Understanding millennials is very important as they have an increasing influence on the future in almost every aspect of life. Gen Y, as millennials are commonly called, will rule the roost and shape the way economy is headed. Businesses have to learn to successfully connect with young millennials if they need to sustain themselves amid competition in the years to
Who are millennials?
Millennials are the generation born between 1980-2000.
•Having diverse experiences, exposure and an increasing platform to voice their individual selves, millennials are adept to expressing their voices and concerns.
•Priorities, way of life and points of view are all entirely different from the older generation.
•Millennials are aware of the best opportunities and practices around the world and have a variety of media to express themselves and influence their decisions.
Workforce and Career:
By 2020, globally millennials will comprise around 50% of the global workforce. (Source; PwC,research)
When it comes to career, millennials are extremely ambitious. Millennials will be ‘job-hopping’ till they find a company meeting their demands and expectations, and not the other way around. Previous generations held an average of five jobs in their lifetime, for millennials the average is predicted to be 20.
Love and Marriage:
Millennials are open to love and around 83% of them believe in the institution of marriage. Cultural and economic changes are forcing millennials to have other priorities like completing higher education, a stable job, their own home before they contemplate marriage.
Median marriage age 2016
29years 26 years
Median marriage age 1976
23years 20 years(Source: US Bureau of Census, Statistics)
A larger number of millennials are postponing parenthood as well.
Percentage of women having children by age 20:
1980’s – 57.5%
2015 – 10.6% (Source: IPUMS-CPS and Goldman Sachs Global Investment Research)
Hierarchy of Need:
Millennials place a lot of importance on ‘Me’. They have clear ideas of what they really want and how to translate it into reality. Their needs vary clearly from the Baby Boomers and Gen X.Millennials have grown up comfortably unlike their parents having had their basic, security and psychological needs satisfied.
Millennials have quickly progressed through the hierarchy of needs (namely survival, safety, belonging, importance, self realization according to Maslow), as a result, they get to the top of the pyramid much earlier than other generations. Generation Y is used to moving quickly and adapting to change.
As Millennials enter their peak home-buying years their reluctance to enter the housing market could change.
A house: Purchasing a house is an extremely important priority of 40% millennials. Only a small 7% would purchase a house only if they really need it.
Acar: Extremely important priority to 15% of millennials. 25% are indifferent to car purchases and prefer rentals.
Luxury items like branded bags:10% listed it as an extremely important priority.Only 10% are indifferent to such luxury purchases. (Goldman Sachs, survey)
Millennials want increased access to rentals right from cabs to homes. According to the organization for Economic Co-operation and Development, 60% of 25-34 years olds believe rentals work better for them. Although a house is a priority, 59% admit they would rent a house than buy it until they could afford it.
Brands and Retail:Millennials are the most important consumer groups as they are into their prime spending years. As more and more of Gen Y are invested in technology and social media, businesses should make note of their shopping preferences to alter their business strategy and be successful.
Brands:Contrary to popular belief, millennials are loyal to a brand. They look for a brand that earns its loyalty through a quality product, good customer experience and supports social causes or charities.
60% of millennials are loyal to a brand they purchase from.Around 50% said that quality is the topmost attribute in selecting a brand while 75% report that the brand should give back to society.
(Source: Elite Daily)
Online shopping:45% OF Gen Y spend about an hour a day looking at retail based websites. So it is very important to engage customers online for businesses.About 50% millennials use smartphones to research products and services. They prefer the convenience of a tablet or smartphone to make purchases.
(Source: Urban Land Institute and Barkley)
Comparison of Prices and reviews:Increasing number of millennials is relying on blogs to make a purchase. Around 33% look at social media for reviews done by others especially peers whom they trust before purchasing a product. 57% of Millennials compare prices in store. According to a survey by Shoppirate.in, 62% millennials use ecoupons to make their purchase.
WellnessContrary to popular belief, millennials are health conscious. They exercise more, are calorie conscious and smoke less. They are willing to spend more on health foods 25% of millennials believe in eating healthy and exercising as against 14% of Gen X and 12% of baby boomers.(Source: Aetna, 2013)
However, millennials drink more alcohol than 20, something from the past. As of 2013, they drink around 16% more alcohol than those in their 20’s in 1997.(Survey:NHIS)
They are hesitant to visit the doctor unless absolutely necessary. More than half of millennials use retail clinics, urgent care centers or emergency rooms for nonemergency care, and they are more prone to do so than people in other age groups.
(Survey: FAIR Health)
-Ms Kulpreet Kaur, Co-founder,