Why the New General Market matters
A new wave of consumers is quickly becoming the most powerful economic force in retail, and it is causing every company — retailer and supplier alike — to think differently about how they engage, market and build relationships with this new generation.
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The New General Market consumer, influenced by the millennial mindset, is not just a new consumer that must be understood, but also the core influencer of tomorrow’s shopping experience.
Drug Store News and Mack Elevation Forum recently partnered to create a new, multitiered industry leadership platform, assembling a special group of health and beauty brands that emotionally connect with today’s changing consumer. The New General Market Leadership Forum brought together leading companies that have demonstrated commitment to encouraging strong community and advocacy with a diverse consumer base.
The companies that participated in the New General Market Leadership Forum think about their brand communities based on their consumers’ aspirations and values — not just their demographics — embracing millennials and multicultural consumers, who are the chief catalysts of this societal shift.
The ongoing vision of the New General Market Leadership Forum is to spark a conversation with the industry — including top retailers — and share best practices on how some of the top brands are building authentic, emotional relationships with today’s changing consumer and the in-store implications, including the need to rethink product groupings and program activation.
Sundial Brands, a pioneer in identifying and responding to this cultural shift, has been an essential partner in the development of the New General Market platform. Sundial co-founder Rich Dennis and CMO Emmet Dennis were integral in helping to frame the strategic discussion and best optimize the platform.
Other leading brands — including Beiersdorf (Nivea), Paris Presents (Eco-Tools and Real Techniques Brushes), Wahl Clippers Trimmers & Massagers, Unilever (Dove and Axe), Fleet (Summer’s Eve), Dentek Oral Care, Ansell (LifeStyles), Mentholatum (Softlips), Combe (Just For Men), Hello Oral Care and Kao Brands (Biore and John Frieda) — met in May in Chicago to share their unique insights at a special thought leadership forum, hosted by Drug Store News and Mack Elevation Forum. Sundial Brands co-founder Rich Dennis, Walgreens GVP/GMM for beauty and personal care Shannon Curtin and Wakefern VP of HBC Chris Skyers discussed their companies’ shared vision for connecting with today’s New General Market consumer. In addition, the one-day forum focused on six key pillars:
Identifying the New General Market — who are they, how do they think and what are their unmet needs?;
How are millennials influencing and inspiring the New General Market?;
Rethinking the in-store experience, product groupings and activation;
The future of creating authentic brand communities with the New General Market;
Building cultural competency and influence in a changing world; and
Measuring success with the New General Market.
Who is the New General Market, and why do they matter?
The New General Market describes an accumulation of cultures, ethnicities and demographics aligned against common needs and lifestyles. The New General Market consumer demands that brands and marketers “talk with” them — which is at the heart of co-creation — as opposed to “talking at” them. They also are wary of companies that stereotype, lack purpose and fail to innovate.
Diversity is the default today, not the exception. Minority groups are now the majority in most large cities. The New General Market is inherently social, mobile and disproportionately influential. They are diverse and urban; they value authenticity, creativity and community.
Culturally competent organizations recognize their consumers’ core values, attitudes and lifestyles, not just their demographic profiles. Advertising stereotypes are cancerous for a brand. Failure to acknowledge social commentary and cultural norms appears insensitive. Listening to and emphasizing consumer needs and benefits is how organizations stay culturally competent.
A committed group of brand advocates are your best brand influencers. What people buy is more and more indicative of who they are, so it’s essential to create engaging content and messaging that incites action from a brand’s top enthusiasts. In other words, marketers must loosen their grip on their brands and let consumers help define and build the brand.
During the New General Market Leadership Forum in May, DSN and Mack Elevation Forum uncovered 10 best practices — 10 ideas that matter — for brands to build a relationship with today’s consumers:
1) Evaluating return on relationship
Brands must build intimate — almost covenantal — relationships with their tribe. In the words of Ted Rubin and Kathryn Rose, brands must move beyond ROI to now include ROR, or “return on relationship.” Return on relationship includes valuing, measuring and recognizing all the extended consumer value accumulated over time in the form of loyalty, recommendations and content sharing. The higher a brand’s ROR, the higher the probability of a strong ROI. Companies get there by listening intently to everything your tribe shares with it. It also includes giving them a safe platform to share their thoughts on the brand and the company’s purpose. Like any healthy relationship, there are open discussions, debates and disagreements. There also is a shift from “me” to “we.” Companies like Sundial Brands understand that the “soft stuff” — intangible or immeasurable measurements of how people are engaging with a product — is as important as hard metrics.
2) Inclusive consumer strategy
Companies must put an inclusive consumer strategy at the center of their brands to allow honest engagement with the New General Market consumer. This means learning to simultaneously acknowledge both the similarities and differences of today’s consumer. Unilever’s Dove and Beiersdorf’s Nivea are examples of amazingly inclusive brands that support the consumer’s broader lifestyle and aspirations. All of the messaging is thoughtful and designed to make all women feel naturally beautiful.
3) Shift from demographics to psychographics
In order to know their consumers, brands need to know not only what they like and don’t like, but also their aspirations. They must be students of their consumers’ personalities, values, opinions, attitudes, interests and lifestyles. Brands need to know who they are, but also who they want to be. The best brands are tearing down the walls of segmenting consumers by skin color and ethnic groups and instead are looking through the lens of consumer need states and emotional benefits. The New General Market consumer is an amalgamation of cultures, ethnicities and demographics aligned against common need and lifestyles. Dentek Oral Care is