Digital CPG Blog

Marketing Daily recently asked Paul Parkin, founding partner of SALT Branding, an integrated brand consultancy in San Francisco, to make sense of Gen Y and brands. Here are two key takeaways from the interview:

1) Gen Y is less loyal. “They grew up in an age when there was always a new site emerging that was better than the old one, and they’re happy to leave it behind. But they are more loyal to channels. They may not be loyal to any brand of shoes or department store, but they are loyal to the Internet channel, and brands like Zappos.com and Amazon”

2) Use Social Media to keep up w/ Gen Y. “The fastest-moving consumer companies, like Virgin, Red Bull and Pepsi recognize that consumers want to engage with brands in entirely new ways, such as through mobile or social media. And they know people want to do it on their own terms.”

In the new digital age, channels and those brands increasingly rule. We’ve seen it in marketplaces like Orbitz and e-Bay where young consumers are given all the tools to find information and make the best decision.

I’m always reminded of the movie Miracle on 34th Street where the fictional Macy’s store opens up the door on pricing and allows their customers to compare prices  to all of their competitors right there in the store. What a revolution that was!

In the CPG sector, sites like our own Alice.com also work hard to bring the power back to the consumer, empowering them with a wide range of unbiased information to find the best products. Such transparencies are surely a big reason why channels are outperforming individual brands.