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The Straits Times (Singapore)
August 1, 1999

Use a Gloria Estefan Image to Sell to Gen X

By Edwin Soon
(Copyright 1999 The Straits Times Press Limited)

TREND has been defined as a "general course" or "the prevailing tendency".

It is a drift towards an event or a style, as in vogue/fashion. Trends tend to take a particular direction as indicated by statistics.

The United States is a country known particularly for its consumer trends. Its marketing professionals are watching closely the new group of consumers known as the Generation X.

Mainly in their 20s and early 30s, this demographic consumer group is a worrying statistic for wine-producers around the world.

Only 4 per cent of Gen X-ers in the population drink wine, compared to the US national average of 40 per cent.

Unlike the Baby Boomers, who are drinking wine in large quantities, the wine-market experts believe that Gen X-ers prefer micro-brewery beer.

It was first believed that Gen X-ers may not have much discretionary income, but their activities that range from Internet surfing to snow-boarding indicate otherwise.

Advertising czar J. Walter Thompson noted: "Generation X will fuel the growth for product categories from fast food to liquor to apparel to soft drinks."

In fact, in the US alone, there are 80 million Gen X-ers with a sizable US$ 125 billion (S$ 212 billion) a year to spend on goods and services.

Wine producers need not entertain their anxieties for too long.

The argument is that if Gen X-ers can discriminate between the taste of crafted beers and that of generic mass-produced beers, in time, they will turn to wine, which offers even more taste sensations.

It is the marketing people (mainly Boomers) who have a lot of soul-searching to do. They have to understand that the axiom of being a Gen X-er is about defiance of traditional marketing science.

Karen Ritchie, author of After The Boom, explains: "The first time you realise the super toy you wanted is really only four inches tall, you learn a hard lesson. We created a whole generation that believes advertising is lies and hype."

A speech given by a member of the Society of Wine Educators, Mr Darryl Roberts, at the society's annual conference recently interprets the misplaced marketing efforts.

"The vast majority of these young adults form their consumption habits without wine because the majority of wine-marketing budgets are allocated to wine-trade magazines targeting older, more established core consumers -- Xers are well-travelled, as likely to buy a new car as Boomers (imported preferred), buy more CDs, drink more cola, consume more fast food, buy more disposable diapers, etc."

But they will buy only if wine marketers realise that they need to denude wines of the Boomer image of diamonds, Rolex watches, designer clothes and the like.

Gen X-ers will react positively only if wine is marketed as a plain beverage, not some distinguished product meant for older, richer, more sophisticated people.

As wine marketers leave the sidelines to tackle this seemingly "resistant" new consumer group, they may realise that their task may be less costly than they calculated originally.

If a marketer's dream is to create brand loyalty for life, it appears that it would cost five times less money to help shape the consumption habits (and build the loyalty) of a 25-year-old compared to the cost of changing the consumption habits of a 45-year-old.

Winery executives of Sebastiani in California are already tuning in faithfully to Seinfeld and other Gen X programmes on TV in an effort to better understand this new market segment.

A magazine called Wine X has begun circulation and reviews wines using Gen X terms -- a wine that is considered "cool" is a very good one.

Lindemans Padthaway Australian Pinot Noir is described as thus: Imagine Arnold Schwarzenwhatever spraying winter-green air freshener to cover up his cigar smell. Mondavi Zinfandel is supposed to be like Gloria Estefan drinking a cafe mocha -- hot, spicy and very sexy.

Chateau Malescot St Exupery is said to be "the Jodie Foster of Margaux -- deep, rich and elegant", while Chile's Calina Cabernet Sauvignon evokes the scene of "the FBI stalking Bill Gates -- aggressive, on a mission and smelling of coffee".

I imagine Gen X-er Bill Getty (of the Getty family), who operates a number of wine shops and restaurants and also runs the Plumpjack winery, is having a lot of time on his hands as he does not need re-education.

Looming ahead is Generation Y. It will be an interesting sociological study just to watch the marketing people scramble to communicate with yet another new group that shuns the sizzle in advertising.

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