As members of the Millennial generation age and hit major life milestones, how they shop for products continues to differ from their parents, a new survey from the National Retail Federation shows.
According to the NRF, Millennials today are parents to 50% of today’s children and more than 1 million women in this much talked about demographic are becoming new mothers each year. In addition, the Millennial generation is making a “significant contribution” to the $1 trillion U.S. parents spend each year on raising children.
“The Millennial generation has at turns confounded, inspired and challenged researchers and analysts with their spending habits,” said Katherine Cullen, NRF director of retail and consumer insights. “As many Millennials move into parenthood, we are beginning to see how their expectations and shopping preferences compare with those of previous generations. Whether it’s using a subscription service to make sure diapers don’t run out or going online to research the best crib or car seat, Millennials shop differently than other parents.”
According to the NRF survey, Millennial parents differ from other parents both in their lifestyle and shopping choices. According to the report, 40% hold a graduate degree, or more than double the 19% of other parents, and 69% of respondents earn more than the national median income of $59,000 a year, compared with 53% of other parents.
In addition, Millennials also hold a positive outlook on their futures: the generation’s consumer confidence has risen by more than 20 percentage points since 2008, and a third feel that their financial situation has improved over the last year. And 80% of Millennials with children are in their 30s.
In terms of mobile technology, the NRF survey found that 78% use their phones to research products, with 75% checking prices or product availability and 71% leaving a product review.
Millennial parents also said where they shop matters, with 44% only shopping at brands that reflect their social or political values, a factor cited by only 23% of parents from other generations.
In terms of brand loyalty, 49% of Millennials said they remain loyal to a brand despite cheaper options and 52% will remain loyal despite more convenient options.