Understanding consumer preferences is like solving a complex puzzle. It requires advanced tools to dive deeper into what drives consumer decisions, going beyond basic data analysis. Two powerful methods—MaxDiff and TURF analysis—enable brands to comprehensively understand their audience, allowing them to tailor products and messages with precision.

MaxDiff analysis helps brands prioritize a product or service’s most and least important attributes, enabling more effective resource allocation. TURF analysis, on the other hand, determines the optimal combination of product features or marketing messages that will appeal to the broadest possible audience. These tools complement each other, providing granular insights to help brands refine their strategies for maximum impact.

What is MaxDiff Analysis and How Does it Work?

MaxDiff, or Maximum Difference Scaling, is a survey-based market research technique designed to identify the attributes of a product or service most and least important to consumers.

Unlike traditional rating scales, where respondents might rate several items as equally important, MaxDiff forces respondents to make trade-offs, providing a clearer hierarchy of preferences.

MaxDiff surveys typically involve multiple rounds, where respondents are asked to choose the most and least important attributes from a set of options. This process produces a ranked list of features based on their relative importance to the target audience. 

For example, an apparel company might use MaxDiff to determine whether fabric quality, sustainability, or price is more important to consumers. The data gathered allows the company to focus on the attributes driving the most value.

What business objectives does MaxDiff address?

  • Identifying key product features: MaxDiff reveals which features matter most, enabling brands to focus on what will have the highest impact on consumer satisfaction.
  • Prioritizing resources: By understanding which features are most valued, MaxDiff helps brands allocate resources more efficiently.
  • Guiding product design: MaxDiff assists in determining which features should be prioritized in product development, ensuring alignment with consumer preferences.

Advantages and Disadvantages of MaxDiff Analysis

Advantages of MaxDiff Analysis: 

  • Accurate prioritization: MaxDiff forces respondents to make trade-offs between options, leading to more accurate identification of the most and least important attributes. This prevents the common issue of respondents rating many items as equally important, which often occurs with traditional rating scales.
  • Clear hierarchy of preferences: MaxDiff provides a clear, ranked list of attributes based on consumer preferences. This allows brands to see which features are most valued and to focus their efforts on the areas that will have the most significant impact on consumer satisfaction and decision-making.
  • Resource optimization: By identifying the most critical features, MaxDiff enables brands to allocate their resources more efficiently. Brands can concentrate on the attributes that matter most to their target audience, ensuring better ROI on product development and marketing efforts.
  • Flexibility across industries: MaxDiff is versatile and can be applied across a wide range of industries, from consumer goods to services. It helps brands of all types and sizes understand what drives consumer decisions, making it a widely used tool in market research.

Disadvantages of MaxDiff Analysis:

  • Complex survey design: The structure of MaxDiff surveys can be complex and time-consuming to design. Ensuring respondents are presented with balanced and meaningful trade-offs requires careful planning, which can increase the complexity of the survey development process.
  • Respondent fatigue: Since MaxDiff surveys require respondents to make multiple trade-offs across several rounds, they can be mentally demanding. This can lead to respondent fatigue, especially if the survey is lengthy or if the trade-offs become repetitive, potentially impacting the quality of the data collected.
  • Limited attribute evaluation: MaxDiff works best with a manageable number of attributes. When dealing with a large number of attributes, it can be challenging to structure the survey without overwhelming respondents, which may result in incomplete or inaccurate data.
  • Difficulty in measuring emotional or complex preferences: MaxDiff is highly effective for straightforward, attribute-based comparisons but may fall short when it comes to measuring more complex, emotional, or abstract preferences. It primarily focuses on tangible attributes, which may not capture the full spectrum of consumer motivations.
Research-brief

What is TURF Analysis and How Does it Work?

TURF, or Total Unduplicated Reach and Frequency, is a market research technique used to determine the optimal combination of product features or marketing messages that will maximize reach within a target audience.

TURF analysis builds on the data from multi-select survey questions, where respondents indicate their interest in multiple product variations or messages.

For example, a beverage company might ask consumers to select all the flavors they want to purchase. TURF analysis then calculates which combination of flavors appeals to the largest segment without significant overlap, helping the brand maximize its reach without offering redundant options.

What business objectives does TURF address?

  • Optimizing product lineup: TURF helps identify the best combination of products to appeal to the broadest audience.
  • Maximizing marketing impact: TURF analysis can determine the optimal mix of messages that will resonate with the largest group, ensuring effective and efficient marketing efforts.
  • Focusing operations on high-value services: TURF analysis can pinpoint which subset of services provides the highest return, allowing brands to concentrate on offerings that deliver the most value.

Advantages and Disadvantages of TURF Analysis

consumer preferences

Advantages of Turf Analysis:

  • Maximizes Audience Reach: TURF analysis helps identify the optimal combination of product features or marketing messages to reach the widest possible audience without redundancy, ensuring that brands make the most out of their offerings.
  • Efficient Resource Allocation: By revealing which combinations are most effective, TURF analysis helps brands avoid investing in redundant or less impactful features, allowing for more strategic use of resources.
  • Improves Product and Marketing Strategy: TURF provides insights into the best mix of products or messages, which can guide decision-making for both product development and marketing campaigns, enhancing overall effectiveness.
  • Customizable for Various Markets: TURF analysis can be tailored to different regional preferences, allowing brands to optimize their product offerings and marketing strategies for diverse consumer bases.

Disadvantages of TURF Analysis:

  • Complexity of Data Collection: TURF analysis requires detailed, multi-select survey data, which can be time-consuming and complex to collect. The quality of the analysis depends heavily on the quality and comprehensiveness of the data gathered.
  • Limited Focus on Individual Preferences: While TURF focuses on maximizing overall reach, it might overlook niche segments or individual preferences that could be important for specific subgroups within the target market.
  • Resource-Intensive Analysis: Implementing TURF analysis can be resource-intensive, requiring sophisticated software and expertise to process and interpret the data accurately, which may not be feasible for smaller businesses.
  • Potential for Over-Simplification: TURF analysis aims to find the most efficient combination of features, which might result in oversimplification or exclusion of features that could be significant for long-term brand differentiation or innovation.

MaxDiff vs. TURF: Complementary Tools for Market Success

MaxDiff and TURF analysis provide a holistic view of consumer preferences. While MaxDiff focuses on the importance of individual attributes, TURF identifies the optimal combinations to maximize market impact.

AspectMaxDiff AnalysisTURF Analysis
FocusIdentifies the most and least important individual attributes.Determines the optimal combination of product features or messages to maximize reach.
UsageHelps prioritize specific features, messages, or benefits.Identifies which mix of offerings will appeal to the broadest audience.
GoalOptimizes resources by focusing on what matters most to the target audience.Maximizes impact by ensuring a brand’s offerings reach the largest segment without redundancy.

Example: A global skincare brand could use MaxDiff to determine whether SPF protection and hydration are the most valued attributes in its product line. Then, the brand might apply TURF analysis to find the best product combination, including these attributes to ensure their product range appeals to a broad audience without unnecessary overlap.

Global Perspective: MaxDiff and TURF in Diverse Markets

Western Markets: Staying Competitive with MaxDiff and TURF

In highly competitive markets like the US and the UK, where consumer choices are vast, brands often leverage MaxDiff and TURF analyses to stay ahead. In consumer electronics, automotive, and FMCG industries, these tools are critical for understanding shifting consumer priorities and making data-driven decisions to differentiate brands.

  • MaxDiff in Western Markets: Brands in the US and UK often use MaxDiff to focus on innovation and technological advancements. For example, consumer electronics companies might prioritize features like AI integration, battery efficiency, or eco-friendly designs. By understanding which features consumers value the most, brands can ensure their product development aligns with market demand.
  • TURF in Western Markets: In crowded sectors like FMCG, where multiple products often compete for shelf space, TURF analysis helps brands optimize product variety to reach the widest audience. By identifying the right mix of flavors, packaging sizes, or product variants, brands can maximize their reach without overwhelming consumers with too many choices.

Asian Markets: Rapid Evolution and Strategic Adaptation

In rapidly evolving markets like China, Singapore, and Indonesia, MaxDiff and TURF analyses are becoming increasingly important. These regions are characterized by dynamic consumer behavior and shifting preferences driven by traditional values and modern influences.

  • MaxDiff analysis in Asian Markets: In countries like China, where status and convenience play key roles in consumer decision-making, MaxDiff analysis is often used to prioritize features reflecting these values. For instance, luxury brands may focus on attributes such as exclusivity, brand heritage, and premium materials, while tech companies might emphasize convenience features like mobile payment integration and fast delivery.
  • TURF analysis in Asian Markets: With diverse and segmented populations, TURF analysis is essential for optimizing product offerings in markets like Singapore and Indonesia. Brands need to find the right balance between modern and traditional preferences. For example, in Indonesia, where regional diversity is significant, TURF analysis can help brands decide which combinations of products (e.g., local flavors vs. global trends) will resonate across different consumer segments.
global-dining-trends

Key Takeaways: Leveraging MaxDiff and TURF for Data-Driven Decision-Making

MaxDiff and TURF analysis are indispensable tools for senior market research and branding leaders. By integrating these techniques into their strategic processes, brands can gain deeper insights into consumer preferences and make more informed decisions about product development, pricing, and marketing. MaxDiff clarifies which attributes resonate most with consumers, while TURF helps optimize product combinations or messaging to reach the widest possible audience.

  • Prioritize Critical Features: Focus on the most valued product attributes aligning with consumer priorities, ensuring resources are directed toward what matters most.
  • Maximize Reach: Use TURF analysis to create a product lineup or messaging strategy to cover the broadest market segment, enhancing both market share and consumer satisfaction.
  • Optimize Product Offerings: Reduce overlap between offerings, ensuring each product in the lineup provides unique value while collectively maximizing appeal.

Strategic Tips for Implementing MaxDiff and TURF

  • Align tools with business objectives: Clearly define your business goals. Use MaxDiff to prioritize features or messages and TURF to optimize combinations for broad market appeal.
  • Tailor research to regional markets: Adapt MaxDiff and TURF analyses to local market dynamics. Consider cultural differences, such as the emphasis on functionality in China or innovation in the US.
  • Invest in data integration: Ensure your data collection processes are robust and comprehensive. Combine MaxDiff and TURF analyses with other consumer insights tools to build a 360-degree view of your audience. This approach allows for more accurate predictions and refined strategies.
  • Test and iterate: Use the insights from MaxDiff and TURF to inform initial product or marketing decisions, but don’t stop there. Continuously test and refine your strategies based on real-world performance. This iterative approach will help you stay responsive to changing consumer behaviors and market dynamics.

Future Outlook: The Evolving Role of Market Research

As consumer behavior continues to evolve rapidly, driven by technological advancements and shifting cultural values, the role of advanced research tools like MaxDiff and TURF will only grow in importance. Market leaders will increasingly rely on these tools to navigate complex consumer landscapes, stay ahead of trends, and tailor their offerings to meet the nuanced needs of their target markets.

With the rise of AI and machine learning, MaxDiff and TURF will become even more powerful as they integrate with predictive analytics. This will enable more precise targeting and optimization of products and marketing messages. Brands that invest in advanced market research tools today will be well-positioned to adapt to the ever-changing consumer environment and maintain a competitive edge.

Understanding and anticipating consumer preferences is more critical than ever for global brands. By adopting advanced research techniques like MaxDiff and TURF analysis, brands can position themselves to meet the complex needs of modern consumers, ensuring both immediate success and long-term growth.

Now is the time to embrace advanced analysis tools as essential components of your market research toolkit. These tools will empower your brand to make data-driven decisions and remain relevant, resonant, and ahead of the curve in modern, global markets.

Costco has always been synonymous with value, but its recent crackdown on membership moochers is raising eyebrows across the retail industry. The retailer, known for its bulk discounts and no-frills shopping experience, has begun enforcing stricter membership policies to ensure that only paying members enjoy the perks of shopping at their warehouses.

This move isn’t just about protecting profits; it’s a clear signal of how Costco values its relationship with its members. By tightening access to its stores, Costco is reinforcing the idea that membership is not just a transaction but a privilege—one that comes with tangible benefits. In an era where brand loyalty can be fleeting, Costco’s decision highlights its commitment to maintaining the integrity of its membership model, even if it risks alienating some potential shoppers.

Costco’s actions speak to a broader trend in retail, where companies are increasingly focused on fostering deep, long-term loyalty among their customers. According to a 2023 study by McKinsey, 75% of consumers are willing to switch brands for better value, but those who feel a strong connection to a brand are five times more likely to remain loyal. By cracking down on non-members, Costco is doubling down on the value it offers to those who buy into its model—literally and figuratively.

As Costco navigates this new terrain, it offers a case study in how brands can balance the need for growth with the importance of staying true to their core values.

Image credit: Costco

Understanding the Crackdown

Costco’s recent policy changes mark a significant shift in how the retail giant manages its membership base. One of the most notable updates is the introduction of mandatory membership card scanning at store entrances. Previously, a simple flash of a card was enough to gain entry, but now, members must scan their cards using new devices placed at the entrance, ensuring that only valid, paying members can step inside. Additionally, Costco has reinforced its self-checkout process by requiring shoppers to present both their membership card and a photo ID—a move aimed at curbing the use of borrowed or shared memberships.

These changes might seem like a minor inconvenience to some, but for Costco, they are a strategic move to uphold the integrity of its membership program. The company has long positioned itself as a member-exclusive retailer, where the annual fee is justified by the access it grants to a wide range of discounted products. Allowing non-members to enjoy these benefits without paying undermines the value proposition that Costco offers to its loyal customers.

The rationale behind this crackdown becomes clear when you consider Costco’s business model. Unlike many retailers that rely heavily on product markups, Costco’s primary profit driver is its membership fees. In 2023, these fees generated $4.6 billion in revenue, accounting for a substantial portion of the company’s overall profits. By tightening its membership policies, Costco is not just protecting this revenue stream—it’s also reinforcing the exclusivity and value of being a member.

Furthermore, this move helps to maintain a level of fairness among Costco’s customer base. The company’s pricing model is built on the principle that all members share equally in the benefits of bulk buying and lower prices. By allowing non-members to take advantage of these benefits, Costco would risk eroding the trust and loyalty it has built with its paying members, many of whom see their membership as an investment.

In essence, Costco’s stricter enforcement of membership policies is a reflection of its commitment to its customers and its business model. It’s a calculated decision to prioritize long-term loyalty and brand integrity over short-term sales—an approach that many other retailers could learn from.

Consumer Loyalty and Value Perception

The Role of Membership Programs

Membership programs are more than just a revenue stream for retailers; they are a powerful tool for building brand loyalty and fostering a sense of exclusivity among consumers. Costco’s membership model is a prime example of this strategy in action. By requiring customers to pay an annual fee for access to its warehouses, Costco creates an environment where shoppers feel they are part of an exclusive club, reaping benefits that non-members cannot. This sense of exclusivity is a key driver of consumer loyalty. A 2022 survey by Kantar revealed that 73% of Costco members viewed their membership as valuable or very valuable, a sentiment that directly translates into repeat business and long-term customer retention.

