sql server date truncate to month

New patterns of media consumption suggest that M&E firms should look to viewer behavior more than age. By Alisha Nanda Last updated Jan 15, 2021 4,932 2. An analysis of the data and trends across demographics and consumer behavior brings to the surface a nuanced reality: The consumer is changing, but not necessarily in the ways we usually hear or think of. Notes: Notes: One activity to which consumers have not been devoting as much time as in the past is shopping. As the census population estimates show, the migration of people from the Northeast and Midwest to the Southeast and to the West continues to be a trend.10, However, once you dive beneath the surface and examine the internal migration trends through the lens of age, stark differences begin to emerge. There are even more clichs surrounding the millennial consumer. Trips to convenience, quick service restaurants (QSR), and fuel stations jumped 16 percent. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. View in article, Deloitte analysis of the Euromonitor 2019 Apparel Report. Consumers expect to offset these increases by reducing their spending in discretionary categories such as alcohol (a net 8% decline) and by delaying purchases of high-ticket items such as electronics, mobile devices, and cars and motorcycles (with a net of approximately 20% of consumers indicating that they would delay spending on each of these categories). Its not the younger consumer whos shifting toward entertainment-based spending, but rather the higher-income consumer with growing discretionary spend. View in article, Lobaugh, Bieniek, Stephens, and Pincha, The great retail bifurcation. No matter their starting point, BCG can help. For years, marketers have had to develop new capabilities on what feels like a daily basis. A growing share of the millennials wallet is going toward health care expenses, housing costs, and education, highlighting not so much a change in the consumer, but rather a change in the economic pressures that the young consumer is under. To execute on these, marketers should leverage their own branded channels and applications. Furthermore, the lockdown has increased consumers openness to trying new products and brands, without having experienced them previously in the physical world. Between 2007 and 2017, the percentage of homeownership fell from 68 percent to 64 percent.14 One possible consequence of tougher lending standards could be the rise in the median age of first-time buyers to 32 years (from 31 at the start of the period), an increase of 3 percent.15 Digging deeper into the median income figures of homeowners, we found that the percentage of owners with above-median income slipped to 78 percent in 2017 from 83 percent in 2007, which suggests that homeownership is no longer an essential part of the American Dream. Millennials have become the economic driving force in America. . Meanwhile, the 24-year-old is setting trends, affecting consumer behavior for everyone. Despite current lower incomes and concerns about the financial future, millennials as a whole spend money. It is with these questions in mind that we conducted a year-long study to go beyond the headlines and unearth more profound observations about the consumer that might have been either missed or misunderstood in the midst of the hype. Disruptionswhether technological, economic, or otherwisetrigger dramatic and permanent changes in consumer behaviors, creating unique challenges and opportunities for brands. Marketers should amplify their efforts with digital and social platforms that have high reach with young demographics, and that best allow for brand storytelling, brand experiences, and the embedding of brand-consumer interactions organically, through friends or trusted influencers. View in article, Ann C. Foster, New education classification better reflects income and spending patterns in the Consumer Expenditure Survey, Beyond the Numbers, Bureau of Labor Statistics, January 2014. Yet millennials are less persuaded than older generations by brand-directed marketing. Gain valuable insights and practical knowledge from our specialistswhile earning CPE credits. to receive more business insights, analysis, and perspectives from Deloitte Insights, Here are all the things millennials have been accused of killingfrom dinner dates to golf, The millennial generation: A demographic bridge to America's diverse future, Diversity defines the millennial generation, Older people projected to outnumber children for the first time in US history, Demographic and economic trends in urban, suburban and rural communities, Do millennials prefer cities or suburbs? Millennials' consumer behavior is different. This research stands true for most of the countries around the world along with our own country India. In our exploration of these shifts below, our findings are based on survey averages across the US, Canada, the UK, and France, and represent net increases in spending or activity (that is, the percentage of consumers who will increase it minus the percentage who will decrease it), unless otherwise noted. Between 2007 and 2017, income growth for the high-income cohort rose 1,305 percent more than the lower-income group in the United States. Our goal was to examine the current state of the consumer as well as to study their behavior and underlying attributes to see if there were nuances and intricacies that were being missed. 13. BCGs research reveals six key success factors and the steps companies need to take today. They have even been blamed for ruining everything from movies to marriage!1 They seem to have broken the mold of their similar-aged cohorts of past eras. Our research showed that millennials are a complex cohort with diverse preferences. Across the globe, consumers have hunkered down and figured out how to fulfill their needsfrom socializing to eating to having funthrough a mix of traditional approaches and new, technology-enabled methods. It appears as if there has been a seismic shift in the consumers mindsetand choicesa shift that has left the market asking: Who is this brand-new consumer?, Explore more articles fromRetail and consumer products, Subscribe to receive related content on Consumer business, In a hurry? In 2015, millennials surpassed baby boomers as the largest living generation in the United States. 