Millennial consumers prefer online versus in-store shopping, according to new data released today by ESW. In its most recent Global Voices survey, more than 27 per cent of millennial shoppers say they will spend significantly more online and less in-store this year across categories including health & beauty, luxury, apparel & footwear, and consumer electronics. The study also revealed that nearly 73 per cent of millennial shoppers plan to spend the same or more online in 2023, which will make this cohort the leader in global eCommerce spending this year.
“The Millennial consumer remains fully committed to their preference for online shopping over physical retail,” said Patrick Bousquet-Chavanne, President and CEO, ESW Americas. “Millennials’ spending power has grown to US$2.5 trillion, and they are not yet even in their prime earning years. They are spending more online than in-store across several categories, and these results indicate that brands must continue to evolve, improve, and optimize their eCommerce to attract and retain this increasingly powerful demographic.”
The survey’s sample pool of more than 16,000 respondents across 16 countries comprised international shoppers across all demographics. It was further analysed based upon shoppers who pay full price as well as “power shoppers”, or those who have spent US$2500 or more online in the last 12 months.
Key findings
Nearly 50 per cent more millennials will increase their online spending for health and beauty products compared to Gen Z, and 42 per cent more than Gen X and Baby Boomers.
- 27 per cent of millennials will spend more for luxury goods online in 2023, compared to 20 per cent of Gen Z, 22 per cent of Gen X, and 21 per cent of Baby Boomers.
- 77 per cent more millennials will increase their online spending for apparel and footwear versus Baby Boomers.
- 25 per cent of millennials will spend more for consumer electronics, such as phones, games, and software, compared to 19 per cent of Gen Z and Gen X respondents, and just 13 per cent of Baby Boomers.
- More Baby Boomer power shoppers (35 per cent) will spend more on health and beauty products online, compared to Gen Z (18 per cent), millennials (32 per cent), and Gen X (24 per cent).
- For luxury power shoppers, 52 per cent more millennials will increase their spend compared to Gen Z and nearly 23 per cent more than both Gen X and Baby Boomers.
- 29 per cent of millennial power shoppers, compared to 21 per cent of Gen Z, 23 per cent of Gen X, and 27 per cent of Baby Boomers, will spend more on apparel and footwear online.
- For online consumer electronics, 32 per cent of millennial power shoppers will spend more compared to 21 per cent of Gen Z, 24 per cent of Gen X, and 29 per cent of Baby Boomers.
Shoppers willing to pay full price—or “Convenience Shopper”—data reveals:
- Nearly 70 per cent of millennials will spend more online on full price health and beauty products compared to Gen Z; 50 per cent more than Gen X; 80 per cent more than Baby Boomers.
- 28 per cent of millennials will spend more on full price online luxury purchases this year compared to 17 per cent of Gen Z, 25 per cent of Gen X, and 19 per cent of Baby Boomers.
- For full price footwear and apparel purchases online, 20 per cent of millennials will spend more this year versus 14 per cent of Gen Z, 15 per cent of Gen X, and 11 per cent of Baby Boomers.
- 24 per cent of millennials will spend more on full price consumer electronics purchases this year compared to 14 per cent of Gen Z, 20 per cent of Gen X, and just 8 per cent of Baby Boomers.
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