Is 'Generation Y' ready to buy?

From 1965 until 1975, about 40 million American babies, destined to become a generation of society's blacklisted slackers, were born. Generation X could not compete with the ranks of the Baby Boomers, who by 1965 were 75 million strong and looking forward to their chance to take over the world. Generation X was forced to grow slowly in the looming shadow of the free-spirited Baby Boomers, which created a stigma that has never been diminished. \nEveryone has seen the headlines and psychological debates waged on Gen X's misunderstood ideals. But who has heard of Generation Y?\nKeith Naughton, Detroit bureau chief for Newsweek magazine, wrote about certain traits unique to Generation Y in an Oct. 21 article, "Hip to be Square."\n"Gen X was comprised of the disillusioned, forgotten little siblings of the baby boomers, it was all about things not turning out as well for them as for the boomers," Naughton said. "The formative years of Gen X were the recession of the early 90s and the Gulf War, which were painful events." \nGen Y has been referred to as the "millennials," and the "echo boom," but they can be described more specifically as "Kids under the age of 23, maybe 15-23, high school and early college aged kids," said Ricki Farquer, Generation Y coordinator for the Amarillo Globe News based in Amarillo, Texas. \nGen Y has been raised thinking it's going to replace the Baby Boomers as the next generation that gets to run the world, and soon, it will begin the takeover by becoming America's largest consumer group. \n"Through the 90s you've had an unprecedented era of prosperity, their parents were doing well, they were baby boomers who were indulging them and giving them anything," Naughton said.\nThat "anything" includes a college education for many Gen Yers, according to Richard Canada, executive director of Center for Sales Studies and Market Intelligence at IU. \n"You and your friends have parents paying for your education, because the boomers made all this money and handed it over to their kids," Canada said. "Thirty years ago, that money didn't exist."\nAs the first members of Generation Y start to graduate, the marketers will be waiting with outstretched arms and coupons, ready to sell them their first cars, homes, and just about everything else. \n"Where we're at now with Gen Y is where the baby boomers were 30 years ago, just getting out of college," Naughton said. "The first wave is coming out of college, getting their first jobs. And usually, people can afford their first cars before their first house, so car companies will come at them before reality companies."\nThe car companies certainly haven't waited for all of Gen Y to get its first jobs. Michael Wood, vice president of Teenage Research Unlimited in Northbrook, Ill. said that Honda has already been innovative in attempting to appeal to the Gen Y demographic. \n"Honda had a contest with Blink 182, they sent the Honda Civic on tour with the band, and attendees could register to win it," Wood said. "With Generation Y, it's all about doing something surprising, or out of the ordinary." \nGreg Livingston, vice president of Wonder Group, the nation's leading independent youth-marketing agency said that Honda isn't the only car company trying new things. \n"Take for example companies such as Volkswagon or Mitsubishi," Livingston said. "They are targeting particularly lower priced entry level vehicles, specific to what Generation Y will want to purchase." \nCar companies are not alone in their quest for the fresh taste of new consumer dollars. For example, Abercrombie & Fitch did not start out as a popular brand of clothing. \n"Abercrombie has been around for 50 years, it used to be a houseware company," Livingston said. "When they saw there was an underserved market they completely restructured to meet the needs of Generation Y."\nLivingston and Wood agreed that the most effective way to advertise to Gen Y is grass roots advertising.\n"It's not all about a television commercial anymore," Livingston said. "That could still be important, but you see more grass roots advertising now. Brands are getting out to where Gen Y hangs out, at malls, events, even Web sites." \nWhile Generation Y is seen by many companies as holding the key to its financial futures, the members of Gen Y go on with their lives, trying to successfully reach the point when they will be able to afford the merchandise being thrust in their direction.