OPTIMISM AND THE ART OF SURVIVING QUARANTINE

1. OPTIMISM AND THE ART OF SURVIVING QUARANTINE hello@milkagency.com

2. TABLE OF CONTENTS Introduction Multi-Gen Creatives from X, Y & Z Oh Hell Yes: Optimism Rules the Day Spending: From Stuff to Self Brands: Not So Much Anticipation: Yay! (maybe) Get Ready: Or Not Conclusion 4 — 5 6 — 13 14 — 19 20 — 31 32 — 39 40 — 47 48— 55 56 — 63 4 5

3. INTRODUCTION For over 20 years, Milk has been a pillar of New York’s downtown creative community. From studio photo shoots and fashion shows to gallery art exhibits and basement DJ parties, we’ve given people a place to experiment, make and connect. When the COVID pandemic stopped the world in its tracks, we wanted to find out how people in our creative community were coping during quarantine. We sent them a survey, and this is what we learned. They are: • more optimistic in spite of the news reporting increased rates of fear and depression caused by quarantine;1 • focused on self-investment over buying things; • excited to get back into society but remain cautious to the perils of COVID; • engaged with brands as transactional providers of goods and services, not as loyal fans. Authored by Milk Agency’s strategy and creative culture experts, this paper is for leaders who are looking to redefine their north star and expand their understanding of creative consumers during these unprecedented times. We work with brands to innovate their products and services in order to move and grow with culture, and build a future with creativity and optimism. Credit Javier Salido 1. https://www.washingtonpost.com/health/coronavirus-is-harming-the-mental-health-of-tens-of-millions-of-people-in-us-new-poll- finds/2020/04/02/565e6744-74ee-11ea-85cb-8670579b863d_story.html 6 7

4. MULTI-GEN CREATIVES FROM X, Y & Z 8 9

5. MORE ALIKE THAN NOT Spanning three generations, Multi-Gen Creatives are an incredibly diverse group possessing a variety of backgrounds, religions, sexual orientations, identities, talents, and education levels. They are trendsetters, creative professionals, students and makers in NYC and other major global cities. What unites them is grit, determination, and a sense of joy, even during the toughest times. We had 176 responses to our survey and conducted select follow-up interviews with people to get a deeper understanding of how they are engaging with the world around them during the quarantine. Credit Andy Boyle 10 11

6. Average Annual Income Ethnicity Latino or Hispanic $125,000-$149,999 (6.80%) $0-$24,999 (27.30%) (3.40%) Other (8%) $100,000-124,999 (11.40%) Asian (10.20%) $75,000-$99,999 (13.10%) White (63.10%) Black or African American (11.90%) $150,000+ (14.20%) $25,000-$49,999 (15.30%) $50,000-$74,999 (15.30%) Highest Level of Education Gender Identity Completed High School Other (0.60%) (2.30%) Completed College/ University (47.70%) Some Graduate School Female (72.70%) (4%) Non-Binary (1.10%) In High School (4.50%) Male Completed Graduate School (14.80%) (25.60%) Some College/ University (26.70%) 12 13

7. WITH STORIES TO TELL Susu, 21 She/Her Fayetteville, AR Student During quarantine I have become more introspective because I have had more time to think about myself. Gideon, 26 He/Him Brooklyn, NY and Kingston, Jamaica Artist During quarantine I learned how to make pottery, and smoked a lot of POT(tery). Jennie, 36 She/Her Oceanside, CA Photographer/ Retoucher During quarantine I decided to buy some goats Gio, 37 He/Him Eagle Rock, CA Producer/ Photographer During quarantine I made hot sauce and did a lot of pickling. Grace, 30 She/Her New York, NY Creative Manager During quarantine I made 10+ mixes from live DJ streams. Now I have these time- capsule mixes to show something for being locked down. Warren, 32 He/Him Long Island City, NY Non-profit founder/ Former Marine During quarantine I am learning Spanish, reading a lot more and I got a new job. Ruth, 47 She/Her Rockaway Beach, NY Film Editor During quarantine I confirmed that my right swipe was right on Saylor, 43 They/Them Rockaway Beach, NY Caretaker/ Environmental Activist During quarantine I have expanded my community of people. Janetti, 40 She/Her Bronx, NY Teacher During quarantine I did a cold water therapy every day for a month in May. Evan, 28 He/Him San Diego, CA Videographer During quarantine I got well acquainted with a chainsaw. Sergio, 32 He/Him Rockaway, NY/Lima, Peru Marketing Director During quarantine I fell in love with surfing again. Sam, 22 He/Him Los Angeles, CA Student During quarantine I read True Grit by Charles Portis 14 15

