Millennials love to shop and they use every channel available to them to do so. They enjoy shopping so much, new research shows, that they are continually engaged in the activity. There's just one rub: much of the time spent shopping doesn't result in actual sales.
According to new research from The Intelligence Group (TIG), 36 percent of Millennials surveyed, only buy items they view as necessary. Jamie Gutfreund, chief strategy officer for TIG, described these younger consumers as being "in transition" and "more careful about spending money" in an interview with Women's Wear Daily.
The TIG research also showed that Millennials are not always interested in ownership, with 35 percent willing to pay for access to a product when they need it rather than buying it outright. The report described this group as "NOwners."
While numerous research studies and media reports point to the spending power of Millennials now and in the future, there remain numerous financial challenges in front of this generation. Many analysts wonder how many of these consumers will move from window-shopping to the real deal.
A report on The Guardian website takes issue with a HSBC report that forecasted a target demographic for luxury goods. This group known as Young Urban Males or Yummies is expected to spend big on designer products. Apparently, these consumers will have landed jobs that allow them to pay off college loans that run $1000 or more a month.
The Guardian article asks, "How are we supposed to afford Prada when we can't even afford our own bachelor pads?" It also pointed to research showing Americans between the ages of 29 and 37 have accumulated less wealth than people in the same group a generation earlier.