In 2018, Millennial Shoppers Spending to Increase 100%+ in Two CategoriesMillennials are predicted to spend a significant amount on two categories in 2018: Travel and Home Goods.
For retailers trying to connect with the Millennial shopper, transparency is key. Millennials are always in search of a bargain and these two categories are no exception. It is essential for retailers to catch the attention of the Millennial buyer, and offer competitive pricing to remain relevant.
Millennials are smart shoppers looking for deals, relying on retailers to provide bargains that fit their spending habits, and their lifestyle. Data suggests that 31% of Millennial shoppers spend the bulk of their money on travel and home goods. Even more promising is the 2018 projection, that Millennials spending will increase 100%+ from 2017 on travel and home goods. This spells major opportunity for retailers smart enough to adapt.
How are Millennial Shoppers Spending Their Money?Millennials report spending the greatest portion of their money on travel, along with food and drinks as close category competitors. After travel, spending on home goods came in second, followed by apparel, electronics, fitness and beauty. Even though Millennials plan to spend more in 2018 on travel and home goods, the majority expect price matching from retailers to be crucial in making purchasing decisions.
Price matching seems to be fairly equal among the Millennial sexes and the same can be said of all ages. The message is clear for retailers in travel and home goods; price matching is a must to remain competitive with the Millennial shopper.
Millennial Shopping Behaviors Divergent from Other GenerationsInterestingly, Millennial shoppers are not supporters of big holiday discount days such as Black Friday and Cyber Monday. Millennials view retailers that drag out these sales for days as inauthentic and just another ploy to make a buck. In what was once a exclusive day to obtain great deals, these events are just any other shopping day with no real bargains.
A majority of the Millennial generation believe they spend less than their peers and feel overall, they make wise purchases. Even though data shows Millennials don't have a large nest egg, they are very optimistic that their finances will improve in 2018.
The takeaway for retailers, specifically in the travel and home goods industry? Think outside of the box and be progressive in marketing to Millennials, ensuring brand loyalty...word will spread quickly thanks to their tribal mentality.