Good news for retailers: Millennials are proving to be relatively predictable with their shopping habits. ROTH Capital, an investment banking firm, has released its “2017-2018 Millennial Survey,” which confirms many of the reported nuances and preferences of the demographic. This should not be dismissed, but instead used as a checklist for the coming year.
“Millennials are shaping our current environment and setting the stage for the subsequent generation. Understanding underlying Millennial thought processes and trends is vital to consistent investment returns in today’s marketplace,” said David Bain, managing director and senior research analyst at ROTH Capital.
In conjunction with Research Now, ROTH Capital surveyed more than 1,000 Millennials to discern emerging shopping behaviors and solidify preferences.
Perhaps most expected, the survey found that 71 percent of Millennials believed a significantly enhanced retail experience would increase in-store visits and purchases. This relieves retailers the need to devote resources to untangle convoluted strategies and instead direct efforts where it matters most: the actual retail ecosystem.
And arguably one of the most crucial supplementary components of said environs is the social sphere. “Millennials primarily find ideas on which products or brands to purchase through web sites, apps and social media,” the report said. This calls for the c-suite to not only understand the necessity of social media campaigns but to champion the launch of rich data collection and analysis to inform these initiatives.
“Millennials seek out experiences and prefer brands that speak to them, versus products that retailers choose to offer them,” said David King, chief financial adviser, managing director and senior research analyst at ROTH. “Winning brands are those that forge authentic connections, market experientially, and exploit the new path to purchase through social media and evolving e-distribution models.”
Millennials embody entrepreneurial — and frugal — traits, regardless if they work for traditional companies or organizations. This results in time-pinched schedules and the frequent use of subscription and sharing services. “Forty-six percent of Millennials belong to a subscription service for purchasing products, while 22 percent use sharing economy services besides ride-sharing apps,” the report said.
What’s more, the wellness-crazed demographic also applies this to their health and fitness. According to the report, 36 percent of respondents regularly stream a fitness class or exercise through an app or in-home equipment — 21 percent of Millennials have used a meal-kit delivery service, while seven percent plan to within the next three months, the research found.
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