They’re known as Generation Y, Echo Boomers and Millennials. Born roughly between 1977 and 1994, Generation Y is the 71 million children born to baby boomers. At the upper end of the scale are young adults just starting careers. At the opposite end are tweens aged 13 and up creating myspace profiles.

A huge demographic, Generation Y is the predominant market for young adult fashions as well as school and team merchandise. And they wield huge buying power. Gen Y spending exceeds $200 billion a year and they influence up to $400 billion.

So how do you reach them to grow your business? First, you need to understand Generation Y, then you can tailor your marketing efforts.

Who is Y?

Unlike the much-smaller Generation X before them, Generation Y, in general, has had more parental influence. Gen Y parents are typically involved parents—very hands on. At an early age, parents have begun educating their children and involving them in activities like soccer leagues, taekwondo, day camps and dance classes. As they continue to grow, Gen Y parents still heavily influence major decisions and have instilled in their kids a hunger for learning.

Because they are so educated, Generation Y tends to be skeptical of advertising and marketing. They can be extremely brand loyal one moment, but they’ll quickly drop a brand for another that mirrors their current interests. Major retailers are struggling to market to this group because of their unpredictable nature.

Y is Connected, Aware and Tolerant

Technologically savvy, Generation Y is constantly “plugged in.” The Internet, iPods, cable TV and cell phones are necessities. They blog, instant message, webcam and use search technology for information and entertainment. Social networking websites like myspace and facebook allow a 15-year-old in Muncie to have friends in New York City—which has a positive influence on buying decisions. On the flip side, if a product or brand falls out of favor with Gen Y in Seattle, those in Houston will also quickly hear about it.

Affected by September 11th and other major world events, Generation Y is highly sensitive about social issues and causes. A survey of 12 to 17-year-olds found that 91% of today’s teens value companies and products that support good causes. 89% would most likely switch brands to associate with one that supports a worthy cause.

Unlike generations before them, Generation Y is the most ethnically diverse group ever. According to the latest census, one in three is a member of a minority group. 25% of them are being raised (or were raised) by a single parent. Gen Y is highly tolerant of diversity around them.

Getting to Y

Gen Y is the sweet spot for your young adult and school and team businesses. Here are some ideas and tips to consider for your marketing efforts.

• Use technology. Don’t simply create a flyer and hang it on the bulletin board in the school. Use email, websites and other e-media efforts to create buzz and boost sales.
• Understand the lifestyle. Gen Y wants products that fit their lifestyle. Showcase outerwear and accessories with special pockets for MP3 players, cell phones and water bottles.
• Don’t overlook parents. When approaching a team, don’t forget about the coach, supporting staff and fans. Because Gen Y parents are so involved in their kids’ lives, dad is most likely the coach. Mom heads up the fan club. T-shirts, fleece and other apparel that are available in both youth and adult sizes are perfect for this situation.
• Keep diversity in mind. When creating a customized catalog or flyer, make sure you have a good range of ethnicities represented.
• Answer questions. Educate yourself about performance fabrics and share that knowledge. It builds credibility and demonstrates product quality.
• Go grassroots. Think outside your mainstream school and team customers. T-shirt orders for bands, environmental causes and niche groups can be goldmines for your business.
• Look to others. Keep an eye on what retailers like the Gap, Urban Outfitters, Old Navy, Hollister and other Gen Y businesses are doing in their marketing. It can spark ideas for your own business.
• Sell other benefits, not just products. Consider donating a portion of your t-shirt sales to a worthy cause. Not only will your Gen Y customers get a cool shirt, they’ll also feel good about supporting your business.
• Go to the source. Talk to your kids, their friends, and other members of Generation Y to find out what’s “cool” right now and to keep your finger on the pulse of this group.