Cosmopolitan SA magazine recently invited international Millennial expert, Joan K. Snyder to present her theory on ‘why Millennials matter’.
For starters, it’s important to note that this generation (currently aged between 14 and 34) spends up to $600 billion a year in the US alone with forecasts stating this number could rise to close on $2,45 trillion in 2015. This spending power stems from viewing and treating their parents as peers and not authority figures, which in turn results in Millennials having a greater say in their household spend compared to previous generations. It if predicted that the Millennial generation will outpace the spending capacity of the Baby Boomer generation in just 5-10 years.
They’re known as Generation Y but could easily be called Generation Y NOT with their ‘oh well’ versus ‘what if’ attitude towards their careers, relationships and experiences. This generation believes wholeheartedly that they have the promise, power and potential to change the world forever and they’re going to do it with or without you, so best you pay attention to what they’re saying on- and off-line.
The numbers don’t lie, this year 50% of the global workforce is made up of Millennials and by 2015 this number would have risen to 75%. There are 2,5 billion Millennials worldwide and 19,5 million alone in SA (38% of the population!). Globally, the average age of the human population is 29 – they are either already in the workforce or moving their way up the corporate ladder while slowly and surely changing the face of business.
This generation is the most educated in history but also the most unemployed and underemployed with many a Millennial accepting a job way under the level and standard of their degrees/masters.
When it comes to shopping, 69% of Millennials will read product reviews before making a final decision, they will also request price matches and if they’re happy will buy the product/service immediately but when you think that 88,8% of retailers globally do not have mobile paying applications you realize how many sales are potentially missed.
There are some companies however doing it right as for the Millennial it’s all about the experience. Experience is the new luxury brand.
Globally, 7 out of 10 Millennials believe it is their responsibility to give brands feedback and with the explosion of social media and blogging/vlogging this is getting easier to do. A few years ago, blogger Jenny Evans wrote a blog on how she missed a specific 1-piece swimsuit by American retailer J Crew that had been discontinued. The blog went viral with many others stating how much they missed the swimsuit and wished it would come back. Shortly afterwards, then CEO Jenna Lyons of J Crew took out a 2-page ad in a popular fashion magazine saying the swimsuit is back, she also hand wrote a letter to Jenny saying ‘your wish is our command xoxo’. This just shows the power of social media and how it can make a difference, if used correctly of course. 55% of Millennials check social media up to 20 times a day, they are on every platform all the time and so should you be.
Another industry our Millennials are changing is travel and with 20% of global business travellers falling within this generation it’s important for those in travel to pay attention. Millennials want to feel like VIPs but can’t necessarily pay the high prices for this treatment currently. The Marriot Hotel Group noticed a gap and recently launched a sub-brand targeted directly at the Millennial generation. Moxy opened first in Milan, Italy and boasts an affordable VIP experience with online check ins, stylish rooms and a communal living room with WiFi and a fully stocked bar. Travel is an $855 billion industry in the US alone with SA being in the top 3 choice of where global Millenials want to visit.
They are disrupting everything, they value time over money, they are recalibrating what is important to them, they are aware of the trouble the planet is in, they care about their health and feeling good and they will only support you if your values are in line with theirs – so are they?