A new study has revealed the earning power of Australia’s Millennial generation (those under 35) and how it has the potential to cause significant headaches for traditional brands and ways of marketing.
The study, by Macquarie Bank equity strategists, revealed that by 2030 Aussies born after the year 2000 will make up 54 per cent of the population and will control two out every three dollars earned.
Macquarie’s report noted that the Ys and Zs would be even more dominant in coming years because most migrants coming to Australia now also fall in that age demographic.
It also urged brands to reconsider how this digitally obsessed demographic would affect their long-term investment and marketing strategies.
As an example, as the Ys weren’t all that interested in “owning stuff”, retailers of cars or TVs could increasingly find themselves in trouble, as could car or home contents insurers.
On the upside, the Ys loved to shop online which was good news for those in the warehousing or courier game.
As home ownership was increasingly a pipe dream for Millennials, any business associated with low-cost housing or affordable refurbishment should also do well.
The report noted that current digital trends would be amplified over the coming years, so anyone flogging cloud-based digital services would be in luck.
Millennials also wanted sustainable products and common brands such as A2 Milk, Blackmores and health and organic beauty brand BWX were all singled out as having healthy futures.
With travel topping most Ys “must do” list, this would result in fat profits for the airlines and accompanying businesses such as Flight Centre.
The report noted: “More educated, connected, digitally empowered and demanding than their parents, Millennials are the most powerful consumer cohort in history.
“Digitally addicted and armed with a smartphone, the consumer champion of the past is simply a new way of life for Millennials. They look at reviews on the move, provide regular feedback online, price compare and make informed and researched purchasing decisions.
“Millennials are driving the idea of ‘peak stuff’, with over 75 per cent preferring to spend money on a desirable experience, education or a ‘shared’ good rather than a material possession. Doing something different and searching for unique, often personalised experiences,” the report said.