its smallest location, the 2,000-sq.ft. Sephora Studio, in Boston.
 
"This concept (Sephora Studio) is one step towards creating more curated and digital experiences for consumers in the real world. Alongside digital tools, increasingly demanding younger generations require one-on-one services, including 15-minute facials and 45-minute makeovers that drive consumers seeking a spa-like experience into stores," the report said.  
 
In addition, vertically-oriented boutique -styled beauty stores, such as NYX, e.l.f., and Kiko Milano, are conquering local malls with unique concepts targeted to younger consumers at lower price points. These brands are increasingly offering digital enhancements, such as NYX's iPads that help create different looks with beauty influencers/vloggers walking consumers through the replication while in store.
 
"Enhancing a customer's experience with a brand is one of the key reasons for the incredible growth of these free-standing beauty stores," the report stated.  
 

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Shaving products take DSN/ECRM Buyers’ Choice Awards at Personal Care EPPS

BY DSN STAFF

ORLANDO — Speed Razor won the Drug Store News/ECRM Buyers’ Choice Award for its eponymous patented razor during ECRM’s Personal Care, Grooming, Oral and Travel/Trial EPPS, held recently here. Legacy Shave was a finalist with its Evolution Brush.

The two companies were selected from dozens of entries in the award program, samples of which were displayed in the ECRM hospitality area during the EPPS meetings. Buyers cast their votes based on product innovation and packaging.

Speed Razor, a New Jersey-based company that has partnered with Utah-based Infomercials to launch its body and head razor for men and women that is designed to fit in the palm of the user’s hand, and has two opposing sets of blades, allowing the user to shave in two directions.

The twin razors have four blades on each end, and enable the razor to glide over skin quickly and smoothly with fewer nicks, and the rubber coated, ribbed finger wings provide a non-slip grip, according to the company. Both blades pivot independently, allowing the Speed Razor to follow the contour of the body. Each razor includes a case.

The patented Evolution Brush from Legacy Shave universally attaches to shaving cream/gel cans, to provide users an enhanced shaving experience using its brush lathering technology. According to the company, the brush stimulates and lifts the user’s hair follicles while exfoliating skin to reduce razor bumps and burns. It also results in less product being wasted down the drain.

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