Wine Not: Lessons in Shifting a Luxury Product for the Millennial Market

They’re young, thirsty, and ready to pop the cork—but Millennials aren’t drinking wine like their parents did. Boomers value the snobbiness of wine, while Millennials care more about authenticity and adventure than luxury, looking to spend an average of $10-12 per bottle. But Millennials are on the brink of outspending their Boomer predecessors, and will be the dominant group in purchasing power by 2017. Suddenly, luxury products that in the past might have lured consumers and built their brands around exclusivity and lavishness need to prepare for a new generation of consumers who aren’t necessarily looking for an elite-only experience. As wine importer Melissa Saunders was quoted, “[T]his generation is blowing all [the pretense] out of the water. They don’t care about the pretentiousness of a wine, they want something that is authentic and speaks to them. This is a huge marketing opportunity.” The industry is shifting to serve this generation who represents one third of core drinkers, and in doing so, they’re forging new paths in how a previously luxury-focused market can creatively evolve to open up to a consumer with drastically different purchasing values.
 
New startups are seeing great potential in Millennials as the next generation of winos. Uproot Wines targets the affluent segment of Gen Y with minimalist labeling that graphically represents flavor notes and original blends in limited quantities. Club W sources lower-priced wines using big data to appeal to the “Palate Profile” of Millennials who can’t afford to buy top-tier wines but still want a regular glass of the good stuff. Meanwhile, lower-end retailers are getting into the wine game to attract Millennials who have a little bit more to spend. 7-Eleven recently added “ultra-premium” wines for an average of $19.99 a…

 
 

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Millennial News Feed

“The issue I am most passionate about is jobs/unemployment, because I need a job.”

—Female, 24, OH

Half of all 13-17-year-olds are on Snapchat, according to Ypulse’s most recent social media tracker—so what are they really doing on there? One BuzzFeed writer observed his 13-year-old sister to find out how to “Snapchat like the teens,” and learned that the “app is [her] life.” She wakes up every morning to respond to about 40 incoming snaps with selfies, which she can do in under a minute. Responding is crucial, streaks (responding every day without a break) are “the MOST important thing,” filters are “VERY big,” and “EVERYONE looks at Cosmo on Discover.” When asked about her dad’s reaction to her incessant snapping she answered: “Parents don’t understand. It’s about being there in the moment.” (BuzzFeed

The Tab, a student-targeted site with articles on campus life and local stories, is not ready to let go of their 2.5 million monthly readers preparing to graduate—so they’ve expanded. The Tab National is targeting for 20-somethings, and describes itself as as “the Vice for people who don’t think that Uber or pop-up markets are necessarily a bad thing.” The Tab’s top-tier U.S. and U.K. university sites have captivated advertisers, who are guaranteed that their sponsored posts will get at least 25,000 page views—more than half of brand stories on the site are getting 50,000. (Digiday

You may have heard that Twitter is reworking their timeline algorithm, but what does that mean for brands? The new layout will use an algorithm to showcase the most relevant tweets, and “collated tweets from brands, athletes, politicians and other public figures will appear at the top of the timeline” so users won’t miss any trending conversations. For brands this means well-thought out content will still be key as “[t]he algorithm will likely favor content with higher engagement.” It could also mean more exposure: “organic posts [will] have the ability to drive enormous engagement and cause a buzz.” (The Drum

According to Pew’s new data, Millennial Democrats are far more likely than older generations and their Republican peers to get their political updates through social media, with 74% who are very likely going to participate in their state’s primary or caucus saying they learned about the election through a social site, compared to 50% of Millennial Republicans. Millennial Democrats are also the most likely to identify themselves as liberal: in 2015, half (49%) labeled themselves as liberals, compared to 41% of Gen X, 40%(of Boomer, and 35% of Silent Democrats. (Pew Research Center)

Luxury menswear brand John Varavatos’s shoppable, touchable video ad powered by Cinematique prompted eight times more Facebook engagement than standard videos. Viewers can click or tap clothing like as the video plays, and at the end of the ad are shown the collection they chose, leading to product pages on the website. According to recent data, 33% of fashion video are considered mainly “brand-building,” and only 16% of brands use shoppable videos. But that could shift as more marketers adjust to consumers’ video-consumption behaviors. (WWDDigiday)

Quote of the Day: “I participated in Bikram Yoga, because I found a few YouTube tutorials on it.” –Female, 24, MN

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