What makes a successful millennial brand a "cult like brand"?

• Published on November 22, 2016
• Featured in: Marketing & Advertising, Millennials

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Yves Hanania

Owner & Founder Lighthouse

The facts are there: "Millennials are obviously a big market for brands -- they're starting families, buying houses and consuming technology in various ways." 

It is interesting to see that the top 100 Millennial brands are mostly global brands with deep media pockets

Among the top 10 all are global brands. "Ultimately, the functionality of how the brand serves the consumer seems to win out, » revealed Business Insider in a recent survey. As such Tesla's Model 3 is "the millennial dream car" with its high technology and functionality, and has become one of those cult like brands.

A closer look underlines key characteristics of successful Millennial brands :

1. Unconventionality - Millennials are attracted to innovation and products that disrupt the market in a new and exciting way. New technology or creativity acts as a delighter and increases a brand's popularity among the Millennials. Going against the common practice of hiring a taxi, Uber disrupted the market with its technology and unique proposition of sharing a cab or hiring cabs through a mobile application
2. Strong social media presence - Most Millennials prefer to connect with their brands via social media, instead of through traditional advertising. "Carter’s, a children apparel brand has made it to the top mastering social media making the brand « hot » to Millennials" indicates Business Insider 
3. “Influencer” endorsement - Millennials are more likely to try a product if a friend or trusted social media presence recommends it. Thanks to the collaborations with famous athletes like Stephen Curry and smart marketing, Under Armour has exploded in popularity in recent years. Its empowering campaigns supported by its spokesmodels like Misty Copeland and supermodel Gisele Bundchen, have increased its appeal towards women
4. Strong brand universe - Millennials are attracted to brands with strong stories that are diffused through every element of their brand universe. Red Bull has established its credibility firmly in extreme sports and has a very strong positioning that is supported by its logo, tone and every communication that the brand makes
5. Personal and emotional connection - Millennials like to be catered to; most prefer targeted or personal brand engagement. J. Crew continues to connect with millennial women, with its "Very Personal Styling" service, available 24 hours a day, seven days a week
6. Authenticity - The authenticity of a brand is very important to millennials; they do not want to feel like they’re being tricked into buying. Brands with a real vision and purpose are the ones that Millennials are likely to respond to. Patagonia whose mission statement is 'Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis’ is a good example
7. Giving back - Brands that give back to their communities are viewed as more reliable, trustworthy, and valuable. TOMS, a popular millennial brand, donates a pair of shoes for every purchase made
8. Exclusivity - Millennials love feeling like they have discovered a new and exclusive brand, not one that everyone already knows. Krewe, a New Orleans-based and culturally inspired eyewear brand is a very good example and has just been named runners-up for the 2016 CFDA/Vogue Fashion Fund. Krewe is one of the fastest growing, independent eyewear companies in the country with a simple creative philosophy: to do something from somewhere no one would expect
9. Sense of community - Millennials are strongly bonded by communities and brands with an ability to tap into this come out as winners. Lululemon, a popular activewear brand, is known for fostering a sense of community with its in-store yoga classes. Its New York City flagship even has a community space called Hub Seventeen
10. A positive attitude towards all-natural - Panera has established itself as a leader in the movement toward all-natural food, promising to remove artificial preservatives, sweeteners, and flavors from its food by the end of 2016
11. Creating experiences - Millennials are not just looking for products, they crave for experiences. Brands that cater to this desire can win Millennials' hearts. Coca Cola, has managed to win Millennials over by its unique ways of connecting with the target consumer and using innovative marketing campaigns to create delightful experiences. Likewise the success of Airbnb shows furthermore how important experiences are to Millennials. Airbnb discovered how to play into Millennials’ demand for new experiences and discoveries and managed to capture this desire by providing the unique experience of living in other peoples' houses and immersing into the local culture
12. Focus on quality - Millennials no longer run after brands. They prefer quality over labels and are ready to pay for quality products. Brands that offer good products at reasonable costs will be successful in the millennial market. Aesop, a skin care brand, ensures that all its products are of the highest quality, investigating deeply the sourcing and making certain that only the best reaches their customers. They do not rely on advertising, the quality of products itself speaks for the brand

And it's true that brands which have either adopted or revolved around those characteristics are often very successful. SoulCycle, Warby Parker, Airbnb and Innocent, born Millennial, offer more than just products to their consumers.

They have cultivated by birth many of those key success factors and therefore won millions of millennial hearts, and are now referred to as  "cult like brands."