The Millennial Generation & Their Changing Tastes
Jeff Fromm, President of FutureCast looks at the most significant trends to shape the Millennials consumer segment and behaviours of this affluent new generation taking the luxury landscape by storm, and how luxury brands should cater to them in 2016.
One of the biggest trends we are seeing among the Millennial generation that will continue into 2016 is the drive for live events and more experience based spending. Today, one in four Millennials would rather pay money for an experience rather than a product.
Everyone, regardless of age, has that one team or one performer that they follow, track tour dates, memorise team schedules and look forward to the night when they can see all of the action, LIVE.
Millennials are quickly changing the live event industry through the way they research, purchase, experience and amplify these moments. They are looking for brands to not only host these experiences but to also create a frictionless consumer journey from getting the tickets all the way to sharing their pictures on social media. That means easy online access with mobile-first capabilities, connected Wi-Fi at the event and follow up connection points to relive the experience.
“ Millennials are a generation that is not only gaining more influence, but also more disposable income ”
Implications of this group’s behaviour are evolving the live event experience (before, during and after) for the industry and consumers. They are the generation that equates value to memories and experiences; brands can no longer sell them a product but rather create an experience with them.
Furthermore, Millennials are a generation that is not only gaining more influence, but also more disposable income. As Millennials are entering their peak employment years (the median age among Millennials today is 26), their bank accounts are growing.
Through our research of the affluent millennial population, we found that there are nearly 6.2 million affluent millennial households in the U.S. today and that number is expected to grow in the coming years.
In the past, affluent consumers marked their affluence with luxury products (think Rolex or Hermes). However, as we are seeing the shift towards experiences grow among the affluent millennial population, that mindset is changing. Why buy a $10,000 bag when you can book a trip to Thailand or get front row seats to your favorite concert for the same price (if not less)? This trend will continue to transform and evolve from what we have seen in the past as we enter the new year.