Membership programs like Costco’s work by establishing a clear value proposition: pay a fee upfront, and in return, you gain access to benefits that more than justify the cost. This creates a psychological commitment from members, who are more likely to remain loyal to the brand to maximize the value of their investment. The exclusivity also feeds into a consumer’s desire for belonging and being part of something unique, further strengthening the emotional bond between the brand and the consumer.

Impact on Consumer Behavior

The strict enforcement of membership policies, such as those recently implemented by Costco, can have a significant impact on consumer behavior. On the positive side, these policies reinforce the value of the membership, making paying members feel that their investment is protected and worthwhile. This sense of protection can increase member satisfaction and loyalty, as they see the brand actively working to maintain the integrity of the benefits they paid for. According to a 2023 Deloitte report, 65% of consumers are more likely to stay loyal to brands that they believe treat them fairly and reward their loyalty.

However, there are potential downsides to this approach. Stricter enforcement could alienate some consumers, particularly those who might feel that the policies are overly rigid or intrusive. For instance, the requirement to present a photo ID at self-checkout might be seen as a hassle for some members, leading to frustration and potentially even cancellations if they perceive the process as inconvenient. There’s also the risk of negative word-of-mouth, as disgruntled customers may share their dissatisfaction with others, potentially deterring new members from joining.

International Examples

Image credit: Muji

In Asian markets, membership programs are also used to create a sense of exclusivity and loyalty, though they often take on different forms. Take Japanese retailer Muji, for example. Muji offers a membership program that provides members with access to special discounts, early product releases, and exclusive events. Unlike Costco, which focuses on value through bulk buying, Muji’s membership appeals to consumers’ desire for minimalism and quality, creating a loyal customer base that values the brand’s unique offerings. This approach has been successful in Japan and other Asian markets, where consumers place high importance on brand loyalty and are often willing to pay a premium for membership benefits.

Image credit: Tesco

In the UK, retailers like Tesco have also embraced membership programs as a way to foster consumer loyalty. Tesco’s Clubcard program is one of the most successful examples, offering members discounts, personalized offers, and the ability to earn points that can be redeemed for rewards. This program has been instrumental in helping Tesco maintain its position as one of the leading grocery chains in the UK. According to a 2023 YouGov survey, 77% of Clubcard users reported that the program made them more likely to shop at Tesco over competitors. The success of Tesco’s Clubcard illustrates how membership programs, when executed well, can significantly influence consumer behavior, encouraging repeat purchases and brand loyalty.

Costco’s recent crackdown on membership misuse, when viewed through the lens of these international examples, highlights a common theme: the need for retailers to protect the value they offer their most loyal customers. Whether in the U.S., Asia, or the UK, the core principle remains the same—membership programs are a powerful tool for building and maintaining consumer loyalty, but they require careful management to ensure they deliver on their promise.

The Business Perspective

Revenue from Membership Fees

For Costco, membership fees are not just a supplementary income stream; they are the cornerstone of the company’s business model. In 2023, Costco reported $4.6 billion in revenue from membership fees alone, an 8% increase from the previous year. This steady stream of income is crucial because it allows Costco to maintain its low-margin pricing strategy, which is a key element of its value proposition to customers. The recent $5 increase in membership fees, effective from September 2024, is projected to further boost this revenue, reinforcing the company’s financial health even in a competitive retail environment.

The significance of these fees cannot be overstated. Unlike other retailers that rely heavily on product markups, Costco’s ability to generate substantial revenue from memberships allows it to offer consistently lower prices, driving high volumes of sales. This model creates a virtuous cycle: low prices attract more members, whose fees then support the continued offering of low prices. The enforcement of stricter membership policies is a natural extension of this model, as it ensures that the revenue generated from these fees is maximized and that the benefits remain exclusive to paying members.

Global Comparisons

US vs. Asia: In the United States, Costco’s membership-driven revenue model is well established, with over 124 million cardholders contributing to its substantial fee income. In Asian markets, however, the dynamics can be slightly different. While membership fees are still a vital part of the revenue model, the market context requires a tailored approach. In Japan, for example, Costco has successfully adapted its model to local preferences, where consumers are known for their value-consciousness. However, the market is also highly competitive, with local players offering similar bulk-buying experiences without membership fees, requiring Costco to emphasize the added value of membership, such as exclusive product lines and superior customer service.

In contrast, in markets like South Korea, Costco has seen explosive growth, where the membership model aligns well with local consumer behavior that favors bulk buying and premium products. Here, membership fees contribute significantly to overall revenue, similar to the U.S., but with a stronger emphasis on the exclusivity and premium nature of the Costco shopping experience. This regional variation highlights the need for Costco to adapt its membership strategy to align with local consumer preferences while still maintaining its core business model.

UK: In the UK, the concept of membership-driven revenue is handled differently by companies like Amazon with its Prime program. Amazon Prime, much like Costco’s membership, offers customers a range of benefits, from free shipping to exclusive content, in exchange for an annual or monthly fee. However, unlike Costco, where the membership fee is integral to accessing the shopping experience, Amazon Prime is positioned more as a premium service, offering added convenience and perks.

The competitive landscape in the UK is intense, with retailers like Tesco and Sainsbury’s offering loyalty programs that, while not requiring a fee, create a similar sense of belonging and value. These programs, such as Tesco’s Clubcard, drive customer loyalty through points-based rewards rather than direct revenue from membership fees. This difference in approach highlights how UK-based companies leverage customer data and personalized marketing to maintain loyalty, rather than relying on membership fees alone.

For Costco in the UK, maintaining the integrity of its membership model is vital in a market where consumers are accustomed to free loyalty programs. The company’s ability to emphasize the unique value of its membership—access to exclusive products and significant savings on bulk purchases—will be key to sustaining its revenue model in this competitive environment.

Overall, the success of Costco’s membership-driven revenue strategy, whether in the U.S., Asia, or the UK, depends on its ability to balance the exclusivity of its benefits with the needs and expectations of different markets. The recent crackdown on membership misuse is a clear indication of Costco’s commitment to protecting this critical revenue stream, ensuring that its business model remains robust and sustainable in the face of evolving consumer behavior and market dynamics.

grocery-shopper-personas

Measuring and Maintaining Customer Loyalty

In today’s competitive retail environment, measuring and maintaining customer loyalty is more critical than ever. Companies like Costco, which rely heavily on membership models, must continuously assess how their policies impact customer satisfaction and loyalty. Market research provides valuable tools to gauge these factors, helping businesses make informed decisions about their strategies.

One of the most effective tools for measuring customer loyalty is the Net Promoter Score (NPS). This metric asks customers how likely they are to recommend a company to others, providing a clear indicator of overall satisfaction and brand loyalty. High NPS scores are often correlated with strong customer retention, as loyal customers are more likely to continue their memberships and even promote the brand to others. According to Bain & Company, companies with high NPS scores grow at more than twice the rate of their competitors.

Another important tool is customer satisfaction surveys, which can be customized to address specific aspects of the shopping experience. For Costco, this might include questions about the perceived value of membership, satisfaction with in-store experiences, and reactions to recent policy changes like the membership crackdown. These surveys provide direct feedback from members, allowing Costco to identify potential areas of concern and address them proactively.

Additionally, companies can use behavioral data to measure loyalty. This includes tracking purchase frequency, membership renewal rates, and customer lifetime value. For instance, if Costco notices a decline in membership renewals following the implementation of stricter policies, it might indicate a need to reassess the approach or offer additional incentives to retain members.

Impact on Brand Integrity and Long-Term Success

Maintaining customer loyalty is not just about retention; it’s also about protecting and enhancing brand integrity. For Costco, the enforcement of strict membership policies is a double-edged sword. While it reinforces the value of membership, it also risks alienating some customers. This is where market research plays a crucial role—by continuously monitoring customer sentiment, Costco can balance the need for policy enforcement with the need to keep its members satisfied.

Ultimately, the insights gained from market research help companies like Costco maintain a strong, loyal customer base, which is essential for long-term success. As the retail landscape continues to evolve, the ability to measure and adapt to changing customer expectations will be key to sustaining membership-driven revenue models. By staying attuned to their customers’ needs and preferences, businesses can ensure that their loyalty programs remain effective and that their brand integrity is preserved.

Final Thoughts

Costco’s recent crackdown on membership misuse is more than just a policy update; it’s a strategic move that highlights the company’s dedication to preserving the value and exclusivity of its membership model. By enforcing stricter entry and checkout procedures, Costco is protecting its core revenue stream while reinforcing the trust and loyalty of its paying members.

This approach underscores a broader lesson in consumer behavior: in a world where customers have more choices than ever, companies must work harder to ensure that their value propositions remain clear and compelling. Costco’s decision to tighten its membership policies is a reminder that maintaining customer loyalty requires a careful balance between offering value and enforcing the rules that uphold that value.

As other retailers watch Costco navigate this challenge, valuable lessons can be learned about the importance of customer loyalty and the role of market research in shaping business strategies. For those looking to deepen their understanding of consumer behavior and loyalty programs, reach out to us, we would love to help.

Generational labels are often used to define large cohorts of people born within specific timeframes, from Baby Boomers to Millennials and Gen Z. But what happens when someone is born at the beginning or end of a generation, right on the cusp of two? These individuals—often known as cuspers—belong to a micro-generation between two larger generational groups. While they share traits with both generations, cuspers often straddle two worlds, embracing aspects of each while fully fitting into neither.

Defining Cusp Generations

Cuspers are those born at the intersection of two major generational cohorts. These micro-generations do not fully identify with the characteristics of either generation they border but instead embody traits from both. This challenges the rigid boundaries typically associated with generational labels, complicating how different age groups perceive the world and make decisions.

The Importance of Cusp Generations for Marketers

Understanding these cusp generations is crucial for brands looking to tap into nuanced consumer behavior. Cuspers provide a unique perspective, combining influences from the generational shifts they were born into. This dual perspective makes them adaptable yet more challenging to define, requiring a deeper understanding for effective engagement. Recognizing and targeting these micro-generations can unlock opportunities for more personalized, future-focused marketing strategies.

Micro-generations matter because they reveal the fluidity of generational identity. Traditional generational cohorts are often defined by significant historical, cultural, or technological events that shape attitudes and behaviors. However, cuspers are influenced by events from two generational perspectives, making them more adaptable and open-minded—a valuable asset in a world where consumer expectations are rapidly evolving. Brands willing to engage with this complexity can tailor their strategies to meet the nuanced needs of cuspers across markets.

Generational identity plays a crucial role in shaping purchasing decisions and communication preferences. Cuspers, straddling two worlds, often feel disconnected from rigid generational narratives. This means marketing strategies for cuspers must be flexible and adaptable, incorporating elements to appeal to both generations they bridge.

The unique position of cuspers provides them with a broader understanding of different generational perspectives. For brands, this translates into the need for relevant campaigns to speak to a multifaceted audience that doesn’t fit neatly into predefined categories.

Who is Generation Jones? (Born 1954-1965)

Generation Jones occupies a unique space between the Baby Boomers and Gen X, blending the optimism and idealism of the Boomers with the skepticism and pragmatism of Gen X. Born between 1954 and 1965, this micro-generation experienced the tail end of the post-war economic boom but also witnessed societal shifts in the 1970s and 1980s, including the rise of technology, changing family structures, and evolving social norms. Often overlooked, Generation Jones members are characterized by their adaptability, resilience, and a strong sense of individuality, making them influential in today’s cultural and economic landscape.

A prime example of Generation Jones in the United States is Kamala Harris, the Vice President of the United States and the Presidential nominee in the 2024 U.S. election. Harris embodies the dual characteristics of this micro-generation, blending the activist spirit and progressive ideals of Baby Boomers with the independence and resourcefulness of Generation X. Her upbringing in the politically charged environment of the 1960s and 1970s, along with her experience navigating a rapidly changing world, reflects the essence of Generation Jones. Harris’ leadership style, which emphasizes collaboration and pragmatic problem-solving, resonates with the values of this micro-generation between two distinct cultural eras.

Reaching Generation Jones

Marketing to Generation Jones requires a nuanced approach that acknowledges their dual identity. This micro-generation values tradition and innovation, making them responsive to campaigns that balance respect for the past with forward-thinking ideas. Brands wanting to engage Generation Jones should focus on authenticity, reliability, and a sense of purpose while embracing modernity. Highlighting sustainability initiatives alongside quality craftsmanship can resonate deeply with this cohort, as can messages that emphasize personal empowerment and community involvement.

In the UK, Generation Jones has shown a strong affinity for legacy brands that adapt to modern trends, such as Marks & Spencer. By evolving with their customers’ changing preferences—integrating sustainability practices while maintaining their trusted product quality—the brand continues to resonate with this micro-generation.

Who are Xennials? (Born 1977-1983)

Xennials are often described as a bridge generation, blending Generation X’s traits with Millennials’ characteristics. Born between 1977 and 1983, Xennials grew up in an analog world but were young enough to adapt seamlessly to the digital revolution. This micro-generation is defined by its ability to easily navigate pre-digital and digital worlds. While Xennials remember life without the Internet, they were early adopters of email, social media, and digital communication technologies as young adults. This duality has shaped their worldview, making them both nostalgic for simpler times and forward-thinking in embracing modern technology.

Xennials share the independence and skepticism of Gen X, combined with the optimism and tech-savviness of Millennials. They are adaptable yet discerning consumers seeking authenticity in a world that has become increasingly digitized. Xennials value human connections formed in the analog era, but they also understand and utilize digital tools to enhance their relationships and lives.

Journalist Sarah Stankorb, born in 1980, is a quintessential Xennial and has written extensively on the experiences of this micro-generation. Stankorb notes that Xennials uniquely blend analog nostalgia with digital fluency. She recalls a childhood where technology wasn’t ubiquitous but was present enough to make using it feel special. Xennials like Stankorb can remember dialing rotary phones yet smoothly transitioning to texting and social media in their young adulthood. This dual fluency allows Xennials to be both reflective and future-oriented.

Reaching Xennials 

To engage Xennials effectively, brands must tap into their digital nostalgia and tech-savvy nature. Campaigns that evoke memories of the pre-digital era, such as retro branding or product revivals, can resonate deeply with this group. At the same time, Xennials appreciate convenience and efficiency in digital platforms and services. Brands that can blend nostalgic elements with modern innovations—whether through a product that harks back to their analog childhood or through tech-driven solutions that simplify their lives—are more likely to win their loyalty.

Emerging Trend: AI-driven personalization in products and services can enhance engagement with Xennials, combining tech-savvy features with a personalized touch that appeals to their desire for authenticity.

Who are Zillennials? (Born 1992-1998)

Zillennials represent the micro-generation between Millennials and Gen Z, balancing the digital native fluency of Gen Z with Millennials‘ optimism and collaborative spirit. Born between 1992 and 1998, Zillennials were among the first to grow up with the internet and smartphones but still experienced a pre-digital childhood. This makes them adaptable and able to bridge the gap between two very different generational cohorts. Unlike Gen Z, who have always known a hyper-connected world, Zillennials remember a time before social media became ubiquitous, making them nostalgic for the simplicity of the early internet.

Zillennials have developed a unique perspective on work, life, and technology. They tend to share Millennials’ idealism and desire for meaningful work but have also adopted Gen Z’s entrepreneurial mindset and preference for authenticity. This group values collaboration and independence, thriving in work environments that allow flexibility and creativity.

