Jin Lee/Bloomberg via Getty Images NEW YORK -- Alison LePard, a 19-year-old college sophomore from Wellesley, Massachusetts, says that when she shops for clothes and accessories, her goal is a look that is uniquely hers. So she does a lot of mixing and matching. "I don't blindly follow what they put out," LePard said of store displays. "I don't want to wear just one brand. I don't want to be a stereotype." She's hardly alone. Recent surveys have found that members of the millennial generation -- the roughly 80 million Americans born between 1977 and 2000 -- pride themselves on their individuality, and shop accordingly. Compared with their parents, millennials are far less likely to identify with a political party or to formally affiliate with a religion -- key indicators of an independent streak -- according to Pew Research Center. As shoppers, they are less attached to brands and more willing to create their own style, surveys by Nielsen, The Boston Consulting Group and other researchers have found. This generational trait is forcing retailers to rethink everything from their merchandise and marketing to their dressing rooms and logos. Some companies, including H&M and Urban Outfitters (URBN), have ridden the individuality wave while others, such as Abercrombie & Fitch (ANF) and Aeropostale (ARO), have been slow to react and are paying the price. At stake is the $600 billion millennials spend a year in the United States, according to Accenture (ACN), a sum that's projected to grow to an estimated $1.4 trillion in 2020, when the oldest of the cohort will be 43. Millennial men spend twice as much a year on apparel as non-millennial men, while millennial women outspent other generations by a third, the consultants said.
[Millennials] no longer want to be a walking billboard of a brand. Individualism is important to them, having their own sense of style.
Abercrombie's woes came into sharp relief last month when the company said it was shrinking its well-known logo and increasing its assortment of fashion for women, all to appeal more to 16- to 22-year-olds who don't want to look like everyone else. The move came after 10 straight declines in quarterly same-store sales. "They no longer want to be a walking billboard of a brand," said Michael Scheiner, an Abercrombie spokesman. "Individualism is important to them, having their own sense of style." Other companies are also adjusting their strategies to reach this elusive group. Gap's (GPS) new ad campaign, with the facetious tag line, "dress normal," is all about creating an individual style, the idea being that there is no normal. Aeropostale, for its part, says its new product lines by blogger Bethany Mota are meant to convey "authenticity, emotion and relevance." Mall owners have had to adjust, too. Indianapolis-based Simon Property Group (SPG) is now working with fashion magazines and fashion website Refinery29.com to entice millennial shoppers to the mall with videos, new designers and personalized advice. "Not looking like everyone else is key to everything about what we do," said Chidi Achara, Simon's global creative director. The drive to reach millennials comes during a difficult environment for retailers. Retail spending was flat in August, according to the U.S. Commerce Department, and household spending dropped by 0.1 percent in July, the first decline since January. In August, retailers ranging from Walmart Stores (WMT) to Macy's (M) cut their sales forecasts. How Millennials Shop Thanks to the Internet and smartphones, millennials are more informed shoppers than older generations. More than 70 percent of 18- to 34-year-olds recently surveyed by The Intelligence Group said they research options online before going to a store. Millennials spend a higher share of dollars online than other generations, according to market research and consulting firm NPD Group, though they still make 75 percent of their purchases at brick and mortar stores. With vast amounts of information easily available, they are savvy shoppers who know how to compare price, quality and convenience. Accustomed to building Facebook (FB) pages and other online identities, millennials are comfortable with the notion of mixing and matching different elements of their persona, a trait that carries over into their shopping choices, according to analysts and academics. To reach this first generation of "digital natives," it's no longer enough for stores to offer a rack and a dressing room. "People are looking to create a unique identity," said Allen Adamson, an author and branding expert at Landor Associates. "They want to put together their own story rather than have someone else tell them." In addition to an inviting website and easy payment system, retailers are trying to make shopping more exciting for this over-stimulated generation. At H&M's midtown Manhattan store, for example, shoppers can strut their stuff on the store's fashion walk and then possibly have their video selected to be displayed outside. Gap is stressing that same aspiration with its new "dress normal" ad campaign, which uses taglines such as "dress like no one's watching" and "simple clothes for you to complicate." Sales at Gap stores fell 5 percent in the last quarter. The company said the ad campaign is aimed at customers who want to "dress for themselves." That certainly describes Brianne Casey, a 24-year-old New Yorker, who studied marketing and now works as an assistant to a buyer for a retail chain. Casey said she shops at a variety of stores to get the best prices and follows fashion trends on blogs to see what's hot. But in the end, she said, "I like creating my own style."
