March 1996 Story

The X Files

The baby busters -- Generation X -- have come of age as the baby boomers are coming of middle-age. So why aren't more catalogers courting them? When the baby boomers were in their 20s, they were feted by The Sharper Image, indulged by Bloomingdale's By Mail, wardrobed by Lands' End, and preppied by L.L. Bean. Today it's the baby busters who are in their 20s. But it's still pretty much the baby boomers who are feted by The Sharper Image, indulged by Bloomingdale's By Mail... What gives?

It's not that baby busters are an undesirable market. Granted, they aren't the market that boomers were, and are.. Generation Xers are fewer in number; according to American Demographics, about 45 million Americans are between the ages of 18 and 30, compared to 77 million boomers ages 31 to 49. Nonetheless, the Xers still hold $125 billion in spending power, according to some estimates. They're generally better educated (particularly the women), and more ethnically diverse than the boomers. They spend more money on technology, exhibit extraordinary brand loyalty, and are much savvier when it comes to making purchases.

"It's an incredible missed opportunity," enthuses David Morrison, the 28-year-old president of TWENTYSOMETHING Inc. "I don't think [catalogers' avoidance] is a reflection of lack of interest as much as it is a lack of understanding. Obviously the bucks are there; the demand is there. If they knew how to reach that market, they would."

Compounding the problem is retail, which has always skewed young -- and continues to pursue twenty-somethings with a vengeance. Just look at The Gap, Banana Republic, Express, and a host of other mall powerhouses that drive catalogers right out of the Generation X marketplace. By comparison, most catalogers have always pursued "adult" buyers -- even when the boomers were young. Take L.L. Bean and Lands' End: Though both were big sellers among college-age boomers, the two were actually skewed to an older audience. Some lay the blame on how tough it is to dig up the names of young buyers. Young buyers frequent malls and are mobile, seldom standing still long enough to adhere to a house file. "There's just not a lot of other large catalogs out there [in this category] that are really marketing a list [aside from J. Crew]," says the president of one fashion-forward apparel mailer which targets 20- to 40-year-old women.

Because Xers are already familiar with a number of catalog names, in many cases all catalogers need to do is introduce themselves through space ads in Gen X magazines, through specialized mini-catalogs, or by widening their product line a la Real Clothes at Saks Fifth Avenue. "It doesn't mean you have to have a new catalog or a hip 'Beavis and Butt-head' catalog," says Morrison. "But by adding a few products to the mix you can broaden your appeal significantly."

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© 1996 Cowles Business Media