Zillennials in the Workplace

In the workforce, Zillennials are known for balancing Millennial traits such as teamwork and optimism with Gen Z’s focus on digital entrepreneurship. As they enter the job market, Zillennials bring digital fluency and a deep understanding of social media, e-commerce, and emerging technologies. They are comfortable with remote work and digital collaboration tools, which became essential during global shifts in work environments. Zillennials are more likely to value work-life balance and prioritize mental health and well-being.

Reaching Zillennials

To effectively engage Zillennials, brands must prioritize authenticity and transparency while offering tech-savvy solutions. This micro-generation craves genuine connections with brands and prefers companies that are socially responsible and honest in their messaging. Marketing campaigns that leverage storytelling, emphasize brand values, and showcase real customer experiences will likely resonate with Zillennials.

In Southeast Asia, brands like Grab have successfully connected with Zillennials by offering innovative, tech-driven services that are also socially responsible—such as ride-hailing with a focus on sustainability and supporting local businesses.

Who are Zalphas? (Born 2010-2015)

Zalphas, born between 2010 and 2015, represent a generation on the cusp of Gen Z and the emerging Gen Alpha. As digital natives, Zalphas are growing up in an era where technology is omnipresent, from interactive smart toys to virtual classrooms. Compared to older generations, Zalphas have only known a world with smartphones, voice assistants, and social media. However, their behavior and preferences are still shaped by Gen Z and the evolving digital landscape, making them an important generation to watch as they mature into independent consumers.

Zalphas already exhibit hybrid digital consumption patterns, seamlessly blending online and offline experiences. They are early adopters of digital entertainment, preferring platforms like YouTube, TikTok, and interactive apps designed for young users. This generation is growing up in a world where environmental and social issues are front and center, making them more socially conscious from an early age. Their exposure to global issues through digital media, combined with the influence of Gen Z, is likely to shape their expectations of brands in terms of ethics and sustainability. Zalphas are becoming increasingly aware of supporting brands prioritizing environmental and social responsibility.

Early Trends in Zalpha Behavior 

Early studies on Zalphas reveal their preference for hybrid digital consumption, blending interactive technology with hands-on experiences. For example, the popularity of educational apps and gamified learning platforms illustrates how this generation integrates screen time with play and education. Zalphas are comfortable using voice-activated devices like Alexa and Google Home, and they often participate in family decisions about digital entertainment and home technology. This group is also showing signs of early brand loyalty, influenced by both their digital exposure and the choices their parents make for them.

Brand Implications of this Emerging Generation

Brands preparing for Zalphas’ entry into the market must focus on innovation, interactivity, and social responsibility. As digital natives, Zalphas will expect seamless, intuitive digital experiences. This includes highly interactive content, personalized engagement, and emerging technologies like augmented reality (AR) and artificial intelligence (AI).

Brands should consider the growing importance of ethics and sustainability for this generation. Zalphas are likely to hold brands accountable for their environmental and social impact, much like Gen Z, but with an even stronger emphasis on these issues due to their early exposure. Developing transparent and authentic communication around sustainability efforts and corporate responsibility will be critical for brands to earn Zalpha’s loyalty.

In Japan, educational tech companies are already catering to Zalphas by creating hybrid learning platforms that combine traditional study methods with interactive digital tools. These platforms promote learning and environmental awareness, aligning with the values of this emerging generation.

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Yuppies to Millennials (Born 1965-1980)

While micro-generations like cuspers offer nuanced insights into the blending of generational traits, it’s also important to consider how broader cohorts, such as the Yuppies, have evolved, influencing workplace dynamics and consumer behaviors.

The cohort born between 1965 and 1980 occupies a unique space in generational history, often called the “Yuppies” or Young Urban Professionals. This group, representing early Gen X, was characterized by ambition, materialism, and a focus on career advancement during the 1980s and 1990s. However, as they aged and witnessed the evolution of the digital era, many Yuppies began adopting Millennial traits, particularly in their approach to work and lifestyle. They transitioned from the traditional corporate culture of the 1980s to the more flexible, purpose-driven mindset that became prevalent in the 2000s.

Yuppies initially embraced the hustle culture, prioritizing financial success, luxury consumption, and career achievement. However, over time, many in this cohort led the charge in transforming workplace dynamics championing work-life balance, remote work, and entrepreneurship. This shift was partly driven by the economic and technological changes of the late 1990s and early 2000s, as the internet and mobile technologies began to reshape industries and work environments.

Workplace Transformation in the 90s and 2000s 

This generation played a key role in driving the workplace transformations that began in the 1990s and continued into the 2000s. As the internet and mobile technology disrupted traditional business models, Yuppies—many of whom had climbed the corporate ladder—began advocating for more flexible work arrangements. They were among the first to embrace remote work, and many left the corporate world to start their businesses, becoming pioneers of the entrepreneurial wave that defined the early 2000s.

Their influence helped reshape corporate culture from one focused on long hours and office presence to one that values productivity, results, and work-life balance. Yuppies also played a significant role in the rise of the gig economy, as many sought more control over their careers and personal lives. This shift toward flexibility and entrepreneurship laid the groundwork for the work preferences of younger generations, including Millennials and Gen Z, who expect remote work options and purpose-driven careers.

Brand Implications of the Broader Cohort of Yuppies

For brands looking to engage this broader cohort, it’s crucial to recognize their evolving priorities. While Yuppies may have started out focussing on material success, many have since shifted their focus to achieving a healthier work-life balance. Brands that appeal to this group should emphasize flexibility, convenience, and quality. Offering products or services that enhance their work-from-home setups, improve their wellness, or align with their entrepreneurial pursuits can resonate strongly.

This generation values authenticity and purpose-driven brands, much like Millennials. Companies that demonstrate social responsibility, sustainability, and a commitment to making a positive impact are more likely to gain the loyalty of this cohort. Brands should also consider highlighting the benefits of their products for enhancing productivity or improving quality of life, aligning with the values of this generation as they continue to lead the way in remote work and entrepreneurship.

In Germany, automaker BMW successfully tapped into this broader cohort’s evolving priorities by offering remote work-friendly vehicles, such as luxury electric cars with advanced connectivity features, catering to Yuppies who value sustainability and work-life integration.

The Case For and Against micro-generation

Micro-generations, such as Generation Jones, Xennials, Zillennials, and Zalphas, offer unique perspectives that can be valuable for brands and market researchers. However, recognizing and targeting these cusp generations has benefits and challenges.

The Argument for Recognizing Cusp Generations 

Cusp generations provide brands with nuanced insights that can help bridge generational divides. These micro-generations embody traits from two larger cohorts, allowing them to adapt and relate to multiple perspectives. For example, Xennials balance analog nostalgia with digital fluency, while Zillennials blend Millennial optimism with Gen Z’s entrepreneurial spirit. By understanding cuspers, brands can create marketing strategies that resonate across generational boundaries, fostering deeper connections with a more diverse audience.

Another advantage of focusing on cusp generations is their adaptability. Cuspers often exhibit unique flexibility in their behaviors and preferences, making them early adopters of new trends and technologies. This adaptability allows brands to test innovative concepts with a receptive audience before rolling them out to the broader market. micro-generations can serve as cultural bridges, helping brands navigate the rapidly shifting dynamics between generations and ensuring their messages stay relevant in an increasingly fragmented media landscape.

The Argument Against the micro-generation Concept

While recognizing micro-generations can provide valuable insights, there is also a risk of overcomplicating segmentation. Creating too many generational subgroups can dilute the effectiveness of broader generational marketing strategies. Brands may find it difficult to craft targeted messages for each micro-generation, leading to a scattered approach that lacks coherence. Hyper-segmentation can result in analysis paralysis, where brands struggle to focus on key consumer segments due to the overwhelming number of subgroups they are trying to cater to.

Another challenge is the potential for diluting the overall brand message. By focusing too much on the specific needs of micro-generation, brands may lose sight of the commonalities that unite broader generational cohorts. This could lead to inconsistent messaging and a fragmented brand identity, confusing consumers and reducing the overall impact of marketing efforts.

Balancing Micro-generations with Broader Trends

The key to effectively leveraging micro-generation is balance. Brands should use insights from cusp generations to inform their strategies but keep segmentation simple. Instead of developing separate campaigns for each micro-generation, brands can identify shared values and preferences that resonate across generational lines. For example, sustainability, digital innovation, and authenticity appeal to multiple generations, including cuspers.

By integrating micro-generation insights into broader generational trends, brands can create cohesive strategies that speak to diverse audiences without diluting their message. The goal is to balance specificity and inclusivity, ensuring marketing efforts are targeted and scalable.

Key Takeaways for Brands

Understanding cusp generations is crucial for brand managers, product managers, and CMOs to develop marketing strategies that resonate with today’s diverse and dynamic consumer base. Cusp generations offer unique opportunities for engagement due to their ability to bridge generational gaps and adapt to shifting cultural and technological landscapes. Here are actionable insights for effectively integrating an understanding of cusp generations into your marketing and branding strategies:

  • Segment strategically: While it’s important to recognize the unique characteristics of cusp generations, avoid over-segmentation. Use microgenerational insights to refine your messaging within broader campaigns rather than creating (entirely) separate strategies for each group.
  • Emphasize flexibility: Cusp generations often mix traditional and modern traits. Your campaigns should reflect this duality by offering flexible options to appeal to nostalgic sentiments and forward-looking innovations.
  • Leverage technology and authenticity: Cusp generations are digitally savvy but crave authenticity. Create campaigns that combine cutting-edge digital experiences with genuine, purpose-driven messaging. Highlight how your brand aligns with the values of these micro-generations, particularly in areas like sustainability, inclusivity, and community impact.
  • Global consistency with local relevance: Cusp generations across different markets may share similar traits, but local culture can influence how these traits manifest. Adapt your global marketing strategy to include region-specific nuances to make your campaigns more relatable while maintaining a consistent brand message.

Cusp generations play an increasingly important role in the consumer market. Their unique blend of characteristics, drawn from two distinct generational cohorts, provides brands with opportunities to engage consumers in meaningful and dynamic ways. By understanding and integrating insights from micro-generations like Generation Jones, Xennials, Zillennials, and Zalphas, brands can develop more nuanced and effective marketing strategies.

The opportunity to connect with these consumers lies in embracing the complexity of their identities. Brands that move beyond traditional generational categories and engage with the multifaceted nature of consumer behavior will be better positioned to foster loyalty and drive long-term success. 

Ultimately, understanding cusp generations allows brands to remain adaptable in an ever-evolving market, ensuring relevance across generational divides.

As third-party cookies crumble, so does the foundation of digital advertising. The impending demise of these cookies and growing restrictions on mobile device identifiers are forcing brands to rethink how they connect with consumers. Apple’s App Tracking Transparency (ATT) and other privacy-first initiatives have reshaped the landscape, ushering in a new era where traditional tracking methods are no longer viable.

This shift is more than a technical adjustment—it demands a fundamental transformation of digital advertising strategies. Brands must move away from third-party tracking and embrace privacy-centric approaches to thrive in this environment. The path forward is becoming clearer, with three key strategies emerging as crucial: first-party data collection, second-party data partnerships, and revisiting contextual and interest-based advertising. Although each brand’s journey will differ, one constant remains—the importance of building strong consumer relationships while safeguarding privacy.

Also, read The Rise of Zero-Party Data: Enhancing Customer Trust and Personalization.

The Internet Before Cookies

In the early days of the internet, privacy was more of a default. Websites operated independently, and tracking user activity across platforms was difficult. Users could browse anonymously, leaving little trace of their behaviour. However, this changed in the mid-1990s with the introduction of cookies, initially designed to improve user experience by remembering login details and preferences.

Third-party cookies evolved quickly, becoming powerful tools for tracking user behaviour across websites, enabling advertisers to deliver highly personalised ads. This marked the beginning of an era where cookies became the backbone of programmatic advertising and fueled the growth of digital giants like Google and Facebook.

However, as awareness of privacy issues grew, so did the demand for stronger protections. This led to regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), setting the stage for the eventual phase-out of third-party cookies.

The Golden Age of Third-Party Cookies

Before third-party cookies became widespread, digital advertising primarily relied on contextual targeting—placing ads based on the content of a webpage rather than tracking individual users. For example, a reader browsing an article about hiking might see ads for outdoor gear, not because the advertiser knew their browsing history but because of the relevance of the content. While effective to some degree, this method lacked the precision advertisers desired.

The introduction of third-party cookies changed everything. By enabling cross-site tracking, advertisers could deliver highly personalized ads tailored to users’ browsing habits, interests, and demographics. This precision significantly improved campaign effectiveness, making third-party cookies the cornerstone of programmatic advertising.

However, as third-party tracking became pervasive, privacy concerns followed. Users became increasingly aware of how their data was being collected and used, fueling the demand for stronger privacy protections. These concerns and regulatory pressures like GDPR and CCPA set the stage for the phase-out of third-party cookies and the rise of privacy-first alternatives.

Phasing Out Third-Party Cookies

Google has been preparing to phase out third-party cookies in its Chrome browser for years, but the timeline has shifted multiple times. The latest change delays the complete removal of cookies until 2025. Unlike Safari and Firefox, which have blocked third-party cookies by default, Chrome is taking a more gradual approach, allowing companies more time to adapt.

For marketers, this shift necessitates a pivot toward first-party data strategies and privacy-centric tools like Google’s Privacy Sandbox. These tools, along with alternatives like Adobe’s Real-Time Customer Data Platform (CDP), allow brands to collect and utilise first-party data while respecting privacy concerns. As the digital advertising ecosystem evolves, building strong first-party data strategies will be critical for maintaining effective targeting in a cookieless future.

The Path Forward for Advertisers in a Privacy-first World

The end of third-party cookies demands a fundamental shift in how advertisers collect and utilise data. Three key strategies will be crucial to maintain relevance and deliver personalised experiences in a privacy-first world: first-party data collection, second-party data partnerships, and contextual and interest-based advertising.

  • First-Party Data Collection

First-party data will be the most valuable asset in a cookieless future. Unlike third-party cookies, which track users across multiple sites, first-party data is collected directly from interactions between users and a brand’s platforms, such as websites, mobile apps, and loyalty programs. By gathering data from their own touchpoints, companies can build a clearer picture of their customers’ preferences, behaviours, and needs without infringing on privacy.

To harness first-party data effectively, brands must prioritise transparency and user consent. Clear communication about what data is being collected and how it will be used is essential. Loyalty programs, personalised content, and interactive experiences are just a few ways brands can incentivise users to share their data willingly. The goal is to build trust while delivering value.

  • Second-Party Data Partnerships

Brands can also collaborate with trusted partners to access second-party data. Second-party data is essentially someone else’s first-party data, shared in a privacy-compliant way. These partnerships allow companies to expand their understanding of their customers by gaining insights from non-competitive brands that target similar audiences.

For example, a retail brand might partner with a financial services company to better understand consumer spending habits and preferences. These collaborations can create a more holistic view of the customer journey, leading to more effective targeting and personalisation. Ensuring these partnerships comply with privacy regulations and maintain user trust is critical.

