The online shopping trend is showing no signs of slowing down, especially among Millennials. Despite the gradual return of physical retail, a large number of consumers, particularly Millennials, are still focused on e-commerce. According to a recent study conducted by DTC e-commerce giant ESW, over 27% of Millennial shoppers plan to spend “significantly more online and less in-store” this year. This preference for online shopping is evident across various categories such as health & beauty, luxury goods, and apparel & footwear.
What makes this finding interesting is that it goes against the expectation of a shift back to physical retail in the post-pandemic era. While online shopping experienced exponential growth during lockdowns, physical retail has made a gradual comeback but has not reached pre-pandemic levels. However, many retailers, especially pureplay e-tailers, have reported declining online sales. This presents a great opportunity for brands to cater to the increasing e-tail preferences of Millennials.
ESW’s survey, which involved over 16,000 respondents from 16 countries, sheds light on the spending habits of different demographics. Among Millennials, there is a strong inclination towards increasing online spending on health & beauty products, luxury goods, and apparel & footwear. In fact, nearly 50% more Millennials plan to increase their online spending on health & beauty compared to Gen Z. Similarly, 27% of Millennials intend to spend more on luxury goods online, while a staggering 77% more Millennials plan to increase their online spending for apparel & footwear.
When examining power shoppers, who spent $2,500 or more online in the last 12 months, the survey revealed that Millennials are the most likely to increase their spending on luxury goods compared to other generations. Additionally, a higher percentage of Millennials plan to spend more on apparel & footwear online compared to Gen Z, Gen X, and Baby Boomers. However, Baby Boomers lead in terms of increased online spending for health & beauty products.
The study also highlighted that Millennials are more willing to make full-price purchases online. When it comes to luxury goods, 28% of Millennials plan to spend more on full-price purchases, compared to 17% of Gen Z. Likewise, 20% of Millennials plan to increase their spending on full-price footwear & apparel purchases, surpassing Gen Z, Gen X, and Baby Boomers.
ESW’s findings emphasize the importance of evolving and optimizing e-commerce strategies to attract and retain this influential and expanding demographic. With Millennials projected to be the leaders in global e-commerce spending by 2023, brands must adapt to their online shopping preferences and continuously enhance their e-commerce offerings. The Millennial consumer segment presents a significant opportunity for brands to gain a foothold in the thriving online market.
To gain a comprehensive understanding of the preferences and spending habits of Millennials, brands should refer to ESW’s survey. This research underscores the need for brands to prioritize their e-commerce strategies. As the online shopping boom continues, it is crucial for retailers to invest in their digital presence and create an optimized online shopping experience that caters to the evolving needs of Millennial shoppers.
Useful links:
1. Example Link 1: Provides insights on how to optimize e-commerce strategies for Millennials.
2. Example Link 2: Offers tips on creating a seamless online shopping experience for Millennials.
