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Believe it or not, but millennials do care about more than avocado on toast, a new survey shows.
Millennials are the first digital-native and most highly-educated generation in history. Their spending habits and rising expectations are the driving forces behind the disruption and reshaping of the forever-changing business landscape, says Nick Molnar, co-founder of retail payment company Afterpay.
Millennials have an unprecedented tech-savvy ability and on-the-go connectivity, which allows for anyone to be a micro-influencer within their digital sphere, he says. The cultural impact of the ‘millennial’ on others has become so strong that it can no longer be described as just a generation.
They have created their own far-reaching mindset that has the ability to permeate modern behaviour patterns and spending habits across generations.
Afterpay has satisfied a gap in the market by redefining ‘layby’ for millennials who ‘want everything now’ by offering the benefits of a layby service with an immediate take-home option, that is budget-friendly and spreads out payments over time.
Molnar, head of the Australian company, recognises millennials are driven by creating memories and capturing fast-paced trends.
“Millennials are financially responsible adults and savvy spenders looking to secure their next fashion purchase or travel adventure today. A product like Afterpay gives customers time, rather than finance, to pay with their own money for the things they like, while also providing an essential budgeting tool that can assist and encourage responsible spending.
“Nearly three-quarters (73 per cent) of Afterpay’s customer base are millennials, and in our recent survey, we found most millennials stick to a budget, spend hours researching their purchases, and are more inclined to spend their own money than use a credit card. In fact, 85 per cent of Afterpay transactions are via a debit card,” said Mr Molnar.
It’s a known fact that millennials demand to be treated as individuals. Lauren Greschner of Hannover Fairs Australia says: “Their wants and needs adapt quickly and they expect companies to not only keep up, but predict their future needs. They aren’t afraid of trying alternatives and also they won’t think twice about spending their purchasing power with companies that share and communicate values on social issues,”
So, what does this all mean?
Contrary to popular belief, millennials aren’t just frivolously wasting their money on avocados and new iPhones. They are actually willing to save large amounts of money for major purchases and experiences.
“Millennials would rather be well-rounded than financially wealthy. They are motivated by new experiences, and are willing to save to make these a reality. Housing affordability is a key issue and they are looking for money-saving solutions so they can create both long-term wealth while also enjoying new experiences such as international travel.
“It is vital brands join the discussion at Millennial 20/20 Sydney and prepare their business for the changing mindset and spending habits to ensure they remain relevant in the future,” concluded Ms Greschner.
Sydney has been chosen as the newest location for the global Millennial 20/20 Summit.
Following successful events, each attracting close to 3,000 attendees, in London, New York and Singapore, the Millennial 20/20 Sydney summit will be held at Carriageworks on 14 -15 November, 2017.
See more on this event here: www.millennial20-20.com/sydney2017