  • Contextual and Interest-Based Advertising

As third-party cookies disappear, contextual and interest-based advertising will become increasingly important. Contextual advertising places ads based on the content of the webpage rather than the user’s browsing history. This method respects user privacy while providing relevant ad experiences based on context.

Interest-based advertising, which targets ads based on general user interests rather than specific tracking, is another avenue for advertisers to explore. Both approaches allow brands to deliver relevant messages without relying on invasive tracking techniques.

As a renowned digital marketing expert, Neil Patel emphasises, “First-party data is your golden ticket for a post-cookie world. Build trust with your users and give them a reason to share their information willingly.” This sentiment underscores the importance of shifting to more transparent, privacy-respecting data collection and advertising methods.

Strengthening Consumer Relationships in a Privacy-Focused World

As digital advertising shifts toward privacy-centric models, building trust and fostering strong consumer relationships is more crucial than ever. The loss of third-party cookies has made it imperative for brands to earn customer loyalty through transparent and respectful data practices. In this new era, trust isn’t just a nice to have; it’s a fundamental requirement for success.

Consumers are increasingly cautious about sharing their personal information, especially regarding data breaches and invasive tracking practices. According to a study by Edelman, 81% of consumers say trust is a key factor in their purchasing decisions, and companies that fail to uphold strong privacy standards risk losing customer loyalty.

Brands can no longer rely on behind-the-scenes tracking to personalise ads. Instead, they must build direct relationships with consumers, encouraging them to share their data willingly. This shift puts trust at the heart of digital marketing strategies. When customers trust a brand, they’re more likely to provide the information needed to deliver personalised experiences.

Practical Steps to Improve Transparency, Consent, and Control

Clear Communication: Transparency begins with clear and concise communication about data collection practices. Brands should inform users exactly what data is being collected, how it will be used, and how long it will be stored. Avoid complex legal jargon and make privacy policies easy to understand.

User Consent and Control: Empower users by giving them control over their data. Implement robust consent management frameworks that allow users to opt in or out of data collection. Ensure that users can easily access, modify, or delete their data anytime.

Value Exchange: Provide tangible value in exchange for user data. Whether personalised offers, exclusive content, or enhanced experiences, brands must show customers that sharing their data is worthwhile. Loyalty programs and personalised recommendations are examples of effective value exchanges.

Examples of Companies Excelling in Consumer Relationship Management

Apple: Known for its strong stance on privacy, Apple has made transparency a cornerstone of its brand. With initiatives like App Tracking Transparency (ATT), Apple puts control in the hands of its users, allowing them to decide which apps can track their data. This approach has earned Apple significant consumer trust, differentiating the company in a crowded market.

Patagonia: Patagonia is a prime example of how ethical practices can build customer loyalty. The outdoor apparel brand’s commitment to environmental responsibility and social impact extends to its data practices, where transparency and respect for privacy are integral. By aligning their values with their actions, Patagonia fosters strong, trust-based customer relationships.

Spotify: Spotify has implemented clear privacy controls and provides users with detailed information about how their data is used. The platform offers personalised experiences tied to users’ data, making the value exchange evident. By emphasising transparency and value exchange, Spotify has built a loyal customer base that willingly shares their data in exchange for personalised experiences.

Future-Proofing Your Digital Advertising Strategy

As third-party cookies fade into the background, brands must adopt a forward-looking, privacy-centric approach to digital advertising. The future of marketing lies in strategies and technologies that prioritise user privacy while maintaining effective targeting and personalisation. Future-proofing your advertising strategy will require embracing new methods, tools, and platforms that aren’t dependent on cookies or specific identifiers.

Key Elements of a Privacy-Centric Approach

  • Consent Management: Implement robust systems that allow users to easily manage their data and privacy settings.
  • Data Minimisation: Only collect the data necessary for specific, consented purposes, reducing the risk of data breaches and enhancing user trust.
  • Security Measures: Invest in strong data protection measures to safeguard user information from unauthorised access.
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Adopting Technologies Not Dependent on Cookies

Marketers must now explore alternative technologies to deliver personalised experiences without tracking users across the web. Several emerging technologies are designed to achieve this, helping brands adapt to a cookieless future:

First-Party Data Tools: These tools allow brands to leverage data directly from customer interactions, such as website behaviour, app usage, and CRM data. By focusing on first-party data, brands can build accurate profiles of their users while ensuring privacy and compliance.

Contextual Advertising Platforms: Unlike behavioural advertising, contextual advertising places ads based on a webpage’s content rather than user tracking. This approach ensures relevance while respecting user privacy, making it an essential strategy in the absence of cookies.

Interest-Based Advertising: Interest-based models allow advertisers to target groups of users based on general interests rather than specific identifiers. This broadens the reach while maintaining user privacy, as no personal data is tracked or stored.

Tools and Platforms for Effective Targeting

Several tools and platforms are emerging to help brands transition to a privacy-first digital advertising ecosystem. These technologies enable brands to continue targeting and personalising experiences, even in a cookieless environment:

Google’s Privacy Sandbox: Designed to create a more private internet while enabling targeted advertising, Google’s Privacy Sandbox offers APIs like Federated Learning of Cohorts (FLoC) and Topics. These tools allow advertisers to target ads based on group behaviour rather than individual tracking. By replacing third-party cookies with less invasive methods, Privacy Sandbox aims to balance privacy with ad relevance.

Adobe’s Real-Time Customer Data Platform (CDP): Adobe’s Real-Time CDP enables brands to collect and activate first-party data across channels while respecting user privacy. The platform offers advanced segmentation and personalisation features that aren’t dependent on third-party cookies. With its privacy-first approach, Adobe Real-Time CDP helps brands deliver personalised experiences while ensuring compliance with global privacy regulations.

Server-to-Server Solutions: Platforms like Marin Software offer server-to-server tracking solutions that bypass the need for cookies altogether. These solutions allow for more secure and accurate data collection, helping brands maintain performance and measurement capabilities in a cookieless world.

A New Era of Digital Advertising

The demise of third-party cookies signals the beginning of a new era in digital advertising that requires a fundamental shift in how brands collect and utilise data. To succeed in this evolving landscape, the importance of first-party data cannot be overstated. By leveraging data directly from customer interactions on their platforms, brands can build personalised experiences while respecting user privacy. Additionally, forming second-party data partnerships provides valuable opportunities for collaboration, allowing brands to expand their reach without compromising compliance.

The future of advertising will also see a resurgence of alternative targeting methods, such as contextual and interest-based advertising. These strategies enable brands to deliver relevant messages without relying on invasive tracking techniques. As consumers demand more control over their data, respecting privacy will be key to maintaining trust and loyalty.

Brands that adapt and innovate in this cookieless world will thrive. Building strong consumer relationships, prioritising transparency, and adopting privacy-centric technologies will ensure long-term success. The landscape may be shifting, but with the right strategies, brands can navigate the change and emerge stronger than before.

As Zillennials—born between 1992 and 1998—enter their prime spending years, their influence on the retail landscape is becoming impossible to ignore. 

Positioned at the intersection of Millennials and Gen Z, this micro-generation embodies a unique mix of traits that distinguishes them from both. They grew up with early digital experiences like Millennials. Still, they matured into adulthood amidst the rise of social media and mobile technology —characteristic of Gen Z. Their hybrid behaviors, preferences, and expectations are reshaping the future of retail and consumer engagement.

For brands, understanding Zillennials is not just a matter of keeping up with trends—it’s essential for long-term success. Zillennials expect brands to balance authenticity with innovation, providing experiences evoking nostalgia and a forward-thinking approach. As they continue to gain economic influence, brands that successfully tap into the Zillennial mindset can build strong connections with this powerful consumer group, setting the stage for lasting loyalty.

Who Are Zillennials?

Zillennials, often called the “in-between” generation, are typically born between the mid-1990s and early 2000s. This cohort finds itself at the intersection of two powerful generational forces: Millennials and Gen Z. Like Millennials, they grew up during the technological boom of the late 1990s and early 2000s, witnessing the transition from analog to digital. Yet, they came of age during the social media and smartphone revolution defining Gen Z.

Zillennials experienced life before smartphones became ubiquitous but were young enough to adapt effortlessly to the digital age. This duality makes them distinct, often identifying with both generations yet fitting neatly into neither. 

Unique Traits of Zillennials 

Zillennials blend Millennials’ values-driven, experience-focused tendencies with Gen Z’s digital fluency and adaptability. They expect personalized, fast interactions with brands but also value authenticity and purpose. Unlike Millennials, who witnessed the dawn of social media, Zillennials grew up with it as a constant presence in their lives, shaping their behaviors and preferences in unique ways.

This group seeks brands combining authenticity with modernity—those that connect emotionally while leveraging the latest technological innovations. Zillennials appreciate the nostalgia of pre-digital experiences while fully embracing the conveniences of the digital-first world. Brands that can balance these elements stand to win the loyalty of this influential generation.

Why Zillennials Matter for Brands

  • Consumer Influence

Zillennials are not just another consumer group—they are trendsetters who influence both Millennials and Gen Z. Their purchasing power is growing, but what makes them particularly impactful is their role in shaping consumer expectations. Whether it’s their digital savvy, preference for experiential marketing, or demand for authenticity, Zillennials are driving shifts in how brands engage with consumers.

For brands, resonating with Zillennials means creating experiences that appeal to younger and older Gen Z consumers. This cross-generational influence is particularly evident in fashion, beauty, and technology, where Zillennials often act as early adopters and amplifiers of trends. Brands that can blend traditional values with modern technology will find this micro-generation to be key in navigating the ever-evolving consumer landscape.

  • Brand Loyalty and Preferences

For Zillennials, brand loyalty is earned through authenticity, transparency, and personalization. Unlike Millennials, who value long-term relationships with brands, or Gen Z, who prioritize speed and convenience, Zillennials expect a balance. They want meaningful engagement and agility in adapting to changing trends and technologies.

Zillennials are drawn to brands prioritizing sustainability, inclusivity, and social responsibility. This generation quickly identifies performative or inauthentic marketing, meaning brands must be genuine in their efforts to connect. 

Zillennials expect personalized experiences that reflect their unique blend of Millennial nostalgia and Gen Z’s tech-savvy convenience. Brands that excel at this are rewarded with loyalty that extends beyond a single transaction, fostering deeper, long-term relationships.

Millennial Brand Case Studies

GU in Japan: GU, a Japanese fashion brand under Fast Retailing Co., the operator of Uniqlo, has successfully tapped into the Zillennial market by merging affordability with trendy, sustainable designs. 

Recognizing Zillennials’ craving for fashion-forward choices and eco-consciousness, GU has launched campaigns resonating deeply with their values. A prime example is the Harajuku ‘GU Style Studio,’ which blends physical retail with innovative digital touchpoints. The store allows customers to try on apparel and place orders online for delivery, balancing convenience and engagement.

Image credit: Japan Times

Its interactive features set the GU Style Studio apart, such as allowing customers to experiment with clothing combinations on a virtual mannequin and create digital avatars. While showcase shopping—where customers experience products in-store but purchase online—has been popular in sectors like electronics and household items, GU’s application of this concept in fashion is pioneering. As e-commerce continues to reshape the global retail industry, GU is leading the way in experimenting with new methods of selling clothes, appealing directly to the hybrid shopping habits of Zillennials.

Lush in the UK: Lush, the UK-based cosmetics brand, has cultivated a loyal youth following by steadfastly adhering to its core values of sustainability, cruelty-free practices, and environmental activism. 

According to latest Statista report, Lush’s primary shopper base was consumers aged 16-24, with this age group remaining significant despite a slight decline from the previous year. Additionally, the report highlighted a growing customer segment aged 25-34, who made up 27% of Lush’s customer base —a trend driven by the brand’s strong appeal to young adults who value ethical consumption.

Image Credit: Lush 

Lush’s commitment to transparency and its robust digital presence has particularly resonated with Zillennials, who seek out brands that align with their values. By seamlessly blending activism with product innovation, Lush has successfully captured the loyalty of Zillennials, a generation that expects brands to meaningfully reflect their principles and commitments.

Behavioral Insights: Bridging Two Generations

  • Digital Natives with a Twist

Zillennials are digital natives, but their relationship with technology is nuanced. According to a Pew Research Center study, 98% of adults aged 18-29 (which includes Zillennials) in the US use the internet, with 89% accessing it daily on their smartphones. However, unlike Gen Z, who are quick adopters of the latest social platforms, Zillennials often blend traditional and newer platforms. They enjoy long-form content like podcasts and YouTube videos while engaging with short, snackable content popular with Gen Z.

For brands, this means offering a range of content formats—from quick social media posts to in-depth digital experiences—that can capture Zillennials’ attention and cater to their hybrid consumption habits.

  • Hybrid Shopping Habits

Zillennials prefer a seamless mix of online and in-person shopping experiences. A 2023 Shopify report found 63% of consumers aged 18-34 prefer hybrid shopping, blending the convenience of online purchasing with the tactile experience of physical stores. This is particularly true for Zillennials, who, while tech-savvy, still appreciate the in-person discovery of fashion, beauty, and lifestyle products.

In Southeast Asia, social commerce is booming, driven largely by Zillennials. According to eMarketer, 56% of Southeast Asian online shoppers between the ages of 18 and 34 have made purchases through social media platforms like Instagram and TikTok. Shopee Live, in particular, has become a popular way for Zillennials to engage with brands, combining entertainment and commerce in real-time shopping events.

  • Work-Life Balance and Career Aspirations

Zillennials’ approach to work blends Millennial ideals with Gen Z pragmatism. 

According to Deloitte’s 2023 Global Millennial and Gen Z Survey, 77% of respondents across both generations cited work-life balance as a top priority, with many seeking flexible working arrangements and remote work options.

Zillennials are particularly drawn to companies aligning with their values. A 2022 LinkedIn study found 71% of job seekers aged 18-34 consider company culture and values more important than salary when choosing a job. For Zillennials, this means finding employers who prioritize diversity, equity, inclusion, and mental health. Companies fostering a sense of community and offering opportunities for personal and professional growth are more likely to attract and retain Zillennial talent.

Zillennials Around the World

Zillennials share common traits globally, but their behaviors, preferences, and interactions with brands vary significantly across regions. Understanding these nuances is key to creating tailored strategies that resonate with Zillennials in specific countries.

United States and United Kingdom

Zillennials blend Millennial ideals with Gen Z’s adaptability in Western markets like the US and UK. 

A 2023 YouGov study found 68% of US Zillennials prefer brands aligning with their values, particularly in areas like sustainability and social justice. In the UK, 72% of Zillennials are willing to pay more for products from ethical brands, highlighting the importance of corporate responsibility.

Japan and Singapore

In Japan, Zillennials are shaping consumer trends through platforms like Mercari, which caters to their interest in sustainability and second-hand fashion. 

A 2023 report by Rakuten Insights found 64% of Japanese consumers aged 18-34 have purchased second-hand goods in the past year. This focus on sustainability and their love for unique, personalized items distinguishes Japanese Zillennials from their Western counterparts.

In Singapore, Zillennials are leading the shift toward digital payments and e-commerce. Bain & Company reports 78% of Singaporean Zillennials prefer cashless transactions, driven by the country’s strong digital infrastructure. They are also more likely to participate in online flash sales and live shopping events, using platforms like Shopee and Lazada to make purchases while engaging with interactive content.

