Are you trying to track down that elusive Millennial customer? Wonder why they aren’t spending up big on whatever you have to offer? Well, according to a new study the Ys (those aged 20-35) are spending all their hard-earned eating out. Excellent news if you’re in the restaurant game.
The study, admittedly a US one, was done by the bank JP Morgan and tracked spending habits of its customers’ credit cards.
You can check out a PDF of the study here.
According to the study the average Millennial in the US spent $US20,000 a year on eating out, entertaining themselves and buying stuff.
One thing the Ys definitely weren’t into was home improvement (with only three per cent of their money spent on it). Arguably not good news for the launch of Fairfax’s Kin Community site yesterday aimed at Millennial DIYs.
Some 16 per cent of Ys’ salaries goes to cafes and restaurants (compared to 11 per cent of the rest of the population). Twelve per cent of their cash went on “entertainment” (compared to 10 per cent of the wider community).
It’s often said that the Millennials are all about travel and experience, however, according to the JP Morgan study only six per cent of their money goes on holidays (seven per cent for the rest of us.)
That means 34 per cent of all Ys’ cash goes on travel, entertainment and dining out. The other two major beneficiaries of Ys’ custom was retail (19 per cent) and groceries (15 per cent).
The JP Morgan graph above arguably tells the importance of the Millennial consumer. Presently in the US, the Ys represent 31 per cent of the population and spent $US600 billion in 2014. However, the annual growth rate in retail spending from the Ys is forecast to be 15 per cent from 2014 to 2020, versus just four per cent for those aged over 35. Another reason why, if you’re not attracting the Ys now, you ought to start to.