Baby boomers take note. You lived high on the hog with credit cards for decades. Millenial spending, now at $170 billion, will soon outpace you as the segment matures with larger earnings and strategic savings.
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Millennials accounted for $170 billion in purchases last year, making them one of the most powerful buying groups in today’s consumer market, with purchasing power that will soon exceed that of every other generation.
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Yet the key factors that influence their purchasing decisions remain a mystery to merchants.
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The burden of debt weighs so heavily that millennials have redefined financial success around it, with 46 percent saying that financial success means being debt free.
It might not stop them from purchasing a $1,000 mobile device, but it may keep them out of Nordstroms. This article suggests three strategies to attract the market:
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Go mobile and get social.
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Offer short-term, low-interest financing at the point of sale.
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Offer a new form factor–fit in their mobile wallet
Part of it is memories of the recession when millennial parents lost their home or employment, and some of this group struggled themselves in the job market with high student loan debt. Handling the segment with a targeted approach will hit a chord, but once they hit their forties and have growing families that require shoes, clothing and such, they will likely learn the thrill of accumulating consumer debt.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
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