Reuters A general view of Iraq's Baiji oil refinery in January 2009. 
Getty Images How would you like to put money into a financial product that lets you benefit from market gains, but never feel the pain of its losses? The money and growth inside the policy will be 100 percent tax-free for life. That's the seductive pitch often used to tout an investment called indexed universal life insurance. Based on that sales pitch, it would be no wonder if your response were, "Sign me up for that right away!" Unfortunately, all that glitters is not gold. The sales materials for your IUL policy will almost always be illustrated with unrealistic compounded rates of return. But as we all know, stock market growth does not simply compound over time. Sure, you can measure an "average rate of return," but in the real world, prices oscillate, and performance can be a creature of timing much more than investing. In fact, an indexed universal life insurance policy will almost always leave you holding the bag. Let me clarify first that these are entirely different investments than the "properly designed whole life policies" that I wrote about back in March. When you invest money inside an IUL policy, you're setting up a life insurance policy with an annual renewable term cost of insurance. The extra money placed in the policy goes into sub accounts, and those funds will generally follow an index (or indices) in some form when that index increases in value. This structure will cause the cost of insurance to rise every year, which is why most people let these policies lapse in later years. One Man's $50,000 Premium A retired neurosurgeon at one of my seminars told me about his IUL nightmare. He invested substantial money in an indexed universal life insurance policy when he was 49. He funded this policy for 20 years, and the projected profits never seem to materialize. Among the reasons why: The projections that were illustrated for him were not realistic. The expenses of the insurance and many other hidden fees come out daily. The guaranteed growth of 3 percent was only payable at policy cancellation. Much worse was the bill when he turned 70. This policy was structured with a 20-year guaranteed term policy for the death benefit, and his premium hit almost $50,000 -- and not one nickel was going into any cash value. Surely, something must be wrong, you say? He assumed it was clerical error until he called the carrier and was told that is how those types of policies are built. In the 21st year of the policy, the premium was supposed to be almost 100 times the first year's premium, and it was only going to rise further, since term insurance gets more expensive as people age. This man closed the policy down, which meant he no longer would receive the death benefit, and even the pitiful gains his investment had realized were now taxable because he'd lost the umbrella of the insurance policy tax structure. Lousy Ideas, Without Clear Numbers Welcome to the wonderful world of indexed universal life insurance. I can't wait to see in this articles comments that somehow, one of you knows about a "special product" that has a "no lapse" guarantee or some other new (and yet old) wrinkle that allegedly makes these lousy policies better. These dogs with fleas are generally sold to those with high incomes, such as doctors, as a way to put loads of money away in a tax-free environment instead of the limitations of an individual retirement account or 401(k). The illustrations are not realistic and fail to speak plain English as to what is going to happen with these policies. If you have been sold one of these policies, examine the illustration you were shown and notice the cost of insurance cannibalizing the cash value in the later years of the policy. Study the cost of insurance, which will never be plainly spelled out in dollars and cents (your first clue something is amiss) but rather in decimal points. Watch how that number grows in the later years. If you have the misfortune of having one of these policies, you might still have an option to roll into a 1035 tax-free exchange. It would allow you (assuming you qualify health-wise) to exchange your cash value in your IUL policy into a properly designed whole policy with solid guarantees and fixed costs all disclosed up front. More from John Jamieson
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