eBay begins online bid to attract younger customers

Issue date: 4/17/07 Section: Feature

 
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Nicknamed "The World's Online Marketplace," eBay has a user base whose age usually spans 35 to 44 years old. With the help of social networking Web sites, eBay is hoping to lower that age and appeal to a younger crowd.

Analysts say eBay has reached its saturation point in terms of its audience. The company has tried to expand internationally and created an eBay Express site to sell items at fixed prices, but both attempts were unsuccessful. eBay has not given up hope and now endeavors to attract new audiences by targeting younger crowds.

In January, eBay sealed the deal with the social-networking site most familiar to college students, Facebook Inc. Facebook set up a networking group called "Student Superstore (by Half.com, an eBay company)." The group displays books, for school or fun, movies and DVDs that can be purchased at Half.com, eBay's discount site.

In addition to making deals with popular social-networking sites, eBay also wants to mimic some of the sites' features. Researchers hired by eBay are exploring ways in which the company can set up communities on its site based on users' buying habits and interests.

Dr. Brenda Wrigley, associate professor of public relations at Syracuse University, said she thinks eBay has a good strategy to appeal to younger audiences.

"eBay seems as though it has done its market research," Wrigley said. "The company has targeted where to go to appeal to its market and has the bonus of using social media. The company has a good combination of knowing who its market is, where the market goes and what the market wants."

Department stores are also trying to increase their appeal to younger audiences. Retailer J.C. Penney recently added the C7P label to its brands. The line will be reasonably priced to attract teens and young adults. The new collection will include popular items such as denim jeans, skirts, cropped pants, T-shirts, tops and fleece.

J.C. Penney isn't the only department store trying to attract younger customers. Macy's decided to hire college students who love the popular American Rag brand, which is sold at the department store.

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