Millennials shop using technology

Pasadena Star News
By: Cynthia Kurtz
Posted: 10/01/2014

Regardless of the Southern California heat, we have officially entered the Fall season. Four weeks until Halloween, eight weeks until Thanksgiving and then we all know Christmas is just a blink away. While three months may be a bit too early for the average shopper to be making holiday plans, it is definitely time for retailers and brands to be thinking about how to stand out this season.

It's not as easy as planning for sales and buying advertising. Merchants need to be appealing to Millennials and that requires a new way of selling.

Millennials are persons who were born between 1981 and 2000. They constitute 27 percent of the U.S. population - about 79 million - and are more ethnically diverse than any previous segment of the population. By 2030 they will outnumber non-millennials.

They live at home with their parents longer and marry later. That makes baby clothing and household goods less of purchasing priorities. But they do have a major purchasing weakness - technology. Thirty percent of Millennials use four or more electronic devises a day. On average they check those devices 43 times a day. That's about once every 15 minutes.

Millennials are "digital natives." They grew up using technology and it is a part of every aspect of their lives. So, it should come as no surprise that that is also how they shop.

According to Stifel Finance Corp., in 2014 retailers will generate half their sales growth from Web purchases. That means about $18 billion in revenue growth will be generated from on-line purchases.

E-commerce has been doubling every five years and analysts say there is no end in sight. Enclosed malls may be taking the biggest hit. Sixty-percent of Millennials say they rarely go the mall but about half spend an hour a day shopping or browsing on-line. It is all about speed and convenience.

How Millennial consumers make purchasing decisions is also different - 68 percent say they are totally unimpressed by celebrity endorsements; instead they will ask family or friends for advice. Eighty-nine percent say they trust recommendations from family or friends over brand advertising claims.

Millennials want to give their opinions about products and experiences whether they are negative or positive - 59 percent share those opinions primarily on social media and 93 percent say they read reviews prior to making a purchase.

Retailers and brands who want to open Millennials' wallets are rethinking their advertising and marketing and especially how to create a seamless experience between physical and on-line stores. Get ready. The future promises big changes in retailing.