Retailers will need to do some serious marketing and brand shifting going forward given the biggest consumer base, those millennials, aren't as loyal or brand committed as previous generations of consumers.
A new Daymon Worldwide study, which polled 7,000 millennials and Generation Xers across 14 countries, examined how the various generations view retail brand, loyalty, and technology use within the retail environment.
"Generally speaking, millennials are less loyal to and are disaffected by brands than Gen X. Twenty-nine percent of millennials and 35 percent of Gen X say they usually buy the same brand, but will try others on occasion and 26 percent of millennials say they are likely to "buy whatever brand they feel like at the time," said a release on the study results.
"By the year 2030, there will be more millennials than any other generation, including baby boomers, in the U.S.," said Daymon Worldwide President of International Vasco Brinca, in the release. "We have never experienced a generation like this, in large part because they have grown up with economic uncertainty, high unemployment, and are always 'on' digitally. It is critically important to study this generation and their culture today to discover the impact they’ll have on the world's future in the years to come."
Here are some additional findings from the study:
Shopping missions and consumption behavior
Millennials are found to be unstructured shoppers that shop frequently and for a long period of time. Millennials visit a higher number of stores and with an increased frequency compared to Gen X counterparts, visiting supermarkets and small neighborhood stores on average of seven times a week.
Brand and Private brand perception
Millennials are less loyal to and are disaffected by brands than Gen X. Millennials may be likely to purchase a private label brand because of "good price/quality ratio," an "improvement to quality," or thirdly, a "lowest price" factor. The research suggests there is a strong opportunity for private label brands to develop strategies to attract more millennial buyers.