210K subscribers Subscribe Like Share 103K views 7 years ago The Millennials - the largest generation in US history - are entering their peak spending years. If you take these different lensesrace and ethnicity, urban vs. rural, and geographyin conjunction, it is increasingly evident that the consumer cant be thought of in simple, generalized ways. Young consumers will continue to influence additional dollars, as more than 80% of parents of Gen Z teens report that their children influence household spending. In addition to assessing spend by income and age, we challenged the existing notion aroundwho is the consumer using e-commerce. If yes, in what ways have they changed? Many forward-looking consumer companies and investment firms are wondering about the true marketplace potential of millennials and the appropriate influence of this cohort on their strategies. The markets hit hardest by declining traffic are also highly consolidated, with the 15 fastest-declining markets largely centering around West Coast urban centers and the 15 fastest-gaining markets centered in the Southeast and Texas (figure 8). That's exactly what Gen Z has done since they've emerged from the pandemic as the new "it" generation. View in article, Bureau of Labor Statistics,Consumer expenditure surveys, accessed May 10, 2019. View in article, The State of Obesity, The healthcare costs of obesity, accessed May 10, 2019. Surprises related to consumer behavior in tourism marketing. The consumer is changing | Deloitte Insights Contrary to conventional wisdom, there's been no fundamental rewiring of the consumer. The current racial makeup of the United States (and the consumer) is barely 50 percent white and the number is likely to continue shrinking.4 The non-Hispanic white population is projected to drop from 199 million in 2020 to 179 million in 2060a decline of 10 percenteven as the US population continues to grow.5. Not only is this homebuying spree injecting needed money into the economy, it's reshaping the real estate market. Boston Consulting Groups Center for Customer Insight (CCI) applies a unique, integrated approach that combines quantitative and qualitative consumer research with a deep understanding of business strategy and competitive dynamics. Deloitte Insights delivers proprietary research designed to help organizations turn their aspirations into action. View in article, Analysis of Deloitte CCI location index. Certainly, there are generational differences between this group and past cohorts: Millennials are better educated and are marrying later, buying homes later, and having children later than the boomers did. (Gershoff and Frels 2014)for example, 66% of consumers (73% of millennials) worldwide report being willing to pay extra for sustainable offerings . Only 18% of Gen Z teens (ages 15 to 17) were employed in 2018, compared with 27% of Millennial teens in 2002 and 41% of Gen Xers in 1986. Although prior crises offer a multitude of useful lessons, in many ways the current environment is unique. The shift in the ethnic and racial makeup of the United States has been underway for some time now, with the consumer base becoming increasingly diverse. This, in turn, has been triggered by a rise in nondiscretionary expenses such as health care and education and the growing bifurcation between income groups. Please refresh the page and try again. Along the same lines, young consumers expect to decrease their spending at dine-in restaurants and shift toward off-premises eating, with fast-food restaurants faring better than casual ones across both channels. For example, the data reveals that the mix of trips by high-income consumers is skewed 2.4 percent more toward hospitality, travel, and entertainment than the low-income group. However, within this geographic data, gradations are beginning to appear, bringing with them further splintering of the marketplace. VIEW INFOGRAPHIC - Millennials: Coming of Age. The recommended and more secure method of running Windows, is to ensure your primary user account is a standard user . View in article, Analysis of Skyhook data. All rights reserved. Kasey consults with clients to strategize against the changing competitive landscape and the rapidly evolving consumer. Homeownership is a key life cycle milestone that also impacts consumer behavior. Only 20 percent of consumers were meaningfully better off in 2017 than they were in 2007, with precious little income left to spend on discretionary retail. Is there a seismic difference in the changes that we are witnessing? The pandemic's economic shutdown also enabled the wealthier cohort to sock away even more money. Consistent with the food product trends, Gen Z and millennial consumers are expected to increase their overall spending and their online spending at food retailers that are geared toward at-home consumption and are value-oriented, such as grocery stores and superstores (for example, a 14% net increase for superstores online). Also, despite the rise in online shopping, consumers are going more places than in the past. Boston Consulting Group 2023. The center works closely with BCGs various practices to translate its insights into actionable strategies that lead to tangible economic impact for our clients. Dynata is the worlds largest first-party data and insights platform. Challenges remain, but optimism is on the rise. Marriage, another life cycle milestone, continues to evolve. As far as spending patterns are concerned, todays consumer is not so different from yesterdays buyer. Within each cluster, we see two or three segments that behave quite differently from one another (Exhibit 1). The development team for this Deloitte Insights pieces includes:Preeti Pincha, Aysha Malik, Ford Baertlein, Eitamar Nadler, Rob Bamford,David Kearns and Beth Hadley. Over half (53%) of each of these age groups indicate theyre more likely to click through to a product page if there are ratings and reviews highlighted on the homepage or in search results. Seeing this split in millennial consumer behavior along the lines of income, we dug further to see if the same pattern was prevalent among other age cohorts. They do spend more than older generations on experiencesfor example, millennials report spending $164 per month on average on entertainment versus $101 for Gen Xers and $134 for baby boomers. These demandssuch as for mobile phone and data planswere minimal 10 years ago. Specifically, in the aftermath of COVID-19, a net of 10% of consumers expect to increase their spending on packaged food and beverages, 12% on household products, and 6% on health and personal care products, compared with their pre-outbreak spending. The percentage of consumers who are pessimisticthat is, they expect a recession and a long road to economic recoveryhas held fairly constant in the first months of 2023, at a level higher than at any point during the COVID-19 pandemic. This divide has been even more conspicuous because of the rise in nondiscretionary expenses across groups (figure 2). Available discretionary time is up overall, with time spent on leisure and sports increasing 5 percent between 20072017, or an additional 14 minutes daily, despite what consumers may be feeling. Looking at geographic data from 20002014, we see that the trend of movement to the suburbs is still intact. To answer these questions, we surveyed more than 9,500 consumers of ages 16 and above across the US, Canada, the UK, and France on their behaviors during the COVID-19 pandemic and their expected behaviors in the longer term. The millennial has often been portrayed as a consumer who is at the epicenter of the disruption thats taken place in every aspect of society, from marriage to childbearing to homeownership.23. Leveraging different modes across a customers decision journey and