Southeast Asia presents unique opportunities for brands targeting Zillennials. 

Social commerce is thriving in Indonesia, with 56% of Zillennials regularly shopping through platforms like TikTok and Instagram, according to eMarketer. Shopee Live, for instance, allows Zillennials to shop in real-time, blending entertainment and commerce.

In the Philippines, Zillennials are heavily influenced by online influencers. A 2022 survey by We Are Social found 69% of Filipino Zillennials follow influencers on Instagram and TikTok, often making purchasing decisions based on their recommendations. Local beauty brands like Sunnies Face have leveraged influencer partnerships to build a strong Zillennial following.

In India, Zillennials are driving the rapid adoption of digital payments and e-commerce. Kantar’s 2023 report shows 72% of Indian Zillennials prefer online shopping, with mobile devices being their primary tool for browsing and purchasing. E-commerce platforms like Flipkart and Myntra have embraced this mobile-first approach, catering to Zillennials’ need for convenience and speed.

In Vietnam, Zillennials are leading the shift toward digital entertainment and gaming. Statista reports 60% of Vietnamese Zillennials are active gamers, with mobile gaming being particularly popular. This digital entertainment focus opens new opportunities for brands to engage with Zillennials through in-app advertising and partnerships with gaming influencers.

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Key Takeaways for Brands Targeting Zillennials 

  • Authenticity and values matter: Zillennials are drawn to brands reflecting their values, particularly in sustainability, social responsibility, and inclusivity. Brands must be transparent and authentic in their messaging, avoiding performative gestures. Genuine actions and commitments to important causes are critical to earning Zillennials’ trust and loyalty.
  • Embrace hybrid experiences: Zillennials expect a seamless mix of online and offline experiences. They appreciate the convenience of online shopping but still value the tactile nature of in-store visits. Brands should focus on creating omnichannel experiences that allow Zillennials to engage across multiple platforms through digital interactions, in-person experiences, or a blend of both.
  • Invest in social commerce: Social commerce is rising globally, particularly in Southeast Asia. Brands that engage Zillennials through social media platforms offering live shopping events and interactive content, can tap into this growing trend. Influencer partnerships and authentic content will continue to be powerful tools for connecting with Zillennials.
  • Flexibility and innovation: In the workplace, Zillennials prioritize flexibility, diversity, and opportunities for growth. As consumers, they value brands that mirror these qualities. Offering customizable products, flexible purchasing options (such as subscription services), and embracing innovation in digital interactions can set brands apart.
  • Localized strategies: While Zillennials share common traits globally, their preferences vary by region. Brands must tailor their strategies to reflect local nuances, ensuring they resonate with Zillennials in specific markets. For example, brands in Japan may focus on sustainability and second-hand fashion, while in Singapore, mobile-first experiences and digital payments are more critical.

Zillennials, the micro-generation bridging Millennials and Gen Z, are emerging as a powerful force in the global marketplace. Their unique blend of digital fluency, values-driven consumption, and hybrid behaviors makes them a generation brands must understand to stay competitive. From prioritizing authenticity and sustainability to expecting seamless online and offline experiences, Zillennials represent both a challenge and an opportunity for brands willing to innovate and adapt.

For brands, the key to engaging Zillennials is recognizing their dual influences and tailoring strategies to meet their evolving needs. Brands that invest in understanding Zillennials today will be well-positioned to build lasting relationships with this dynamic and influential group.

“Data is the new oil,” as coined by Clive Humby, highlights how data, much like oil, has become a valuable resource that fuels modern economies. 

According to Harvard Business Review, by 2025, global data creation is projected to reach 175 zettabytes, driven largely by consumers’ increasing digital interactions. For retailers and brands, shopper data has emerged as one of the most powerful tools to drive growth, optimise marketing strategies, and personalize customer experiences. However, as consumer expectations evolve, simply collecting data is no longer enough. Brands must dig deeper into shopper insights to truly understand their customers and deliver meaningful, relevant experiences.

With shopper behaviour shifting rapidly across global markets, brands face a critical challenge: how can they harness the massive volumes of data to stay ahead of the competition? As the future cookieless world looms, the answer lies in effectively leveraging first-party data, adopting advanced segmentation techniques, and embracing retail media networks as pivotal drivers of brand success. 

The Rise of Retail Media Networks

Retail media networks (RMNs) have quickly become one of the most influential channels for brand visibility and customer engagement. What began as simple online ad placements on retail websites has evolved into a sophisticated ecosystem where retailers sell products and act as media platforms. As consumer behaviour shifts toward e-commerce, the value of these networks has skyrocketed, turning traditional retailers into major advertising players.

Key global players like Amazon, Walmart, and Alibaba have set the standard for retail media, leveraging their vast amounts of first-party data to offer brands highly targeted advertising opportunities. For instance, Amazon generated over $37 billion in ad revenue in 2022, making it one of the largest players in the digital ad market. Walmart’s retail media network, Walmart Connect, has also experienced rapid growth as brands flock to capitalise on insights derived from online and in-store consumer purchase behaviour.

Globally, retail media spending is surging. In the U.S. alone, omnichannel retail media ad spending will hit $129.93 billion in 2028, according to e-Marketer’s forecast, up from $54.85 billion this year. Markets like China are also experiencing significant growth, with Alibaba and JD.com leading the charge. This explosive growth is driven by RMNs’ unique ability to provide advertisers with direct access to consumer shopping data, enabling them to reach customers at critical moments in their shopping journey.

To remain competitive, brands must recognise the power of RMNs and understand how to leverage them effectively to boost brand visibility, engage consumers, and drive ROI. 

Unlocking the Power of Shopper Data

In a cookieless future, first-party data is the cornerstone of deeper consumer insights for retail media networks. Unlike third-party data aggregated from external sources, first-party data is collected directly from customers through interactions with a brand’s channels, such as websites, apps, and in-store visits. This data is incredibly valuable because it provides a direct window into consumer behaviour, allowing retailers to tailor their marketing efforts with precision and relevance.

Retailers are key to these insights because they are at the forefront of consumer interactions. By tracking every touchpoint — from product searches and purchases to app usage and loyalty program engagement — retailers can develop a comprehensive understanding of what drives their customers’ decisions. This depth of insight allows for more personalized and effective marketing campaigns and better overall customer experiences.

However, collecting data is only the beginning. Brands must harness advanced analytics and AI-driven tools to unlock shopper data’s potential fully. These technologies can process massive volumes of raw data, identifying patterns, trends, and behaviours that would be impossible to detect manually. For instance, AI can analyze purchase history, browsing behaviour, and demographic data to predict future purchasing decisions, enabling brands to tailor their messaging and offers to individual consumers.

Types of Shopper Data

  • Purchase Behavior: Data on what customers buy, how often, and what quantities (from online and offline sales).
  • Search Patterns: Insights into what customers search for on retailer websites or apps, revealing their interests and needs.
  • Demographic Data: Information such as age, gender, location, and income level helps in segmenting and targeting customers effectively.
  • Engagement Data: Metrics on how customers interact with a brand’s digital properties, such as time spent on site, clicks, and video views.
  • Loyalty Program Data: Insights from customer participation in loyalty programs, including rewards earned, redemption habits, and repeat purchase behaviour.
  • Feedback and Reviews: Qualitative data from customer opinions and reviews can be invaluable for product development and customer service improvements.

Advanced Segmentation for Targeted Campaigns

Advanced segmentation techniques are essential for creating targeted campaigns that resonate with individual consumers. Shopper data offers deep insights, allowing brands to expand beyond broad demographic categories and, more precisely, segment their audience. By leveraging detailed behavioural, demographic, and psychographic data, brands can create highly personalized marketing strategies that speak directly to the needs and preferences of specific consumer groups.

Advanced segmentation involves breaking down your audience into smaller, more defined groups based on shared characteristics. Techniques such as clustering algorithms and machine learning can identify these subgroups, allowing marketers to create targeted messages and offers more likely to convert.

Examples of Advanced Segmentation Techniques

  • Behavioural Segmentation: Segmenting customers based on interactions with the brand, such as browsing habits, purchase history, and engagement levels. For example, targeting frequent buyers who haven’t made a purchase recently with re-engagement campaigns.
  • Predictive Segmentation: Using machine learning to predict which customers are most likely to convert or churn, allowing for proactive engagement strategies that retain or drive them toward specific products.
  • Life-Stage Segmentation: Segmenting consumers based on their life stage, such as new parents or retirees, and tailoring messaging to their needs and priorities.

Brands like Nike and Sephora have successfully used data-driven segmentation to enhance their marketing efforts. Nike leverages purchase data and engagement metrics to create personalized campaigns, while Sephora uses loyalty program data to offer tailored beauty recommendations and early access to new products.

Global Market Research Insights

Segmentation strategies vary across regions. In Western markets like the US and Europe, segmentation often focuses on lifestyle, preferences, and online behaviour, emphasising personalisation. In contrast, Asian markets, particularly China and Japan, emphasize social commerce and community-driven purchasing behaviour, requiring brands to target consumers based on participation in online communities or social platforms. Regional preferences and language also significantly affect segmentation in markets like India, where consumer behaviour varies significantly across different states.

Bridging the Gap: Global Retail Media Trends

Retail media rapidly evolves globally, but regional differences shape how brands and retailers approach this burgeoning space. The retail media landscape in Western markets differs significantly from that in Asia, driven by unique consumer behaviours, technological advancements, and market dynamics.

Western Markets: Data-Driven Growth

Retail media has seen significant growth in Western markets like the US and Europe, driven by e-commerce reliance and data-driven marketing strategies. Retailers like Amazon, Walmart, and Target have built sophisticated retail media networks that leverage first-party data to deliver highly targeted advertising opportunities to brands. 

Asian Markets: Social Commerce and Mobile-First

In contrast, Asian markets like China, Japan, and India are leading in integrating retail media with social commerce and mobile-first strategies. According to eMarketer, Ecommerce channels will account for nearly 90% of retail media ad spending in China, or $49.49 billion as of June 2024, with platforms like Alibaba’s Tmall and JD.com capitalizing on community-driven shopping and mobile commerce. Mobile shopping and digital loyalty programs are key drivers of retail media growth in Japan and India.

Successful retail media strategies differ by region. Alibaba’s Tmall, Walmart Connect in the US, and Rakuten in Japan are prime examples of how retail media networks drive growth and engagement by leveraging regional preferences and technological advancements.

Measuring Success: ROI and Campaign Optimization

To ensure success in retail media, brands must track and measure their campaigns’ performance. This involves monitoring key metrics and optimizing campaigns based on data-driven insights.

KPIs for Measuring Success

  • Return on Investment: ROI Measures campaign profitability by comparing revenue generated against campaign costs.
  • Conversion Rates: Tracks the percentage of users who take a desired action, such as making a purchase, after interacting with an ad.
  • Customer Lifetime Value: CLV measures the total value a customer brings to a brand throughout their relationship.
  • Click-Through Rate (CTR): CTR tracks how often users click on an ad after seeing it.
  • Cost Per Acquisition: CPA calculates the cost of acquiring a new customer through a specific campaign.

Using tools like Google Analytics, Adobe Analytics, and retail-specific dashboards from Amazon Advertising and Walmart Connect, brands can track these KPIs, monitor performance in real-time, and adjust campaigns to maximize results.

The Future of Retail Media: What’s Next?

Emerging trends like AI-driven personalization, the integration of social commerce, and the development of seamless omnichannel experiences are shaping the future of retail media. Brands investing in these areas will be well-positioned to capitalize on new opportunities and navigate future challenges.

  • AI-Driven Personalization: AI enables hyper-personalization at scale, analyzing real-time shopper data to deliver highly tailored content and offers.
  • Integration with Social Commerce: Social platforms like Instagram and TikTok are becoming powerful retail media channels, enabling consumers to discover, engage with, and purchase products directly within these platforms.
  • Omnichannel Experiences: Retail media networks increasingly facilitate omnichannel experiences to bridge the gap between online and offline shopping, ensuring consistent messaging across all touchpoints.

Future Challenges and Opportunities for Brands

While the future of retail media presents exciting opportunities, brands must navigate the growing complexity of data privacy regulations and manage multiple retail media networks across different regions. As consumers demand more control over their data and regulations like GDPR and CCPA become more stringent, balancing personalisation with privacy will be crucial. Brands investing in AI-driven personalization, integrating social commerce into their strategies, and creating seamless omnichannel experiences will be well-positioned to thrive in this evolving landscape.

For brands, the key to success in the future of retail media will be leveraging the power of data while respecting privacy. Those who can navigate this balance will set the standard in the next generation of retail media.

By focusing on data-driven insights, regional customization, and privacy-first approaches, brands can lead the charge in the rapidly evolving retail media landscape.

The cost-of-living crisis in the UK has emerged as a significant challenge, impacting the daily lives and prospects of countless individuals. 

Our latest report delves into this pressing issue, revealing the struggles the UK population faces, their coping mechanisms, and their perceptions of government initiatives. 

But there’s more to this story. Download our full report now to uncover how consumers in London, Ireland, Scotland, and Wales are coping with the surge in prices of everyday items. 

The Financial Squeeze: More than Just Numbers

Since late 2021, the financial situation of most UK residents has worsened, with many predicting stagnation or further decline in the coming year. This isn’t just about numbers; it’s about the anxiety and mental health challenges that accompany financial instability. 

How are people adapting to this new normal? And what measures can they take to regain control? Discover the untold stories of resilience and adaptation—download the report to learn how brands can align their strategies with these consumer realities.

Coping Strategies: Beyond the Obvious

As the cost of living rises, individuals across the UK employ various strategies to stay afloat. From reducing expenses and utilizing savings to seeking additional income, the resourcefulness of the British public is evident. But are these measures enough? What other strategies could offer relief? 

Understanding these coping mechanisms is key to staying relevant for brands. Download the report to explore how brands can adapt their offerings to meet consumers’ evolving needs.

The Government’s Role: A Question of Trust

With faith in the government’s ability to address the crisis at a low ebb, the public is calling for more robust support measures. There’s a demand for increased financial aid, tax reductions, and long-term strategies like rent control and price regulation on essential goods. But what does this mean for the future of UK policy? Can the government rise to the occasion? Brands can play a pivotal role in this space. 

The full report offers insights into how brands can fill gaps and support consumers during this time. Download now to find out more.

Shifts in Spending: The New Normal

Our study reveals intriguing shifts in consumer behaviour. While many are cutting back on health and wellness services, a surprising number are reluctant to forego streaming services. What drives these decisions? And what does it say about our priorities in challenging times? Brands can gain valuable insights into consumer priorities and spending habits. 

Download the report to explore these fascinating insights and discover how brands can adjust their offerings to align with consumer preferences.

Policy Proposals: The Public’s Voice

Respondents have voiced their thoughts on potential policy changes, highlighting a desire for immediate relief and long-term economic stability. From tax reforms to subsidies for local production, the public’s suggestions paint a vivid picture of the UK’s aspirations. For brands, these insights can guide strategic decisions and innovations. Which proposals hold the most promise for meaningful change? 

Download the report to examine the possibilities and see how brands can be part of the solution.

