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Generation Y Marketing – What Marketing Category Should You Identify With?
Consumer purchasing habits from 2020 could continue to linger in 2021. A new report from eMarketer projects that retail e-commerce sales in the U.S. will increase by 13.7% to $908.73 billion lower than last year’s 18% to $709.78 billion surge, but still exceeds pre-pandemic estimates of 12.8% for 2017. Globally, [consumer](https://www.marketingwealthapex.com/what-is-the-mindset/) purchasing habits will remain stable at 4.3% growth from 2017. “Retailers must be prepared to take advantage of the new realities,” the report states. “This growing consumer market can be segmented into multiple segments with dynamic spending patterns. This level of personalization and market segmentation will make it possible to reach consumers across multiple channels and across different periods of the year.”
Retailers can be segmented into multiple segments with dynamic spending patterns. Consumer behavior (sales volume, average spending per order, number of purchases, spendthrifts, etc.) will remain stable, and retail e-commerce sales can be broken into multiple segments (seasonal vs. year-round purchases, for example). For example, during the holiday season consumers spend more money on gifts for friends/family than on retail products. Sales volumes are anticipated to rise between 10% and 12% for 2021, while consumers are expected to spend $1,800 on gifts for family members compared to $1,300 on retail products.
Also, shoppers on a budget are expected to spend more on gifts than on retail products this holiday season. And shoppers who are more risk averse are expected to spend more on gift cards, travel, jewelry and other luxury gifts in 2021 than on retail products.
The global consumer spend is expected to rise between 7% and 8% in 2022, then rise more sharply in the early years of the decade (2020 and beyond). This group of shoppers is also known as Millennials or Internet Millennials. They were born in the late 1990s and early 2000s, and are the generation most likely to use mobile devices to shop. Millennials are also expected to spend more than any other consumer generation during the “rebound” years following the recession, in 2021 and beyond. Millennials will purchase more electronics than any other generation in the next decade. This group of shoppers is also called Gen-Y or Generation Yoc. These shoppers were born between 1980 and 1994, and are often referred to as “millennials” by marketers. They are often called “Yoc” in the business by marketers who are expecting to see more spending from this group during the next decade. It is important to note that while the definition of Gen-Y may be changing, marketers are still targeting this consumer group.
As with any marketing campaign, the success of eMarketer Inc.’s efforts in helping marketers determine how Millennials will shop in the Internet era has been a journey of trial and error.
The challenge in defining Millennials in eMarketer Inc.’s research was how to define Millennials when Millennials is much more of a “generation” than a “snapshot” generation. Some marketers prefer to consider Millennials as a new age (i.e. the current or former generation). Some marketers prefer to call Millennials “emerging adults” and use the phrases “emerging adults” and “millennials” to describe the same cohort of consumers.
As with any study, however, marketers have been able to use eMarketer Inc.’s research findings to inform how they approach the Millennial generation. Some marketers have adopted the Millennial marketing strategy to focus on Millennial consumers in conjunction with a Gen Xer or a Boomer. Some marketers have shifted Millennial marketing to focus on Millennial audiences (this is the age group that is now in the workforce). In general, however, marketers have chosen to define Millennial generations as being the consumers between the ages of 18 to 34.
And here are the top five Millennial marketing categories:
1. Young urban professionals: These Millennials are the first in their family to go to college, and have never known a world without Facebook and Twitter. They are “on the go” and social media has become the normal way they communicate. They drive big cars, and shop in big department stores. In terms of Millennial marketing categories, they are the most integrated and integrated marketing group.
2. Young urban professionals are the first to use mobile phones for their communication, and they have the highest online “engagement” with mobile sites, mobile applications and mobile social media. Young urban professionals also tend to be the most involved in non-traditional media. They are most likely to have an e-book, and video collection. They are less likely to own a traditional car. They are also the most likely to have taken out a student loan, and they have a high rate of skipping meals. These are the types of Millennial audiences that are ideal for marketing that is on the mobile web, including apps, apps, and more apps.
3. Boomers: These are the Millennials that went to school after the turn of the century and came of age in the aftermath of 9/11 and the economic collapse of the early part of the last decade. As you would expect, they have the highest rate of participation in social media, and are more likely to have an e-book collection and video collection. They tend to be car-oriented, shop in larger stores, and are more likely to own traditional cars. A good B-O-M Millennial marketing category is one that targets a larger audience that is more likely to own traditional cars, including those that are also interested in traditional car culture.
4. Gen Xers: These are the Millennials that came of age during the economic recovery, and the birth of social media. As you would expect, they are less likely to own traditional cars and they are less likely to participate in social media, but they are interested in the technology. They tend to shop in larger department stores and are also the most likely to own “vintage” cars. A good Gen X marketing category is one that targets the more affluent Gen Xer audience that is still seeking for technology and more technological options.
What do we know about the Millennials?
Here is an infographic for Millennials that will help you put this into perspective. As you can see, they are more likely to wear glasses and go to the dentist, and they are also the most likely to own a car. They are also more likely to own two cars. They are also more likely to shop in large stores, and they are also the most likely to pay with their phones. They are less likely to own traditional cars. They are less likely to surf the internet, and they are the least likely to subscribe to a magazine. But when it comes to the most important factor of all, their email addresses. They are the most likely to give you their email address in exchange for something. And the most likely to share their email address with you, even if it is in exchange for something.
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