The United States Census Bureau reports that as of 2019, millennials only made up 25–27 percent of the entire population, which meant that the population of baby boomers (those born between 1946 and 1964) overtook that of Millennial Consumers in terms of numbers. Considering that the population of the United States is estimated to be between 86 and 88 million, millennials account for a significant amount of disposable income.
After years of ambiguity in which their birth years might be anywhere from the 1980s to the early 2000s, the Pew Research Center has definitively determined that the individuals known as Millennials had their birth years between 1981 and 1996. The generation is often referred to as "Generation Me" or "the Trophy Kids," both pejorative monikers convey unfavorable assumptions about the group, such as being entitled, self-centered, and lazy. Millennials are the first generation to have grown up as digital natives, and they seem to be able to command technology capable of doing everything that doesn't need them to get up and do it. This may help explain why they are so lazy. Are you saying that the television remote control is too far away? There's probably an app for it already. You don't want to cope with a challenging daily commute, do you? Spend half your week working from home. It may seem as if millennials are engaging in a significant amount of idle activity compared to older generations.
Why Do Millennials Matter?
Millennials are known for their frugal spending habits. As a result of coming of age in the wake of the events of September 11 and during the Great Recession, Millennial generation members are likely to face less prosperous futures than earlier generations. A confluence of factors has brought on this issue. To begin with, millennials have contributed to an increase in the number of students graduating each year by buying into the idea that getting a postsecondary degree is part of the American Dream. However, these recent graduates are saddled with debts that, on average, each borrower owes around $39,000.
Because of their substantial indebtedness, millennials cannot maintain the same standard of living as their parents. There are times when entry-level incomes are pitiful, and a significant portion of that money is often used to make payments on debt and credit cards, in addition to covering living costs (unless the individual has moved back in with their parents). There is just not much spare cash available for things that are not necessary.
Brick-and-mortar stores aren't going anywhere anytime soon; even though internet shopping offers a great deal of ease but can also contribute to the stereotype of lazy millennials that was just discussed. Keep in mind that this generation either grew up in the immediate world of the Internet or has gotten acclimated to living in that reality. Compared to the convenience offered by the store down the street, which stocks identical goods available for immediate use, waiting for a product to ship might seem like an eternity to those customers.
The Importance of Millennials to Brands
Only in the United States can you find around 80 million millennials, which makes this age group much bigger than any other generation in the nation. Additionally, more Millennials are working than there are members of any other generation, and it is anticipated that they will have a discretionary income of $1.4 trillion by the year 2020. Since the baby boomer generation, there hasn't been such a concentration on marketing to a certain generation. Many customers who fall outside this demographic are left wondering why they're being overlooked. Why is the money of older generations not seen as having the same value as that of Millennials, given that these older generations are now at the peak of their buying ability?
Why Now?
Why should marketers pay attention to this group, characterized by low spending and income? To begin with, millennials are exceptionally devoted customers to the appropriate brands. Companies with an effective social media presence and those that personalize the buying experience discover that young people will return. This is in contrast to retailers like Sears and Chevrolet (GM), which may not be receiving millennials' financial support.
Companies will discover that their advertising budgets go further if they target millennials through low-cost methods today since this generation will have more disposable income in the future. Even though they are underemployed and have significant debt, Millennial Consumers are willing to spend their money when they believe the purchase is worthwhile. This includes spending money on services, quality goods that have been thoroughly researched, and items that their peers have bought. The members of this category are loyal to businesses that communicate with them (and help them find solutions) on the social media platforms that they like and treat them as real people rather than statistics.
