While the economic downturn impacted Millennials the most, they may be the primary beneficiaries of the recent economic uptick. A new study and analysis of consumer spending by Berglass + Associates and Women’s Wear Daily finds that retailers are underestimating the spending power that Millennials offer.
So why are Millennials misunderstood as consumers?
- Millennials have different motivations. When it comes to spending and purchasing, Millennials have different attitudes, habits, and behaviors compared to other demographics, particularly Baby Boomers.
- Millennials base purchases on friends. Though marketing remains an effective tool for driving Millennial spending, most young adults find that friends influence them as they make a purchasing decision.
- Most retailers are ignoring them. Approximately 60 percent of retailers admit to not conducting or pursuing any research on Millennial spending habits or the average Millennial consumer.
With Millennials expected to outspend Baby Boomers by 2017, it’s surprising that more retailers aren’t pursuing this growing demographic. At Lifestyle Retail Recruiters, we understand that every demographic is important, especially when it comes to the success of your physical in-store retail location.
To learn more about the spending power of Millennials, be sure to read more from this study entitled “What Happens When Millennials Get the Wallet.”