Benign Millennials

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BENIGN MILLENNIALS

The millennial generation (18-30 year olds) are uneasy. Professional setbacks have shaken this generation of their rat-race mentality and they value their youth more than previous generations. They are prepared to switch around their life stages but they have more conservative values than they care to admit. This is a generation that know exactly what they have to lose. They have high expectations for themselves and of everyone else and, being innovative themselves, expecting innovations from brands is second nature. 73% of 18-24 year olds (versus 48% of 35-44 year olds) agree that since the recession, they feel more pressure to succeed.

This generation had a non-linear attitude to life stages – each envious of the other. They move from college to backpacker to professional, and back to backpacker, constantly adapting to meet the varying circumstances and opportunities available in today’s economy. Changing Priorities Their priorities have also changed: A 29 year old told MCCP “… it used to be extremely rich and successful, own 25 properties and be on a quarter of a million euro salary but as I got older it is just to be healthy.” (Source: MCCP Consumer Dialogues Male 29yr old Cork). This shift in priorities can be observed across a majority of millennials, with finance and money becoming less of a central point in their life;

Irish millennials are the most likely in Europe to admit they don’t really understand pensions and savings policies with 40% agreeing (Source: Aviva 2012)

“Finance and money are less of a central point in their life” This lack of interest in finance translates into millennials who struggle to imagine the long-term. 56% of millennials are worried that they won’t be able to save enough money to afford an adequate standard of living in retirement, 55% are much


more focused on figuring out how to cover current expenses than planning long-term finances (Source: Aviva 2012). Pressure to succeed Younger people feel the pressure to succeed more strongly with 73% of 18-24 year olds agreeing with the statement ‘Since the recession I feel more pressure to succeed’.

“Global studies show that 70% are positive about getting the job they want at some stage” However, this cohort are still stunningly confident and optimistic despite any setbacks they may have encountered, even if their expectations do not always stack up to reality. Global studies show that 70% are positive about getting the job they want at some stage. 76% believe that they can teach older colleagues things. The popular view of the millennial generation is that they are more caring,

community-orientated and politically-engaged than previous generations. These views are largely incorrect. However, millennials aren’t as ‘do-gooder’ as we think. New data has revealed children of the ’80s and ’90s are more focused on money, image and fame than on community issues. This generation are the most tech savvy yet, and are true digital natives. However, their playful attitude to technology doesn’t mean physical features are not cherished. Adoptive behaviour Millennials are known for their willingness to adopt new technologies but they still value brick-and-mortar financial institutions. 31% of 18-34-year-olds (US) who switched banks in the past 12 months did so for more convenient branch locations; 28% who did so for more access to ATMs. But it’s not just financial services that these consumers value the physical over the digital.

Vinyl sales have increases for the sixth year running – this is at the same time as the rise of digital music. International ‘record store day’ was established in 2007 to represent this growing product category. But what are the implications for marketers? Firstly, millennials are driven by different needs and expectations than previous generations. They are diverse, highly educated and solidly influential shoppers. They are more ethnically, economically, and socially diverse than any previous consuming generation. They are also Digital Natives – 60% review products online, this means that brands need to engage with consumers online and through new media. Brands that are doing this well are Apple, whose dedication to style and utility meets the needs of this generation, and GHD, who meet a core need and expectation of


this cohort: total control even over hair. So what are the implications for brands? Like any cohort or generation, stereotypes are not representative of millennials. Yes they are more demanding at work, but they are proactive and motivated to succeed. Such complex motivations must be understood.

“The path to these goals is non-linear” This is a group who want a good job, house, and 2.5 children, but due to the recession they know that the path to these goals is non-linear – help millennials on their life path by helping them in surprising ways, with small victories that relate to big dreams. Millennials are tech savvy, but not digital for the sake of it. Smartphones and other tools are just that, tools, so brands should develop content and features that meet needs, because the platform is not enough. Millennials also cherish physical items and have a refined set of commercial needs and wants – produce products and have a brand that they can value.

Kathy Troy is Strategic Planner at MCCP The Planning Agency who work with some of Ireland’s largest brands to help game change through better consumer insights and sharper strategy (brand, communications and innovation).

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Benign Millennials