Fair Fit Lens # 1 - Millennials, the mindful consumers

Fair Fit �Lens #1

An outlook on Millennials, The Mindful Consumers

June 2015

© FAIR FIT

« The largest, most diverse, educated and

influential consumers on the

planet. »

Yarrow and O'Connel, "Gen Buy", 2009

Millennials Who are they?

Edelman 8095 Global Study, 2012

Born between 1980 and 1995. 20 to 35 years old today.

They grew up through major social traumas:

9/11, 2008 recession, environmental disasters…

The GENERATION

coming of age with new Millennium.

Employed (55%) vs Students (31%) Singles (66%), married (23%), parents

(26%)

#Hipsters, #MillennialMom, #Geeks, #Underemployed, #Bossbabe…

Telefonica Global Millennial Survey, 2013

The most DIVERSE consumer category

Telefonica Global Millennial Survey, 2013 Edelman 8095, 2010

The first DIGITAL NATIVES

Tech-savvy: 73% own a smartphone Always-ON: 65% are off one hour or

less per day Hyperconnected: 55% visit a social

network at least once a day

VIMN, Knowing Youth, 2014 Ford Trend Report Book, 2015

The first GLOBAL CITIZENS

Thanks to digitalisation and globalisation they have more in common with their global peers

than older generations. 80% declares to be curious about

the world.

Why are they important for brands?

US Census, 2015 Telefonica Global Millennial Survey, 2013

23% of the global population 1/4 of Europe’s adults

1.7 B Millennials worldwide

#1: Numerous

They spend $2,45 trillion in the US In 2018, their annual spending will

reach $ 3,39T

By 2018 their income will surpass that of Boomers

#2: Prosperous

Oracle - EFMA, September 2010

Edelman 8095, 2012

They have unprecedented access to knowledge

9 in 10 use al least one source of information before a purchase

#3: Informed

They are in the know and want to be treated as such

14,7B word-of-mouth impressions weekly 70% recommend brands to their network,

47% critisize them They have in average 391 Facebook

friends and 231Twitter followers

Edelman 8095, 2012 VIMN , the Power of Fans, 2014

#3: Influential

They have extrordinary

power to have their voice heard

What are their generational

traits?

Socially-minded rather than political or religious.

In the US, 50% are politically independent and only 36% are

religious.

Broad- Mindedness

VIMN, Knowing Youth, 2014

They aspire to a more democratic world that

embraces human differences & rights

Social inequality is a key global concern for Millennials, together with economy and

education They are aware the planet is running out of

resources

Sense of Responsibility

Mindful about their impact

on the world

Telefonica Global Millennial Survey, 2013 VIMN, Knowing Youth, 2014

Realist and action-oriented, they believe they have to make the most of what they

have. Starting a business is the ultimate goal for

half of them.

Entrepreneurship

They aknowledge a duty towards positive change and are ready to make

sacrifices

VIMN, Knowing Youth, 2015 Edelman 8095, 2012

cc

Despite economic instability they describe themselves as « happy »: a more important

value for them than wealth 71% believe they will have a better life than

their parents

Optimism

8 out of 10 believe to have the power to change the world for

the better

VIMN, Knowing Youth, 2015 BAV, Athena Doctrine, 2014

What do Millennials

expect from Brands?

Telefonica Global Millennial Survey, 2013 AdWeek, 2014

Trust, together with price and quality, is critical at shelf and it is the key

driver of loyalty.

Integrity

To be transparent, no matter what, or face buycott

WEF, Engaging Tomorrow’s Consumers, 2013

8 out of 10 Millennials prefer brands that are useful over brands that are

interesting Most consumers wouldn’t care if 75% of

brands would cease to exist

Service

Razorfish, Digital Dopamine 2015 Havas Media, Meaningful Brand Index, 2011

To tangibly contribute in making their life better

63 % of consumers make it a point to buy brands with values similar

to their own BAV, The Rise of Mindful Consumption, 2011

TBWA WW / Take Part,

Purpose

To create value for society

by addressing its needs

Telefonica Global Millennial Survey, 2013 AdWeek, 2014

Guilt is a new dimension of consumption.

Environmental impact (71%) and ethical practice (71%) are critical

drivers of purchase decisions.

Engagement

To help them reduce the me vs we dilemma by reducing the

negative impact of their consumption.

WEF, Engaging Tomorrow’s Consumers, 2013

Millennials are co-creators and are willing to be involved in a brand’s decisions.

7 out of 10 think they can change corporate behaviour by supporting companies who do the right thing.

Empowerment

To be their lever of change

TBWA Worldwide / Take Part, 2011

To be socially RESPONSIBLE

Millennials expect brands to embrace,

pursue and communicate a shared mission able to

simplify and amplify their individul action.

What will Responsible

Brands get in return?

Brand Love +39% Preference

+ 27% Loyalty +24 Conversation

& Community

BAV, The rise of mindful consumption, 2011

Success The 50 most successful brands of the last decade are built on

a purpose.

Stakeholder centric companies have higher return on stock price (over 10 years 1026% vs 122% for the S&P

500)

Jim Stengel, Millward Brown, 2012 Rajendra Sisodia, Firms of Endearment, 2007

Greater Good for All

A healthier, greener, safer, fairer, happier, richer,

longer-lasting…

more sustainable WORLD

« The socially responsible company is ultimately a

consumer-led organisation that matches the newfound hulility of global consumers

by stressing actions over rhetoric »

JOHN GERZEMA

The rise of mindful consumption

Thank You

For more info: serena.colombo@icloud.com

www.fairfitthinking.com