This increase in spending is despite the economic turmoil of the GFC and subsequent unrest, which has caused Millennials to be cautious buyers.
Millennials are more willing to upgrade their tech devices, such as new phones, despite cutting back on takeaways and new clothing.
Millennials have become defined by technology. Nielsen’s research indicates that around 70 percent of Millennials will search online for hard-to-find products, and unlike previously generations, Millennials are likely to express their opinion of a product online.
According to analysis from Adweek blog SocialTimes, Millennials are also more likely to trust the opinion of their peers, making them great brand advocates.
Social media can help deepen Millennials’ loyalty. Retailers should use social media to connect to their customers online.
Nielsen’s Millennials in 2015: Retail Deep Dive report shows Millennials want a more authentic yet affordable shopping experience.
The average wage of a Millennial is US$13,000 per year, while the ‘upscale Millennial’, a label coined by Nielsen, earns around US$157,500 per year.
The general population earns around US$25,600 per year.
Despite wanting personalised and affordable deals, Millennials also do not want to compromise on quality.
Millennials are more willing to spend more if a product is locally made.
Retail NZ launched its ‘#BuyKiwi’ campaign this year to entice New Zealanders to shop locally and support Kiwi retailers.
Millennials are spearheading the “buy local” movement in the United States, a US$26 billion industry.
Nielsen reports that over half of those making and selling their own goods are Millennials.
Locally-made goods allow for a customised and personal shopping experience, with half of Millennials willing to buy something if it is customisable.
Because Millennials are more educated than previous generations, they take their time when making a purchase.
Almost half of Millennials will look at four different stores before deciding to buy something.
A third of Millennials will only make a purchase if they have a promotional code.
Retailers can help engage with Millennials by telling them how and where the product is made.
By sharing the story of their brand, retailers can make Millennials feel part of the creation process.
Millennials are also concerned about whether a product can be resold.
Retailers should therefore highlight a product’s quality, durability, and classic styling.