Unlock the Full Story

The UK’s cost-of-living crisis is a complex tapestry of challenges and opportunities. Understanding the impact on consumers and exploring potential paths forward is essential for brands looking to navigate this shifting landscape. Download our full report to dive into the data, uncover the narratives, and join the conversation on reshaping the UK’s economic landscape. 

Download now to learn how your brand can thrive in these challenging times.

In the not-so-distant past, department stores were the crown jewels of retail, sprawling multi-story spaces that offered everything from fashion to home goods under one roof. They were more than just places to shop; they were social hubs where families spent weekends, and holiday traditions were built. In cities like New York, London, Tokyo, and Mumbai, iconic department stores stood as symbols of prosperity and consumerism.

However, the retail landscape has undergone a seismic shift. Once considered indomitable, department stores are now facing an existential crisis. According to a report by Coresight Research, 2019 saw over 9,300 store closures in the United States alone, with department stores accounting for a significant share of these. This trend is not confined to the U.S. In the UK, household names like Debenhams have shuttered their doors after centuries of operation. Meanwhile, in Asia, traditional department stores are losing ground to both e-commerce giants like Alibaba and localized specialty retailers that better cater to modern consumer preferences.

The challenges are multifaceted. The rise of e-commerce has redefined convenience, offering consumers the ability to shop anytime, anywhere. Statista projects that global e-commerce sales will exceed $6.3 trillion by 2024, a clear indicator of where consumer dollars are heading. Additionally, shoppers today are more value-conscious and experience-driven, favoring specialized retail stores or direct-to-consumer (DTC) brands that offer unique products and personalized service over the one-size-fits-all approach of traditional department stores.

Globally, the fallout is clear: department stores that were once anchors of shopping malls are now vacant spaces, struggling to find relevance in a rapidly changing market. To survive, these retail giants must adapt to new consumer behaviors, rethink their business models, and leverage market research to understand the nuances of each region they operate in. The question is, can they evolve quickly enough to meet the demands of the modern shopper?

The Rise and Fall of Department Stores Globally

Historical Importance

Department stores have long been cornerstones of the retail world, shaping shopping habits and consumer culture across continents. In the United Kingdom, stores like Harrods and Selfridges didn’t just sell products; they sold experiences. They were destinations in their own right, drawing tourists and locals alike with their grandeur and extensive product ranges. These institutions became emblematic of British retail, often tied to the country’s broader cultural identity.

Across Europe, luxury department stores like Galeries Lafayette in Paris and KaDeWe in Berlin set the standard for high-end shopping. These establishments weren’t just retail spaces; they were symbols of elegance and affluence, where the latest fashion trends were showcased and where consumers were treated to a level of service that justified premium prices. In Asia, large retail chains such as Isetan in Japan and Lane Crawford in Hong Kong mirrored this success, becoming household names by offering a mix of local and international products tailored to the tastes of their diverse clientele.

For much of the 20th century, department stores thrived as the primary shopping destinations. They were pioneers of retail innovation, introducing concepts like fixed pricing and catalog shopping. Their influence extended beyond commerce, often driving urban development and becoming central to the social fabric of their communities.

The Decline

But the story of department stores is not just one of past glory—it is also one of recent decline. The very factors that once made department stores successful are now contributing to their downfall. The rise of e-commerce has fundamentally changed consumer behavior, offering an unprecedented level of convenience and choice. According to Statista, global e-commerce sales reached a staggering $5.8 trillion in 2023, up by almost $1 trillion from the previous year. This growth came at the expense of physical stores, particularly large department stores, which struggled to compete with the ease and efficiency of online shopping.

In the UK, the closure of Debenhams and the downsizing of House of Fraser reflect a broader trend of declining foot traffic in traditional retail spaces. Similar patterns are observed in the United States, where once-dominant players like Sears and J.C. Penney have either closed down or drastically reduced their presence. Even in Asia, where department stores like Sogo and Takashimaya once reigned supreme, the landscape is changing rapidly. Younger consumers, especially in countries like China and South Korea, are gravitating towards digital platforms like Tmall and Coupang, which offer a wide array of products with just a few clicks.

The decline isn’t just about e-commerce. There’s a broader shift in consumer preferences. Today’s shoppers are more informed and selective, often seeking out niche products that reflect their personal values and tastes. This has fueled the growth of specialized retailers and direct-to-consumer brands that can offer a more curated shopping experience. Additionally, the rise of discount retailers, which provide value-oriented consumers with cheaper alternatives, has further eroded the market share of traditional department stores.

Globally, department stores are being squeezed from all sides. To remain relevant, they must not only adapt to the digital age but also redefine their role in a world where consumer expectations are higher than ever before. The challenge lies in balancing tradition with innovation—a task that few have managed to achieve successfully. The coming years will reveal whether these retail giants can pivot fast enough to survive or if they will become relics of a bygone era.

Changing Consumer Preferences Around the World

Shift Toward E-commerce

The rapid growth of e-commerce has been a game-changer for the retail industry, reshaping how and where consumers shop. However, the impact of this shift has not been uniform across regions. In the United States, e-commerce has become the dominant force in retail, with online sales accounting for nearly 15% of total retail sales as of 2023, according to the U.S. Census Bureau. This surge has been driven by a combination of convenience, competitive pricing, and a wide range of product options available at the click of a button. For department stores, this has meant a significant reduction in foot traffic and, by extension, sales.

Europe is witnessing a similar trend, though with regional nuances. Countries like the UK and Germany are leading the charge, with e-commerce penetration rates of 30% and 20%, respectively, as reported by Statista. Here, consumers have embraced online shopping, particularly during and after the pandemic, causing traditional department stores to rethink their strategies. In contrast, Southern European countries like Italy and Spain have been slower to adopt e-commerce, though the trend is gaining momentum.

The e-commerce landscape in Asia is even more dynamic. China, the world’s largest e-commerce market, saw online sales contribute to nearly 50% of total retail sales in 2023, according to China Internet Watch. Platforms like Alibaba’s Tmall and JD.com have become the go-to shopping destinations, especially among younger consumers who value speed, variety, and the convenience of mobile shopping. Japan and South Korea are also key players in the e-commerce boom, with well-established digital infrastructures supporting a seamless online shopping experience.

Emerging markets like India present a different picture. While e-commerce is growing rapidly, driven by increasing internet penetration and smartphone usage, it still accounts for a smaller percentage of total retail sales compared to more developed markets. However, the trend is accelerating, with platforms like Flipkart and Amazon India expanding their reach, offering a significant challenge to traditional retail formats, including department stores.

Rise of Discount and Specialized Retailers

As e-commerce reshapes the retail landscape, the rise of discount retailers and specialized stores has further eroded the market share of traditional department stores. In Europe, discount chains like Lidl and Aldi have seen significant growth, appealing to consumers who are increasingly price-sensitive due to economic uncertainties. These stores offer a streamlined selection of products at lower prices, often undercutting the offerings of department stores. The success of these value-oriented retailers reflects a broader shift in consumer priorities, where cost savings and convenience often trump brand loyalty.

In Asia, the story is somewhat different. While discount retailers are gaining ground, the region has also seen a boom in specialized stores that cater to niche markets. In Japan, for instance, stores like Muji and Don Quijote have carved out a strong presence by offering unique, curated product selections that resonate with local tastes. In South Korea, beauty and skincare retailers like Innisfree and Olive Young have capitalized on the K-beauty trend, drawing consumers away from the one-size-fits-all approach of traditional department stores.

The Appeal of Direct-to-Consumer (DTC) Brands

Adding to the competitive pressures on department stores is the growing appeal of direct-to-consumer (DTC) brands. These brands have disrupted the traditional retail model by cutting out the middleman and selling directly to consumers, often through their own online platforms. This approach not only allows them to offer lower prices but also to build a more personal connection with their customers.

In the United States, DTC brands like Warby Parker and Glossier have set the standard for this model, offering high-quality, design-driven products that attract a loyal customer base. Their success has led many to open physical stores, not to replace their online presence but to complement it, creating a seamless omnichannel experience. Europe has seen a similar trend, with brands like Allbirds and Veja establishing their own stores, often in prime locations previously dominated by department stores.

In Asia, DTC brands are also making waves, though the approach is slightly different. Brands like Xiaomi have successfully integrated their online and offline strategies, using physical stores not just as sales points but as experiential hubs where consumers can interact with products before purchasing online. This strategy has proven effective in markets like China and India, where the combination of digital convenience and physical touchpoints resonates with consumers.

Across the globe, the rise of DTC brands highlights a key shift in consumer preferences: today’s shoppers value personalized experiences, transparency, and direct engagement with the brands they buy from. For department stores, this means that simply offering a wide range of products is no longer enough. To compete, they must rethink their business models, focusing on creating unique, tailored experiences that meet the evolving expectations of the modern consumer.

The Impact on Shopping Malls Globally

Vacant Spaces in Different Markets

The decline of department stores has left a visible mark on shopping malls across the globe, with vacant anchor spaces becoming increasingly common. In the United States, the situation is particularly stark. Once a staple of American retail, department stores like Sears, Macy’s, and J.C. Penney have either closed a significant number of their locations or drastically scaled back their presence. According to a report by Green Street Advisors, as of 2023, there are over 500 vacant department store spaces in the U.S., with more closures expected in the coming years. These vacancies are not just isolated incidents but part of a broader trend reflecting the struggles of brick-and-mortar retail in the face of e-commerce and changing consumer preferences.

Image credit: The Telegraph

In Europe, the scenario is somewhat similar, though with regional variations. The UK, for instance, has seen a significant number of department stores, including Debenhams and House of Fraser, close their doors, leaving behind large, empty retail spaces in malls and high streets. In Germany and France, the situation is less severe, but the pressure is mounting as consumers increasingly shift to online shopping. The impact is less pronounced in Southern Europe, where traditional shopping habits have been slower to change, but even here, the cracks are beginning to show.

Asia presents a more complex picture. In countries like Japan and South Korea, department stores have long been fixtures in urban centers, often occupying prime real estate. However, even in these markets, the rise of e-commerce and specialized retail is taking its toll. While the scale of vacancies is not as dramatic as in the West, the trend is unmistakable. In China, where rapid urbanization and a booming middle class once fueled the growth of large department stores, the shift to online shopping has led to a surplus of retail space in some areas. Malls that once thrived on the presence of major department store anchors are now grappling with how to fill these voids.

Creative Reuse of Spaces

Faced with the growing problem of vacant department store spaces, mall owners around the world are getting creative. In the United States, some of the most innovative solutions have involved turning these large, empty spaces into mixed-use developments. For example, the transformation of a former Macy’s in Seattle into a tech office for Amazon showcases how these spaces can be repurposed to meet the needs of a changing economy. Other malls have opted to convert vacant department stores into fitness centers, grocery stores, or even medical facilities, catering to the evolving demands of local communities.

In Europe, the approach has often been to integrate vacant spaces into broader mixed-use developments. Malls in cities like Berlin and Paris have started incorporating residential units, offices, and co-working spaces into their layouts, creating vibrant, multi-functional environments that attract a diverse range of visitors. This trend is particularly evident in the UK, where the repurposing of former retail spaces into entertainment venues, including cinemas and bowling alleys, is becoming increasingly common. The success of such initiatives reflects a broader recognition that malls must evolve beyond pure retail to remain relevant in today’s economy.

Asia, too, has seen a wave of creative reuse of vacant department store spaces, though the strategies vary by region. In Japan, for instance, some malls have transformed these areas into experiential zones, offering everything from virtual reality gaming centers to themed cafes that draw younger crowds. In South Korea, the emphasis has been on blending retail with entertainment and cultural experiences. A notable example is the transformation of a former department store space in Seoul into a large-scale bookstore and cultural complex, offering a mix of shopping, dining, and events that appeal to a broad audience.

In China, where the scale of vacant retail space is significant, the response has often involved turning these areas into community hubs. Some malls have introduced indoor playgrounds, art galleries, and even public libraries in place of traditional retail spaces, creating destinations that serve broader social functions. This trend is not just about filling space but about reimagining the role of malls in urban life, positioning them as centers of community and culture rather than just places to shop.

Globally, the challenge of vacant department store spaces has spurred a wave of innovation, with mall owners experimenting with new concepts and business models to attract visitors. The success of these initiatives will depend on their ability to meet the needs of modern consumers, who are increasingly looking for experiences that go beyond traditional retail. As malls evolve, the repurposing of these once-iconic spaces will play a crucial role in shaping the future of retail and urban development.

The Future of Brick-and-Mortar Retail Worldwide

Adapting to Regional Realities

As the retail landscape continues to evolve, brick-and-mortar stores are not standing still. Retailers around the world are adapting to the new realities of consumer behavior, though the strategies vary significantly by region. In North America, the focus has been on creating hybrid retail models that blend online and offline experiences. For example, retailers like Walmart and Target have invested heavily in omnichannel strategies, integrating their physical stores with robust e-commerce platforms. These efforts include curbside pickup, same-day delivery, and in-store pickup for online orders, all designed to meet the expectations of convenience-driven consumers.

In Europe, the adaptation has often taken the form of enhancing the in-store experience to offer something that online shopping cannot. High-end retailers in cities like Paris and Milan are doubling down on luxury experiences, offering personalized services, exclusive events, and curated product selections that attract affluent shoppers looking for more than just a transaction. Meanwhile, in markets like Germany and the Netherlands, there’s been a push towards sustainability, with retailers emphasizing eco-friendly products and practices to appeal to increasingly environmentally conscious consumers.

Asia presents a different set of adaptations. In Japan and South Korea, where technology is deeply integrated into daily life, retailers are leveraging digital innovations to enhance the shopping experience. Smart mirrors, augmented reality (AR) fitting rooms, and mobile payment systems are becoming standard features in stores, creating a seamless, tech-driven shopping environment that appeals to digitally savvy consumers. In China, retailers are experimenting with “new retail” concepts, where the lines between online and offline shopping are blurred. Alibaba’s Hema supermarkets are a prime example, offering a fully integrated experience where consumers can shop in-store, order online for home delivery, or even dine within the store, all while earning loyalty points that can be used across Alibaba’s ecosystem.

The Role of Market Research Globally

In this rapidly changing environment, market research has become an indispensable tool for retailers looking to stay ahead of the curve. Understanding evolving consumer needs and preferences is crucial, and this requires a nuanced approach that takes into account regional differences. Market research provides retailers with the data and insights needed to develop strategies that resonate with their target audiences, whether it’s through consumer surveys, focus groups, or advanced analytics.

Globally, market research is helping retailers identify emerging trends and opportunities. In North America, research has highlighted the growing importance of convenience and speed in consumer decision-making, leading to the expansion of services like same-day delivery and buy online, pick up in-store (BOPIS). In Europe, studies have shown a rising demand for sustainable products, prompting retailers to source eco-friendly materials and reduce their carbon footprints. In Asia, market research has revealed the increasing influence of social media on purchasing decisions, driving retailers to invest in influencer marketing and social commerce platforms.

By leveraging these insights, retailers can tailor their offerings to meet the specific needs of different markets, whether that means expanding their online presence, enhancing in-store experiences, or developing new product lines. Market research not only helps retailers understand what consumers want today but also anticipates future trends, allowing them to stay competitive in a constantly evolving landscape.

