The old value-add?
Back in the day, I always heard the term “value-add,” as the kind of extra a seller threw in to show the product or service was worth the price being asked. An article argues those small extras appeal to Millennials, especially in the beauty markets. Other popular spending categories included cell phones and Uber rides.
Points:
- A proxy for the Fountain of Youth? “…American consumers are transfixed on youth (something makeup can provide).”
- Small things give a big feeling? “…spending money on makeup can feel like a ‘small indulgence.'”
- Goliath beaten by a bunch of Davids? “…while department stores used to be a key destination for beauty many of the mainstream players have been outsmarted by specialists.”
- All about the experience? “…they [specialty stores] sell experiences – something millennials love.”
Enthusiasts will say Millennials have transcended material desires, so little things will suffice. Cynics may say Millennials go for this because they can’t afford larger luxuries due to overly high expectations collide with student debt and underemployment.
I’m not sure either one is the only reason. Called engagement marketing, the approach of getting consumers to participate with the brand has been spreading among sellers. Agencies specialize in creating experiences that lead to buyer engagement. Maybe the observation about Millennials is one manifestation of that approach.