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consumer

How Millennials View YOU, Wine Industry

Everybody’s attempting to do the brand new dance now – it’s called TRY AND REACH OUT TO MILLENNIAL CONSUMERS.  Well, what do Millennials think of all this?  Granted, there aren’t nearly enough people attempting, but let’s look at the landscape.

dancefloor

It looks a lot like the dancefloor at the last wedding you went to.  Now, not everyone is out on the floor – it takes a certain amount of courage to get out there.  Of the people out on the floor, you observe a few different types.  First off, there’s the “kids.”  They’re looking pretty good – they know the music, know the moves, and they’re having fun.  Then there’s the “grandparents” – we love them just for getting out there and trying.  Then there’s the “parents” – they’re a bit older than the kids, but they’re out there.  They’re trying.  Some of them are attempting to bring back their own famous dance moves from back in the day – with little success.  Some are trying to copy the “kids” since they must know best, right?  This can be pretty embarassing to watch.  Some of them, however, know the music and know the scene and can get right down to business.

Welcome to the party that is the wine industry right now.  Good for everyone on that dance floor for just getting up and trying.  As an observer, though, you can see that not everyone is… let’s say effective.  Most of the “kids” look great.  You want to go up and hug the “grandparents” just for being awesome enough to try.  But it’s the main population of the dance floor, the “parents,” that are tough to watch.  The best people on the floor know the music and the scene – regardless of whether they are 14 or 62 – the rest are trying, bless their hearts, but they’re not really getting anywhere.

officedance

Let this be a warning…

So if the dance floor is made up of companies vying for the Millennial consumer, that would make the Millennial consumer… YOU. THE OBSERVER.

Millennials have had advertising campaigns shoved in our faces since we were propped up in front of our parents tvs.  It’s safe to say that we’re a pretty savvy group.  It’s not like we don’t KNOW that we’re being marketed to. We fully realize this – we’re used to it.  In fact, we get perturbed if we are NOT marketed to, and yet a company telling us that they are hip will not make us consumers.  We are innate experts at taking in and analyzing information in order to form opinions.  And we are REALLY good at forming opinions, as any Millennial parent will tell you.  And just as it’s crystal clear to anyone looking at that dancefloor that Uncle Billy is making an ass of himself, it’s just that easy for us to see which companies are wasting their time.

Possibly the most simple and powerful example of this comes from a recent post on FineArtsLA.com.  The post is a piece on a new wine tasting group in Los Angeles (WTF LA – yes, this is my group and apologies for the plug, but there is a reason for it…).  The freelance writer, Jenia Gorton, is a Millennial and has some VERY interesting things to say about how young people are treated as consumers in the wine industry.  I think the most interesting is this quote:

It seems like there is “good” wine, which young people are expected to know nothing about, and “cheap” wine, for us ignorant 20 and 30-somethings, bums, and broke alcoholics.

It speaks directly to what many companies and marketers think of young people consuming wine today: we aren’t educated and we won’t spend the money.  Yep, we hear you loud and clear, but maybe we don’t want some company’s version of 2 Buck Chuck.  Or the new Yellowtail.  It’s possible that we want to be respected as consumers and have a company or two reach out to us based on qualities other than our wallets.  Like our tastes, our sense of humor, our lifestyles, our shared experiences – but if a company is not connected to any of these things… that effort will still be a FAIL.

So what can marketers learn from Millennials like Ms. Gorton? If you’re going out on the floor, you better know how to DANCE.

The Wealthiest Generation Ever: Wine Must Go Grassroots

Take a tip from Millennials: Go Grassroots

Take a tip from Millennials: Go Grassroots

According to Deloitte Research, Millennials born between 1982 and 1993 have an annual income of $200 billion and can expect to inherit $17.8 trillion from previous generations, making this the WEALTHIEST GENERATION EVER.  Many industries are frantically trying to capitalize on this, from insurance companies to banks to the automotive business, so where does the wine industry fit in?

It is crucial that the wine business harnesses the potential of this affluent generation now.

Millennials love wine and are buying it in record numbers. We have already made the choice to enjoy wine, much to the amazement of many industry professionals.  However, many young people do not feel like they would be accepted in the current wine culture and therefore don’t seek to be a part of it.  For example, many would rather purchase the same big brands in the anonymity of a grocery store aisle rather than risk being embarrassed by lack of knowledge in a wine shop.  For the US Wine Industry, this means that a large part of the generation (which John Gillespie calls the “future of the wine industry”) could potentially continue to support the same few enormous companies that they find in these stores – both domestic and foreign – instead of supporting the thousands of  smaller independent producers and merchants that the American wine industry has to offer.  It is crucial that the wine business harnesses the potential of this affluent generation now.  There must be a paradigm shift.

Take a tip from the Millennials: go grassroots.  Every person in the wine industry that deals directly with consumers has the potential to make an impact.  Be an ambassador.

