This year’s back-to-school season is shaping up to hit marketers with yet another dose of turbulence, requiring fresh energy to capture what is expected to be more limited consumer spending. A focus on engaging younger generations could be what makes the difference between sink or swim.

 

Spending this season is expected to fall slightly versus 2023 levels, and brands accordingly have pulled out all the stops in hopes of coming out on top during a critical sales period. For marketers like Amazon and JCPenney, that has meant doubling down on value. For others, including American Eagle and Urban Outfitters, it has meant marketing to Gen Z and other young cohorts to deliver a sense of relatability and inclusive advertising.

 

“What we’ve seen with Gen Z, Gen Alpha is that the strong influence at the very start of the journey leads to twice as many parents considering a brand,” said Krithika Rosenthal, group director of strategy for GroupM’s Wavemaker U.S. agency. “That’s why it’s important not just to influence the parents, it’s also important to think about how we connect with the kids.”

 

Among parent back-to-school shoppers, 61% agree that their children influence them to spend more, according to Deloitte’s annual survey of the occasion. Keeping the whole family in mind may be what allows marketers to thrive amid another tough season, which is forecast to see spending decline from $31.9 billion in 2023 to $31.3 billion. While the drop is smaller than last season’s, financial concerns endure, with low and middle-income families expected to spend 4% and 9% less, respectively.

 

“That low- and middle-income group is really being squeezed by the cost of living prices that are going on,” said Lupine Skelly, retail research leader for Deloitte. “Those families are saying that they’re having to spend more on their groceries and childcare, so when it comes to back to school they’re forced to have to make some cuts in other areas to even spend at this level.”

 

This back-to-school season carries with it challenges beyond engaging the younger generation, whether it’s striking the right balance of value and emotion in messaging or reaching consumers across a wider swath of channels being shopped. Still, it’s not all doom and gloom — the period is also packed with opportunity, including a prime chance to grow loyalty.

 

Parents this season expect to spend $586 per child on back-to-school items, down just $11 from 2023 averages, per Deloitte. Spending on clothing and school supplies are expected to remain flat while tech spending is expected to fall 11%, mirroring broader trends. As a focus on economizing endures, value will remain key for marketers to thrive in a season marked by “cautious and careful spending,” Skelly said. At this point, consumers may expect nothing less.

 

“I think ‘the new normal’ is a great term for these sorts of big shopping events,” Skelly said. “These retailers have pretty much trained consumers to look for deals and these promotional events and people are really loading up their carts and waiting for those discounts to show up before they make purchases.”

 

 

In the search for deals, back-to-school buying has started earlier, with 59% of shoppers believing that the best deals occur at the start of the season. Roughly two-thirds of parents’ planned budgets were forecast to be spent by the end of July, up from 59% in 2023 and 14 percentage points from two years ago, Skelly said. Sales extravaganzas like Amazon Prime Day have also grown in favor, with 48% of shoppers shopping the e-commerce giant’s sales event last month for back-to-school items, a nearly 10% increase from the year prior.

 

Amazon has cemented its focus on value beyond its latest Prime Day event, which saw record-breaking sales, with the recent launch of its back-to-school campaign. The effort centers on a 30-second ad starring actress Michelle Buteau, who encourages parents to “spend less on your little freeloaders” with Amazon’s Back to School shopping guide. The comedic messaging is similar to that of its past back-to-school campaigns that featured actors like Randall Park and Kathryn Hahn.

 

 

“In recent years, we’ve seen customers continuing to feel financial pressures and looking for comedic relief amid the relentless news cycle, which is why our campaign focus has stayed consistent,” said Jo Shoesmith, Amazon’s global chief creative officer, in emailed comments.

 

Source: Marketing Dive