GENERATION
HIPSTER
Y
INTRODUCTION Generation Y, also known as the Millennial Generation, is the demographic cohort following Generation X. Typically this includes people born between the years of 1977 and 1994. Generation Y tend to be internet savvy as they were born in the era of technology. Generation Y have been brought up in the era which is characterized by passion for material things such as cars, phones and even clothes. This young generation is emotionally engaged with fashion and fashion trends. Hence, they tend to shop more and have greater knowledge of brands. Companies targeting Generation Y have to consider the following qualities of generation Y people in order to implement successful marketing strategies. These people are technology savvy. Web applications and mobile applications can be effective. Furthermore, the expectations of Generation Y are higher and they may need to feel valued. They may feel happier when their ideas have been implemented in the products. Thus, this issue can be solved through social media, online communities and wikis. Also, companies should maintain a unique online community to promote their brand because for this generation collective thinking is vital. Finally, Generation Y put greater importance on ethics and green issues. They are aware of environmental issues. Thus, companies should disclose more about the environmental issues facing the business and ask for recommendations from Generation Y how they can make things greener. The majority of manufacturing businesses in the fashion industry are not targeting Generation Y exclusively. Thus, it is preferable to put them as a subculture when planning the strategy of the business. Parson has defined subculture as an interaction and innovation of new practices by a number of people having distinctive features (Parson & Maclaran undate). “Hipster” is one of the young subcultures which values independent thinking and is against mainstream culture. Furthermore, the word HIPSTER , hip is defined as “very fashionable” and -ster is suffix of denoting a person engaged in or with a particular activity or thing (Oxford Dictionary) which means hipster is fashionable people. This essay purposes to examine demographics and psychographics of hipsters, lifestyle, their primary motivations, buying behaviour, and their influence and collectives. Finally, I will recommendation on future opportunities and challenges from marketing and promotions to the hipsters.
OUTLINE 1. The demographic and psycho graphic of the group. 2.The lifestyle of this hipster 3.The key motivation and buying behavior 4.Influence and Collectives 5.Future trend and opportunities/ challenges
The demographic and psychographic There are number of demographic characteristics i.e. age, sex, marital status, earnings, education and occupation. The age group is a primary manifest variable which can give a good indication of the population’s identity. Often the same aged people have many similarities such as experiences as well as common heroes or celebrities to admire and follow. Johnson stated that 25.5% of world population is in generation Y, aged between 15 to 29 years old (Johnson Control undated). Therefore, generation Y is a perfect target consumer for businesses in the fashion industry. Moreover, people relate to this generation usually having a social status as unmarried, single or in a relationship and often living in their parents’ house
Jellybones (undated) stated that hipsters often go on dating with another hipster and when they break up they don’t take it emotionally. In fact, Hipsters tend to be highly educated people. They may learn art, graphic design, maths, science etc. Many of them graduate from college and make career in field of art and design. For instance, they become graphic designer, paralegal, writer, software developer, fashion designer and interior designer (Terence Loose, undated). Hipster tend to belong to the middle class. However, many of them are still students and they are often dependent on their parents or work part time. Thus, their earnings may be relatively low. Solomon defined society as an overall rank of people and their social standing (Solomon 2004). Consumers’ buying behavior varies frequently. Social class status varies across the overall social raking. Hipsters are usually against mainstream culture and don’t follow the status quo even though they are in the same social class as others. To conclude, this demographic tends to be highly educated with a good potential of earnings in the future if they are willing to stay in hipster subculture.
The psychographics Psychographics identify personality characteristics and attitudes that influence a person’s lifestyle and purchasing behavior. Marketers use psychographic segmentation as a measure of the customer’s personality and attitude. Personality is the unique psychological make-up that influences the way a person responds to his or her environment. Moreover, the attitude is the predisposition to evaluate an object or product positively or negatively (Solomon, M 2004). Therefore, personality and attitude consider a person’s lifestyle and consumption pattern and so many brands start project their own brand personality to target the customer. In fashion, consumers buy clothes depending on their attitude and personality. Hipster attitude is about being different. Sarcasm is their main style of humor. Hipsters are sometimes similar to geeks. Geeks are more genuine compared to hipsters. Hipsters tend to be more selfish and unfriendly, living in an urban environment.
