“This year, the ‘Millennial’ generation is projected to surpass the outsized Baby Boom generation as the nation’s largest living generation, according to the population projections released by the U.S. Census Bureau last month. Millennials (whom we define as between ages 18 to 34 in 2015) are projected to number 75.3 million, surpassing the projected 74.9 million Boomers (ages 51 to 69).”
This information is pretty shocking, especially to the Baby Boomers who are slowly slipping out of the market to make room for younger target audiences. Millennials are a very diverse community of people, and it reflects a more diverse buying pattern. The cultural importance to the multicultural younger generation is a stark contrast to the former, and the desire to aspire stems from the immersion of social media.
Millennials will become the largest population, and are planning on spending more money in the marketplace. According to the Survey of Affluence and Wealth, Time Inc. and YouGov. the Millennials are spending more money on fine jewelry and watches than any other group of people.
The millennial community is composed of a greater number of multiculturals and in fact, by 2020 Hispanics will account for over half of all growth in population. According to those census projections, Non-Hispanic whites will drop below 50 percent of the population around the year 2043, while every other race will be increasing. Most importantly for marketers of goods and services, U.S. multicultural buying power is growing at an exponential rate versus total U.S. consumers, increasing from $661 billion in 1990 to $3.4 trillion in 2014. This represents a percentage increase of 415%, which more than doubled the total U.S. buying power increase of 204%. The multicultural market’s size, growing clout and buying power require thoughtful understanding about what the market represents to a company’s bottom line.
So why multicultural millennials? One of this segments key differentiators is the macro-trend we call “Re:Generation” highlights millennials’ desires to re-imangine, re-appropriate and re-invigorate their surrounds, their relationships and their aspirations. They are forward thinkers, empowering trendsetters, creative individuals who love their neighbors and refuse labels. These qualities create an unstoppable force and influence a transitional change geared toward the digital market.
Luxury brands in the fashion, jewelry and even automobile industry have begun to look inwards in terms of how they can better redefine themselves to appeal to millennials. The aspiration of attaining wealth as a means to acquire “things” or as a status symbol is no longer relevant. Experiences are now the currency with which these consumers trade and aspire.
More great insight to come in Part 2 of how Millennials are Redefining Luxury! Stay tuned!