In the simpler world of the twentieth century, parents were likely to buy brands based on a catchy jingle. Millennials are cut from a different cloth and are more likely to make purchases based on their values.
Connected. Frugal. Environmentallyconcerned. These are some of the dominanttraits that millennials exhibit, according to a rash of surveys conducted over the last several years. The implications for marketers are profound-offer products and services that relate to millennial values if you want to stay relevant.
Behold their buying power. There are more than 83 million millennials-aged 18-34-in the U.S., and recent college graduates carry an average of $30,000 in student loan debt. In other words, millennials are numerous and frugal. In 2017, they spent more than $200 billion in the U.S. and are on course this year to have the most spending power of any generation1.
Sustainability is a key value. Nearly three-quarters of millennials are willing to spend more on offerings from companies that emphasize their environmental and social support. Take, for example, secondhand thrift shop purchases by millennials, a venue where sustainability and frugality overlap. Sales of secondhand items are growing 20 times faster than sales at traditional retailers, and are expected to reach almost $36 billion by 2021. About 75% of thrift-shopping millennials are motivated by environmental concerns1.
Millennials are highly social beings. When it comes to shopping, millennials are heavily influenced by friends and social media contacts. Seventy-nine percent of millennials believe it deepens relationships to attend events with family and friends, while 70% are more influenced by non-celebrity bloggers than they are by celebrity endorsements. In fact, 62% of people in the 18-24 age group would prefer to buy a product suggested on YouTubeto buying it on TV.
Online shopping preferred. .As the most connected generation and also a notably frugal one, millennials are avid online shoppers, making 54% of their purchases over the internet. More than 5,000 brick-and-mortar retail stores shut down in 2017, and for many, the reason was online competition. Millennials are 4.6 times more likely to rent products online, 2.3 times more likely to use sharing economy services (such as Uber and Airbnb), and 1.6 times more likely to use a grocery app from a large retailer1.
Millennial shopping trends hold big implications for investors. Contact me, and we can discuss how this trend may help shape your investment portfolio.
1 Forbes.com, "How to Tap into the Millennial $200 Billion Buying Power with Social Media," 10/31/17