Millennials refer to the group of individuals born between the years 1983 and 1998. In many countries, they are the third-largest generation living. They are likely to be the largest when it comes to the provision of labor. Ideally, the older millennials advance in their careers as the younger ones join the labor force. Their income and spending keep on increasing. This has made it necessary for retailers to adapt their strategies to cover the expenses by the millennials.
Do millennials prefer online shopping? This is an interesting question to consider.
Retailers regularly conduct surveys on the spending habits of millennials as well as their shopping preferences. The review would often involve what consumers prefer to be vital to them. The shopping behaviour of the millennials has significant impacts on the economy of Singapore as well as the entire world. For instance, millennial sales are expected to account for at least 30% of the overall sales in the United States by the end of 2020. A recent study indicated that millennials make at least 54% of their total purchases online. For so long, millennials have been perceived as omnichannel shoppers.
Nevertheless, drastic change in preferences has been witnessed in recent years. Precisely, there has been a recent surge in choice for digital platforms and channels. In other words, there is a positive and significant deviation in the digital buying preferences. In response to the question we raised earlier, millennials seem to prefer online shopping. Moreover, thanks to the wide range of online discount codes and coupons offered by companies like Raise for major retailers such as Lowe’s this general shift towards ecommerce is expected to continue.
Millennials form the generation that has been most digitally inclined as far as shopping is concerned. Are you surprised to see their dramatic change in their buying behaviors? The shift in shopping can be attributed to the inception of D2C brands. Online purchases are more likely to increase due to the increase in the popularity of these brands. For this reason, a marketer needs to understand where they can get the members of this generation. This means they need to be acquainted with such things as where they browse, the top searches and transactions.
Are the millennials utterly different from other generations? While the millennials are known for perceiving the world via the digital lens, it doesn’t mean they are unique from other generations. According to one survey, there are significant similarities between millennials and their predecessors. The survey focused on the millennials, the boomers (1946-1964) as well as the generation X (1965-1979). The results of the study indicated the following;
· At least 55% of the respondents consider the cheapest return alternatives.
· 41% of the respondents from the three groups take part in showrooming. This means they analyze merchandise from the surrounding retail stores. Afterward, they shop for the lowest prices online more than how they did in the past one year. This shift is attributed to the surge in the penetration of digital devices such as smartphones. Making it easier to search for information about an item even while present at the store.
· 36% of the respondents suggested that they would purchase an item online via the retailer’s website in case the store is closed, and they need the item.
· According to 89% of the respondents, accessing information about the availability of a product in real-time would impact their buying decisions when it comes to which store to deal with frequently.
The above points show consumers are rational. There have been several myths about millennials, and this information renders them basely. Here is a brief overview of three of them.
The millennial generation focuses on online shopping
It is undeniable that the millennials are savvy online clients. Nevertheless, this does not mean that they no longer visit the brick-and-mortar sites. One survey on one of Singapore’s biggest malls established that most of the individuals who visit the shop to shop online are from the digital generation. This does not mean that online and mobile platforms are not essential.
These channels avail the millennials with all the relevant information about the products and services they need. For instance, most of the millennials look for product reviews and ratings online to ascertain that the commodities and their vendors offer the best value and service. Millennials prefer online shopping. There are some interesting licensed money lenders you can deal with in Singapore in case you need a personal loan for online shopping. The only problem retailers have to deal with is that the millennials expect the prices of the products to be equal online as in stores. Also, the millennials appreciate the coupon scanning. Most of them would not prefer transacting in a store if they are required to have them, and they have not printed.
Loss of loyalty
In one survey, most of the retailer’s top concerns are the loss of commitment from the millennials. Nevertheless, millennials can actually be very loyal clients. Their loyalty depends on the kind of treatment they receive from the retailers. In case they are treated right, their reliability can be guaranteed. All they wish to have is a customer-oriented shopping experience. Most of them want to feel welcomed whenever they visit the stores. Loyalty cannot be lost in case the millennials are valued. Some focus their dedication on the promotional products and discounts as the cost retailers need to pay.
The millennials are so much into social networks. However, their actions can be easily misunderstood. For instance, they perceive Facebook, along with other sites quite differently from what marketers may think. A click on an ad may show that the brand is cool, but that is not an indication of their loyalty. Some do not follow their retailers on social media platforms such as Facebook and Twitter. However, they use them to obtain better deals.
The Bottom Line
Nowadays, retailers need to be careful to adapt their brands to suit the needs of the digital generation. They need to focus on becoming seamless. This means they should focus on offering a consistent, personalized experience to the clients. They need to customize their products in a way that is attractive to the millennials. How can retailers increase their potential to be seamless? The next blog will discuss that.
This is an article provided by our partners network. It does not reflect the views or opinions of our editorial team and management.
HedgeThink.com is the fund industry’s leading news, research and analysis source for individual and institutional accredited investors and professionals