A recent report by CouponFollow explains the differences between shopping habits of millennials and everyone else.

 Who Are They?
Millennials are people born between 1982 and 1996 and there are 80 million of them in the US. They spend $600 billion annually and that’s 28% of all daily per-person consumer spending. They are forecasted to be 35% of spending by 2030. 

Where Do They Shop?
Millennials have a reputation for doing everything with their smartphones but the reality is strikingly different. A majority of millennials make most of their purchases offline. About a third of millennials make the majority of their purchases on a desktop computer. Only 16% of millennials make the majority of their purchases on a mobile device.

More millennial women shop in stores than men but that could be due to the nature of what they buy. If women are buying more fashion and men are buying more hard goods, then it would make sense that shopping venues are not as much gender-based as they are product-based.

There’s a real difference between older millennials (32-35) and younger millennials (20-23). The older millennials are more likely than the group as a whole to make a purchase on their mobile device where as younger millennials are more likely to make a purchase in a physical store. When millennials shop for something both online and in a store, they are way more likely to make a purchase in a store than they are online.

One thing that makes millennials like their parents is that almost 80% are influenced by price. Even as much as they are looking for other values from their products like authenticity, local sourcing, ethical production and a great shopping experience, nothing beats a discount no matter how old you are.

What About Brands?
The presumption is that a branded product will command a higher price and more customer loyalty and that has often proven out. The question is, what will brands mean in the future and do millennials care about brands?

A majority of millennials follow brands on at least one social media platform. However, a majority of millennials say they follow brands on social media in order to get discounts. Two-thirds of millennials say they will switch brands if they are offered a discount of 30% or more. Only slightly more than one-third say they follow brands to get the latest trends and products.

A majority of millennials search for a coupon before making a purchase. They spend an average of three minutes looking for coupons. That may not sound like a lot but if online shopping is meant to be fast, simple and easy, three minutes of searching for coupons is significant and clearly an important motivator.

What Does It Mean?
We know that millennial consumers want different attributes in their products than their parents did and we know that they don’t want to buy their parents’ brands. What the research also tells us that millennials are not immune to the allure of discounted merchandise. That helps us understand the growth in fast fashion like Zara and H&M as well as off-price retailers like TJ Maxx, Ross Stores and Burlington Coat Factory. It also says that there is treachery in relying too much on brand loyalty. If millennials are willing to change brands for a big enough discount, will retailers ever get out of the cycle of having to discount merchandise to move it out the door? 

Whether a consumer is millennial, boomer or Gen Z, giving them what they want is the only way for a retailer or brand owner to have a sustainable business. Price is never going to be the way for a brand owner to motivate consumers and make a consistent profit.

Source: Forbes