How do Millennials have an Impact on the Retail Market?
Different generations shop in different ways and Millennials prove this. Millennials are currently aged between 20 and 35 or born between 1980 and the end of 1994 (some say 2000).
Millennials (also known as Generation Y because they follow Generation X who were born between 1965 and 1979) are among the last generations of the 20th century and the first to be truly digital. This means they are tech-savvy, mobile, and social – but what does that imply for their shopping habits?
Smartphones
Smartphones are used predominantly by millennials to connect to the internet. Unlike previous generations, who did not have immediate access to this technology, millennials leverage smartphones for various tasks. Retailers who have recognised this trend have developed specific apps that potential customers can download to their phones.
Social Media
Social media is utilised by millennials as a primary source of information on products, special offers, and shopping trends. Reviews from peers on social media are highly valued by this generation.
Price Sensitivity
Having grown up during tough economic times and recessions, millennials are particularly sensitive to prices. They have the ability to instantly compare prices and save on nearly anything, often prioritising price over quality and brand.
Price Comparison
Comparing prices online is now very easy, and the majority of millennials will always do this before making a purchase. While they may go in-store to buy an item, they will have already checked online to find the best price.
Vouchers
Due to their price sensitivity, millennials highly appreciate vouchers to get additional discounts or benefits with their purchases. A simple Google search often provides a list of sites offering voucher codes for online purchases or QR codes that can be used in-store on a mobile device.
Options for Savings
Providing millennials with various money-saving options is always beneficial. Offering a buy-online-and-pick-up-in-store (click and collect) service has become very popular with this generation. This option saves them delivery costs and allows them to pick up the item at their convenience.
Gift Cards
Gift cards are also highly popular among millennials. They are seen as a safer online payment method compared to other digital options. Many millennials also prefer using PayPal to protect their credit/debit card details, so retailers not offering these options may miss out on sales from this generation.
Loyalty
Millennials are the most likely generation to sign up for loyalty schemes. While they are less likely to be loyal to a brand due to price sensitivity, they are more likely to choose brands offering loyalty programs that provide future vouchers and special deals.
Millennials are changing retail shopping trends due to economic climates, technological advances, and a desire for a seamless buying experience. It is crucial for retailers to engage with the millennial generation, as they represent a significant portion of total spending power in the UK.