A Strategy for Marketing to Millennials
Millennials are the largest shopper generation, 80 million strong. More than any other demographic, they embody the always on, active lifestyle that drives today's society, constantly surfing the online world in their areas of interest.
This is tied to the notion of binge spending, something millennials are more prone to than other consumer shopper groups. They expect consistency of experience across mediums, and if their online shopping experience is unpleasant, they'll be turned off and tap into friends for better recommendations.
By 2020, the number of millennials who are active as independent consumers — i.e., spending their own money — will grow 68 million, or one-fifth of the total population. While their purchasing power is low today, they're expected to surpass the purchasing power of Baby Boomers by 2017, according to RetailNetGroup.
To help retailers respond to evolving consumer behavior, including that of millennials, Daymon regularly tracks and interprets global trends. Key trends significant for retailers interested in providing better products and services to millennials include the following:
- Millennials are deferral of key life-stage events and tend to be "singletons" for longer periods of time than previous generations. For example, they're less likely to own a home or car and are delaying marriage and childbirth. In fact, only one in five women ages 15-30 is married, compared to over 60 percent of women in this age group in 1970.
- Millennials want personalized, authentic products and are actively seeking out retailers and brands that fit with their lifestyles, prioritizing immediacy, convenience and ease of use. At the same time, the broad macro environment means that price remains important to these consumers.
- Millennials are ethnically diverse, and with growing immigration, acculturation and international access to the internet, they're more likely to have global palettes and particular interest in ethnically influenced products.
- Millennials are a tech-enabled group. They grew up with technology and are comfortable using it, from online and mobile shopping to social networks.