Millennials have elicited lots of attention from the media and from older generations, especially their Baby Boomer parents. There’s a reason for that. This generation became adults at the turn of the 21st century. So, many predicted that their upbringing and the changing world that they grew up in would influence their lifestyles and preferences. That was definitely true, especially in what they shop for. It’s time to thoroughly analyze Millennial shopping habits this year.
How Are Millennials Shopping Online This Year?
Millennials grew up with the personal computer. So, they prefer to shop online. Approximately ⅘ of their purchases are done on digital devices. Over 40% of millennials have graduated from college with many of them holding advanced degrees. They are a busy generation given the staggering student loan debt they have to pay off. They are also stifled by the rising cost of living, especially food, gas, and housing. So, they work much more than previous generations.
Since they’re constantly on-the-go, they prefer shopping options that offer flexibility. That’s why 56% of them make purchases on mobile devices. A main reason for that preference is that it allows them to read customer reviews about brands and compare prices quickly and easily.
How Do Millennials Research Brands Before Buying?
Since millennials were the first truly digital generation, they prefer to research brands online. Sure, they sometimes turn to Google, Bing, and other search engines for advice, reviews, and information. However, they tend to buy brands that are endorsed by and have popular social Influencers’ seals of approval. A whopping 61% of millennials will buy brands promoted by these influencers.
The reason is that millennials trust these influencers because they speak using words, terms, and a language that they (millennials) can relate to. Millennials also think influencer content is authentic. Perhaps that’s because the content tends to revolve around personal experience with the brands. The content also explains exactly how the brands being promoted helped the influencers.
Not surprisingly, Millennials tend to shy away from corporate advertising. That’s partly because they’re wary of corporate interests and desires. Millennials want content with a personal touch, and corporate-generated content usually lacks that.
What Do Millennials Prefer to Spend Their Money On?
As I mentioned earlier, Millennials are a cash-strapped generation. So, they tend to spend more of their money on essentials. That includes necessities like rent, mortgages, utilities, and groceries. It also includes items that while necessary, can make a person look better. These include clothing and shoes, entertainment products, beauty items, and electronics, among others.
Millennials Live For Experiences
Most millennials have long realized that they will never be able to afford a house or reach some of the milestones that have defined the American way of life since the founding of Jamestown in 1607. So, they want to spend their scarce and hard-earned money on experiences. They tend to frown on buying unnecessary things, which they may view as being frivolous.
Experian recently did a survey. Its findings were staggering. Approximately ⅗ of millennials want to pay for experiences instead of physical items. Part of this may be their way of rebelling against their Baby Boomer parents’ culture which viewed fancy physical items as a sign of wealth and high social status. Consequently, industries like travel, dining, and live events which are planned, immersive, and can go viral have boomed as millennials grew up.
Renting is No Longer Taboo
Homeownership may have been a basic milestone to achieve since the first Colonists arrived in Jamestown over 400 years ago. However, there haven’t been as many new houses being built since the pandemic started over 4 years ago. The pandemic may be over now, but new housing starts haven’t taken off like they used to.
Demand for housing has risen since the pandemic though. These two forces – greater demand and shorter supply of housing units – caused rapid inflation in housing prices. The average mid-sized American home cost well over $400,000 in 2024. Consequently, many millennials found themselves priced out of the housing market.
Interest rates on mortgages have gone up. That has added significantly to the rising cost of housing. Property taxes and homeowner’s insurance has also gone up substantially since the pandemic. It’s also much more expensive for homeowners to maintain their homes the way they want. All of this means that a growing number of millennials prefer to rent rather than become first or second-time homeowners.
Sure, most of them would love to become homeowners if homes weren’t so darn expensive. There is a silver lining since 52% of households with millennials now own a home since the pandemic. However, a growing chunk of them view renting as being easier. After all, there is no mortgage to pay for and they don’t have to worry about paying for or taking care of maintenance issues – that’s what their landlords are there for.
Also, most landlords don’t have the stringent credit requirements needed to buy a house.
Subscription Services Are In
Millennials’ preference to rent goes far beyond housing. They prefer to rent many other items that their parents and previous generations would have bought outright. That’s why they’re into Netflix and subscription boxes. Subscription boxes let millennials enjoy and experiment with their favorite items and brands.
The beauty of subscription boxes is that millennials never know exactly what’s in them. In that sense, they’re full of surprises. Subscription boxes are personalized and tailored to the recipient’s specific needs and preferences. The prices of these boxes rarely fluctuate. Millennials love that predictability in what they perceive to be an increasingly changing and unstable world.
Millennials also love to take the experience of opening these boxes viral on various social and social media platforms.
Millennials’ Experiential Shopping Habits Are A Sign of the Times
Millennials grew up in an increasingly technical world. So, they prefer to shop online on any digital device. They are also cash-strapped, so they value the ability to spend on essentials. For them, it’s not just routine shopping, it’s a blessing. They also crave experiences. For millennials, the ability to spend on experiences and certain physical items is a luxury.
