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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Quote of the Day: “When deciding what products to buy, what’s most valuable to me is reviews from users regardless of whether or not I know them.”—Female, 32, MA

Adidas is continuing to take customization to the next level, with a new pop-up store that creates custom clothes in a majorly futuristic way. Knit For You, located in Berlin uses a laser body scanner to determine exact measurements for their personalized merino wool sweaters. To select their design, shoppers go into a dark room where patterns that can be adjusted with hand gestures are projected on their chests. The final chosen product is then knitted, washed, and dried in-store to be picked up in hours, for the price of $215. (Business Insider

BuzzFeed’s wildly popular food platform Tasty is expanding into the coffee business. In a partnership with NBCUniversal, Tasty has begun selling Brooklyn Roasting Company coffee beans, and of course, they’re “offer[ing] a quiz to help with decision making.” Quiz-takers will be asked about their favorite fruit, how they feel about caffeine, what their ideal morning is like, and more, to which they can answer with emojis. Once the coffee choice is made, consumers can make it even more personal by creating their own labels. (Grub Street)  

Chinese Millennials are using digital devices for “connection, discovery and actualization,” more often than their American counterparts. A recent global survey from Labbrand found that 85% of Chinese Millennials are using their phones to make in-store payments on a weekly basis, compared to 44% of U.S. Millennials. They’re also more likely to broadcast their behavior online: Over seven in ten Chinese Millennials are posting movie, restaurant, travel, and other activity-related reviews weekly and over half say they share everything they do online, compared to 44% and 28% of U.S. Millennials respectively. (ReadITQuik

What cities are Millennial homebuyers flocking to? According to an analysis by LendingTree, the top three are Pittsburgh, Washington, D.C., and Des Moines, Iowa—based on mortgage requests by those 35 and under. The online loan company says that on average 36.1% of all their mortgage requests came from the age group, a slight increase from the year before, which they say is “thanks to a stronger jobs market and overall economy.” They expect to see more young buyers looking for homes as financial situations keep improving. (Yahoo FinanceCredit.com

YouTube is being criticized for filtering LGBTQ content. Recently, YouTube creators have discovered that some content featuring LGBTQ titles and themes are being filtered when users enable “Restricted Mode” to screen out “potentially objectionable content.” YouTuber Neon Fiona pointed to her own page as evidence, citing that videos with “girlfriend” in the title were filtered under the mode, but videos with “boyfriend” in the title were not. Not all LGBTQ content is filtered and one YouTuber observes, “This is something that no one’s really sure how it’s working.” (Tubefilter

Quote of the Day: “When I was watching the Super Bowl, I switched the channel or left the room when it was a commercial break.”—Male, 27, MN

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