Survey Reveals Key Retailing Trends Among Millennials

Survey Reveals Key Retailing Trends Among Millennials Call them Gen Y, or Echo Boomers, or the more fashionable Millennials. But retailers have been asking this question a lot more of late: What does this power-buying generation really want? What does it matter? The Millennial generation represent the largest retail consumer group, larger than both the Baby Boomer generation or Gen X. Now a new study, “American Millennials: Deciphering the Enigma Generation,” has a few updated answers. The study was conducted by Barkley, one of the largest independent marketing agencies in the U.S., in partnership with Service Management Group and The Boston Consulting Group. Based on a survey of more than 5,000 respondents and 3.9 million data points, the study provides new information on a range of digital and social media habits of American Millennials as well as their attitudes in the areas of cause marketing, grocery, restaurant, apparel and travel. “Since the Millennials generation is larger than the Baby Boomers and three times bigger than Generation X, marketers’ understanding of Millennials’ needs, tastes and behaviors will clearly shape current and future business decisions,” says Jeff Fromm, senior vice president at Barkley. Here are a few highlights from the survey: Millennials Are Aware of Youth-Oriented Cause Campaigns Millennials compared to other generations reported greater awareness of newer, youth-oriented cause marketing campaigns, such as Dove’s Campaign for Real Beauty (33% versus 21%) or Gap RED (26% versus nine%).They report greater exposure to campaigns through social media (40% versus 22%) and online news (28% versus 22%), while Non-Millennials rely on newspaper and direct mail. Millennials Consume 42% of TV Online Millennials appear to have substituted television and print media for the increased online activity and media consumption. Millennials watch significantly less TV than Non-Millennials; fewer Millennials report watching 20-plus hours/week (26% versus 49%). When they are not watching live TV, Millennials are much more likely to watch shows mainly on their laptops (42% versus 18%), with DVR (40% versus 36%), or On-Demand (26% versus 18%). Millennials Seek Peer Affirmation & Advice Perhaps because of their need to share and to find commonalities, 70% of Millennials reported feeling more excited when their friends agreed with them about where to shop, eat and play. Only 48% of older adults were as heavily influenced by their friends and colleagues. Additionally, Millennials gather information on products and services from more channels - more Millennials than Non-Millennials reported using a mobile device while shopping to research products (50% versus 21%). Millennials Are More Prone to Grocery Shop in Groups While majority of all respondents shop alone (60% Millennials, 69% Non- Millennials), Millennials are more likely to shop with others versus Non-Millennials. Plus, Millennials report more shopping than Non-Millennials with family unit, spouse and children (13% versus six%) and with adult friends (four% versus two%). Millennials Crave Adventure Millennials seek a broader range of activities, think globally, and report a greater desire to travel. The large majority of Millennials (70%) want to visit every continent in their lifetime. Fewer than half of older adults report that goal. Millennials Prefer Casual Dining Environments and Snack More Not only do Millennials report a desire for adventure, but they also think life should be fun. Whether shopping, dining out, or immersed in their mobile devices, Millennials prefer the music turned up and a casual atmosphere. Millennials accounted for 18% of their monthly restaurant spend in the fast-casual format, compared to only 13% for Non-Millennials. Additionally, Millennials crave snacking opportunities, and are more than twice as likely as older people to seek them out mid-morning, mid-afternoon and late at night. Retail Associates Play a Critical Role When female Millennials were asked a series of questions about where they purchase fashion brands, it became clear that if store associates do not know the trends or look the part, Millennials are far less likely to be drawn in by the store. Millennials demand more knowledgeable and fashionable sales associates (29% versus 19%) while Non-Millennials value sales associates who know to apply discounts and offer promotions (65% versus 51%). More Insights to Come at Share.Like.Buy. Conference More detailed findings from the study will be shared at the “Share.Like.Buy.” conference on September 22-23, 2011, in San Francisco, Calif. Aimed at all marketers who must forge new relationships with American Millennials, the conference will educate attendees on how to market with Millennials rather than to them. Confirmed conference participants and speakers include representatives from Facebook, MTV, Sony Music, Frito-Lay, Forbes Magazine, Forrester, Spiral 16 and many other thought leaders from the marketing industry. To learn more about the study and conference, visit sharelikebuy.com, or contact Barkley’s Jeff Fromm at 816.682.5401.