TimmyH
BuYing Power - Milennials drive the economy
June 9th 2008 04:55
Call them Generation Y, millennials or whatever you like, but ignore them at your peril. The Y Generation now has the disposable income to begin its domination of concumer culture.
Young consumers wield considerable buying power. A recent Harris poll in the US found that the Y Generation is spending bigger than their Gen X counterparts. Most are still at school or university, saving little if any of their incomes. This disposable cash is instantly turned around and shovelled out into consumer products.
The group's income is predicted to rise through at least 2017, when it will approach $3.5 trillion, according to Javelin Strategy & Research. Thats a lot of spending. But Generation Y doesn't have to hit the shops to spend big either.
The group is very comfortable shopping online. According to Nielsen Online, over 50% of consumers under age 24 made an Internet purchase between April 2007 and February 2008. The most popular of which are amazon.com and ebay.com. But in addition, many are have begun trading goods and buying from one another using sites like craigslist. This indicates an incredible level of trust that Generation Y places in the internet and others.
Nielsen released a wide range of data about Gen Y in its May 2008 "Consumer Insight Magazine." According to them, the typical Gen Y consumer surfed the Internet 22 times per month from April 2007 to February 2008. But in affluent countries the stats are considerably higher.
An interesting development for advertisers is the Generation's obsession with computer games. Everyday is game day for Generation Y. XBOX 360 owners play with their consoles more than 28 times a month and none seem to have a problem in built in advertising...so the new tactic for ad execs should be "Sell XBOX's - so well can tell all those stupid Y Gens about new products for them to waste their money on!"
Young consumers wield considerable buying power. A recent Harris poll in the US found that the Y Generation is spending bigger than their Gen X counterparts. Most are still at school or university, saving little if any of their incomes. This disposable cash is instantly turned around and shovelled out into consumer products.
The group's income is predicted to rise through at least 2017, when it will approach $3.5 trillion, according to Javelin Strategy & Research. Thats a lot of spending. But Generation Y doesn't have to hit the shops to spend big either.
The group is very comfortable shopping online. According to Nielsen Online, over 50% of consumers under age 24 made an Internet purchase between April 2007 and February 2008. The most popular of which are amazon.com and ebay.com. But in addition, many are have begun trading goods and buying from one another using sites like craigslist. This indicates an incredible level of trust that Generation Y places in the internet and others.
Nielsen released a wide range of data about Gen Y in its May 2008 "Consumer Insight Magazine." According to them, the typical Gen Y consumer surfed the Internet 22 times per month from April 2007 to February 2008. But in affluent countries the stats are considerably higher.
An interesting development for advertisers is the Generation's obsession with computer games. Everyday is game day for Generation Y. XBOX 360 owners play with their consoles more than 28 times a month and none seem to have a problem in built in advertising...so the new tactic for ad execs should be "Sell XBOX's - so well can tell all those stupid Y Gens about new products for them to waste their money on!"
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