While there is no universal definition of exactly when the Millennial generation begins or ends, although the general consensus is that it encompasses those born between 1980 and 2000, it is unanimously understood that Millennials will shake the retail world to its core… more than they already have.
The Millennial generation is often labeled as one big block, but it is vital for retailer’s to remember that this generation is comprised of people in many different life stages as these life stages affect what they want, what marketing messages resonate with them and how they shop. Fourteen-year-olds shop differently than 21-year-olds and 21-year-olds shop differently than 30-year-olds.
And much to retailers’ dismay, even though Millennials are the first truly digital generation, when it comes to shopping, Millennials are still interested in the in-store experience.
Even though you’ve probably read about Millennials until you’re blue in the face, truly understanding this complex generation has huge implications for your business.
Here are 9 reasons why:
1. There are anywhere between 80 and 95 million Millennials, comprising roughly 30% of the population. (Source: Business Insider)
2. Millennials are starting to come into their prime spending years. As Millennials age into their 30s, they will be an increasingly important consumer group (Source: Business Insider)
3. By 2018, Millennials will have more spending power than the Baby Boomers and by 2020 Millennials will have a collective spending power of $1.4 trillion. (Source: Fool.com)
4. Millennials love to spend money – especially on apparel. Roughly 58% of Millennials say they “love to shop” compared to 40% of adults overall; they spend 8% more on apparel than those aged 35-44 and Millennial women are 83% more likely to really enjoy clothes shopping than other cohorts. (Source: Style Blazer)
5. 81% of Millennials’ retail spending occurs in brick and mortar stores and 57% of Millennial in-store shoppers make a purchase. (Source: Marketing Charts)
6. 53% of Millennials shop in-store during the typical week and account for more than one-third of all UK shopping visits. (Source: Marketing Charts)
7. Millennials spend an average of £57 per online visit and an average of £44 per in-store visit. (Source: Marketing Charts)
8. Millennials make up 58% of mobile shoppers and are 2.5 times more likely than the average shopper to be influenced by a mobile app. And shockingly, 53% of Millennials said they would rather give up their sense of smell than their technology. (Source: Fool.com)
9. Millennials love social media. They have grown up in a social media revolution and embraced it with arms wide open – 43% of Millennials have liked more than 43 brands on Facebook, 63% stay up-to-date on brands via social media and 44% are willing to promote brands on their social networks. (Source: Fool.com)
The bottom line is that the future will be defined by the Millennial generation. They will be the force that drives the rejuvenation of the UK economy, challenges long-held traditions, pushes for increased productivity and demands innovation.