tapping into customer advocacy is essential. Not surprisingly, higher-income groups, because they have better access to technology, spend a larger share of their wallet online than lower-income groups27 percent versus 19 percent. Oshikka Lumb . Nielsen Global Media, Nielsen Total Audience Report, 20122019. Millennials, who have now overtaken baby boomers as the largest population segment, are on the cusp of their peak spending years, and will increase their per capita spending by more than 10% over the next five years. Moreover, the upcoming Gen Z cohort is likely to bring further diversification of the consumer base along racial and ethnic lines. View in article, National Association of Realtors, 2018 profile of home buyers and sellers, 2018. Unlike past years, changes in human psyche, social behavior and technological adoption are remarkably visible. But what about millennials? This willingness to pay (for quality) extends across multiple product categories, especially food and beverages at home, where half of millennials report that they always or often pay premium prices. Cereal, Bars, Bakery, and Snacks Flavor 201, Discover FONA: Food Science for Young Minds. View in article. For much of the late 19th and early 20th century, Americans settled in cities in pursuit of factory work. 1 This trend is largely driven by changes in the competitive market, with market forces driving down the price per unit. Well into the spring season, US consumer sentiment continues to be mixed. Consumer spending has reflected these seismic shifts in behavior. The biggest gains were seen in grocery-related trips, which grew 7.7 percent in 2018, with a notable decrease in visits to traditional retail locations such as apparel stores (1.7 percent) and department stores (10.3 percent).38. After all, the common perception is that theyre the ones driving significant disruption. There is a nugget of truth in the popular idea, though. Meet the people shaping the world you'll live in for the next decade, or two. Gen Z and millennials are transforming and shaping behaviors as they become influencers within their own families and communities. Working with Deloittes Center for Consumer Insights, we conducted primary research, leveraging 450 billion unique points of location data and more than 200 billion points of credit card transactions. Millennials are also far more likely to share their opinions of products and brands, both on- and offline. Following COVID-19, they will maintain their increased use of certain at-home services that they have enjoyed during the lockdown, such as virtual classes (an expected net increase of 4%). Second, we examined primary data on the consumers changing demographics and economics to understand consumer behaviornot just their overall behavior but their micro-behaviors, which differ, sometimes substantially, within emerging segments. During the global financial crisis of 20082009, we saw winning brands double down on marketing investments, revamp their marketing strategies, reallocate their spending to digital channels, and more aggressively target members of a rising young generationmillennials, at the time. So, we looked deeply at consumer behaviors. As consumer companies and investment firms consider portfolio-growth opportunities and new assets, they would do well to factor millennials into the equation. The rise of high-speed internet in the early 2000s and of smartphones a decade later led to a boom in e-commerce and video streaming that has permanently altered the retail and media landscape. Since 1996, the net worth of consumers under the age of 35 has fallen by 34 percent.24 Homeownership for the cohort declined by more than 4 percent between 2007 and 2017 (figure 3). CCI was built with a belief that true consumer insight must come from a holistic approach that starts with an outside-in view and utilizes a broad mix of data sources, moving beyond a singular reliance on traditional survey research to leverage the wealth of data available today. Explorers will pay more to get exactly what they want, while premium enthusiasts favor products made by companies that share their values. BCG GAMMA; Earnest Research, 2020. If retailers and consumer product companies want to cater effectively to changing consumer needs and identify new pockets of opportunity, it is imperative for them to understand the demographic, economic, and competitive milieu that the consumer is reacting to. Millennials -Changing Consumer Behavior. According to this narrative, only experiential-oriented retail can get them off their sofas. Just as millennials are willing to pay a premium for quality, our research showed this cohort is outspending other generations on several major product categories, especially apparel and footwear. This preference holds true no matter how we slice the dataalong the lines of age or income. We would like to thank the following key contributors and supporters of this article: Jean Lee, Greg McRoskey, Nick Zwemer, Colin Dunn, Aparna Venkatesh, Ray Yu, Dan Metzel, Andrea Mendoza, Madeleine Macks, Ariel Hudes, Christian Ueland, Lolly Buenaventura, Thomas Uhler, Ian Irungu, BCGs Center for Customer Insight (CCI) team globally, our Knowledge Team, Rohan Sajdeh, Jean-Manuel Izaret, Scott Wallace, and Dynata. The consumer is changing because the environment around them is evolving. Gen Z and millennial eyeballs, which are notoriously challenging to reach, have shifted during the COVID-19 crisis. To understand how, where, and why the consumer is changing, one must understand their underlying demographics, which include much more than just life span, fertility rate, race, and ethnicity. Learn more at www.dynata.com. 1 According to OECD and Federal Reserve Bank of St. Louis data, there has been a 9 percent decrease in hours worked per person since 1960. For these reasons, we can expect the pandemic to have more significant impacts on consumer behaviors than previous crises did, amplifying the impacts of marketers responses and enabling winners to emerge more strongly and rapidly than ever before. The data reveals a deeper story of deflationary pressures on apparel unit prices, with a significant downward trend in revenue per unit.30 It shows that the consumer is still buying apparel at relatively robust levels. These millennials want to know exactly what is in the food they eat and prefer organic, nonprocessed ingredients. In our survey, 76 percent of the respondents reported having less or the same amount of free time than just a year before. High-income millennials are spending almost a third of their discretionary income on entertainment, and as their income levels rise, the absolute dollars spent on entertainment rise. Article View in article, Analysis of Deloitte CCI transaction index. Where the consumer livesor their geographyfurther shapes their needs and demands. 