In conclusion, “Hipster” is a young generation of women and men. They tend to come from middle class families and from educated backgrounds. They are often young adults or teenagers who haven’t started their career or have just started. Their personality is proud, which is one key factor of the subculture.
The lifestyle of hipster In current times, people are free to choose products, services and activities that define their lifestyle. Solomon, M (2004) stated that “A lifestyle marketing perceptive recognized that people sort themselves into a group on the basic of the things they like to do, how they like to spend the leisure time, and how they choose to spend their disposable income”. One way to divide customers is by using generation groups. However, this will give more general factors to use in marketing. Generation Y consumers are often the most educated generation, yet they have relatively low incomes. This young generation tend to not be interested with television anymore as they are internet savvy. They usually use social networks or blogs to find the information they need. Most generation Y targeted companies have started promoting their products online. Hipster This section will analyse the hipster lifestyle using AIO and VAL theories. AIO is one of the way to group the consumers according to some combination of 3 categories: activities, interests and opinions.
Activities Hipsters usually spend time in local coffee shops or local pubs drinking home brewed beer or playing banjo. In East London is good place to hang out with hipster especially in Dalston which in Italian Vogue called this place “ (the guardian) The coolest place in London”. Dalston is very old place that there are many small pubs, old libraries, vintage shops and galleries which is perfect place to hipster. Hipster usually shop in vintage shops. However, nowadays hipster clothing is mass produced by stores like Urban Outfits, American Apparel, Forever 21, Free People. American Apparel V necked t-shirt is one of the identity of the hipster. In London There is a event called ‘ American Apparel Flea Market‘ is the one of the good time to shop and hang out their group. Everything sell quite cheap and it sales the hipster style. In afternoon time, hipster are sit cafe and using the macbook to access to the websites and blogs. They take the photo with Holga camera that show some soft vintage look and put it blog or some social network. Tumblr and Instagram are popular one. The reason is Instagram camera can show the vintage look. magazines, book Interests Hipster are interest with something is not mainstream. They are early adopter, They like fashion, music, art. The music gender is Indie rock and it should be unpopular band, when the band is getting popular they will start looking for new bands. The fashion also suppose to look different, however these days its hardly to recognize the real hipster. The reason is Hipster style is became in trend such as skinny jeans, oversized plastic framed glasses, nerd classes. Opinions Hipster has their own strong opinion and individual, think they are better than other and “be in cool” is their identity. they ignores rules because it will make them look like they don’t care.
VALS
Values and Life System (VALS) is one of the psychographic market system segmentation system, where developed in California. Hipster are innovators, it is made them a fad if it spreads to the early adopter.
The key motivations and buying behavior.
The level of competition has risen significantly. Marketers should differentiate the products in order to meet consumers’ demand. Thus, it is very important for marketers to learn about consumers’ motivation and their buying behaviour. Solomon stated that understanding motivation means understanding customers’ action in accordance to what reason being and in what result it gives (Solomon 2004). Understanding the motivation is to understand why customer do and what they do( Solomon,M 2004). One of the earlier developed motivation theories is Modesty Theory. It says clothing is the physiological (basic) need that people wear clothes to conceal the parts of their body. Moreover, modesty theory continued by modesty, immodesty, protection and adornment theories (Solomon 2004). Hipsters wear skinny jeans or short skirt and shirts, thus they wear more decent clothes than some other subcultures whose dressing code is sex appeal. Hipsters motivation is relatively simple to understand that their key motivation is being against mainstream and oddity. They don’t follow mainstream music trend and even the food. They are interested in finding only the winning trend and they are motivated by founding something new. That is they want the esteem that could be gotten from saying “ i was into that before it was cool. How they do is looking for the blog and websites, so they are mixing the trend, styles and make something new.