8. OH HELL YES: OPTIMISM RULES THE DAY 16 17

9. IT’S ABOUT CONTROL On a scale of 1–5, how optimistic are you about the future? 40 Generally defined, optimism comes from a tendency to look on the bright side and expect favorable outcomes in most scenarios. Our study showed that across Multi-Gen Creatives optimism is closely tied to a sense of control. 30 20 10 The most optimistic cohort are older Millennials and younger Gen X. At mid-career, they make decent incomes and have an established foothold in their respective industries. Having gone through the Great Recession and the Swine Flu pandemic as young adults, their lived experience informs their confidence in being able to weather tough times, with the perspective that it all works out. 0 1 2 3 4 5 2.9% 13.1% 35.4% 29.1% 19.4% Average optimism by age. 4.0 Gen Z and younger Millennials were the least optimistic. In the earlier stages of their careers or even in school, this cohort has more questions than answers for how or how much they can control their futures. Unlike older Millennials, this group was primed by having come of age during the Great Recession and watching its impact on their families’ livelihood and well-being. They are nervous about job loss, the current recession, and the upcoming presidential election. 3.75 3.50 3.25 3.00 18-24 3.38 25-34 3.87 35-44 3.72 45+ 3.67 18 19

10. Gen X and older were the most cautious. Their concerns are varied, and include greater susceptibility to severe illnesses from COVID-19, employers moving to rid themselves of higher salaried workers, or a perceived lack of tech skills to work from home.2 Overall, they feel less flexible in navigating the long-term economic and social effects of quarantine. “I’m optimistic about the future. I want the best for humanity — politically, socially. We are taking steps to get the virus under control” — Gio, 37 Across the board, Multi-Gen Creatives are more optimistic during quarantine because they are imaginative and find ways to control what they can. Whether it’s creating their own opportunities, taking the time to explore new forms of work, or an ability to interact with others — establishing touchpoints of normalcy helps creative people feel that things will turn out OK in the face of unpredictable external events. 2. https://www.forbes.com/sites/ericbachman/2020/04/30/covid-19-layoff-or-pretext-for-age-discrimination-against-older- employees/#4d6180c74c56 “Overall, I think there will be positives to come out of this. Also, for people who started working from home, they’re realizing how important and valuable free time is — how happy you can be when you structure your own time” — Gideon, 26 Credit Joshua Kissi 20 21

11. SPENDING: FROM STUFF TO SELF 22 23

12. INVESTING OVER BUYING Multi-Gen Creatives are re-thinking how they are spending their money across categories. Coming out of the pandemic, they remain eager to return to a semblance of life as it was, but with more savings, improved skills, better health, and lending greater support to other creatives and their local communities. While buying clothes, going out to eat, and traveling remain important to them, people are cutting back where they can on things that feel tangential to their deeper need for self-improvement. In turn, they are diverting some of those savings into educational apps and videos. Whether it’s to learn new skills for their career, or study how to grow one’s food, at a 267% increase they are using the time they have to further hone their expertise, explore interests, and prepare for challenges ahead in a time that demands greater self-sufficiency. “A lot of my friends and I used to spend money on clothes and going out to eat but now we’re putting money into creative things we can do. I haven’t bought clothes in a long time” — Susu, 21 Staying physically and mentally healthy has also become a priority for creatives. They maintain Credit Andy Boyle 24 25

13. control of their health through exercise apps/ online courses, meeting doctors via telemedicine, and taking more supplements. As with education, the Multi-Gen Creatives indicated that they would continue to spend more to take care of themselves after quarantine. “ I’m buying art to support my friends. I’m also buying music, band merch, records and hopefully they get residuals. I want to support other creatives” Overall, the desire to spend on discretionary items and experiences has pulled back. It hasn’t gone away entirely, but it won’t return to pre-pandemic levels. People are shifting their budgets to dedicate more of their spend to donations and self-actualization, or deciding that ultimately, spending on non- necessities is less important today than saving up for more rainy days. — Evan, 28 “I’ve cut back on junk food. No ice cream or cookies. Now that I’m home more often, I eat real food. I have no desire for snacks. It’s related to health and mental well-being” — Warren, 32 “ I spend nothing except on food and gas. In the trans-community we have a wealth distribution approach. I am helping my community by giving money directly to them” — Saylor, 43 26 27

14. HOW ARE YOU SPENDING YOUR MONEY... During Quarantine 0 25 50 75 100 125 150 Jewelry & Clothing Beauty Tech Educational Apps & Videos Food & Beverage Groceries Furniture & Home Goods Entertainment Fitness & Wellness Health Products Supplements Nonprofit Donations Travel Gaming N/A I’m Broke Take Out Not spending Lube for Sex Before Quarantine After Quarantine 0 25 50 75 100 125 150 0 25 50 75 100 125 150 Jewelry and Clothing Jewelry & Clothing Beauty Beauty Tech Tech Educational Apps & Videos Education Food & Beverage Food & Beverage Groceries Groceries Furniture & Home Goods Entertainment Furniture & Home Goods Fitness & Wellness Entertainment Health Products Fitness & Wellness Supplements Health Products Nonprofit Donations Supplements Travel Gaming Nonprofit Donations N/A Travel Saving Money Gaming Stock Investment N/A Shows Concerts & Weed All of the Above Work Equipment Phone Data Business Related Cinema Car Art Supplies New Hobby Tennis 28 29

