A recent survey conducted by ESW, a direct-to-consumer e-commerce company, has revealed that Millennials will be the lead global spenders in 2023. The study sampled 16,000 international consumers in 16 countries, and it was found that 73 percent of Millennial shoppers plan to spend the same or more online in 2023.
Millennials, who are born between 1981 and 1996, are known for their strong digital presence and love for online shopping. According to the study, the retail categories where Millennials will be spending their money on include health and beauty, luxury, apparel and footwear, and consumer electronics. It is essential for retailers to understand this trend and align their marketing and sales strategies accordingly.
The study also highlights two subsets of Millennial shoppers: convenience shoppers and power shoppers. Convenience shoppers account for nearly 70 percent of Millennials who spend full price on beauty and health products. These shoppers prefer to shop online due to the ease and convenience it offers. They are not price-sensitive and are willing to pay full price for products that meet their needs.
Power shoppers, on the other hand, are consumers who shop online once a week or more. They have become an important subset of customers for online retailers. These shoppers are highly engaged, price-sensitive, and always on the lookout for deals and discounts. They expect fast and efficient delivery and are likely to switch to a competitor if they are not satisfied with the service.
The study reveals that Millennials’ online shopping behavior is driven by convenience, value, and experience. Retailers need to provide a seamless shopping experience across multiple channels and devices to attract and retain these shoppers. They also need to offer personalized recommendations and deals based on their shopping behavior and preferences.
In conclusion, the study conducted by ESW highlights the growing importance of Millennials as global spenders. Retailers need to understand their behavior, preferences, and needs to capitalize on this trend. By offering a seamless shopping experience, personalized recommendations, and deals, retailers can attract and retain this valuable customer segment.
The findings of this study are not surprising given the growing influence of Millennials in the global economy. With their increasing purchasing power and digital savviness, they are reshaping the retail industry and forcing retailers to adapt to their needs and preferences.
The pandemic has accelerated the shift towards online shopping, with many consumers turning to e-commerce platforms for their shopping needs. This trend is likely to continue, with Millennials leading the way. The study found that the COVID-19 pandemic has increased the importance of online shopping for Millennials, with 82 percent of respondents saying that they have shopped online more frequently during the pandemic.
Moreover, the study found that Millennials are more likely to use mobile devices for online shopping than other age groups. This highlights the importance of mobile optimization for retailers. Retailers need to ensure that their websites are mobile-friendly and offer a seamless shopping experience on mobile devices.
Another interesting finding of the study is that Millennials are increasingly interested in sustainable and ethical products. They are willing to pay more for products that are eco-friendly and socially responsible. Retailers need to take note of this trend and offer products that meet these preferences.
In conclusion, the study conducted by ESW provides valuable insights into the behavior and preferences of Millennial shoppers. Retailers need to understand these trends and adapt to the changing needs of their customers. By providing a seamless shopping experience, personalized recommendations, and sustainable products, retailers can attract and retain this valuable customer segment.