International Case Studies

Around the world, department stores are experimenting with various strategies to modernize and revive their brands. In the United States, one of the most talked-about efforts is the partnership between Amazon and Saks Fifth Avenue’s parent company, Hudson’s Bay Company, to acquire Neiman Marcus. This deal aims to leverage Amazon’s digital expertise to revitalize the luxury department store, integrating online and offline channels to create a seamless shopping experience. By combining Amazon’s vast data capabilities with Saks’ high-end brand image, the partnership seeks to attract a new generation of luxury consumers.

In Europe, the transformation of Selfridges in London offers another example of how department stores are adapting to the future. Selfridges has invested heavily in creating a destination experience, blending retail with entertainment, art, and dining. The store regularly hosts exclusive events, pop-up shops, and art installations, all designed to attract visitors beyond just shopping. This approach has helped Selfridges maintain its status as a must-visit location in London, even as other department stores struggle.

Image credit: Selfridges

Asia is also seeing innovative approaches to department store revitalization. In Japan, Isetan Mitsukoshi has introduced a series of digital innovations to its stores, including AI-powered personal shopping assistants and mobile apps that enhance the in-store experience. These efforts are part of a broader strategy to attract younger, tech-savvy consumers who are accustomed to the convenience of online shopping but still value the tactile experience of browsing in a physical store. Similarly, in China, Intime Department Store, owned by Alibaba, has embraced the “new retail” model, integrating online and offline channels to create a holistic shopping experience that appeals to the country’s digitally driven consumers.

These case studies highlight the different paths that department stores are taking to remain relevant in a rapidly changing retail environment. While the challenges are significant, these examples demonstrate that with the right strategies and a deep understanding of consumer behavior, brick-and-mortar retail will still be relevant in the future of global commerce.

Strategies for Survival Across Regions

Embracing Omnichannel Retail:

In the face of mounting challenges, the adoption of omnichannel strategies has become a lifeline for department stores worldwide. Omnichannel retailing is not just about having both a physical and an online presence; it’s about seamlessly integrating these channels to create a unified customer experience. This approach is crucial in a world where consumers expect flexibility—whether they want to shop online, pick up in-store, or have their purchases delivered the same day.

Image credit: Nordstrom

In North America, retailers like Nordstrom have been pioneers in implementing omnichannel strategies. Nordstrom’s “buy online, pick up in store” (BOPIS) service is a prime example of how traditional department stores can leverage their physical locations to complement their digital offerings. The company’s investments in mobile apps and in-store technology have also paid off, allowing them to offer services like curbside pickup and personal shopping experiences that are coordinated through digital platforms. These efforts have helped Nordstrom maintain a competitive edge in a market increasingly dominated by e-commerce giants.

Europe has also seen successful implementations of omnichannel strategies. In Germany, Otto Group, one of the continent’s largest e-commerce players, has effectively integrated its online and offline operations. By leveraging its extensive logistics network, Otto offers consumers a variety of fulfillment options, including home delivery and in-store pickup. The company has also focused on building a strong digital infrastructure, allowing it to respond quickly to changing consumer demands and market conditions. This flexibility has been key to its survival and growth in a highly competitive retail environment.

Image Credit: South China Morning Post

In Asia, where mobile technology is deeply embedded in everyday life, the integration of online and offline channels has taken on unique forms. In China, for instance, Alibaba’s Hema supermarkets are at the forefront of the “new retail” movement, blending the convenience of e-commerce with the immediacy of physical shopping. Customers can shop in-store, scan products with their smartphones for additional information, and even have their groceries delivered to their homes within 30 minutes. This model has proven highly successful in meeting the expectations of China’s tech-savvy consumers, and it offers a glimpse into the future of retail globally.

Focusing on Customer Experience:

While omnichannel strategies are essential, they are only part of the equation. To truly thrive, department stores must also focus on enhancing the in-store experience. In a world where consumers can buy almost anything online, the physical store needs to offer something more—whether it’s personalized service, unique product offerings, or an environment that encourages exploration and discovery.

In the UK, department stores like John Lewis have taken this approach to heart. Known for its exceptional customer service, John Lewis has doubled down on creating a welcoming and supportive shopping environment. The store offers personalized shopping services, where customers can book appointments with expert advisors who help them find exactly what they need. Additionally, John Lewis has invested in experiential retail, offering in-store workshops, events, and interactive displays that make the shopping experience more engaging and enjoyable.

Image credit: Shoppers Stop

In India, where retail is deeply intertwined with cultural and social practices, enhancing the in-store experience means understanding and catering to local preferences. Department stores like Shoppers Stop have successfully adapted by offering a mix of traditional and modern products, along with services that resonate with Indian consumers, such as personalized tailoring and home delivery of goods purchased in-store. By blending local sensibilities with global retail practices, Shoppers Stop has managed to maintain its relevance in a rapidly changing market.

Japan presents another interesting case study on the importance of customer experience. Department stores like Isetan and Takashimaya are renowned for their meticulous attention to detail and customer service. In a country where the consumer is king, these stores go to great lengths to provide a superior shopping experience. From offering impeccably wrapped purchases to having knowledgeable staff who can guide customers through their product selections, Japanese department stores have turned shopping into an art form. Additionally, they have incorporated cultural elements into their offerings, such as seasonal events and displays that celebrate traditional Japanese festivals, making the in-store experience not just about shopping but about cultural engagement as well.

Globally, the focus on customer experience is becoming increasingly important as consumers seek out more than just products—they are looking for connections, community, and a sense of belonging. Department stores that can tap into these needs while also offering the convenience and flexibility of omnichannel shopping are the ones that will survive and thrive in the years to come. The key is to understand the unique cultural and regional dynamics at play and to tailor the shopping experience accordingly, ensuring that every visit to the store is memorable and meaningful.

Final Thoughts

The decline of department stores is not just a retail issue—it’s a reflection of deeper shifts in consumer behavior and societal values. As we’ve explored, the rise of e-commerce, the growing appeal of discount and specialized retailers, and the increasing importance of omnichannel strategies have fundamentally altered the retail landscape. Consumers today are more empowered, more informed, and more demanding than ever before. They seek convenience, value, and personalized experiences, and they are not afraid to abandon brands that fail to meet these expectations.

The future of retail, and indeed the future of malls, hinges on the ability of retailers to adapt to these changes. The days of the traditional department store, with its sprawling floor plans and one-size-fits-all approach, are numbered. In their place, we will likely see a new breed of retail spaces—ones that are smaller, more specialized, and more attuned to the needs and desires of modern consumers. These stores will not just be places to shop but places to experience, to connect, and to engage with brands in meaningful ways.

The path forward for department stores that wish to remain relevant is clear but challenging. They must embrace innovation, leveraging technology to create seamless omnichannel experiences that cater to the digital consumer. They must also double down on the in-store experience, offering something that online shopping simply cannot—whether it’s personalized service, unique products, or an environment that fosters exploration and discovery.

But perhaps most importantly, retailers must listen to their customers. This is where market research plays a crucial role. Understanding the evolving preferences, behaviors, and expectations of consumers is not just an advantage—it’s a necessity. Retailers who invest in deep, ongoing market research will be better equipped to anticipate trends, adapt their strategies, and ultimately survive in a market that is more competitive than ever.

In the end, the future of malls and department stores will be shaped by those who are willing to innovate, to take risks, and to put the customer at the center of everything they do. The retail world is changing, and those who fail to change with it will find themselves left behind. But for those who rise to the challenge, the opportunities are endless. The question is: who will step up and redefine the future of retail?

Commemorating more than Three Decades of Global Impact with Fresh Programs and Celebrations

Kadence International, a leading international market research agency, is celebrating its 33rd anniversary. Founded in London in September 1991, Kadence International has since expanded its global footprint. Today, the agency helps brands make data-driven decisions across the world.

Over the past 33 years, Kadence International has grown from a single office in London to a network of ten offices across Asia, the United Kingdom, and the United States. Today, the company serves international brands from its offices in the U.S., U.K., Singapore, Japan, Indonesia, India, Thailand, Vietnam, the Philippines, and China. 

Kadence’s success is built on its commitment to uncovering insights from even the most difficult-to-reach audiences. This approach is driven by a deep curiosity about why audiences think and behave the way they do. This approach has not only differentiated Kadence in the market research industry but has also fueled the company’s growth and impact for over three decades.

To mark this milestone, all Kadence offices worldwide are joining in the celebrations, fostering a spirit of unity and collaboration. One of the key initiatives launched for the anniversary is the “Kaddie Konnect” program. Through this program, selected delegates, known as “Kaddies,” from various country offices will visit another Kadence office globally. These exceptional team members were chosen for their significant contributions to the company and their commitment to fostering international collaboration and sharing best practices.

Reflecting on this achievement, Ramsey Yomen, Global Managing Director, stated: “Reaching this incredible milestone of 33 years is a testament to the dedication and ingenuity of our people and the strength of our culture. Our success has always been built on the passion and commitment of our team, who continue to push the boundaries of what market research can achieve. As we look forward, we remain steadfast in our mission to raise the impact of market research for our clients and the industry worldwide. We are excited about the journey ahead and the opportunities to enhance our global reach and deliver transformative insights for many years to come.”

Miki Igarashi, Chairman, reflected on the company’s journey, saying: “As we celebrate 33 years of Kadence International, it’s inspiring to see how far we’ve come. Our ability to adapt and innovate has been key to our success, allowing us to meet the evolving needs of our clients and the industry. Looking ahead, my vision for Kadence is one of continued growth, stronger global connections, and an unwavering commitment to excellence. As we mark this 33-year milestone, I encourage everyone to take pride in our collective achievements and to embrace the exciting opportunities that lie ahead.”

Kadence’s 33rd-anniversary celebrations exemplify the company’s commitment to continuous innovation and global collaboration. Through programs like “Kaddie Konnect”, Kadence aims to strengthen its global connections and enhance its ability to deliver world-class market research insights.

About Kadence International

Kadence International is an award-winning global market research agency with a radically personal approach. With offices spanning Asia, the United Kingdom, and the U.S., the company is all about one-to-one connections. From real-time data collection to sharing powerful insights, great research starts with a deep understanding of people and ends with discovering game-changing opportunities. Kadence is about people, progress, and passion. 

Learn more about our services here.

Coined by cultural historian Jonathan Pontell, “Generation Jones” refers to the demographic born between 1954 and 1965. A cusp generation, they sit between the Baby Boomers and Generation X, combining the idealism of the Boomers with the pragmatism of Gen X. Often overshadowed by their more widely recognized generational neighbors, Generation Jones has quietly shaped markets and influenced trends, wielding significant buying power and cultural impact.

Understanding Generation Jones

CategoryDetails
Age RangeBorn between 1954 and 1965 (late 50s to mid-60s)
Family Status– Empty nesters or still supporting adult children- Grandparents or navigating second marriages
Career Stage– Approaching retirement- Extending work life for financial security- Leadership roles or entrepreneurship
Values and Attitudes– Shaped by key historical events (e.g., civil rights movement, Vietnam War, Watergate)- Financial caution due to recessions they’ve witnessed
Pragmatic and Skeptical– Less swayed by flashy marketing; prefer brands that fulfill promises- Prioritize value for money and long-term benefits
Tech Adoption– Embrace technology with a focus on ease of use and functionality- Discerning approach to new gadgets
Influence on Industries– Significant impact on healthcare, travel, finance, and home improvement sectors- Driven by a desire for security, convenience, and well-being

This generation came of age during a time of shifting societal landscapes—between the post-war optimism experienced by Boomers and the economic challenges that defined Gen X. They witnessed political disillusionment, recessions, and the rapid rise of technology, all of which have profoundly shaped their outlook on life and consumption. As a result, they are cautious yet aspirational, practical yet hopeful.

Understanding their unique mindset is essential for brands looking to connect with this influential group. Unlike Boomers, who enjoyed economic prosperity in their youth, and Gen X, known for their skepticism, Generation Jones seeks authenticity and value. They remember the promises of a brighter future and are still striving to make that future a reality. Brands that acknowledge and align with their ideals stand to gain the loyalty of this often-overlooked but highly influential demographic.

Gen Jones at a Glance

AttributeGeneration Jones (1954-1965)Baby Boomers (1946-1953)
Dates Born1954-19651946-1953
Cultural ContextGrew up during the late 60s and 70s; faced economic challenges in adulthoodCame of age in the post-WWII era; benefited from economic prosperity
Communication PreferencesPrefer direct communication; value authenticity and transparencyComfortable with traditional communication; prefer face-to-face or phone conversations
Technology AdoptionEarly adopters of personal computers and mobile phones; active on social media but value privacyMore cautious with technology; tend to use email and Facebook
Key BrandsApple, Microsoft, Nike, Levi’sFord, Coca-Cola, Sears, Harley-Davidson
InfluencersJon Stewart, Barack Obama, Oprah WinfreyElvis Presley, John F. Kennedy, Jane Fonda
ValuesPragmatic, skeptical, value individualityOptimistic, idealistic, value community and loyalty
Spending HabitsFocus on value and quality; willing to invest in experiences and self-careMore brand-loyal; spend on traditional goods and services
Media ConsumptionEnjoy both traditional media and digital content; stream TV shows, podcastsPrefer traditional media like TV and newspapers; gradually adopting streaming services
Political ViewsGenerally moderate to progressive; concerned with economic and social issuesTend to be more conservative, with a focus on economic stability and national security

Importance of Engaging Generation Jones

Significant Buying Power and Influence

Generation Jones may not always be in the spotlight, but their impact on the market is undeniable. As they enter their late 50s and early 60s, many within this group have reached the peak of their earning potential or are transitioning into retirement with solid financial standing. They are purchasing homes, luxury items, healthcare products, and, increasingly, financial services that secure their future. 

According to a Pew Research Center report, adults aged 55 to 64 in the US hold over $11 trillion in wealth, accounting for nearly 30% of the nation’s total net worth. 

Brands that overlook this generation risk missing out on a highly valuable consumer base that isn’t afraid to spend when a product aligns with their values.

Boomers Vs. Gen Jones —A Comparison 

CharacteristicBoomersGen Jones
Age RangeBorn 1946-1964Born 1965-1980
Cultural InfluencesPost-WWII optimism, social changeEconomic recessions, shifting societal norms
Technology AdoptionAdapted to technology, less reliant on itMore tech-savvy, embrace digital
Consumer BehaviorBrand loyal, price-conscious, less digitalCautious but informed, seeks practicality
Purchasing MotivationsLong-term value, brand trust, qualityLong-term benefits, brand transparency, reliability
ValuesStability, security, loyaltyAuthenticity, practicality, transparency
Brand PreferencesWell-established, traditional brandsBrands that offer reliability, practicality, and long-term value

Brand Perspective: Engaging Generation Jones

So, how can brands effectively connect with this influential generation?

