Generational changes have a greater impact than simply marking the passage of time or changes in demographics. They are also an example that things are changing and that buy cold call list is changing. Each generation has different tastes from the previous one and is marked by different issues than those that marked the previous generation. Children do not care about the same things as their parents, much less the same as their grandparents.
The changes that have marked the arrival of the last generational change have been especially abrupt and the youngest groups are the ones that have seen the most how their concerns and interests varied with respect to those of their parents. Are members of Gen Z or millennials a mirror of what affected previous generations? The truth is that their scale of values is different, their context is also different and even the world in which they move. They have come to a world much more connected and technological than their parents and that has forever marked who they are and what they expect.
Different generations are therefore separate groups of consumers and this means that brands have to understand what they have and what they are up against. But what is there now in terms of consumption? I mean, what are all those consumers like and what makes them different? An analyst at Euromonitor has made an approximation of what the present generations are today and what separates them.
Have and not haveThe economic recession has made the differences between generations in terms of wealth much more prominent. The members of the more mature generations are those who accumulate wealth and possessions and those of the younger generations are those who face the economic debacle and those who have become a kind of disinherited by the macroeconomic context. Or simplifying: “for many, Baby Boomers are the haves and the millennials or Generation Y the have-nots.”
The situation is a generalization that simplifies the situation, although it shows a generalized line of what the world is being today. Millennials are those who are being most affected by the crisis (although, as recalled from Euromonitor, many consumers of the baby boomers group have encountered the unexpected fact that they have to give financial support to their millennial descendants even when they are in an age when it shouldn’t be necessary). This economic reality is setting consumption patterns and is influencing many of the purchasing decisions of the youngest.
Austerity is paid for by the youngOne of the elements that has marked the economic crisis, especially in Europe, are the austerity policies and containment of state spending. These policies are having an especially hard impact on the youngest, which means that millennials are being even more affected by the crisis situation. In fact, analysts recall that austerity policies have a domino effect that explains the high rates of youth unemployment in some countries (Greece is above 55% and Spain at 51, while Italy is above 40).Not only are their opportunities to enter the job market being hampered but also what their careers bring them. In the G7 countries, the income of the youngest has fallen by 0.5% (which makes their jobs pay them less income) while the more mature workers (50 to 64) have gained 1 ,5%.
New forms of consumption emergThis reality is not only weighing down the position of millennials and causing their consumption patterns to vary, but they are also creating new ways of approaching De Phone Number . That is what makes the sharing economy , or what is the same, the collaborative economy become fashionable in recent times . Uber or Airbnb are two of the common examples used to show companies in this emerging segment.
The reason for this boom is that, as Euromonitor points out, the idea of possession has changed for millennials: having one thing is no longer a symbol of success (with the exception, they point out, of technology). Materialistic excesses are no longer seen as a way to show that they have succeeded and consumers of that generation do not in fact understand how to enter these dynamics. Hence, they are launching to share and reuse and second-hand stores have flourished while the weight of the collaborative economy has grown.
Some big brands have already taken up these ideas and have started reselling their own products or promoting their recycling and reinvention.The cheap boomAnd while these consumers are launching into these new forms of consumption, they are also interested in new elements such as issues that mark the attractiveness or not of the purchases they make. Young people value what is approachable, what one can afford, which is why many brands have launched themselves not to sell talking about total prices (in the highest priced products) but based on what it would cost you each month.
In addition, the low cost has had a new life. As they remember from Euromonitor, consumers are receptive to ideas that were designed for emerging markets and that were therefore cheaper and simpler (and they put Renault’s Dacia cars as an example) because they have seen that these products are much more efficient in economic terms.
Experience is the new queenAnd while the cheap and the collaborative are imposed, what begins to differentiate the brands is no longer so much what they charge but what they offer. How to live whatever is the new concern of consumers, both for millennials (who do not have the economic capacity to accumulate purchases) and for baby boomers (who enter retirement and seek different things). Experience is the new bargaining chip that makes products and brands successful.