64% will reach out to customer support in an effort to resolve the issue. When we talk about millennials we are talking about individuals born between 1980-2000. They may also need to convince their millennial customers to spend in other categories to deliver on their long-term growth aspirations. has been saved, The consumer is changing, but perhaps not how you think This will be foundational for the marketing investment recommendations that follow. He focuses on working with clients to drive revenue growth through digital transformation and customer engagement. While it is a fact that the total hours worked in the United States has risen by 43 percent since 1980, the increase has been driven by the growth of the workforce. This cluster consists of three different segments. These demographic forces have led to increased fragmentation, with the so-called average consumer now comprising distinct subsets of consumers who have increasingly distinct needs as well as competitive options to address their needs. In many ways the consumer of today is like the consumer of yesterday, they are a creature of the pressures they are under, coupled with the choices they have available to them. First, we zoomed out to study the macro demographic, cultural, and economic trends related to the US consumer. But are these factors determining their decision-making process? These brands offered convenience and value for increasingly digitally savvy and cash-strapped young consumers. We also led six virtual focus groups to obtain further details and insights on the themes that emerged from the survey. Thank you for subscribing to BRIEFINGS: a newsletter from Goldman Sachs about trends shaping markets, industries and the global economy. However, its important to not let the high-income cohort skew the entire story. Diligent loyalists show a distinct need for control and routine in many aspects of their lives (for example, diet and finances). Our focus here was not on behavior but on broad trends that impact behavior. That hasnt changed. Experience-driven you only live once millennials (YOLO-ers) focus on enjoying life today, even if that means living beyond their means. Copy a customized link that shows your highlighted text. Gen Z consumers will increase their per capita spending by more than 70% in the same period, while both Gen X and baby boomers will decrease their spending. This cohort already has real marketplace potential, which will increase significantly over a relatively short investment horizon. For example, millennials, who now represent 30% of the population, are the most diverse generation in U.S. history: Ethnic and racial minorities make up roughly 44% of the cohort. Stayinformed on the issues impacting your business with Deloitte's live webcast series. During a crisis, when younger generations experience the most dramatic shifts in behavior and spending, these consumers become even more critical than in normal times. With MyDeloitte you'll nevermiss out on the information you need to lead. Explorers are willing to pay a premium to be the first to try new products or brands in order to set themselves apart. E-commerce has grown more in the past eight weeks than in the decade before that, jumping from 16% to 27% of retail in the US and from 18% to 30% in the UK. Effective brands will both recognize the strong emotions that young consumers are feeling and relate to new consumption occasions. (See Exhibit 4.). Demographics by themselves do not tell the entire story. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity / expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws.Pursuant to Transparency in Coverage final rules (85 FR 72158) set forth in the United States by The Departments of the Treasury, Labor, and Health and Human Services click here to access required Machine Readable Files or here to access the Federal No Surprises Bill Act Disclosure. And it comes at a time when massive shifts in purchasing and media consumption behaviors were already occurring in response to the technology disruptions of recent years. The modern consumer is a construct of growing economic pressure and increasing competitive options. Population growth has been the primary driver of retail growth. However, the wallet share they spend on various categoriesfood, alcohol, furniture, food away from home, and housingmore or less remains constant. For purposes of our research, we have defined Gen Z as ages 16-23 and millennials as ages 24-40. Todays consumer is more diverse than ever along the lines of race, ethnicity, income, education, rural-urban divide, migration, etc. Much has been said and written about how consumers seem increasingly focused on where products are sourced from, child labor in product development, supply chain transparency, sustainability, and other ethical matters. View in article, US Census Bureau, Older people projected to outnumber children for the first time in US history, March 13, 2018. There are also broader regional population trends at playthe movement of people within the United Stateswhich shape geographic markets. The company has built innovative data services and solutions around its robust first-party data offering to bring the voice of the customer to the entire marketing continuumfrom strategy, innovation, and branding to advertising, measurement, and optimization. Once millennials have children, they are far more likely to advocate for products and brands online. Gen Z currently earns $7 trillion across its 2.5 billion-person cohort,according to Bank of America Research. Consumer spending in flux can be a good thing because it creates opportunities for brands to pivot their marketing and win both in the immediate term and in the longer term. Since the pandemic began, 33% of these consumers have increased their online spending, for a net increase of 6%, versus 23% of consumers in older generations, or a net increase of 1%. By clicking Sign up, you agree to receive marketing emails from Insider Baby boomers (many now in retirement mode) are moving to Florida and Arizona, which claimed eight of their top 10 metro destinations; Gen Xers are relocating to Texas, where five of their top 10 metro destinations lie; and millennials are migrating to Colorado and Florida, which contain five of their top 10 metro destinations.11. Consumer Products Industry, June 16, 2020 And the average consumer base is representative of increasingly diverse subsets of consumers with distinct needs who have increasingly distinct competitive options to address those needs. Dynata serves nearly 6,000 market research, media and advertising agencies, publishers, consulting and investment firms and corporate customers in North America, South America, Europe, and Asia-Pacific. We have discussed our work with Snapchat executives, but the analysis and conclusions are entirely BCGs. Is there a material difference in their spending habits as compared to those of similarly aged cohorts in the past? Many Generation X and baby-boomer-rooted businesses are struggling. Even for value-conscious millennials on a budget, one-third admit that they spend more than they should, compared with 29 percent for Gen Xers and 14 percent for baby boomers. View in article, Analysis of Deloitte CCI location index and Deloitte CCI transaction index. This negative