Millennials, like all generations, are different from their parents in the way they spend, the places they shop, and the things they buy. They’re expecting different things from the companies they buy from, and their selectivity is affecting business. A report from Goldman Sachs sheds some light on which industries are coming out on top and which ones need to change things up a bit.
1. Fast food
Sorry, McDonald’s, but even the cutest Happy Meal toys might not capture the attention of this generation of moms. Millennial moms are looking for fresh, organic food for their little ones, from brands that are transparent and value conscious. CBS reported that brands like McDonald’s, Kellogg, Campbell Soup, and Coca-Cola might be at risk. They also speculated that food companies like Chipotle, Starbucks, Whole Foods, and Blue Apron might see even more business from millennial moms because of the way they’ve been able to reach this more health-conscious generation.
2. Social media
Social media is becoming a replacement for traditional news and entertainment, but not all social media platforms have flourished under the watchful thumbs of hip, young moms. After becoming parents, millennials use Twitter 48% less and Tumblr 56% less. They do increase their use of parenting communities by 77%, but the use of Pinterest, Instagram, and Facebook increases by smaller margins.
3. Legacy companies
A quick look at Instagram will show you that #shoplocal has been tagged in posts over 7.5 million times. Sure, it’s not as big as #puppy (62 million, if you’re curious), but it’s certainly nothing to sneeze at. The way that millennials take pride in patronizing local businesses might indicate a trend away from legacy companies. In their report, Goldman Sachs concluded that because of smartphone usage and social media affinity, small brands have a unique opportunity to use targeted offerings and grassroots marketing to appeal to millennial moms in a new way.
4. Fitness and health
As toddlers, millennials turned their noses up at broccoli with children across America, but as adults, they might love kale more than life itself. Millennials are more informed about nutrition and more capable of tracking their fitness habits, thanks to fitness trackers and apps. Millennial moms are also likely to pay more for athletic apparel and fitness classes. Traditional gyms with rows of ellipticals and treadmills are innovating by offering fitness classes, but millennial moms might ultimately prefer boutique gyms.
5. Milestone businesses
Gearing up for millennials to buy cars, get married, and start owning homes? Apologies to car salespeople, realtors, and wedding planners, but millennials are putting off these milestones until later in life. They’re still doing these things, but they’re living with their parents longer and putting off marriage and parenthood until later in their 20s and 30s. Additionally, as the popularity of ride-sharing grows, rates of car ownership for millennials might decline. As millennials get older, they may start to settle down and make these milestone purchases, but they look at them less as definite goals for life and more as potential options.
What does all of this mean? As millennials grow up and ask for innovation, it’s up to businesses to deliver or get disrupted.
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