NEW YORK, NY--(Marketwired - Dec 9, 2015) - Millennials -- people age 18 to 35 -- seem to be in the holiday spending spirit more than the rest of Americans.
Four in 10 Millennials say they'll spend more this holiday season than last, compared with only 24% of older generations, according to a recently completed survey of 10,000 American consumers by The Boston Consulting Group (BCG).
Further, most Millennials (55%) say they'll probably try out a new brand this season, versus only 36% of the rest of the population, which plans to stick to the familiar.
"Overall, consumers are aiming to be frugal this holiday season. The bright spot might be young adults, who are planning to ratchet up their spend a bit from last year," said BCG Senior Partner Michael J. Silverstein, author of Rocket: Eight Lessons to Secure Infinite Growth (McGraw-Hill, Fall 2015). "The Millennial is a hot spot of retail activity. They are the core new market to take."
"But it's worth noting that, despite Millennials' intention to spend more this year than last, the average Millennial will still spend less than older Americans," he added.
According to the survey, Millennials plan to spend an average of $849 this season, compared with the average of $1,069 that older generations plan to spend.
A lot of the new Millennial spending will be online. More than half (51%) said they expect to increase online spending this season. Only 34% of older generations expressed this intention.
The hot categories for Millennial shopping this holiday season, according to the survey, will be clothing, then consumer electronics, entertainment and beauty products. Millennials report that their favorite brands include Old Navy, Apple and Netflix, and emerging favorites are H&M and Samsung.
"A significant takeaway for retailers and consumer businesses this holiday season is that consumers are increasingly discerning and thoughtful about their spending. The brands that will be able to sell at full price are those that have truly engaged consumers, focused on their best customers and have turned them into apostles who tell their friends," Silverstein said. "If you win their hearts, they will tell their friends."
Silverstein's book Rocket describes how the best brands, such as Amazon, The Container Store and Zappos, have achieved decades-long success and sustained loyalty and growth by focusing most of their resources on wooing a select few "apostle" customers. In stories, examples and practical advice, the book outlines eight rules that leading companies follow to defy the brand life cycle and achieve decades-long growth.
For more information, a copy of Rocket or an interview with Michael J. Silverstein, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications at +1 (212) 255-8386 or Katarina@sommerfield.com.
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Contact Information:
Katarina Wenk-Bodenmiller
Sommerfield Communications
+1 (212) 255-8386
Katarina@sommerfield.com