E-commerce retailers would be wise to target one particular age demographic in the coming year.
More than 27% of surveyed millennial consumers say they will spend significantly more online and less in-store this year across categories that include health & beauty, luxury, apparel & footwear, and consumer electronics, according to the “Global Voices Survey” from direct-to-consumer e-commerce company ESW.
The study also revealed that nearly 73% of millennial respondents plan to spend the same or more online in 2023, which will make the millennial cohort the leader in global e-commerce spending for 2023.
Nearly 50% more millennial respondents will increase their online spending for health and beauty products compared to Gen Z respondents, and 42% more than Gen X and baby boomer respondents. Seventy-seven percent more millennial than baby boomer respondents will increase their online spending for apparel and footwear.
Twenty-seven percent of millennial respondents will spend more for luxury goods online in 2023, compared to 20% of Gen Z, 22% of Gen X, and 21% of baby boomer respondents. One in four millennial respondents will spend more for consumer electronics, such as phones, games, and software, compared to 19% of Gen Z and Gen X respondents, and just 13% of baby boomer respondents.
The study also examined trends in online “convenience shoppers,” or those willing to pay full price for the convenience of digital shopping:
- Nearly 70% of millennials will spend more online on full-price health and beauty products compared to Gen Z; 50% will spend more than Gen X and 80% will sped more than baby boomers.
- Almost three in 10 (28%) millennials will spend more on full-price online luxury purchases this year compared to 17% of Gen Z, 25% of Gen X, and 19% of baby boomers.
- For full-price footwear and apparel purchases online, 20% of millennials will spend more this year in comparison to 14% of Gen Z, 15% of Gen X, and 11% of baby boomers.
- Almost one-quarter (24%) of millennials will spend more on full-price consumer electronics purchases this year compared to 14% of Gen Z, 20% of Gen X, and just 8% of Baby Boomers.
“The Millennial consumer remains fully committed to their preference for online shopping over physical retail,” said Patrick Bousquet-Chavanne, president and CEO, ESW Americas. “Millennials’ spending power has grown to $2.5 Trillion, and they are not yet even in their prime earning years. They are spending more online than in-store across several categories, and these results indicate that brands must continue to evolve, improve, and optimize their e-commerce to attract and retain this increasingly powerful demographic.”
ESW’s new Global Voices consumer survey was conducted in November 2022 in 16 countries (Canada, the United States, Mexico, the United Kingdom, Switzerland, Spain, France, Italy, Germany, South Africa, the United Arab Emirates, India, China, South Korea, Japan, and Australia) with 16,557 people responding. In this report Gen Z is defined as those between 18 and 24; millennials as those ages 25-40; Gen X as those ages 41-56; and baby boomers defined as those ages 57-75.