BRAND BUZZ
THE
MILLENNIAL BREAKDOWN WRITTEN BY
DAVID SCHUEMANN
Love them or hate them, millennials currently represent $200 billion in direct spending power, 25 percent of the population, and are on track to make up 75 percent of the total workforce by 2025.
A
ccording to the U.S. Census Bureau, millennials are anyone born between 1982 and 2000. This massive segment of the population is now 83.1 million people, or more than a quarter of the U.S. population, and now larger than the baby boomer generation (75.4 million). The youngest millennials are between 20 and 24, and the oldest are coming up on 40. Far from the assumed monolith of sameness, millennials are instead composed of an extremely diverse landscape of life stages, values and consumption habits. According to a recent study conducted by Oracle and Interbrand, five distinct segments emerged within the millennial consumer segment.1
1
UP & COMERS This segment is
comprised of a diverse group of predominantly males including African Americans (19 percent), Asians (12 percent), and Hispanics (10 percent). They fall between the ages of 18-25 and tend to be the life of the party. With a high income of over $55,000 per year and elevated education levels, this group has money to spend. They are health-conscious and highly active. They rarely watch TV or relax at home, instead they prefer to hit the town, bars, or enjoy the outdoors with friends. They are value seekers who feel they never pay full price and price compare religiously.
They are easily swayed into purchasing through social media and external advertising like billboards, flyers, etc.
2
MAVENS This segment is comprised of 27-35 year-old suburbanites. They have the highest income of all millennial segments, with 43 percent of them making over $70,000 per year. 70 percent are in college or have graduated, are likely to be married or are in a committed relationship and 48 percent have one or more children at home. They are always excited to try new products, but typically after the trend has caught on already. Recommendations from friends or family members are a major driver to purchase for this group, however, sales and price promotions are their number one factor when making a purchase decision.
3
ECLECTICS This segment is the
homebody, crafty, foodie and are primarily made up of Caucasian (79 percent) females (72 percent). They often get creative with their budgets and will seek out a deal wherever possible. 44 percent are either unemployed, stay at home by choice or work part-time. They are more introverted and the least social of all segments and depend on recommendations to make final purchase decisions.
4
SKEPTICS This segment has the
lowest income with 60 percent having an annual income of $35,000 or less. They are the lowest educated segment, with 38 percent only having their high school GED. They are the quintessential video gamers/internet junkies. Not surprisingly, low price and familiar brands that go on sale a lot are the primary drivers of their purchase decisions. When asked their preferred alcoholic drink of choice, 42 percent stated that they tend to not drink. In comparison, looking at all millennials over 21, only 24 percent stated they do not drink.
5
TRENDSETTERS
Are the youngest segment of millennials with 61 percent of them between the ages of 18 and 25. They are either still in school (51 percent are in high school or college) or have just started their first job out of school. 58 percent of them live in a household with an annual income that is greater than $60,000. This segment is the most likely to start or try a new trend. They keep up with the latest entertainment gossip and have large social networks to stay connected. Trendsetters also seem to purchase across the widest variety of brands the most often and have seemingly no loyalty to anyone.
1 http://www.oracle.com/us/industries/consumer/interbrand-cg-retail-cx-wp-2400662.pdf WWW.ARTISANSPIRITMAG.COM â€
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