There's no shortage of articles about Millennials, the generation that entered adulthood over the new millennium. As the largest generation in modern history, Millennials (or Gen Y), born between 1981 and 1996, now represent the biggest group in the workforce and general population, outspending every other generation.
Having witnessed the birth and evolution of technology and online media, Millennials have developed unique consumption patterns, distinct from both previous generations and younger digital natives, and very useful for merchants to know.
Understanding the millennials
Most are in the early or mid-stages of their careers, a life phase marked by high consumption demand, particularly in areas like home furnishings and tech products.
Growing up alongside the rise of Google, Facebook, and Amazon, Millennials are often seen as more progressive, forward-thinking, and eager to adapt to new trends, systems, and devices. Unlike the younger Gen Z, they are not pure digital natives - a unique trait often makes them particularly perceptive, even enthusiastic, about technological shifts, shaping their distinct consumer behaviours and attitudes.
Research finds that Millennials spend an average of about one hour per day browsing e-commerce sites, and nearly half of respondents stated they would switch entirely to online shopping if possible.
What drives millennial spending?
Key characteristics of their shopping behaviour:
- Daily reliance on digital devices for social contact, research, and shopping.
- Convenience is key. Fast shipping and hassle-free returns are more attractive than low prices.
- Social shopping experience. They like sharing shopping experience with friends and family, and are profoundly influenced by user-generated content (UGC) and social media.
Omnichannel shopping
Several studies show that Millennials depend on digital devices for daily activities like shopping. A seamless shopping experience from all channels is crucial. They are expert in blending shopping methods from physical stores, mobile apps, and online platforms to create personalised shopping journeys. 68% agree that the ease and convenience of moving between channels and devices significantly impact their online shopping experience. They are accustomed to the shopping models of giants like Amazon, and expect simple and smooth checkout processes.
As such, beyond channel expansion, optimising user experience on mobile devices – for instance, using progressive web apps – is important. This ensures fast site loading and seamless purchasing across devices, supporting effortless switch between smartphones, laptops, and local stores.
Convenience is key
Existing research indicates that Millennials value shopping convenience. While price and free shipping matter for young consumers, the winning factor is efficient delivery: 45% of respondents expressed a preference for same-day delivery. This generation views online shopping as a convenient alternative to physical stores, but demand the same instant gratification from in-store shopping.
Social shopping experience
A distinct feature of Millennials is viewing shopping as a leisure activity to relieve work stress, enthusiastically sharing such experience with friends and family members.
As the "always-on" generation, they have been active on various social platforms. 68% admit to being heavily influenced by social media, 84% have their purchase decisions impacted by UGC, and 90% actively check product reviews.
Unlike Gen Z, however, they are less likely to make purchases directly on social platforms. Social networks primarily serve as their first step in building brand awareness and first choice to interact with brands.
Responsible consumption
Compared to other generations, Millennials are more concerned with corporate values. They hope to drive social changes and build a better world through their consumption. A growing number of respondents report less trust in large corporations, offering their support towards local small and medium-sized businesses. Overall, brands committed to sustainability and social equality are more likely to earn their loyalty.
Considering that Millennials tend to share shopping experience on social platforms, brands need to convey clear and consistent values while leveraging the power of user-generated content and word-of-mouth to effectively engage this group.
Authentic marketing
Millennials favour genuine marketing modes with increasing emphasis on brand authenticity. Research shows that 84% of the respondents explicitly disliked traditional advertising. Therefore, non-traditional marketing strategies that foster a sense of community are wiser options. They are more receptive to content-centred authentic marketing, such as endorsements from opinion leaders they trust.
Payment trends
Debit cards are the top choice for Millennials, and about half named it as their preferred payment method.
Meanwhile, they show high acceptance of emerging payment methods like e-wallets – nearly 40% stated using e-wallets at least several times a month. Younger Millennials presents higher frequency – 16% stated several times per week.
MultiSafepay, an subsidiary of Antom, offers 30+ payment methods, including options favoured by Millennials.
MultiSafepay boasts 20 years of e-commerce service experience and offers multiple payment solutions and tools to help businesses efficiently adapt to the demands of this group.
