More than the mall
Millennials change holiday shopping
Whether it’s demanding unique gifts or paying heed to charity, millennials are putting their own distinctive stamp on the holiday retail experience.
Young consumers, roughly those below age 35, played a key role in the record-breaking surge that made Black Friday the first day ever to rack up more than $1 billion in mobile sales.
The nation’s 75 million millennials now outnumber baby boomers, with their buying power this holiday season projected to total $85 billion — nearly 10% of the $1 trillion forecast to be spent overall, tracking service Nielsen says. The 86 million Americans coming up behind them will potentially pack an even greater consumer punch.
“Millennials are going to be a driving force in changing holiday shopping,” said Thom Blischok, strategic global retail adviser to Nielsen.
Some retailers are pulling out all the stops to get them in the door.
They want shoppers like Corey Marsh, 26, a food industry product developer and native of New York’s Long Island, who likes looking at merchandise and chatting with salespeople.
But for him, speed is essential. “I don’t want to be waiting on line for 20 minutes to check out. That’s what will drive me towards online shopping.”
How millennial shoppers are distinctive:
Entertainment-oriented. They want experiences worthy of becoming an Instagram or SnapChat moment. “If I’m not shopping online then I want my in-store experience to be different,” said Sam Black, 25, a community educator for a nonprofit in Baltimore.
At Nike Soho in New York, shoppers can put on a pair of basketball sneakers and try them out in a virtual game of hoops at Brooklyn Bridge Park, or don a pair of running shoes to take a virtual jog through Central Park.
They also can connect with various apps by tapping on touch screens. “We’ve had very strong response from consumers to our immersive
digital experiences,” said Nike spokesman Brian Strong. “Our Nike+ Basketball Trial Zone has been full since we opened, and consumers are sharing their experiences on the court throughout their social networks.”
■ Appreciative of uniqueness. Younger consumers also enjoy giving business to local, independent retailers, and they prefer one-of-akind items.
PwC’s holiday report found that 43% of millennials and 33% of 17- to 20-year-olds are very or extremely likely to purchase handmade items.
That’s compared with 35% of Gen X’ers, and 28% of boomers. “The only time I will go to a store if it is supporting a local artist,” Black said.
■ Charitable. An eBay survey that found 67% of millennials feel they’d be more likely to choose a holiday gift from a company that donated proceeds to charity, compared with one that did not.
Target, for instance, is the exclusive seller of “UNICEF Kid Power,” a fitness tracker for children that awards points based on how much they move, that can in turn unlock food packets for severely malnourished children across the globe.
■ Research focused. Millennials tend to let their fingers do the shopping, going online to evaluate a product’s quality, compare prices and tick off purchases, particularly on their tablets and smartphones.
A Nielsen survey found that by Nov. 23, 70% of shoppers between the ages of 18 and 34 who’d already begun their gift buying purchased something online.
That’s compared with 34% of that age group who shopped in a department store and 64% overall.
In another change that may dramatically affect the way merchants advertise their wares, social media and word of mouth matter much more to millennials this holiday season than a retailer’s practiced sales pitch.
“Much of the product research millennials do is through social media,” Blischok said. “They ask their friends, ‘What do you think of this product?’ That’s a major shift, when product brands are being vetted by social media, not by what’s on the product’s website.’’
Sarah Fleisher, a 26year-old publicist from Royersford, Pa., said she depends on her computer. “I like shopping on my computer, from like my bed, or (from) a store,” Fleisher said. She estimates that about 60% of her purchases will be online and 40% in stores.