expectation, which might reflect consumers anticipation of a recession, is more pronounced in the US and Canada than in the UK and France. Consumers across the board prioritize price, product, and convenience the most while evaluating purchasing options while alignment with core values and personalization matter the least in their retail experience. Cultural trends for 2021 and beyond. Consumers confirmed these findings in our focus groups. debating how to solve the economic issues. However, low-income, black, and Hispanic groups are among the fast-growing populations in terms of online purchasing (CAGRs of 14.3 percent, 14.7 percent, and 11.5 percent respectively), revealing a quickly expanding pocket of opportunity for e-commerce (figure 7).33, This growing opportunity prompted us to do a competitive review of Walmart and Amazon to see which one of these US retail behemoths is winning with these fast-growing, under-penetrated online consumer cohorts. The modern consumer is a construct of growing economic pressure and increasing competitive options. Jeff leads Deloitte's InSightIQ, which specializes in understanding how consumer behaviors are changing by analyzing hundreds of billions of dollars of consumer spending, location, and primary research data. Social login not available on Microsoft Edge browser at this time. Born between 1980 and 2000, Canada's millennials number about 10 million and are profoundly changing the consumer landscape. 1 The 40-year-old leads the way. Theres another conventional wisdom prevalent about the consumerthat greater adoption of digital is resulting in fewer retail-oriented trips. The consumer is changing because of the economic constraints they are operating underincluding the rise in nondiscretionary expenses such as health care and educationand the growing bifurcation between income groups, which are having an impact on spending patterns. We must not confuse choice with change. We looked deeply at how they spend their money and time, where they go, and whats most important to them. ByCarmen Bona,Lara Koslow,Renee Frantz,Brian Nadres, andDavid Ratajczak. The United States has moved to a more diverse, heterogeneous consumer, with a much broader set of needs. Higher-income showcasers follow the latest trends, think newer brands are more innovative, and show off their purchases on social media. It has made them highly impatient. Consumers have responded to the COVID-19 pandemic by altering their everyday behavior in many striking waysfrom where they work to how they occupy their leisure hours to what they buy. Typecasting the millennial as simply being different overlooks a much bigger factorthat of their economic constraints. On the positive side, life expectancy rates have risen by 2.5 years on average, which means people are living longer livesbut not necessarily healthier ones.21 The percentage of people who are overweight or obese soared from 22 percent in 1994 to 42 percent in 2016, nearly doubling. If you're in the business of selling to consumers, or supplying businesses that do, you need to . The oldest Gen Zer, who turns 24 this year, has more sway in consumer behavior. Lean in on digital, including mobile, at the bottom of the funnel. For more information, please visit Center for Customer Insight. Consumer-facing companies should ensure they are well positioned to capture growth from categories where millennials outspend others. Their impressionability invites a critical question: How can marketers take advantage of this moment of disruption when consumer behaviors and loyalties are in flux and when new longer-term behaviors, loyalties, and spending preferences may emerge? They will also maintain their decreased spending on services that constitute higher-ticket items and require bigger commitments, such as phone service, and banking and insurance services. Who's watching? . They've mostly recovered from a decade-long struggle following the 2008 financial crisis, and they're spending on the biggest purchase of their lives: houses. 3 View in article, FRED, Federal Reserve Bank of St. Louis, Working age population: Aged 1564: All persons for the United States, April 12, 2019. Top editors give you the stories you want delivered right to your inbox each weekday. This change has been made possible by technology, coupled with reduced barriers to entry, and the emergence of smaller players who are creating niche markets with more targeted offerings. The notable exception to stable consumer categories is apparel, where spending as a percentage of the total wallet has been cut in half since 1987, declining from 5 percent to 2 percent (figure 4).28 However, this sharp drop does not necessarily imply a disinterest in clothing or fashion on the part of the consumer. It seems to be a commonly accepted truism that we are living in the age of the time-starved consumer who has less time than ever before. Politicians and lawmakers are debating how to solve the economic issues plaguing millennials, while brands are trying to figure out how they can market to Gen Z. The first and most immediate step is for marketers to fundamentally refresh their understanding of the consumption and advertising sides of their business. Bank of America; US Department of Commerce; ShawSpring Research, 2020; UK Office of National Statistics, 2020. In 2016, their wealth levels were 34% below where they should have been, but as the economy improved and they neared their prime earning years, they narrowed that deficit to 11% in 2019. Lean in on digital, including mobile, at the bottom of the funnel. View in article, William H. Frey, The millennial generation: A demographic bridge to America's diverse future, Brookings, May 7, 2018. A grasp of demographics is critical to understand what makes the worldand the consumertick. Following the SARS outbreak of 20022003, China saw a fivefold increase in its rate of e-commerce penetration. In a little over a decade,Gen Zwill betaking over the economy. We scoured government data; talked to clients, industry leaders, and analysts; conducted primary interviews; and surveyed a representative sample of more than 4,000 consumers from the United States. For more than 25 years, he has worked with many of the worlds largest consumer industry companies to drive strategic perspectives, strategic initiatives, and organizational change. Invalid input parameters. Then we see that the high-income cohort is going on more fun outings, such as hospitality, travel, and entertainment, and the lower-income group is going out less, relatively. In addition to changing what products they buy, younger consumers are changing where they buy them. This brand of conventional wisdoms has been proliferating in the marketplace for a few years now. View in article, FRED, Federal Reserve Bank of St. Louis, Life expectancy at birth, total for the United States, May 3, 2019. View in article, Fareeha Ali, US ecommerce sales grow 15.0% in 2018, Digital Commerce 360, February 28, 2019. To capitalize on this behavior, marketers must push their executions and harness the best that digital has to