15. OPTIMISM SHIFTS INVESTMENT Fitness & Wellness Spending Educational Apps & Videos Spending Donations Pre-Quarantine During Post-Quarantine (expected) 30 31

16. “ I had ambitious thoughts of taking classes on photoshop where I could hone my skills but I went in the opposite direction and dove into nail tutorial videos. I kinda surprised myself by diving into that, and playing around with it” Do you think you’ll continue to pursue this? “ Yeah, I’m going to go do my friend’s nails in Greenpoint. I never went into this to make money but, hey, that’s cool if it happens” — Grace, 30 Source https://www.instagram.com/nailedbydeath/ 32 33

17. BRANDS: NOT SO MUCH 34 35

18. LOOKING FOR LEADERSHIP With casual spending down and their intention set towards financial responsibility, Multi-Gen Creatives aren’t keeping up with brands the way they did before the quarantine. Paid social brand engagement has dropped—so have reading reviews and catalogs. Although they are spending more time on screens working and socializing, people aren’t looking for new brands. It’s just not a priority when they’re looking to dial back on shopping, and on most days there’s nowhere to go.3 Passive discovery has also fallen off in the new stay- at-home, WFH culture—people aren’t spending time in person with friends and family who can make intentional (or unintentional) personal recommendations on the latest clothing or accessories to buy, and they are not seeing advertisements around the city on their daily commutes. “I’m ignoring brands. I’m reading books and trying new things” — Gio, 37 The pandemic and its cascading effects have further underscored Multi-Gen Creatives’ desire to engage only with brands that take action, provide a sense of leadership and seek to make the world 3. https://www.nytimes.com/interactive/2020/04/07/technology/coronavirus-internet-use.html Credit Joshua Kissi 36 37

19. Percentage of respondents not looking for brands before/during quarantine. better. This includes providing tangible value to their communities through music or fitness programming, or providing PPE for healthcare providers, creating funds for furloughed workers, or donating to coronavirus related causes. Before Quarantine During Quarantine 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% How respondents are finding new brands before vs. during quarantine. Before During 80.00% 60.00% 40.00% 20.00% 0.00% Social Media Sponsored Post Friends and Family Online Reviews Catalogue 38 39

20. What brand sponsored events are respondents watching? 50% 40% 30% 20% 10% “When New York was open I was exposed to campaigns and screens in the subway. If I saw something that I liked, I’d go to the Nike shop in SoHo to try something on and shoot hoops in the store. Now, I’m not shopping for brands relying on experiential to get me interested” 0% Live Music Hosted Talks Conferences Film Premieres Online Education Fitness Meditation Fundraisers What actions taken from brands have you admired during quarantine? — Sergio, 32 80% 60% 40% 20% 0% Created funds for furloughed employees Suspended normal factory production Donated to various Coronavirus aid organizations Provided Practical Tips and Information Provided Funny and Lighthearted Content Are business as usual Ran ads that show how they are responding Credit Jackie Lee 40 41

21. ANTICIPATION: YAY! (maybe) 42 43

22. CLOSE BUT NO HUGS When communities “re-open,” what is the first thing you’re going to do? Shop in store (3.4%) Restaurants, bars, & coffee shops (25.6%) Other (6.2%) Multi-Gen Creatives are bursting with anticipation to re-engage with society but are cautiously optimistic. They are excited to “get back to normal” and return to IRL experiences. Live Experiences (9.1%) Travel (14.2%) Our survey reveals people are looking forward to going out to eat and drink, traveling, seeing (and hugging) friends and family, enjoying outdoor activities, and even live experiences like concerts once the pandemic is over. Nope, not going out (23.3%) Outdoor Activities (18.2%) But there is also real anxiety around being near others that was not there before, with many responding that they had zero intention of going out. While they long to reconnect with their communities, their enthusiasm is being tempered by the realities of the virus. With infection rates still soaring across the U.S, they want to play it safe to avoid getting their family sick or putting others at risk. Respondents who said “Nope, not going out” when things re-open by age group. 18 - 24 25 - 34 35 - 44 45+ 0% 10% 20% 30% 44 45

