When compared to older generations, Millennials said they’re planning to dole out more money this holiday season than they spent last year, according to a recent survey from The Boston Consulting Group.
In regard to types of products, the poll showed Millennials will be seeking out fashion apparel first followed by consumer electronics, entertainment and then beauty products. “Millennials report that their favorite brands include Old Navy, Apple and Netflix, and emerging favorites are H&M and Samsung,” the researchers said in their report.
Millennials, who range in age from 18 to 35, “seem to be in the holiday spending spirit more than the rest of Americans,” the researchers said adding that four in 10 of them expect to spend more money this year than last year, which compares to 24 percent of older generations. The survey polled 10,000 consumers.
“Further, most Millennials — 55 percent — say they’ll probably try out a new brand this season, versus only 36 percent of the rest of the population, which plans to stick to the familiar,” the researchers said.
BCG senior partner Michael J. Silverstein said overall “consumers are aiming to be frugal this holiday season. The bright spot might be young adults, who are planning to ratchet up their spend[ing] a bit from last year. The Millennial is a hot spot of retail activity. They are the core new market to take.”
But Silverstein quickly noted that “despite Millennials’ intention to spend more this year than last, the average Millennial will still spend less than older Americans.” Of those polled, Millennials plan to spend an average of $849 this year, which compares with the average of $1,069 for older generations.
“A lot of the new Millennial spending will be online,” the researchers said. “More than half (51 percent) said they expect to increase online spending this season.” This compares to 34 percent of older generations looking to do the same.
“A significant takeaway for retailers and consumer businesses this holiday season is that consumers are increasingly discerning and thoughtful about their spending,” Silverstein said. “The brands that will be able to sell at full-price are those that have truly engaged consumers, focused on their best customers and have turned them into apostles who tell their friends. If you win their hearts, they will tell their friends.”