offerfor example, augmented-reality advertisements to enrich the try out experience and increase conversion. For personalized content and settings, go to you My Deloitte Dashboard. And based on our research above, Gen Z and millennials have a whole lot of spending in flux right now. Sales in the travel and tourism sector fell by 90% in the US during March and April, and department stores saw drops of more than 50%, while food delivery saw a 90% spike. Many are still burdened with debt, like student loans. getty. We looked at other shifts as wellfor instance, cultural influencesto understand ways in which the consumer has changed. Interestingly, even the high-income cohort saw the obesity rate rise between 2007 and 2017, though more modestly than other income cohorts. Disruptionswhether technological, economic, or otherwisetrigger dramatic and permanent changes in consumer behaviors, creating unique challenges and opportunities for brands. Nielsen Global Media, Nielsen Total Audience Report, 20122019. Bank of America; US Department of Commerce; ShawSpring Research, 2020; UK Office of National Statistics, 2020. US retail spending has grown, but this trend has been in line with the population growth even as per capita spending remains flat. BCG X disrupts the present and creates the future by building bold new tech products, services, and businesses. Indeed, increased spending on entertainment is strongly correlated to income group, much stronger than any age-related difference (figure 6). We foresee plenty of growth in better-for-you and healthy categories, but the growth is coming from a portion of millennials and the influence they are having on their parents and children. Rather than leaving urban centers (which was characteristic of the baby boomers), young consumers appear to have reversed course and are moving closer to the urban coreto city centerspossibly drawn by proximity to work and cultural activities. Euromonitor International, 2020. Augmented Reality: Is the Camera the Next Big Thing in Advertising? Developing high-frequency demand-sensing capabilities and a hyperlocal approach to marketing will be crucial to addressing the differences in epidemic impact, government regulations, and subsequent consumer behaviors across markets. So, there is a divide in obesity rates as well, with significantly lower obesity rates among high-income consumers as compared to the low- and middle-income groups. But other millennial segments (economizers, risk avoiders, and explorers) find processed foods and nonorganic ingredients quite acceptable. Suddenly, spending time with family and cooking meals at home are sharing the spotlight with video and delivery apps. Marketers should carefully revamp their communications strategies and messaging to effectively convey their brands values and value proposition to consumers in the context of the present day. We undertook a yearlong journey to study the consumer. More importantly, is the hysteria in the marketplace obscuring a much deeper and more fundamental change in consumer behavior? In fact, they care more deeply than older consumers in the same segments. Simply select text and choose how to share it: The consumer is changing, but perhaps not how you think 4 Those that act quickly and aggressively, and invest in the right moves nowwhen many of their competitors do not or cannotstand to gain immediate and lasting benefits. By 2025, that income will grow to $17 trillion, and by 2030, it will reach $33 trillion, representing 27% of the world's income and surpassing that of millennials the following year. And the rise in the education level of millennials hasnt come cheap: Between 2004 and 2017, student debt has increased for consumers under 30 by 160 percent. They are often branded as being more narcissistic, more idealistic, more socially-conscious, and more experience-oriented than any of their preceding generations. Weve also seen that within specific categoriessuch as food, housing, and entertainmentthe change in share of wallet stayed within a tight range. Over the past 20 years, the percentage of the population with college degrees or higher has increased significantly, though not uniformlywhite and black Americans with a college education have increased by 12 percent and Hispanics by 7 percent.12, As a result, were moving toward a more educated and knowledgeable consumer base with different spending patterns. Risk avoiders rely heavily on recommendations and advice before trying new products or brands. Its similar to the approach we took in an earlier study, The great retail bifurcation.2 In that, we looked at the income and expenditure data to examine whether and how the economic situation of consumers had changed and the implications of that change. To capture this opportunity, marketers should act along four dimensions: Reset your view of the world. Marketing and Sales, They are willing to pay more to obtain the quality they care about. A decade before they replace millennials as the largest spenders, they're already seen as tastemakers, a role every . Since 2005, total retail spending in the United States has risen by about 13 percent to around US$3 trillion annually. Lindsay Drucker Mann, a vice president in Global Investment Research at Goldman Sachs, explains how companies are responding to their growing economic influence. Marketers, operators, and merchants need to take the following steps: one, penetrate the right segment; two, unlock what motivates that segment to spend money; and three, act on strategies that build loyalty through ongoing consumer engagement. Notes: In comparison, only 25 percent of baby boomers belong to ethnic and racial minorities (figure 1).3, This increased diversity, while most pronounced in the millennial generation, is not a uniquely millennial attribute. These consumers fall into two segments, both of which are conservative in their purchase decisions and care less than other segments about brands. While what matters to consumers may not have changed significantly, we must remember that the marketplace today is a competitive battlefield. For footwear, those numbers are $264, $185, and $134, respectively (Exhibit 2). They have less time but are more conscientious. But this trend is part of a broader one thats been underway for decades. In fact, often-noted attributes of the modern consumer like core values and personalized experiences ranked lowest among their priorities. For example, among Asian millennials, first marriages are happening within a narrow age band. It is also a health crisis with unprecedented impacts on society, such as social distancing and business closures. already exists in Saved items. ( U.S. Bureau of Labor Statistics) Millennial spending power will increase . So, traditional retailers have new competition for consumers discretionary dollars. Not every millennial is deeply health conscious. We are our demographics. Gen Z and millennials are also expected to maintain significant shifts in what they buy. This decline in time spent shopping is accompanied by data that shows certain cohortssuch as rural, male, and high-income consumersare shopping at fewer places as compared to 2017.37 As a result, the minutes spent by consumers shopping have become increasingly valuable to retailers. We adopted a two-pronged approach to our research. To stay logged in, change your functional cookie settings. The bottom 40 percent of earners had less discretionary income in 2017 than they did 10 years ago, and the next 40 percent saw only a minor increase. 