Tailored Marketing Strategies

  • Emphasizing Authenticity and Transparency:
    • Generation Jones grew up during political and social upheaval, making them more skeptical of brands that make grand promises without delivering. They value brands that are honest and straightforward in their messaging. Companies that are transparent about their products, practices, and pricing are more likely to win the trust and loyalty of this generation.
    • Authenticity is key. Avoid overly polished, insincere marketing. Instead, focus on real stories, genuine testimonials, and clear, no-nonsense communication. Brands committed to quality, ethics, and customer care will stand out for Generation Jones.
  • Highlighting Value and Practicality:
    • This generation is highly pragmatic, having experienced economic recessions and uncertain financial times. They prioritize products and services offering real value for their money. Marketing efforts must emphasize how a product solves problems, enhances daily life, or provides long-term benefits.
    • Avoid trendy or frivolous appeals; demonstrate how your offerings align with their practical needs. Showcasing durability, health benefits, or cost-effectiveness can resonate well with Generation Jones consumers.

Product and Service Innovations

  • Catering to Health, Wellness, and Lifestyle Improvements:
    • As Generation Jones ages, health and wellness become increasingly important. Brands that offer products and services promoting physical health, mental well-being, or an active lifestyle can strongly appeal to this demographic. Think fitness equipment, nutritional products, stress relief solutions, and wellness services.
    • Beyond physical health, lifestyle improvements are also key. Whether it’s home improvement products that enhance comfort and convenience or financial services that help secure their future, Generation Jones seeks offerings that make life easier and more enjoyable.
  • Incorporating Technology in a User-Friendly Manner:
    • Generation Jones is tech-savvy but values functionality over flashiness. When incorporating technology into your products or services, prioritize user-friendly design and intuitive interfaces. Whether it’s smart home devices, healthcare apps, or online financial tools, simplicity and ease of use are paramount.
    • Brands should also consider offering resources to help this generation get the most out of technology, such as tutorials, customer support, or user communities. This helps bridge the gap between their interest in tech and any potential frustration with overly complex systems.

Loyalty and Rewards Programs

  • Offering Tangible Rewards and Incentives:
    • Generation Jones appreciates loyalty programs that provide real, tangible benefits. Points systems, cashback offers, discounts on future purchases, and personalized deals are effective ways to engage them. They are likelier to participate in programs offering practical value rather than abstract perks.
    • This generation also values consistency and reliability. Loyalty programs that offer ongoing rewards over time, rather than one-off incentives, will keep them returning.
  • Building Emotional Connections Through Personalization:
    • Personalization is crucial when engaging Generation Jones. Tailoring experiences based on their preferences, purchase history, and needs helps build a deeper connection. Whether it’s personalized emails, birthday offers, or product recommendations, Generation Jones values brands that recognize and respect them as individuals.
    • Emotional connection also comes from recognizing their milestones, such as retirement planning, grandchildren’s milestones, or life transitions. Brands acknowledging and supporting them through these key moments can foster a lasting bond.

Market Research Perspective: Insights on Generation Jones

Consumer Behavior Analysis

  • Purchasing Patterns and Decision-Making Processes:
    • Generation Jones tends to be deliberate in purchasing decisions, reflecting a careful balance between value and quality. They prioritize practicality and often lean toward well-established brands that have stood the test of time. Their decision-making process typically involves thorough research, comparing options, reading reviews, and seeking recommendations from trusted sources.
    • This generation has significant disposable income but prefers to spend it wisely. They are more likely to invest in products that offer long-term benefits, such as home improvements, health-related products, and financial security services. Brands should be aware Generation Jones consumers take a calculated approach, often focusing on durability, reliability, and the overall return on investment when making purchases.
  • Media Consumption Habits and Preferred Communication Channels:
    • Generation Jones grew up during the transition from traditional media to digital, so they are comfortable with both. They consume media across various channels, including television, radio, print, and online. However, unlike younger generations who favor social media, Generation Jones is likelier to engage with email marketing, newsletters, and well-curated digital content.
    • Their media consumption tends to favor news outlets, health-related content, and educational resources. Brands looking to reach Generation Jones should focus on trusted, authoritative sources rather than flashy social media platforms. Podcasts, YouTube tutorials, and articles on reputable websites are also popular mediums.

Conducting Surveys and Focus Groups

  • Gathering Qualitative Data to Understand Their Motivations and Pain Points:
    • Qualitative research methods, such as in-depth interviews and focus groups, are essential to truly understanding Generation Jones. These approaches allow researchers to explore the motivations, attitudes, and emotions driving their decision-making.
    • By asking open-ended questions, brands can uncover the specific pain points that Generation Jones experiences—navigating new technology, planning for retirement, or maintaining health and wellness. Understanding these pain points can help brands tailor their messaging and product offerings to better meet the needs of this generation.
  • Using Data Analytics to Identify Trends and Preferences:
    • Quantitative research, including surveys and data analytics, is critical in identifying broader trends and preferences among Generation Jones. Analyzing purchase data, online behavior, and survey results allows researchers to segment this generation into sub-groups based on lifestyle, financial status, and geographic location.
    • Data analytics can also reveal how Generation Jones interacts with brands, such as their preferred shopping channels (e.g., in-store vs. online), the types of products they purchase most frequently, and their sensitivity to pricing and promotions. This data-driven approach helps brands refine their strategies to cater more effectively to Generation Jones’ evolving needs.

Segmenting and Targeting

  • Identifying Sub-Segments within Generation Jones for More Precise Targeting:
    • While Generation Jones shares common experiences, it is not a monolithic group. Segmenting it into more specific subgroups can help brands create more targeted campaigns. For example, Generation Jones can be divided by life stage (e.g., those nearing retirement vs. still working full-time), health status, or financial situation.
    • This segmentation allows for more personalized marketing efforts. Brands can create tailored messaging that speaks directly to the needs and aspirations of each sub-group. For instance, one segment may be more interested in financial planning products, while another might prioritize health and wellness solutions.
  • Customizing Campaigns Based on Regional and Cultural Differences:
    • Regional and cultural differences also play a significant role in shaping the preferences and behaviors of Generation Jones. For example, in Western markets, this generation may prioritize retirement planning and homeownership, while in Asian markets, family and community responsibilities might take precedence.
    • Understanding these regional and cultural nuances allows brands to customize their campaigns accordingly. Market research should include national trends and localized insights that reflect the unique values and challenges Generation Jones faces in different regions. This customization can distinguish between a campaign that resonates and one that falls flat.

How does Gen Jones differ around the world?

Generation Jones shares a generational experience, but the cultural and economic realities of being part of this generation differ significantly across Western and Asian markets. Whether they are in the US or UK or in countries like Japan, China, Singapore, or India, their outlook, spending habits, and values are shaped by local factors.

Western Markets: United States and United Kingdom

In the US and UK, Generation Jones is often viewed as a bridge between the Baby Boomers, who grew up in post-war economic prosperity, and Generation X, who faced more economic uncertainty. As a result, Generation Jones in these regions is characterized by a mix of optimism and pragmatism. They experienced the tail end of economic boom years but also lived through the oil crisis of the 1970s and the economic downturns of the 1980s.

  • Economic Positioning: Many in Generation Jones in the US and UK have reached the peak of their careers and are financially secure. According to a report by the Pew Research Center, in the US, adults aged 55 to 64 hold over $11 trillion in wealth, accounting for nearly 30% of the nation’s total net worth. In the UK, this generation controls a substantial portion of the country’s wealth, with many owning property outright or holding significant pension savings.
  • Spending Habits: In Western markets, Generation Jones invests in health, wellness, and leisure. As they approach retirement, their spending shifts toward experiences like travel, but with an emphasis on value for money. Health-related products and services are also a priority, with this generation willing to spend on maintaining their well-being.

Generation Jones in Asian Markets

In major Asian markets, Generation Jones faces different challenges and opportunities. Cultural values, economic realities, and social structures significantly impact how this generation navigates their later years.

  • Japan: Japan’s Generation Jones, born during the country’s post-war economic recovery, is now navigating a society facing demographic challenges such as aging and low birth rates. According to Japan’s Ministry of Internal Affairs and Communications, individuals in their late 50s and early 60s account for a significant portion of Japan’s consumer spending, particularly in healthcare, wellness, and leisure. Many in this generation also support adult children, a common cultural expectation in Japan.
  • China: In China, Generation Jones is often referred to as the “Post-60s Generation.” Growing up during the Cultural Revolution and the early years of economic reform, they are marked by a strong work ethic and a desire for stability. This generation is focused on securing their financial future and is heavily invested in real estate and retirement planning. A study by McKinsey indicates that Chinese consumers aged 55-65 prioritize financial security and are increasingly adopting digital financial services to manage their wealth.
  • Singapore: Singapore’s Generation Jones has benefited from the city-state’s rapid economic development. Many in this generation have reached senior positions in business and government, and their wealth accumulation reflects this. They are often focused on health and wellness but invest in luxury goods and experiences as they seek to enjoy the fruits of their labor. According to a survey by the Singapore Department of Statistics, older adults in Singapore increasingly spend on travel and high-end products, with a 15% rise in discretionary spending among those aged 55-64.
  • India: In India, Generation Jones faces a unique blend of traditional expectations and modern challenges. Many still support large, multigenerational households, impacting their spending priorities. Despite this, they are increasingly investing in their health and wellness, with the market for health-related services and products growing rapidly in this demographic. According to the Economic Times, India’s health and wellness market is projected to grow by 12% annually, driven by the aging population’s focus on maintaining an active lifestyle.

Financial Services and Retirement Behavior

As Generation Jones approaches retirement, their financial behaviors and priorities are shifting. In both Western and Asian markets, this generation is increasingly focused on securing their financial future and ensuring a comfortable retirement. They actively engage with financial services, from retirement planning to wealth management, to safeguard their assets and plan for the years ahead.

  • Retirement Planning: In the US and UK, Generation Jones is heavily invested in retirement savings, with many relying on pensions, 401(k) plans, and other investment vehicles to secure their financial future. In Asian markets, particularly in China and Singapore, this generation is also focused on building a robust financial safety net, with a growing adoption of digital financial services that cater to their needs.
  • Health and Long-Term Care: As healthcare becomes a top priority, Generation Jones invests in health-related financial products like long-term care insurance. In countries like Japan and India, where family support systems are still prevalent, this generation balances their financial security with the need to support aging parents and adult children.

Personalization and Emotional Connection

Personalization is becoming increasingly essential as Generation Jones expects more tailored and meaningful experiences with brands. Data-driven personalization allows brands to meet this generation’s unique preferences by offering products and services that align with their values and lifestyles.

  • Leveraging AI-Driven Personalization: With the advancement of AI and machine learning, brands can analyze consumer data to create highly personalized experiences for Generation Jones. This might include personalized financial advice based on retirement goals or targeted health products based on wellness priorities.
  • Emotional Connection: Building emotional connections through personalization can help brands stand out. By recognizing key milestones such as retirement or grandparenthood, brands can deepen their relationship with Generation Jones and foster long-term loyalty.

Case Studies of Successful Global Brand Campaigns 

Dove’s “Real Beauty” Campaign

Image Credit: CBC

Overview

Dove’s “Real Beauty” campaign, launched in 2004, became a global phenomenon because it focused on authenticity and inclusivity. The campaign resonated strongly with Generation Jones, who value genuine representations over idealized or unattainable images.

Strategy

Dove emphasized authenticity by featuring real women of different shapes, sizes, and ages rather than models. This approach aligned with Generation Jones’ preference for brands that offer transparency and sincerity in their messaging.

Outcome

The campaign helped Dove build strong brand loyalty among Generation Jones consumers, increasing sales and long-term customer retention. Dove’s sales increased by 700% in the decade following the campaign’s launch, demonstrating the power of connecting with this generation on an emotional level.

Apple’s iPhone Marketing

Image Credit: Campaigns of the World

Overview

Apple’s marketing strategy has consistently catered to Generation Jones by positioning its products as innovative and user-friendly. Apple understands this generation values technology that simplifies life without the steep learning curve.

Strategy

Apple’s messaging emphasizes practicality, ease of use, and longevity—key selling points for Generation Jones. Their product ads showcase real-life scenarios where technology enhances daily activities, from staying connected with family to managing health and fitness.

Outcome

Apple’s approach has solidified its appeal among Generation Jones, with many adopting iPhones as their primary device. In a 2021 study, a significant portion of older iPhone users (ages 55-64) cited ease of use and reliability as key reasons for their brand loyalty.

Lessons from Market Research

Pew Research Center’s Study on Generational Media Consumption

  • Key Findings: A Pew Research Center study found Generation Jones consumes both traditional and digital media, making them a versatile audience for brands. Unlike younger generations, who lean more heavily on social media, they are particularly engaged with email newsletters and online news platforms.
  • Application in Strategy: Brands like The New York Times have leveraged this insight, tailoring their email marketing and digital subscription services to cater to this generation. The New York Times has successfully attracted and retained Generation Jones subscribers by offering well-curated content and personalised recommendations.
  1. AARP’s Research on Health and Wellness Trends
    • Key Findings: Research conducted by AARP highlighted that health and wellness are top priorities for Generation Jones as they age. This generation is highly motivated to maintain an active and healthy lifestyle but seeks products and services that are practical and easy to integrate into their daily routines.
    • Application in Strategy: Brands like Fitbit and Peloton have capitalized on this insight by offering wearable fitness technology and home exercise solutions that appeal to Generation Jones. By focusing on simplicity, accessibility, and long-term health benefits, these brands have successfully engaged this demographic, contributing to the growth of the wearable fitness market among older consumers.

Glocalization: Adapting Global Strategies to Local Markets

One of the most effective ways for brands to connect with Generation Jones in different markets is through glocalization—adapting global strategies to fit local cultural contexts. This approach allows brands to maintain a consistent global message while catering to the specific needs and preferences of Generation Jones in various regions.

  • Global Brand Values with Local Nuances: Brands like Unilever and Procter & Gamble have successfully implemented glocalization strategies, ensuring their global values resonate with local consumers. For example, while Dove’s famous “Real Beauty” campaign has a universal message, the execution may vary in different markets to reflect local beauty standards and cultural nuances.
  • Localized Financial Services: Financial services brands can benefit from glocalization by adapting global retirement planning products to suit local market regulations, cultural attitudes toward saving, and investment preferences. This ensures Generation Jones in different regions feels understood and catered to by their financial institutions.

Final Thoughts

As we’ve explored, Generation Jones is a powerful yet often under-recognized demographic that brands cannot afford to overlook. Understanding and engaging with this generation requires a careful balance of authenticity, practicality, and respect for their experiences. By recognizing their significant buying power and addressing their unique needs, brands can build strong, lasting relationships with this influential group.

Leveraging market research is essential for developing strategies that resonate with Generation Jones. Insights into their purchasing patterns, media consumption habits, and decision-making processes allow brands to craft targeted campaigns that connect on a deeper level. By segmenting this generation and tailoring approaches based on regional and cultural differences, brands can effectively engage Generation Jones.

Looking ahead, it’s clear that Generation Jones’ needs and preferences will continue to evolve as they age. Health, wellness, and financial security will remain top priorities, but new trends will emerge as they adapt to technological advances and societal changes. Brands must stay ahead of these shifts by continuously refining their strategies, staying attuned to emerging insights, and focusing on delivering value.

Now is the time for brands to invest in deeper research and innovative strategies to better serve Generation Jones. Understanding this generation’s unique experiences, values, and needs will allow your brand to stand out and forge meaningful connections. By prioritizing authenticity, practicality, and long-term value, your brand can win the loyalty of this powerful demographic and drive sustained growth in the years to come.