A survey of 10,000 American consumers by The Boston Consulting Group suggested that Millennials are more enthusiastically embracing the holiday spirit than other consumers in the United States. Four in 10 Millennials responding to the survey said they would spend more this holiday season than last, compared with only 24% of older consumers, the market research firm stated.
As for shopping flexibility, 55% of Millennials said they probably would try out a new brand this holiday season versus 36% of other consumers.
According to the survey, Millennials intend to spend an average of $849 this season, which compares with $1,069 that older generations plan to spend. However, Millennials will have a disproportionate effect on web spending as 51% of 18 to 35 year olds told BCG that they expect to increase online spending this season. In contrast, just 34% of older generations expressed an intention to spend more online.
The hot categories for Millennial shopping this holiday season will be clothing, consumer electronics, entertainment and beauty products, according to the study. As they shop, Millennials will pay particular attention to the brands Old Navy, Apple and Netflix, and emerging favorites such as H&M and Samsung.
“Overall, consumers are aiming to be frugal this holiday season,” said Michael Silverstein, BCG senior partner. “The bright spot might be young adults, who are planning to ratchet up their spend a bit from last year. The Millennial is a hot spot of retail activity. They are the core new market to take.”
Still, he added, “It’s worth noting that, despite Millennials’ intention to spend more this year than last, the average Millennial will still spend less than older Americans.”