- Millennials’ indifference or outright disdain have sent a wide range of industries into a slump in recent years.
- From golf equipment makers to razor manufacturers, changing millennial tastes have hit some companies hard.
- Here’s a list of industries that are struggling to keep up.
But, in 2018, failing to win over millennials can mean the difference between growth and death for an industry.
Millennials are growing up, moving out of their parents’ homes, and having kids of their own. But, their tastes still don’t necessarily line up with those of the generations that came before in some key ways.
From napkins to motorcycles, here are the industries that have been hit hardest by millennials:
Casual-dining chains like Buffalo Wild Wings and TGI Fridays
Executives may say that the death of the industry at the hand of millennials has been overstated.
However, the fact remains that brands such as Buffalo Wild Wings, Ruby Tuesday, and Applebee’s have faced sales slumps and dozens of restaurant closures as casual-dining chains have struggled to attract customers and increase sales.
Couples are increasingly ditching banquet halls and hotel reception rooms in favor of unconventional venues such as barns and farms, according to a survey from wedding website The Knot.
In general, weddings — from venues to dresses — are becoming more casual. Wedding planners told Business Insider that many clients are getting married later and funding their own weddings, meaning they don’t have to stick to their parents’ traditions.
“Ten years ago brides and grooms were relying on their parents to solely fund weddings,” said one planner. “Now people are empowered by doing what they want to do and they want it to be a reflection of who they are.”
Millennials simply aren’t drinking as much beer as generations past.
Beer consumption among drinkers from 21 to 24 has fallen roughly 3% per year over the last 15 years. Beer penetration fell one percentage point in the US market from 2016 to 2017, while both wine and spirits were unmoved, according to Nielsen data. And, per-capita consumption of beer in the US dropped by nearly 10% from 2008 to 2017, according to Euromonitor data.
The brands that are being hit the hardest include massively popular American brands such as Coors and Bud Light.
An article in Philadelphia magazine with the headline ” target=”_blank”How Millennials Killed Mayonnaise” sparked debate in April.
According to Euromonitor, mayonnaise sales fell 6.7% in the US between 2012 and 2017, the Wall Street Journal reported. The Journal reported that brands like Hellmann’s and Kraft have had to slash prices to keep shoppers interested, with mayonnaise prices falling 0.6% from the first quarter of 2017 to 2018, as overall packaged-food prices increased by 1.6%, according to Nielsen data.
“Condiments are more competitive than they’ve ever been,” Jennifer Healy, head of marketing for the Heinz brand, told the Journal. “Ten years ago, it was much more simple.”
The “starter homes” market
Millennials are finally buying homes. A 2017 report from the real-estate website and app Zillow found that millennials — i.e., people between the ages of 18 and 34 — are the largest group of homebuyers in the US. However, it took them longer to get to this point than other generations.
Spencer Rascoff, Zillow’s CEO, explained why millennials are delaying their first home purchases:
“As a result of limited starter-home inventory, they’re renting longer. And when they buy their first home, they’re buying a much nicer home than a prior generation,” he said during an interview with Business Insider’s “This is Success” podcast.
“I mean, many people are basically skipping starter homes; they’re renting until their 30s, and that first house they buy is a million dollars, and they just are not even buying the $200,000, $300,000, $400,000 home, which is a total mind shift as compared with previous generations. So they’re still buying homes — they’re just buying them later and buying them bigger.”
Department stores like Macy’s and Sears
As millennials flock to e-commerce sites and fast-fashion brands like H&M and Zara, department stores such as Macy’s and Sears have suffered, closing hundreds of stores across the US.
Part of the reason is that when millennials do spend money, they’re spending more on experiences like restaurants and traveling. Millennials are less drawn to aspirational, designer brands, and they’re perfectly happy saving money by buying private-label lines, which further hurts traditional department stores.
The rise of a laid-back approach to shaving, most popular among men under the age of 45, is causing some serious problems and strategic readjustments in the razor industry. CNN reports Gillette even had to stage an “intervention” last year, slashing prices by an average of 12% and pushing facial-hair-maintenance tools like a beard trimmer.
According to Gillette, studies show that the average number of times men shave per month has fallen from 3.7 to 3.2 over the last decade. As a result, razor-industry sales fell 5.1% by June, compared to the year prior.
