Automotive News reports that millennials are the fastest growing segment of car buyers, and will represent 40 percent of the new car market by 2020.
What is a Millennial? Millennials are the generation born between 1980-2000. There are over 79 million millennials, which represents more than a quarter of the nation’s population. This generation has been empowered by Google and the internet. If they have a question, they just “Google” it. Information, data, statistics and reviews are just one click away. Today millennials are connected 24/7. In fact, if they lose their phone or don’t have internet access, they are completely lost. According to a survey conducted by YouGov Omnibus, over 50 percent of millennials report that they carry their phone in their hand throughout the day. This first generation of digital natives is different. Brought up on Google, Amazon & Facebook is impacting their affinity for technology and this is shaping how they shop. They are used to instant access to price comparisons, product information and peer reviews.
Millennials’ affinity for technology is also reshaping the retail space. With product information, reviews and price comparisons at their fingertips, millennials are turning to brands that can offer maximum convenience at the lowest cost. When marketing to millennials, a strong brand isn’t enough to lock in a sale. Millennials look beyond the brand to price, convenience, value and the power of social media to influence their decisions.
Why Millennials are influencing change? Millennials are one of the largest generations in history and they are about to move into their prime spending years. Millennials have about $170 billion in purchasing power. Their average annual household income is $71,000. Their main source of information is the internet. Eight out of ten millennials are value seekers. They want to save time and money and they want to shop online. These millennials are demanding, smarter, faster, simpler technology.