Big Spenders: Millennials Are Projected to Dole Out $1.4 Trillion in 2020
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Upon developing new marketing plans for the new year, 5WPR, the New York-based public relations agency, has taken a deeper look at the complexities of the modern consumer. And at the center, the company says, is the Millennial market.
Millennials now represent the largest percentage of the workforce in the U.S. and are also the biggest users of social media and most likely to make purchases online.
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“Millennials will not only be the highest spending generation in 2020 but are also the most highly influenced by the media,” Ronn Torossian, founder and chief executive officer of 5WPR, told WWD. “This means the messages brands are sending are more important than ever before. We now know that 82 percent of Millennials will purchase an item the first time they see it if they like it enough.”
Additionally, 5WPR found that though Millennials are more likely to make impulse purchases they are also more likely to regret the action when compared to older generations. All generations are thinking differently about where to splurge and where to save. Findings in this report showed that when a brand or category is considered to be commoditized consumers are more likely to choose to save money on the purchase.
This puts travel, experiences and dining out into “likely spurges” while health, wellness, home goods, beauty and clothing are “most likely to save” purchases.
“The world of retail is moving faster than ever before, making it even harder for brands to decide where to spend their marketing dollars,” Torossian said. “As e-commerce and online shopping continue to grow, it makes sense that more money is being spent on digital advertising, but the truth is that traditional retail is far from dead.”
According to 5WPR’s report, more than half of young consumers use social media once, or multiple times a day. And 72 percent of Millennials are found to be influenced by “external sources” including articles, blogs, Instagram or celebrity endorsements.
“We’ve found that an omnichannel approach is not only the most successful strategy but imperative to sales growth,” Torossian said. “Our data shows that 68 percent of consumers prefer finding new brands in-store versus online. This means people still want the real-life experience, and it’s a big opportunity for brands who recognize this want and are able to merge both worlds.”
5WPR’s report also includes insights into the noticeable shift in consumer demands from customers seeking to purchase from companies and brands that offer a higher brand purpose. A majority of Millennials, 83 percent, told 5WPR it is “important for the company they buy from to align with their beliefs and values.”
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