Fertility hit a record low in 2016, bringing the rate among women ages 15 to 44 to 62 births per 1,000 women. And, that’s creating issues for industries aimed at babies and children.
“Most of our end-customers are newborns and children and, as a result, our revenues are dependent on the birth rates in countries where we operate,” Toys R Us wrote in its 2017 annual filing, prior to filing for bankruptcy. “In recent years, many countries’ birth rates have dropped or stagnated as their population ages, and education and income levels increase.”
Toys R Us isn’t alone. Though they haven’t had to resort to bankruptcy, Build A Bear and local toy stores have reported similar issues.
“Breastaurant” chains like Hooters
People ages 18 to 24 are 19% less likely to search for breasts on the pornographic website Pornhub compared with all other age groups, according to an analysis conducted by the website.
For “breastaurants” like Hooters and Twin Peaks, a loss of interest in breasts is bad for business. The number of Hooters locations in the US dropped by more than 7% from 2012 to 2016, and sales have stagnated, according to industry reports.
Hooters has struggled to win over millennials for some time now. In 2012, the chain attempted to revamp its image with updated decor and new menu items to attract more millennial and female customers. Earlier this year, the chain announced plans to boost sales by expanding its delivery business.
“Delivery [solves] the polarizing issue the brand has had,” CEO Terry Marks said at the ICR Retail conference in January.
“Many people wouldn’t step foot in our restaurants, but they want our product,” he said.
Cereal sales have hit a slump over the last few years. US cereal sales have dropped 11% over the last five years, hitting roughly $9 billion in 2017, according to Mintel data.
Instead, younger consumers are turning to convenient options that can be eaten on the go with minimal cleanup, from yogurt to fast-food breakfast sandwiches.
While millennials have created new fitness crazes, like SoulCycle and barre classes, golf has failed to capture their interest in the same manner.
Golf participation in the US declined 1.2% in 2016, according to a 2017 report by the National Golf Foundation. Sales also fell, totaling $3.57 billion in 2017, down from $3.6 billion in 2016. The Business Journals reported that the number of golf courses and country clubs in the US has reached a 10-year low.
“From the golf industry statistics, we know that rounds are down,” Matt Powell of the industry-research firm NPD said in a video in 2016. “We know that millennials are not picking up the game, and boomers are aging out. The game is in decline.”
Millennial indifference seems to be playing a part in motorcycle makers’ sales slump over the last decade.
“Our data suggests the younger Gen Y population is adopting motorcycling at a far lower rate than prior generations,” AB analyst David Beckel said in a 2017 note downgrading its rating of Harley-Davidson shares from “outperform” to “market perform.”
Harley-Davidson is debuting new models and partnerships in an attempt to attract younger Americans to the brand.
“Younger people aren’t taking up motorcycles like they used to, and that’s led to a long slide in the size of the market in the US, which is already quite competitive,” Business Insider’s Matthew DeBord reported in July. “The Harley image of open-road freedom doesn’t necessarily dovetail with the enthusiasm of millennials for city living.”
A UBS report from earlier this year estimates that by 2030, online food delivery could command 10% of the total food-services market. And, that could spell bad news for companies known for their ready-made or home-prepared meals, such as General Mills and Kraft Heinz.
“At scale, ubiquitous on-demand and subscription delivery of prepared food could potentially spell the end of cooking at home,” the UBS report states.
Plain old “spoonable” yogurt is being swept aside for newer variations, with Mintel predicting a 5% decline in overall sales from 2017 to 2022. General Mills reported in September that yogurt sales dropped 2% in the US in the most recent quarter, due to declines in Greek and light yogurt sales.
Instead, General Mills is turning to up-and-coming types of yogurt to boost sales, such as “French-style” Oui by Yoplait.
“In July, we added our presence in simply better yogurt with YQ, a new yogurt made with ultra-filtered milk that appeal to modern weight managers, seeking high protein, less sugar, simple ingredients and great taste and is 99% lactose-free,” CEO Jeff Harmening said in a call with investors.
In 2006, soda sales by volume declined in the United States for the first time in 20 years. Every year since then, the decline has continued, with Coke and Pepsi brands falling 2% and 4.5%, respectively, by volume in the US in 2017, according to Beverage Digest.
