Millennials represent the largest percentage of the workforce in the U.S. and will soon overtake Baby Boomers to become the largest living population of adults, according to estimates from the U.S. Census Bureau. This generation is projected to spend $1.4 trillion in 2020, shaping the future of how we do business and changing the factors that ultimately drive younger generations to purchase.
5WPR’s 2020 Consumer Culture Report sheds light on the complexities of the modern consumer’s motivations, influences and purchasing habits, in part pertaining to the beauty industry – and the findings might surprise you. When it comes to discovering new beauty products and brands, brick-and-mortar retail is still at the top of the list across all age groups—Millennials included—beating out ads and influencers on Instagram, Facebook and YouTube. Our findings show 68% of Millennials—the leaders in online shopping—say they prefer finding new products in store to finding them online.
Another top finding is that 38% of Millennials typically discover new beauty products and brands they want to try in-store while only 34% cite Instagram ads and 32% cite Facebook or YouTube ads, making it clear that omni-channel marketing is critical in the purchase journey, and that retail still plays an important role in the discovery stage.
Millennials are also raising the bar when it comes to transparency and social responsibility. Thanks to the influence of this generation, it has become mainstream that companies should be good corporate citizens and give back through charitable contributions and partnerships in order to be successful. 71% will pay more for a product if they know that some of the proceeds go to charity, and 67% say it’s important that a brand they’re purchasing from has a charitable component.
To read the study in full and learn more about its findings and key takeaways on impulse behaviors, splurging vs. saving, delaying behaviors, the influence of social media and more, download a free copy here. Visit www.5WPR.com for more information on the agency.
Photo via 5W's Consumer Culture Report