Dubbed the social media generation, the ‘me’ generation and even the lazy generation, Millennials (aged 18-34yrs) have been given a bad wrap in terms of their work ethic, saving habits and ability to go without life’s luxuries. This generation is growing up; and while they haven’t quite established themselves, their purchasing power is increasing at an exponential rate.
The Nielsen Millennials Report reveals that in 2016 this lucrative group was worth 7% of the Australian food and grocery retail market and by 2021 their market share will jump to 17%. This 10 percentage point rise over five years means Millennials will account for retail growth of $6.1 billion, demonstrating their immense future buying power. Tapping into this growth opportunity will rely on companies understanding, engaging and delighting these enigmatic consumers.
Millennials are a new powerhouse of consumers who are more educated, connected and demanding than their parents. Almost a third (31%) hold a Bachelor’s degree in comparison to their parents (19%).
Their lives are in consistent states of transition as they join the workforce, move into new homes and start their own families. Seventy-one percent of Millennials say they put family before their career - challenging the idea that they are a ‘selfish’ group.
Their caring nature means they also demand more from products and brands. Compared to other generations, Millennials are more likely to actively look for out for organic cues (62%), sustainably sourced (60%) and environmentally friendly products (50%) while shopping for groceries.
And although Millennials live in households that earn slightly higher than the population average, they tend to be thrifty and will shop around for the best price. This does not mean, however, that they are cheap - 60% of Millennials say they are happy to pay extra for quality goods.
To engage Millennials, companies will need their brands to be visible in a variety of spaces. Having grown up in a world of media fragmentation, they are fully immersed in both their digital and physical lives and are becoming hyper adept at multi-tasking with two or more screens. They’re most likely to be on Facebook, Youtube and Instagram; and they have, on average, a total of 10 connected devices in the home.
Millennials are are constantly developing their tastes and personality. Understanding their defining traits, engaging with them on their platforms and delighting them with useful products, will put companies in the best position to capitalise on the opportunities they present.
The Nielsen Millennial Report looks at how Australian retailers, suppliers and manufacturers can tap into this enigmatic group of consumers, whose purchasing power and patterns will shape the future of the retail industry. It provides insights into the Millennial generation’s demographics, attitudes, values and technology use; while also comparing this group to counterparts such as Gen X, Gen Y and Baby Boomers.
Hear from millennials around the world about how their utilising technology in their personal and professional lives in the video below.