Millennial masters: Understanding the spending power of Generation Y

 

Image source: forbes.com

A new generation has come of age in the past years. Generation Y, or the so-called millennials, are moving towards their prime spending years. With this, businesses must be prepared to face different habits. This generation’s spending power is being demonstrated differently thanks to their access to information and technologies. Here are some of the millennials’ spending practices:

Ownership is no longer a concern

In the days of Uber and AirBnB, millennials are more comfortable with renting rather than buying their own ride or home. This generation knows the rising concerns with regard to overpopulation and pollution, a reason they are open to sharing their ride and even living with their parents. According to studies, this generation will facilitate the rise of the so-called “sharing economy,” which prioritizes access over ownership.

They would rather spend on experiences

The popularity of budget travel shows that millennials are into collecting experiences instead of things. Instead of saving up for a new home or even new gadgets, this demographic would rather spend for an overseas adventure with their “squad”. Looking for experiences that they can share online is a real concern for this generation.

Image source: theodysseyonline.com

They look for fast and personalized service

Millennials have information at their fingertips. By typing and swiping, they can order products and services online. Despite the convenience that comes with a high-speed lifestyle, they are looking for services that cater to their specific choices. A one-size-fits-all approach will not work with millennials. They are looking for products that they can customize according to their own taste. They are also looking for a different kind of service that gives them something to talk about.

The cost matters more than the brand

Despite the influence of social media influencers that dictate what their followers should buy, millennials believe that they can get what they want for a lower price. With many options they can choose from online, they’re no longer so interested in supporting particular brands. What’s important is that they get the item that they need as soon as possible.

Millennials make up the majority of the workforce. Proficient in technologies and well-informed, they are reshaping spending habits that the population has adapted to in the past decades.

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