According to a new study conducted by ESW, a direct-to-consumer e-commerce company, Millennials will take over as the lead global spenders this year. The survey sampled 16,000 international consumers in 16 countries and found that 73 percent of Millennial shoppers plan to spend the same or more online in 2023.
The retail categories Millennials will be spending their money on include health and beauty, luxury, apparel and footwear and consumer electronics. Compared to Gen Z, nearly 50 percent of Millennials say they will increase their online shopping for health and beauty products.
ESW’s study additionally highlights “convenience shoppers” and “power shoppers.” The e-commerce company identifies “convenience shoppers” as shoppers willing to pay full price. “Power shoppers” are defined by ESW as people who have spent $2,500 or more online in the last 12 months.
Convenience shoppers, or consumers who buy frequently and have little effort in their decision-making, account for nearly 70 percent of Millennials that spend full price on beauty and health products. Furthermore, 28 percent of Millennials state that they will spend more on full-price online luxury purchases this year.
Power shoppers, or consumers that shop online once a week or more, have become an important subset of customers to online retailers. Compared to Gen Z, 52 percent of Millennials state that they will increase their spending as luxury power shoppers. Additionally, 29 percent of Millennial power shoppers say they will be spending more on apparel and footwear.
“Millennials’ spending power has grown to $2.5 trillion, and they are not yet even in their prime earning years,” said Patrick Bousquet-Chavanne, president and chief executive officer of ESW Americas. “They are spending more online than in-store across several categories, and these results indicate that brands must continue to evolve, improve, and optimize their e-commerce to attract and retain this increasingly powerful demographic.”