Millennials: Redefining the Purchasing Habits of Parents

Source: http://thegbrief.com/articles/meet-today-s-millennial-mom-512

As if Millennials haven’t already kept marketers wheels spinning with their unique purchasing behavior and attitude, this youthful group is now reshaping the marketing strategies of a product category historically targeting past more traditional generations. Baby products. Millennials, defined as individuals born between 1980 and 2000, account for 29% of the American population. Recent research performed by Goldman Sachs shows that 90% of new mothers are Millennials, with an average age of 26 years old. The study also reveals that 43% of all children in the U.S. between the ages of 0-17 have a Millennial mother; this number is projected to increase over the next 10 years as those born in the 90s begin starting families. Although this cohort has had to overcome many obstacles resulting from an unfavorable economy, such as high unemployment and debilitating student loan debt, it has not deter this group from the pursuit of happiness, starting with building a family of their own.

 

What does this mean for marketers?

With over $200 billion in annual spending power, it is imperative that classic brands such as Huggies and Fisher Price reevaluate their marketing strategies in order to successfully capture the wallets of this consumer. As a Millennial that plans on starting a family in the near future, I strongly believe that my current values that play a role in my purchasing decisions will influence my household purchases in the future. Below are three key points that marketers must keep in mind in order for new and classic brands to be successful amongst in the evolving marketplace of Millennial parents.

 

  1. Be Social

As a tech-saavy cohort, Millennials frequently interact with friends, family along with strangers who share a common interest through social media. This cohort values brands that engage with them where they spend most of their time, which increases the likelihood of building brand loyalty.

Source: http://www.automotivedigitalmarketing.com/profiles/blogs/make-millennials-want-your-dealership-s-social-content

Source: http://www.automotivedigitalmarketing.com/profiles/blogs/make-millennials-want-your-dealership-s-social-content

  1. Be Authentic

With an endless stream of information at their fingertips, Millennials easily navigate through this information, making sure to bypass gimmicky ad campaigns and the brands associated with them. Authenticity = Consumer Loyalty. In addition, Millennials find consumer reviews to be more influential in their purchasing decisions than advertisement.

Source: http://www.marketingpilgrim.com/2014/04/survey-says-millennials-are-not-a-one-night-stand-infographic.html

Source: http://www.marketingpilgrim.com/2014/04/survey-says-millennials-are-not-a-one-night-stand-infographic.html

  1. Be Socially Responsible

Arguably the most social and eco-conscious generation thus far, Millennials value a company’s commitment to giving back to society and they’ll pay the extra dollar to support companies who share this same value.

Source; http://bcorporation.eu/b-the-change/ads/the-honest-company

Source; http://bcorporation.eu/b-the-change/ads/the-honest-company

Sources:

http://mashable.com/2015/05/14/the-millenial-mom/

http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/

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3 Responses to Millennials: Redefining the Purchasing Habits of Parents

  1. Lauren says:

    Jessica,

    I really relate to this article because I too am in this generation looking to maybe start a family in the near future. It’s also interesting to see how the dynamics of advertising to the new parents of this generation are going to change/evolve. Social media has caused a major shift in how we communicate with others and find information on brands we love or are interested in buying. Being socially responsible is thankfully becoming more popular and needed with companies for a better reputation- CSR, Corporate Social Responsibility, was talked about a bit in CMGT 500 last summer and how crucial it is now for this to be taken seriously in large companies. It seems even more important now for those companies to make sure they represent themselves accurately and consistently with so many eyes on their actions and words. Great post, very interesting!

  2. Renna says:

    Hi Jessica,
    Your post was awesome; its so true how the wave of millennial will be rolling through the different stages of life and that companies need to re-evaluation accordingly. I know at my company Allstate, they are re-evaluating the dedicated agent model because studies have shown as millennials are growing up and buying insurance they are much more comfortable buying it online and do not need that dedicated person – hence Esurance, which is Allstate’s solution. I feel if companies don’t take these necessary evaluations every few years, they will be left behind and go out of business. We all know how Blockbuster ended up…

    I’m glad you used an ad from the Honest company, because as I was reading through your post, I was thinking about that company the entire time. Honest really is targeting millennials with its chic branding, eco friendly products, and stance against harmful chemicals in baby products. Plus it’s co-founder Jessica Alba is the perfect representation of the brand because she is young and beautiful, social, authentic, and speaks out about being socially responsible.

    Great job!

  3. Renna says:

    Hi Jessica,
    Your post was awesome; its so true how the wave of millennial will be rolling through the different stages of life and that companies need to re-evaluation accordingly. I know at my company Allstate, they are re-evaluating the dedicated agent model because studies have shown as millennials are growing up and buying insurance they are much more comfortable buying it online and do not need that dedicated person – hence Esurance, which is Allstate’s solution. I feel if companies don’t take these necessary evaluations every few years, they will be left behind and go out of business. We all know how Blockbuster ended up…

    I’m glad you used an ad from the Honest Company, because as I was reading through your post, I was thinking about that company the entire time. Honest really is targeting millennials with its chic branding, eco-friendly products, and stance against harmful chemicals in baby products. Plus it’s co-founder Jessica Alba is the perfect representation of the brand because she is young and beautiful, social, authentic, and speaks out about being socially responsible.

    Great job!