Maslow’s Hierarchy of need

Abraham Maslow was a psychologist who developed “Hierarchy of Need”. The theory shows that same product can satisfy different needs, depending upon the customer’s state at the same time (Solomon, M 2004). Maslow’s hierarchy of need consists of five states. these are physiological, safety, belonging, esteem and self-actualisation, from the very bottom till to the top level. Esteem can be applied to hipsters. Solomon stated that esteem is the status where people tend to wear the latest fashion or art-to-wear piece which makes us feel good about ourselves and gives us a sense of status among peers (Solomon 2004). Hipsters are not spent much on the product yet, they have idea that cutting edge clothes to made an art-to-wear peers and individual style. However, nowadays be in hipster is now quite easy, there are many mass companies for example Urban Outfit, American Apparel are design the clothes looks more vintage and artist, to attract this subculture. In conclusion, Hipster buying behavior and motivation is very different than most of the generation Y . Most of the generation Y consumer are prefer to dress like coming trend, does not want to be a different then society. Cultural, social, personal and psychological factors affect consumer behaviour. Cultural factors are culture, social class and sub-culture. In the case of hipsters are originated mainly from the middle class in the society. Schiff determined culture as the total of learned beliefs, values and customers that serve to direct the consumer behaviour of members of a particular society (Schiff). Influence groups are family and roles and status. Hipster style is popular amongst teenagers. one of the most influential factor is the personal factors such as age and lifestyle, occupation, economic situation, personality and self concept. Finally, psychological factors are an individual’s motivation, perception, learning,beliefs and attitudes.
Influence and Collectives The hipster’s first influence was in Jack Kerouac’s (1957) novel, On The Road. Kerouac portrayed the hipster as a wanderer inspired by Beat Movement influences of jazz, poetry, recreational drugs, and casual sex. These characteristics, celebrated by Kerouac, aimed to trade seemingly mundane elements of middle class existence for the authenticity, spontaneity, and vibrancy of urban living. (Lauren M(2010). Consumers are often been influenced by different inspirational, admired groups in their purchase decisions. The reason is their desire to be accepted by others and fit in the society. For example, if an individual is invited to a party they have to follow the dress code for that party. It is often been adopted by them unconsiously or consciously to be fit in the environment. Furthermore, in colleges people who wear same subculture style clothes tend to be friends. Majority of us act rationally towards fashion and clothing choices because of the primary motivation is desire to fit in the society. Reference group is an actual or imaginary personal or persons having significant behavioral and aspirational influence on individuals (Solomon). Solomon stated reference groups influence through informational, utilitarian and value expressed ways. Consumers get information from professionals experts and users of the product continuously. Furthermore, consumers constantly influenced by family members, friends to meet the expectations of others. Finally, personals showing others what they would like to be??? Hipsters’ reference group falls into the factor of value expressive influence. It makes them feel possessing the special characteristics of the imaginary personal.
Each individual person perceive differently to new products and new fashion styles. some may follow crowd power and internet influence. this relates to current trends. Others follow common interest in the society(Solomon). professionals mostly will fall into this category. About the hipster and generation y group have big influence on the internet. Most of the gen y are influenced by referent power (As consumers we are influenced by others, we admire and perhaps imitate their behavior). They are more likely search new trends or celebrities styles on the internet. However, hipster are distinguish by other generation y subcultures. They use different blogs and website such as their own society blog, website or online magazine. For example in i phone application there are more 150 application related with hipster, it is include: games, camera, style, quiz. Most of the hipster more own the blog rather then following it which they are innovators. Rogers divided people in to groups as innovators, early adopters, early majority, late majority and laggers (Claire Harris, lecture).
Future trend and opportunities, challenges In this section, I will demonstrate SWOT analysis and Porter’s Five forces analysis together. For SWOT analysis I am only going to consider on opportunities and threats (Challenges) factors in this analysis. Firstly, there are many opportunities in this market having target customers are hipsters. Companies such as Urban outfitters and American apparel manufacture hipster style clothes. Companies can take first movers advantage. For instance, with a great innovation Urban outfitters produces new and unique products. This allows them to expand their business even in the international market. Furthermore, they can diversify their target consumers . Hence, there is an opportunity that not only young age group people even other age group and social class people may start wearing hipsters style clothes. This enables the business to expand their market and sales. However, there are number of threats influence on the performance of the businesses which produces hipsters style clothes. The most common one is the current economic condition affected by recession started off from bank crises in 2007. The market for this businesses are price elastic and buyers are price sensitive. Thus, generation Y people tend to be internet savvy personnels. Technological advance reached sky high that gives a great power for the buyers to become internet savvy. Consumers can search and compare the products and its prices in short amount of time without any price. Furthermore, it is an intense competition market and rivalry force is relatively high and there is no barriers to entry to enter this market. Anyone who can make unique product can enter to this market. Thus, the competition in this market is quite fierce. Also, products are perfectly substitutable. Buyers can change to different brand at any time if they think the company produces not unique products anymore. Hence, buyers power is relatively high.
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