Currently, millennials make up approximately 25% of the global workforce. This number is expected to increase to 46% and 75% by 2020 and 2025 respectively. Given these figures, the role of millennials in the global economy cannot be overstated. For instance, the purchasing power of millennials is estimated to range from $125 to $890 Billion. Likewise, the millennials' employment levels differ significantly compared to the other cohorts. For instance, the millennials that have gone to college are likely to boast higher employment levels (Lukina, 2016). In contrast, the millennials that are not college-educated are more likely to be faced with higher unemployment levels compared to their counterparts. This undeniably significantly affects the millennials’ shopping tendencies.
Up to 85% of millennials love and enjoy shopping (Sethi et al., 2018). Likewise, shopping is a source of entertainment and is often viewed as a group activity. Thus, a millennial's social network drives his or her shopping activity and is influenced by such factors as ratings and posts on Facebook, Twitter among other social media platforms. Millennials are also more likely to shop locally, with most supporting the idea of driving less so as to purchase from the most immediate retailers as well as those that can be accessed quickly especially via public transport. In this case, most millennials prefer to live, shop or work in transit and multi-use establishments. The other principal driver of millennials' shopping patterns is the internet ( Stranahan & Kosiel, 2007; Xu et al., 2005; Keng Kau et al., 2003). A significant proportion of the Millennials' time is spent on the internet, which has become an essential component of their lifestyle. Subsequently, the increased preference for online shopping amongst the millennials cannot be overstated (Keng Kau et al., 2003). Statistics indicate that in recent years, the preference for online shopping has been on the rise globally. It is this phenomenon that has driven research in the area of online purchase intention (Sethi et al., 2018).
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Millennials’ are driving an unprecedented shift in the general shopping habits ( Lukina, 2016) . For instance, a previous study established that 33% of the women and 40% of the men in this group are likely to buy everything online in an ideal situation. The other noteworthy finding was that about 45% of the millennials surveyed confirmed that they spent at least one hour everyday shopping online (“How millennials shop online,” 2013). These statistics represent a win for online retailers, signifying the need for them to intensify effort towards making online shopping easy to navigate and enjoyable. Compared to its counterparts, this group is also more likely to make use of shopping apps, retail store apps, and auction sites. Several factors drive the preference for online shopping. Firstly, scholars have established that millennials opt to shop online because they are more likely to enjoy discounts that are otherwise inexistent in physical stores. Secondly, online shopping cannot be decoupled from social media. A significant percentage of millennials are social media account holders and enthusiasts. This makes the shopping experience easier and interesting. For instance, about half of millennial women and 44% of men cited that they used Twitter and Facebook to connect with brands of interest (“How millennials shop online,” 2013). They also used the same to gain access to exclusive offers and discounts.
The increased penetration and adoption of smartphones have played a crucial role in advancing online shopping. Consequently, a significant proportion of millennials use smartphones in the execution of different tasks that are involved in online shopping (Wang et al., 2015). These include searching for the best prices, requesting for a price match, and ultimately, making the purchase. Thus, for online retailers to take advantage of this phenomenon, they have to make their stores mobile-friendly. Overall, since digital shopping is a standard behavior amongst the millennials, online retail stores and comparison shopping sites will continue to influence this group’s shopping habits into the future.
References
How millennials shop online: Spending more than 1 hour per day on retail sites is fairly common. (2013, July 10). Retrieved from https://www.emarketer.com/Article/How-Millennials-Shop-Online/1010031
Keng Kau, A., Tang, Y. E., & Ghose, S. (2003). Typology of online shoppers. Journal of consumer marketing , 20 (2), 139-156.
Lukina, A. (2016). Buying behaviour of millennials changing traditional marketing practices. Kymenlaakso University of Applied Sciences
Sethi, R. S., Kaur, J., & Wadera, D. (2018). Purchase Intention Survey of Millennials Towards Online Fashion Stores. Academy of Marketing Studies Journal .
Stranahan, H., & Kosiel, D. (2007). E-tail spending patterns and the importance of online store familiarity. Internet Research , 17 (4), 421-434.
Wang, R. J. H., Malthouse, E. C., & Krishnamurthi, L. (2015). On the go: How mobile shopping affects customer purchase behavior. Journal of Retailing , 91 (2), 217-234.
Xu, Y., & Paulins, V. A. (2005). College students' attitudes toward shopping online for apparel products: Exploring a rural versus urban campus. Journal of Fashion Marketing and Management: An International Journal , 9 (4), 420-433.