Invoke The Campsite Rule

Invoke The Campsite Rule

The next time a Millennial enters your store, tasting room, restaurant, bar or event, take the time to speak with them.  Answer their questions, ask some of your own, and add to their base of knowledge.  Many newer wine drinkers, not just Millennials, are intimidated by the “old school” exclusive and snobbish wine culture – make it your goal to debunk this stereotype.  Welcome them into the wine community.  It’s time to invoke a variation on The Campsite Rule: Leave each young wine-drinker with a better wine experience than when you found them.

If we in the wine industry can take advantage of the circumstances and cultivate this group not just as the new generation of wine buyers, but as the NEW GENERATION OF THE WINE COMMUNITY – we can create a lasting relationship that will benefit everyone for years to come.

The HOW Series 2: Building a Millennial Customer Base

question-mark

A big concern for many of us in the wine industry is price points – will we have to drop prices in order  to make money these days?   Many people associate price drops with the Millennial generation because it’s assumed they buy cheaper wines.  What if instead of dropping prices and hoping to gain sales, a business could build an additional customer base with their EXISTING prices?  A business will have to change a few things in order to create a Millennial customer base, but  prices don’t have to be one of them.  Each Friday I’ll be bringing you a specific tip and serious insight on how to reach out to Millennials as CONSUMERS.  You can put these tips into practice immediately and see for yourself how effective they can be.

Last week we discussed the danger and tendency to generalize an entire generation.  This week we continue our example of the young couple in a winery’s tasting room…

ASK QUESTIONS

This is key.  As a sales person, asking questions is how you find out if your young couple that just walked in the door are looking to buy a $35+ bottle of wine or if you need to guide them.  Keep your questions casual but targeted.  Find out if they are from out of town – if they have taken a special “wine country trip” they may be in the area to buy bottles.  If so, be sure to mention some “insider tips” on wine and buying – they are obviously serious. Ask where they are staying – an old trick for finding out what their price range could be.

As a business owner, you are not only learning more about a group, but you are making a sale creatively and perhaps one that you never expected.

If from your questions you discover that they wouldn’t normally purchase a bottle in your price range, point out a special occasion or a gift possibility.  According to my own 100+ blind survey (stay tuned for full report) the majority of Millennials are willing to spend more on a bottle of wine as a gift, and 80% of Millennials sampled buy wine as gifts. Have you found out why they are in the area?  Is it a vacation? A family wedding? Getaway weekend?  A special bottle that they both enjoy could be a wonderful keepsake for these trips.  Before I even worked in wine, my boyfriend and I had a getaway to the Central Coast where we decided that we’d splurge on a great bottle we loved in order to lay it down and open it the next year.  Suggest that for a special occasion – it’s something they might not be thinking of.  You get the idea.  You can only make these suggestions if you have a working knowledge of who they are and why they are in your tasting room.  The more you know about them, the better you can tailor your sales pitch.

Again, this is a simple and logical step, but one that is not taken by the majority of business owners with Millennials.  It pays off all around.  As a business owner, you are not only learning more about a group, but you are making a sale creatively and perhaps one that you never expected.  By asking questions, you are focusing your attention and not judging them. From their point of view, they see that you are investing energy and time in them and will have a positive experience along with their purchase.  This means positive feedback outside – facebook, twitter, yelp, blogs, as well as good old-fashioned word of mouth.

Congratulations – you’ve started to build a new customer base.

Meet a Millennial

I’m a millennial and I love wine – and I’m not the only one by a long shot.  In the inaugural post of this blog, I want to take a minute and point out (in case anyone has been living in a cave lately) just WHY Millennials are such a big deal to the wine industry right now, and why an industry blog written by one of us can be so valuable to individuals working in the business.

There are so many different parameters and definitions for The Millennial Generation – let’s clarify.  For the use of this blog, we’ll use the definition that Millennials are people born between the years 1977 and 2000.  There are between 70 and 76 million of us out there, and not even half of us are drinking age.

2008 Wine Market Council New Growth Chart

According to several studies and industry observations this is the generation that is generating the biggest growth in the core wine-drinking population.  Because of this trend and today’s market, this age group will be crucial in supporting the U.S. wine industry through the current recession.  John Gillespie, president of the Wine Market Council, suggests that Millennials are the future of the wine industry.  “What’s unique about Millennials is how quickly they are discovering and embracing wine as core consumers, rather than slowly incorporating wine into their lives as we’ve seen previous generations do,” says Gillespie.

There are between 70 and 76 million of us out there, and not even half of us are drinking age.

After switching careers from a big deal Hollywood talent agency into the world of wine, I wanted to get my hands on some research – and lots of it. Specifically the effects and prognosis of my generation on the industry. After searching, reviewing, subscribing, reading, listening and watching just about ANYTHING available, I’ve found some incredibly valuable information, interesting POVs, and some egregious fallacies.

The Millennier Blog seeks to share important information as it pertains to Millennials and wine, to bring in valuable feedback and opinions from millennials, and, when necessary, to call out the bull.*

This blog was built to help teach individuals in the wine industry how to reach out and tap into this next generation of wine consumers.

*First thing to learn about Millennials, if you don’t already know: We tend to speak our mind pretty freely.