Many of Coca-Cola’s attempts to boost sales have focused on convincing millennials to buy lower-calorie beverages.
Diet Coke relaunched earlier in 2018 with a millennial-focused ad campaign with new flavors and social-media influencers. Coca-Cola has also made a number of acquisitions of trendy beverage brands, including Australian kombucha maker Organic & Raw Trading Co., sparkling-water brand Topo Chico, and coconut-water brand Zico.
Bar soap sales fell 2.2% from 2014 to 2015, a time when the rest of the shower-and-bath category grew, according to Mintel.
And, millennials are at least partly to blame.
“Almost half (48%) of all US consumers believe bar soaps are covered in germs after use, a feeling that is particularly strong among consumers aged 18-24 (60%), as opposed to just 31% of older consumers aged 65-plus,” Mintel wrote in a press release.
The Post points to a survey conducted by Mintel, which highlights that only 56% of shoppers said they had bought napkins in the past six months. At the same time, 86% surveyed said they had purchased paper towels.
Paper towels are more functional than napkins and can be used for more purposes. And the Post noted that millennials are more likely to eat meals outside of the home, contributing to the decline.
Sales of liquid fabric softeners fell 15% in the US from 2007 to 2015, The Wall Street Journal reported. Market leader Downy fell 26% in the same period.
According to Downy maker Procter & Gamble’s head of global fabric care, millennials “don’t even know what the product is for.”
Public officers above 58 years and with pre-existing conditions told to work from home: The Standard
Head of Public Service Joseph Kinyua. [File, Standard]
In a document from Head of Public Service, Joseph Kinyua new measure have been outlined to curb the bulging spread of covid-19. Public officers with underlying health conditions and those who are over 58 years -a group that experts have classified as most vulnerable to the virus will be required to execute their duties from home.
However, the new rule excluded personnel in the security sector and other critical and essential services.
“All State and public officers with pre-existing medical conditions and/or aged 58 years and above serving in CSG5 (job group ‘S’) and below or their equivalents should forthwith work from home,” read the document,” read the document.
To ensure that those working from home deliver, the Public Service directs that there be clear assignments and targets tasked for the period designated and a clear reporting line to monitor and review work done.
SEE ALSO: Thinking inside the cardboard box for post-lockdown work stations
Others measures outlined in the document include the provision of personal protective equipment to staff, provision of sanitizers and access to washing facilities fitted with soap and water, temperature checks for all staff and clients entering public offices regular fumigation of office premises and vehicles and minimizing of visitors except by prior appointments.
Officers who contract the virus and come back to work after quarantine or isolation period will be required to follow specific directives such as obtaining clearance from the isolation facility certified by the designated persons indicating that the public officer is free and safe from Covid-19. The officer will also be required to stay away from duty station for a period of seven days after the date of medical certification.
“The period a public officer spends in quarantine or isolation due to Covid-19, shall be treated as sick leave and shall be subject to the Provisions of the Human Resource Policy and procedures Manual for the Public Service(May,2016),” read the document.
The service has also made discrimination and stigmatization an offence and has guaranteed those affected with the virus to receive adequate access to mental health and psychosocial supported offered by the government.
The new directives targeting the Public Services come at a time when Kenyans have increasingly shown lack of strict observance of the issued guidelines even as the number of positive Covid-19 cases skyrocket to 13,771 and leaving 238 dead as of today.
SEE ALSO: Working from home could be blessing in disguise for persons with disabilities
Principal Secretaries/ Accounting Officers will be personally responsible for effective enforcement and compliance of the current guidelines and any future directives issued to mitigate the spread of Covid-19.
Uhuru convenes summit to review rising Covid-19 cases: The Standard
President Uhuru Kenyatta (pictured) will on Friday, July 24, meet governors following the ballooning Covid-19 infections in recent days.
The session will among other things review the efficacy of the containment measures in place and review the impact of the phased easing of the restrictions, State House said in a statement.
This story is being updated.
SEE ALSO: Sakaja resigns from Covid-19 Senate committee, in court tomorrow
Drastic life changes affecting mental health
Kenya has been ranked 6th among African countries with the highest cases of depression, this has triggered anxiety by the World Health Organization (WHO), with 1.9 million people suffering from a form of mental conditions such as depression, substance abuse.
