Newport Beach, Calif. – Pay attention, retailers: Millennials will comprise almost three-quarters of the workforce by 2025.
As a result, they are rapidly redefining consumer patterns.
This is according to Roth Capital Partners’ newly released 2020 Millennial Survey – the invest bank’s eighth annual proprietary survey examining current trends, spending patterns and favorite brands across six consumer categories: apparel & footwear; home furnishings; health & wellness; beverage; healthy snacks; and CBD & cannabis.
“Investor awareness and study of Millennial consumer behavior and preferences is an essential factor to projecting business earnings and setting valuations,” said David Bain, Roth managing director, senior research analyst.
The survey was conducted in partnership with MFour Mobile Research and encompasses 209 questions that were completed by 2,500 Millennial-aged women and men.
Key findings include:
- 63% who purchase items online prefer to make returns of online purchases in-store, and 76% of them stay to shop after making a return in-store
- 47% are more likely to purchase digitally native brands that begin offering products in-store
- 53% are willing to pay a premium of 10% or more for socially responsible brands
- 73% are Amazon Prime members
- 45% have purchased apparel products from brands that they first discovered on Instagram
- Millennials view Serta, Sealy, Tempur-Pedic, Purple and Casper as the mattress brands that best serve their needs
- Nike, Adidas and Vans are their preferred fashion footwear brands for the second consecutive year, while Gucci is the most popular luxury goods brands
- 74% own reusable water bottles or tumblers, with YETI, Hydro Flask and Contigo being the most popular
“Millennials are seeking brands that share their values and speak to them directly in a personalized manner,” noted said Paul Zaffaroni, Roth managing director and head of consumer investment banking. “Institutional investors and strategic acquirers are actively pursuing these brands and have been willing to pay a premium for them.”
Other findings point to an emerging trend among this age group, according to Scott Fortune, director, research analyst at Roth.
“We are in the infancy of two very large market opportunities for brands and products in the CBD and cannabis industry. The survey confirms the increasing use case for Millennials to gravitate toward quality brands and products,” he said.
Twenty-four percent use CBD, and purchasing decisions are most influenced by quality, value and friend recommendation
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