Table of Contents
Executive Summary
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- The issues
- Millennials do not identify with the generational label
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- Figure 1: Millennial perceptions – How Millennials see themselves, other Millennials and how they think older generations see them, October 2015
- When it comes to advertising, Millennials feel overwhelmed and manipulated
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- Figure 2: Millennial attitudes towards advertising, October 2015
- The opportunities
- Millennials may be ready for help with money management
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- Figure 3: Millennial attitudes towards financial statements, October 2015
- Millennials are focused on personal enrichment
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- Figure 4: Goals within the next three years, October 2015
- Catering to the Millennial VIPs – The affluent segment
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- Figure 5: Millennial attitudes towards shopping (selected statements), Millennials with household income of $75,000 or higher vs overall, October 2015
- What it means
The Market – What You Need to Know
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- Millennials make up one fifth of the population
- Millennials are a significant part of Canada’s labour force
- The current economy is top of mind for Millennials
- The retail journey consists of more touchpoints than ever before
Market Factors
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- Millennials make up one fifth of the population
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- Figure 6: Canadian population, by generation share, 2015
- Millennials make up nearly a third of the workforce
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- Figure 7: Canada’s labour force survey estimates, by generation, 2015
- Economic factors
- Millennials are feeling the crunch of current economic conditions
- Retail industry factors
- The path to purchase involves multiple touchpoints for Millennials
Key Players – What You Need to Know
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- Retailers are actively aligning touchpoints
- Authentic connections will be noticed
- Courting those who speak up
What’s Working?
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- Considering the entire retail experience by aligning touchpoints
- Sport Chek steps up its digital game in stores
- Thyme Maternity keeps its brick and mortar stores relevant
- Amazon gets physical
- Connecting to consumers by lending a helping hand
- Sobeys helps out in the kitchen with its Seafood Steamer
- E-commerce sites integrate technology to help customers find the right fit
- Connecting with Millennials by being socially responsible
- Warby Parker helps people see better
- Uniqlo addresses educational disparity and poverty among disadvantaged children
- H&M is environmentally aware with its Conscious collection
What’s Next?
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- Marketing by rewarding consumers who speak up
- Starwood’s Tribute launch showcases reviews by social media influencers
- Yelp makes elite reviewers VIP
- Kimpton hones in on the power of karma
The Consumer – What You Need to Know
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- Most Millennials are financially independent and feel the impact of the current economy
- When shopping, weight is given to the voice of real consumers
- Quality and affordability are basic brand requirements
- The sentiment held towards advertising is negative: Overwhelming and manipulative
- Millennials are focused on personal enrichment
- They may not identify themselves with fitting under the Millennial label
Financial Responsibility
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- Most Millennials have achieved financial independence
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- Figure 8: Current living arrangement, October 2015
- Two thirds of Millennials are primarily responsible for their own finances
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- Figure 9: Responsibility for living expenses, October 2015
- Predictably, living arrangements correspond to financial responsibility
- Opportunities abound for each combination
- Benefits to be had by financial companies
Impact of the Current Economic Conditions
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- Millennials are cautious about how they spend
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- Figure 10: Millennial attitudes towards financial statements, October 2015
- Affluence and life stage plays a role
- Messaging that reflects priorities should resonate
- Parents exhibit some differences
- Rewards programs should work well to entice parents
- French speaking households are more laissez-faire
Approach to Shopping
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- Much weight is given to the voice of real consumers
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- Figure 11: Millennial attitudes towards shopping, October 2015
- Younger Millennials more likely to turn to reviews
- Affluent Millennials look to their contacts for recommendations
- Millennials are showrooming – Particularly the affluent
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- Figure 12: Attitudes (any agree) towards shopping statement “stores are best used for creating experiences around products I may later buy online”, household income vs overall, October 2015
- Millennial fathers are early adopters
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- Figure 13: Attitudes towards shopping statement “I like to be one of the first people to buy new/trendy products”, fathers vs overall, October 2015
Valued Brand Characteristics
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- Millennials will pay for quality, while affordability is the runner up
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- Figure 14: Brand influencers for Millennials, October 2015
- Younger Millennials will pay for quality and eco-friendly brands
- Affordability and rewards matter to Millennial women
- For women, favourite brands are reflective of personal style
- Affluent Millennials value a brand’s heritage, though expect their loyalty to be rewarded
Attitudes towards Advertising
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- Millennials feel overwhelmed and manipulated
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- Figure 15: Millennial attitudes towards advertising, October 2015
- Acknowledgement may go a long way
- Attention! Attention!
- Leverage technology to extend the word
- Compensate for attention
- When done right, laughter can be the best medicine
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- Figure 16: Geico YouTube pre-roll advertisement, “Family: Unskippable”, 2015
- Figure 17: Geico YouTube pre-roll advertisement, “High Five: Unskippable”, 2015
Personal and Career Goals
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- Millennials are focused on personal enrichment: developing a healthier lifestyle and gaining experiences
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- Figure 18: Goals within the next three years, October 2015
- Greater focus on the ‘life’ part of work/life balance
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- Figure 19: EpicEstonia #17 advertisement, “A day as a chimney sweeper in medieval Tallinn”, 2015
- Older Millennials strive for balance and are forward focused
- Time limitations are impacting ability to live a healthy lifestyle for older Millennials
- Targeting life’s big milestones
- Women more likely to be aiming for a healthier lifestyle and traveling
- Affluent Millennials more focused on travel
Perceptions of the Generation
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- Self-perceptions do not line up with the stereotypes
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- Figure 20: How Millennials see themselves, October 2015
- Self-perceptions: Responsible and ambitious – A qualitative look
- Millennials believe their generation is seen negatively, but hold similar views of the generation themselves (albeit to a lesser degree)
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- Figure 21: Millennial perceptions: How Millennials see themselves, other Millennials and how they think older generations see them, October 2015
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- Figure 22: Correspondence analysis – Millennial perceptions, October 2015
- Being online may be driving a need to stand apart
- Being online leads to a greater desire for personalization
- Being online also means a need for greater responsiveness from brands
- Connections can be made while they are offline
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- Figure 23: Lily and the Snowman, December 2015
- Marketing to Millennials does not have to alienate other generations
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Correspondence methodology
- Abbreviations and terms
- Abbreviations
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