Globally, one in four people is affected by mental or neurological disorders at some point in their lives, this is according to the WHO.
Currently, around 450 million people suffer from such conditions, placing mental disorders among the leading causes of ill-health and disability worldwide.
The pandemic has also been known to cause significant distress, mostly affecting the state of one’s mental well-being.
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With the spread of the COVID-19 pandemic attributed to the novel Coronavirus disease, millions have been affected globally with over 14 million infections and half a million deaths as to date. This has brought about uncertainty coupled with difficult situations, including job loss and the risk of contracting the deadly virus.
In Kenya the first Coronavirus case was reported in Nairobi by the Ministry of Health on the 12th March 2020. It was not until the government put in place precautionary measures including a curfew and lockdown (the latter having being lifted) due to an increase in the number of infections that people began feeling its effect both economically and socially.
A study by Dr. Habil Otanga, a Lecturer at the University of Nairobi, Department of Psychology says that such measures can in turn lead to surge in mental related illnesses including depression, feelings of confusion, anger and fear, and even substance abuse. It also brings with it a sense of boredom, loneliness, anger, isolation and frustration. In the post-quarantine/isolation period, loss of employment due to the depressed economy and the stigma around the disease are also likely to lead to mental health problems.
The Kenya National Bureau of Statistics (KNBS) states that at least 300,000 Kenyans have lost their jobs due to the Coronavirus pandemic between the period of January and March this year.
KNBC noted that the number of employed Kenyans plunged to 17.8 million as of March from 18.1 million people as compared to last year in December. The Report states that the unemployment rate in Kenya stands at 13.7 per cent as of March this year while it stood 12.4 per cent in December 2019.
Mama T (not her real name) is among millions of Kenyans who have been affected by containment measures put in place to curb the spread of the virus, either by losing their source of income or having to work under tough guidelines put in place by the MOH.
As young mother and an event organizer, she has found it hard to explain to her children why they cannot go to school or socialize freely with their peers as before.
“Sometimes it gets difficult as they do not understand what is happening due to their age, this at times becomes hard on me as they often think I am punishing them,”
Her contract was put on hold as no event or public gatherings can take place due to the pandemic. This has brought other challenges along with it, as she has to find means of fending for her family expenditures that including rent and food.
“I often wake up in the middle of the night with worries about my next move as the pandemic does not exhibit any signs of easing up,” she says. She adds that she has been forced to sort for manual jobs to keep her family afloat.
Ms. Mary Wahome, a Counseling Psychologist and Programs Director at ‘The Reason to Hope,’ in Karen, Nairobi says that such kind of drastic life changes have an adverse effect on one’s mental status including their family members and if not addressed early can lead to depression among other issues.
“We have had cases of people indulging in substance abuse to deal with the uncertainty and stress brought about by the pandemic, this in turn leads to dependence and also domestic abuse,”
Sam Njoroge , a waiter at a local hotel in Kiambu, has found himself indulging in substance abuse due to challenges he is facing after the hotel he was working in was closed down as it has not yet met the standards required by the MOH to open.
“My day starts at 6am where I go to a local pub, here I can get a drink for as little as Sh30, It makes me suppress the frustration I feel.” he says.
Sam is among the many who have found themselves in the same predicament and resulted to substance abuse finding ways to beat strict measures put in place by the government on the sale of alcohol so as to cope.
Mary says, situations like Sam’s are dangerous and if not addressed early can lead to serious complications, including addiction and dependency, violent behavior and also early death due to health complications.
She has, however, lauded the government for encouraging mental wellness and also launching the Psychological First Aid (PFA) guide in the wake of the virus putting emphasis on the three action principal of look, listen and link. “When we follow this it will be easy to identify an individual in distress and also offer assistance”.
Mary has urged anyone feeling the weight of the virus taking a toll on them not to hesitate but look for someone to talk to.
“You should not only seek help from a specialist but also talk to a friend, let them know what you are undergoing and how you feel, this will help ease their emotional stress and also find ways of dealing with the situation they are facing,” She added
Mary continued to stress on the need to perform frequent body exercises as a form of stress relief, reading and also taking advantage of this unfortunate COVID-19 period to engage in hobbies and talent development.
“Let people take this as an opportunity to kip fit, get in touch with one’s inner self and also engage in reading that would help expand their knowledge.