23. The older the respondent, the less they intend to go outside. A third of the 45+ cohort are just not interested. True to stereotype, the young will be restless; but for a generation raised as latchkey kids, Gen X’s pragmatism, risk-aversion and survival instinct tells them to stay at home and ride it out. “I want to see my friends and hug them. I miss everyone. It’s so weird to say I love you means staying away. It’s counterintuitive. I want to tackle-hug people” —Jennie, 36 Credit Joshua Kissi 46 47

24. “I want to see friends, family, go to concerts, gatherings, dancing. I want spontaneity—to be able to go anywhere you want without constraints. If there’s a cheap ticket to Todos Santos, Mexico I don’t have to worry about getting sick” —Sergio, 32 Credit Andy Boyle 48 49

25. GET READY... OR NOT 50 51

26. HOPE FOR THE BEST, PLAN FOR THE WORST When asked about what they might have done differently to prepare for quarantine, Multi-Gen Creatives overwhelmingly responded that they would have saved more money, invested, created an emergency fund, or spent less on non-essential categories. While they tend to live their lives to the fullest, the pandemic has reinforced that financial preparedness can help weather the storm. Knowing what you know today, what might you have done differently to prepare for the pandemic? Save money or invest Create an emergency fund Close to a third of our respondents said that they would do nothing different. Interesting patterns emerge as we break this down by age group. At 43%, the oldest respondents (45+) were most likely to maintain the status quo. They are in their peak earning years, and are likely more financially secure and prepared as they begin to plan ahead for retirement. Spend less on clothes and entertainment Seek financial advice Eat out less often Choose a different career Go back to school Move out of a city I’d do nothing different 0% 10% 20% 30% 40% 50% Millennials aged 25-34, on the other hand, were least likely to have done things the same way as they did going into the pandemic, indicating shifting priorities in finances from the seemingly frivolous (spending on clothes), to the pragmatic (investing). 52 53

27. Ratio of respondents who would have done nothing different by age group. Facing the unknowns, people associate financial stability with control. While many wish they could have been more prepared upfront, they are taking the opportunity now to save and take a more strategic tack with their money. With the impact of these historical times not soon forgotten, this trend of greater focus on personal finances is likely to continue beyond the pandemic. 80% 60% 40% 20% 0% 18–24 25–34 35–44 45+ 33% 17% 27% 43% Ratio of respondents that would have spent less, sought financial advice, or created an emergency fund by age group. 80% 60% 40% 20% 0% 18–24 59% 25–34 35–44 45+ 67% 67% 46% 54 55

28. “I’m lucky to be employed these last few months that nothing really changed for me work-wise. I haven’t looked into investments like an IRA. I’m very conservative with my money” —Ruth, 47 “I’m going to adopt a more conservative spending mindset going forward. I’m going to try and continue to educate myself in budgeting and planning financially. I’m also going to make sure I have an emergency fund of cash on hand if possible” —Sam, 22 Credit Noel McGrath 56 57

29. CONCLUSION 58 59

30. CREATIVITY + OPTIMISM FTW At the beginning of the pandemic, when the Multi-Gen Creatives we know put their lives on hold, we wanted to know how they were feeling and what they were doing to get through it. The takeaway from our study is that the art of surviving quarantine requires a certain amount of control over circumstances to create opportunities for normalcy. That control is at the heart of optimism—giving people the outlook and grit they need to get through tough times and prepare for the future. As the need for quarantine ebbs and flows in cities around the world, brands today can do several things to stay engaged with influential creative people. • Be a leader — during the pandemic, people are yearning for trustworthy leadership. This gives brands the opportunity to step up to provide not just words of comfort but take action to improve and protect the lives of its consumers. Kaia Miller Source 60 61

31. • Teach people new life skills — with the increased interest in self-investment and personal growth during (and after) quarantine people will be looking for substantive ways to engage with brands that go beyond the purchase. • Re-envision brand experience — tailor a previously analog brand experience to digital to continue connecting with your consumers. • Help people prepare — This may not be the last time we have to quarantine. Brands have an opportunity to learn what people need to stay optimistic and provide the information or tools to help them get through this new way of life. • Define optimism for a new era — the world is going to be a different place when the pandemic subsides. Brands have an opportunity to help creative people envision what this world might look like and how they can participate in its making. Credit Dannah Gottlieb 62 63

32. ABOUT US Milk Agency is an independent creative company that opens brands up to new systems of culture and collaboration. Born from Milk Studios, a cornerstone of New York’s downtown creative community for over twenty years, Milk Agency is a culturally diverse creative organization that delivers brand strategy, identity, and experience. We are a team of thinkers, makers and doers with big agency and startup experience. Our client portfolio includes startups to Fortune 100 companies such as Lexus, AT&T, Intel, Bulleit, Impossible Foods, Lululemon, New York City Ballet, and many more. If you would like to contact us, send an email to hello@milkagency.com or call us at (+1) 347-779-2405. Milk Studios Source 64 65

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