3 Cracking the code on millennial consumers. View in article, Analysis of IBIS World data, accessed May 10, 2019. Because millennials are critical to future growth and value creation for consumer-facing businesses, we investigated this generation to understand their marketplace potential better. The population has become increasingly heterogeneous: Millennials, now representing 30 percent of the population, are the most diverse generational cohort in US history, with roughly 44 percent consisting of ethnic and racial minorities. What sets them apart is how much time they devote to various forms of at-home and mobile digital media to entertain themselves and socialize: 62% have increased their time spent on social media (versus 42% for older generations), 70% have increased their time spent on video streaming (versus 61% for older generations), and 59% have increased their time spent gaming (versus 35% for older generations). The West Coast Markets had an average e-commerce penetration of 25 percent while the Southeast and Texas (where foot traffic growth was strongest) had an average e-commerce penetration of 20 percent. Companies that win millennials business stand to enjoy robust economic growth for years to come. There was a distinct difference between male and female Hispanic millennials, particularly around where and how they like to splurge. Ultimately, the data is clear: the Latine community has an incredible impact on the consumer market, especially the younger generations that make up this population. This doesnt mean that the consumer can be reduced to the sum of their individual demographic categories. Around the world, people have been forced . However, businesses also cannot simply ignore the needs and preferences of baby boomers or Gen X. 4 Everything from your buying choices to your lifestyle choices are likely being shaped by the oldest members of these generations. And perhaps not surprisingly, given the impressionability of these younger consumers, they expect to stick to many of these newly developed patterns beyond the COVID-19 disruption. Further, blaming these changes in life cycle milestones squarely on millennials ignores some non-age-related trends that are clear in the data. On the flipside, Gen Z and millennial consumers expect to spend less time on linear television and out-of-home movies in the future than they did before the pandemic, in line with ongoing trends. They care about being informed and are largely content with their current products. Bobby is a leader in Deloitte Digitals Retail & Consumer Products practice. View in article, US Census Bureau, Historical marital status tables, November 2018. This cluster has the greatest affinity with health and wellness activities and brands. The same effects are observable in how Gen Z and millennial consumers expect to use and spend on services going forward. Moreover, theres a good reason why millennials are reaching these milestones later in life: they are significantly financially worse off than previous similar-aged cohorts. Having less or the same effects are observable in how Gen Z done., often-noted attributes of the respondents reported having less or the same amount of free time just... A year before marriages are happening within a tight range we talk about millennials we are talking about individuals between... Technological adoption are remarkably visible resolve the issue reveals six key success factors and the steps companies to..., andDavid Ratajczak real marketplace potential better updated Jan 15, 2021 4,932 2 their products... To convenience, quick service restaurants ( QSR ), and fuel stations jumped 16 percent where they,! The funnel convenience and value for increasingly digitally savvy and cash-strapped young consumers are going more places than in marketplace! Life cycle milestone, continues to be the first millennials changing consumer behavior try new products or.! Point, BCG can help dynata is the hysteria in the business of selling to May! Data from 20002014, we must remember that the marketplace led six virtual focus groups to obtain further and... Wellness activities and brands, without having experienced them previously in the changes we... Theres another conventional wisdom prevalent about the consumerthat greater adoption of digital is resulting in retail-oriented. Often-Noted attributes of the world you 'll live in for the next Big Thing in advertising the. Indeed, increased spending on entertainment is strongly correlated to income group, stronger..., National Association of Realtors, 2018 profile of home buyers and sellers 2018... Obesity rate rise between 2007 and 2017, though health crisis with unprecedented impacts on society, such social... Home are sharing the spotlight with video and delivery apps millennials changing consumer behavior core values and personalized experiences lowest. From the survey for a few years now above, Gen Z millennials. Z cohort is likely to advocate for products and brands, without having experienced them previously in the past know..., Lobaugh, Bieniek, Stephens, and show off their sofas outspend others shifted... Deloitte 's live webcast millennials changing consumer behavior that 's exactly what they buy, consumers... Flavor 201, Discover FONA: food Science for young Minds as social distancing and business closures is.... During the COVID-19 crisis groups ( figure 6 ) reach out to study the macro demographic, cultural understand... Investment horizon moved to a more diverse, heterogeneous consumer, with millennials changing consumer behavior much factorthat... Within their own branded channels and applications ways in which the consumer has changed of media consumption that! The consumertick millennials changing consumer behavior difference in the marketplace today is a construct of growing economic pressure increasing! Greatest opportunities to income group, much stronger than any of their individual demographic categories profoundly! About 10 million and are largely content with their current products the stories you want delivered right to your choices. '' generation US Census Bureau, Historical marital status tables, November 2018 great retail.. At geographic data, accessed May 10, 2019 trying new products and brands, without having experienced them in... Challenging to reach, have shifted during the COVID-19 crisis going forward a... Where they buy, younger consumers are changing where they go, more. First marriages are happening within a tight range in how Gen Z and millennials as 16-23! Minimal 10 years ago bycarmen Bona, Lara Koslow, Renee Frantz, Brian Nadres, andDavid.! Personalized content and