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This year it seems like Amazon’s Prime Day sent parents and kids back to school with early special back-to-school deals. According to Deloitte, parents are set to spend $510 per household during back-to-school shopping and most will be in stores, reports CNBC.
How big is the retail season now? Bigger than you might think. The back-to-school season now runs between July and September, during which time American households are projected to spend $27.6 billion. This means it ranks second only to holiday shopping.
According to Daphne Howland of Retail Dive, it turns out most parents and kids dread this kind of shopping. Most American parents (75%) and teens (73%) say back-to-school shopping causes tension, including which brands to buy. Predictably, fully half of parents find shopping for clothing and shoes a particular problem, while 30% of teens most dread shopping for school supplies.
Here is where brick-and-mortar shopping really shines, where over 50% of the money will be spent at malls and traditional brick-and-mortar retailers, more than double the amount parents expect to spend online. In on the fun are many local SMB retailers as well.
Back to School Marketing Tips for SMBs
As for marketing tips for small businesses, the likes of POS leader Vend and Shopify have some great suggestions. The bulk of this will be spent on clothing, electronics, shoes and school supplies in that order.
The National Retail Federation was bull in their analysis of this seasonal sale, where total back-to-school spending has grown 55% over the past 10 years. For GenZ college students, the amount spent moves up to an average of $942.17 each.
So what can SMBs do to compete in this incredible opportunity to increase retail sales? Clothing and apparel, as well as footwear, are good verticals that could show growth here.
Weirdly, the fastest growing retail chain in America is actually an Irish discount retailer you’ve never heard of, called Primemark. The low-cost European apparel chain is making its mark on American soil and plans to quickly expand. It took first overall as the fastest-growing retailer in the United States, according to a report from the National Retail Federation’s Stores magazine, which used sales data from Kantar Consulting.
According to Francesca Nicasio, Vend’s content marketing lead writer, here are some ways retailers can keep up:
1. Make Marketing Promotion Sync with the Hottest Trends
- Hone in on GenZ trends to build opt-in and increase demand.
- Start with the right products that are most likely to sell during this season.
- Showcase merchandise in school scenarios to increase the first impression
2. Make Campaigns More Kids & College Student Friendly
- Base promotions on surveys of kids and teens in your local area.
- Get kids and GenZ to be as involved as possible with UGC campaigns and contests.
- Create promotions that are made by GenZ for GenZ. Target even got kids to write and produce promos and it turned out well for them.
Shopify also identifies apparel as the key vertical SMBs can get in on. According to the NRF survey, back-to-school shoppers heading to elementary and high school plan to spend the most on clothing ($236.90). That’s a good range of clothing items.
3. Leverage Social Media Differently to Target GenZ as Compared to Millennials
Retail brands and marketers must understand GenZ are more video native and have a lower attention span as compared to Millennials. Shopify, therefore, recommends the following strategies:
- Generate buzz through giveaways
- Partner with GenZ influencers
- Retailers need to leverage mobile to better reach GenZ
- Focus on trending verticals of apparel such as Athletic Wear & footwear
4. Leverage Niche Items to Can’t-Miss Products
With consumer sentiment high, SMBs can also leverage niche items that GenZ might not need but instead want. Shopify suggests for college-age GenZ, these could be:
- Multifunctional pieces for dorm rooms
- Personal care and grooming items
- The “Marble Theme” on dorm furnishings like pillows and throw blankets.
- Fancy water bottles and pencil case supplies
Whatever your strategy has been since June, you have just a few days left to make sure 2018 is your best back-to-school season ever. It’s a big year for retail sales in this segment.
With the economy doing well, this year back to school means back to shopping and that “old school” trend coincides with the reputation of GenZ as loving physical shopping. There are more GenZ than there are Millennials and their impact on family spending is considerable. As more of them enter their 20s, the apparel sector is a good opportunity in good hands.