Tips for retailers

Winning kids & youths as customers

Youngsters are extremely sensitive about their ages: a ten-year-old is MUCH older than a seven-year-old, and fourteen-year-olds will be mortified to be lumped together with twelve-year-olds. To dare suggest that an eight-year-old is on par with a pre-school six-year-old would be unwise — and to treat a six-year-old the same as a BABY of four, would be met with disdain.

Yet, when it comes to footwear, the label kids is supposed to cater for everyone from four to fourteen, depending on their shoe size.

Big mistake, said Ingo Barlovic, Executive Director of Iconkids & Youth International Research, at the Kids Business Brunch lecture held during the recent GDS footwear & accessories trade show in Düsseldorf, Germany.

Especially, since the kids market is huge.

People will go without holidays and other luxuries, but they will spend money on their offspring. And since young feet are constantly growing, the shoe market is a regular recipient of this spending. “Children have money, children have incredible power when it comes to shopping, and shoe retailers still don’t appreciate them sufficiently,” warned Barlovic. According to him, the six-nineteen-year-olds in Germany spend about €4.42-bn on shoes and clothing per year.

What is more, their lifelong shopping habits, and brand preferences, are formed between the ages of twelve-sixteen… lose them at that young stage, and you lose them for life.

He cited several consumer studies showing how brand preferences formed in the teenage years stay with people for the rest of their lives. That is why the Baby Boomers, who were teens in the sixties, still wear denim jeans and get nostalgic when they hear Beatles songs… and will still be partial to them when they move into old age homes.

Children aged eight-nine do not yet have entrenched brand preferences and will still hop and shop around, he says, but from age eleven-twelve their likes and dislikes become far more entrenched. A brand — or store — that does not appeal to fourteen-sixteen-year-olds has also lost tomorrow’s shoppers.

Yet, says Barlovic, shoe retailers are still not doing enough to turn this important target group into more loyal shoppers.

Most shoe stores have a children’s section, and the rest of the store is dedicated to adults. “But where does the twelve-year-old go? Where does the fifteen-year-old shop? If your store does not attract teenagers, they will not return to shop with you once they become adults. If teenagers can’t find the shoes they look for in your store, they’ll go to a store where they will find them — and keep on shopping in that store.”

Why do they buy?

“Chaotic shoe stores with a hotch-potch of departments should be a thing of the past,” says Barlovic.

A store that wants to successfully cater for the kids market must take into account that the tastes, needs and shopping habits can vary tremendously. Children is by no means a homogeneous market sector that you can simply classify by shoe size.

Age and gender play a major role in what children like, and to make it even more difficult to cater for this market, target age groups can be as short as a year or two.

Also, pre-teen boys live in completely different worlds to pre-teen girls.

Also, don’t make the mistake of believing that you have to sell to parents in order to clad their offspring’s feet. Even the young ones have opinions when it comes to choosing shoes, says Barlovic. For example, European studies show that about 70% of six-year-olds have their own way when shopping for shoes.

“Young children determine what shoe design they want, as they get older they decide the brand — and all children have the power of refusal when they don’t want something,” he says.

Even when mothers do make the choice, they do not only consider factors like price, durability, practicality etc. In one German survey 98% mothers said that their kids’ welfare is the most important factor when buying for them, says Barlovic.

Nearly three-quarters of the mothers surveyed said they wanted to show off with their kids when they bought items for them, and 86% admitted that admiration for their children also reflected well on them… and buying clothes and shoes for their children presented the most visible way of showing off their kids.

Kids (or rather, young people) of all ages buy shoes and clothes for the look and feel and design, the quality really makes no difference, especially since they must have something new all the time. They want diversity, not durability.

They also want clear product information, an age-related approach when goods are displayed, variety in offering and an acknowledgement of their basic age and gender-specific needs… whether that is in-store or through advertising marketing.

Themed worlds

“Regularly offer all of the target groups something new, alternate your ranges and — above all — create experience realms in your stores to address the needs and tastes of your young clientele in a very personal manner,” recommends Barlovic.

Years ago a study found that bookstores with kids’ corners filled with soft, cuddly toys failed — until they introduced themed designs incorporating characters from popular books, he continues. Introducing characters like Harry Potter or Asterix create a new world — not merely a nice and beautiful cuddly area, but a totally different world.

It is important to remember that children only play along with you if you show that you take them seriously, Stefan Bollert, owner of management consulting firm Lizco, told a Kids Business Brunch held during the 2008 March GDS show.

“Only those things that play a role in children’s worlds today and fulfil their current needs are accepted by them.”

In other words, My Little Pony, so beloved by girls sixteen years ago, will mean nothing to modern youngsters.

When using animated characters in presentation or advertising, make sure that they look age appropriate. Barlovic used a bear as an example: two-four-year-olds want a bear to look like a teddy bear, but as they grow older, children’s perception of what a bear looks like changes. To interest fourteen-sixteen-year-olds in a bear, it must look comical, but not gross.

A TV-series like Takalani Sesame would appeal to the very young, but even pre-teens watch the decidedly more adult anime movies. And beware of sell by dates: Dragonball Z, for example, has passed its prime.

Themed characters that will appeal to the different age groups, according to Barlovic:

» Girls (in Germany): Sponge Bob, then Tokio Hotel, Heidi Klum and the cartoon character Lilly Fee (aged 6-9). Thereafter High School Musical, Hannah Montana, Idols and Heidi Klum.
» Boys: all ages — sport stars. Under 10’s like Sponge Bob, then The Simpsons. At thirteen-fourteen-years they watch crime series like CSI. From seventeen-year-old sport stars share their affection with Angelina Jolie. Boys think Tokio Hotel lead singer Bill Kaulitz is a “daisy and a wimp”.

Linking a product or marketing campaign to a pop or sport star can work — but it can also backfire if there is a scandal or the star loses their appeal (e.g. Britney Spears). They must also fit the type of store and target market.

Add a gift

How do you convince kids to eat health foods? asks Barlovic. “You add a gift.” Therefore, if a kid buys a Hannah Montana watch, why not add a sticker book?”

Stickers and sticker books are especially successful marketing tools, because girls would want to collect as many as possible to fill the book.

But, if you advertise that you are giving a gift like a CD away with each purchase, make sure that you include that CD with every one. “There are many things you can do to attract these customers — as long as you do it well and properly, otherwise it will backfire,” warns Barlovic.

The kids market is getting smaller, as kids nowadays behave like youths at a much earlier age. They act like the older age group at a younger-and-younger age, therefore rather err on treating them as part of an older, rather than younger, group.

This is just an extension of the way society looks at young people, even babies. For example, years ago a good baby was round and soft and gurgling happily, says Barlovic, “now we want babies to go to crèche, to learn languages at an early age. Now we look at a baby and see a potential future CEO.”