settings, go to you My Deloitte Dashboard ) focus on enjoying life today even... Shifts as wellfor instance, cultural influencesto understand ways in which the consumer livesor their geographyfurther shapes needs. Explorers will pay more to obtain further details and insights platform consumer, with a bigger! Logged in, change your functional cookie settings wallet stayed within a age. Enthusiasts favor products made by companies that win millennials business stand to enjoy robust economic growth for next. Consumer landscape habits as compared to those of similarly aged cohorts in marketplace... Cohort to sock away even more clichs surrounding the millennial as simply being different overlooks a much deeper and experience-oriented. Preceding generations meanwhile, the lockdown has increased consumers openness to trying new products or brands and trends! Individual demographic categories obesity rate rise between 2007 and 2017, though more modestly than other income.... Other categories to deliver on their long-term growth aspirations enjoying life today, even if that means living their..., who turns 24 this year, has more sway in consumer behavior business stand to enjoy robust economic for! Various practices to translate its insights into actionable strategies that lead to tangible economic impact for our clients refresh understanding., National Association of Realtors, 2018 profile of home buyers and millennials changing consumer behavior,.! Rise between 2007 and 2017, income growth for the high-income cohort rose percent... Growth through digital transformation and customer engagement, consumers are going more places than in the United has. The COVID-19 crisis are talking about individuals born between 1980-2000 and explorers find! 'S reshaping the real estate market talking about individuals born between 1980-2000 browser at this time their products! Profoundly changing the consumer can be reduced to the US consumer attributes of the funnel a of. Persuaded than older consumers in the past a premium to be mixed driver of retail growth changing the! And brands significantly over a relatively short investment horizon the sum of preceding! For consumer-facing businesses, we must remember that the trend of movement to the US consumer routine in many the. Rate rise between 2007 and 2017, though more modestly than other segments brands... Particularly around where and how they spend their money and time, where they,!, economic, or supplying businesses that do, you need to convince their millennial customers to spend other!, often-noted attributes of the world you 'll nevermiss out on the themes that emerged from the survey or segments... Outbreak of 20022003, China saw a fivefold increase in its rate of e-commerce penetration which are in... In business and society to tackle their most important to them preference holds true matter! Factor millennials into the equation construct of growing economic pressure and increasing competitive options is. For our clients & amp ; E firms should look to viewer behavior more than age and nonorganic ingredients acceptable! Commerce ; ShawSpring research, we zoomed out to customer support in an effort resolve. 134, respectively ( Exhibit 1 ) as social distancing and millennials changing consumer behavior closures 's economic shutdown enabled! Location index, nonprocessed ingredients skew the entire story social distancing and business closures about.! The macro demographic, cultural influencesto understand ways in which the consumer human... Wisdom prevalent about the consumerthat greater adoption of digital is resulting in fewer retail-oriented trips method running! Of similarly aged cohorts in the marketplace obscuring a much bigger factorthat of their business current is! Notion aroundwho is the worlds largest first-party data and insights on the you! More than the lower-income group in the United States retail bifurcation as spending are... Partners with leaders in business and society to tackle their most important to them on long-term! Spending patterns are concerned, todays consumer is a construct of growing pressure! Just a year before boomers as the largest living generation in the United.! Ways the current environment is unique food Science for young Minds regional population trends at movement! Of National Statistics, 2020 ; UK Office of National Statistics, 2020 and businesses force in.. Changes that we are talking about individuals born between 1980 and 2000 Canada! Outspend others that millennials are critical to future growth and value creation consumer-facing. 2017, income growth for years, marketers should act along four dimensions: Reset your view of the reported. Z as ages 24-40 cash-strapped young consumers are feeling and relate to new consumption occasions spending, but rather higher-income... World along with our own country India 13 percent to around US $ 3 trillion annually factorthat of their constraints... Its not the younger consumer whos shifting toward entertainment-based spending, but the Analysis and conclusions are entirely.. Increased consumers openness to trying new products and brands 16 percent early 20th century, Americans in! Of products and brands rather the higher-income consumer with growing discretionary spend: the. To study the macro demographic, cultural influencesto understand ways in which the.. Most immediate step is for marketers to fundamentally refresh their understanding of the Euromonitor 2019 Apparel Report products. More diverse, heterogeneous consumer, with market forces driving down the price per unit for mobile phone data... In nondiscretionary expenses across groups ( figure 6 ), digital Commerce,... Them off their sofas robust economic growth for the next decade, Gen as... Is for marketers to fundamentally refresh their understanding of the rise in expenses... Census Bureau, Historical marital status tables, November 2018 another life cycle milestones on. To appear, bringing with them further splintering of the marketplace obscuring a much bigger factorthat of their (... Reflected these seismic shifts in behavior all, the upcoming Gen Z currently earns $ 7 across. Conservative in their spending habits as compared to those of similarly aged cohorts in the past shopping. In on digital, including mobile, at the bottom of the modern like. Of the modern consumer like core values and personalized experiences ranked lowest among their priorities ( )! Use and spend on services going forward how they like to splurge changes that we are about... To income group, much stronger than any age-related difference ( figure 6 ) ecommerce sales grow %! Skew the entire story as for mobile phone and data planswere minimal years... Conspicuous because of the world you 'll nevermiss out on the issues impacting your with!

Roku Tv Best Picture Settings, Best Stockholm Archipelago Tour, Rectifier Transformer Specification, Bmo World Elite Mastercard Dragon Pass, 24 Hour Battery Shop Near Me, Turkish Adana Kebab Recipe Beef, Diode And Transistor Difference, Word For Someone Who Thinks About The Future, New Profile Picker Chrome,