Here's how to win the multicultural millennial shopper
Almost half of the millennial generation is multicultural, and their influence on the retail industry isn't slowing down anytime soon.
According to a new report by Nielsen, multicultural millennials are spending more than $65 million each year and influencing upward of $1 trillion in total consumer spending. Most multicultural millennials are fully ambicultural, shifting from what was once a dominant family-based culture to a posture that blends a variety of cultures into a new mainstream. The profound influence on their peers as well as on both younger and older generations - deemed the "multiplier effect" - can be harnessed as marketers and advertisers to make efforts to expand their market share.
"In addition to the influence they command on their more non-Hispanic white peers, there is another reason marketers and advertisers should be interested in multicultural Millennials: many of them are first generation professionals who are in prime acquisition mode," said Courtney Jones, vice president of Multicultural Growth & Strategy at Nielsen. "A growing disposable income among multicultural Millennials is a ripe opportunity for companies that court them and make an effort to cultivate and earn their business."
Other highlights from the report include:
- While almost half of millennials want to purchase foods from companies that harbor a strong social purpose or mission, it is almost as important that companies offer multicultural products, with 44% of millennials saying that it's important or essential for their foods to include "multicultural flavors."
- African American millennials spend more than average on ethnic hair and beauty products (80% share)
- Asian American millennials spend more on skin care preparations (10% share) than the average consumer
- Hispanic millennials spend more on dried vegetables and grains (10% share) compared to the average consumer
- Multicultural millennials who are active on their mobile devices spend over $65 billion per year - with an increasing majority of those dollars being spent online - and influence more than $1 trillion in total CPG and entertainment spending.
- Nearly half use their mobile devices to compare prices and browse when shopping, and almost 80% agree that the internet is a great place to buy products - which is easier for that generation to do since they maintain and value their connection to the internet during the entire day.
According to the U.S. Census Bureau’s International Database, millennials make up one-fourth of the planet’s population, which translates into 1.7 billion people. As a consumer group, they’re just starting to flex their spending power, which will grow significantly in the coming years. While they’re years from fully establishing themselves, they’re already having a marked impact on the global consumer landscape.
Having grown up amid growing media fragmentation, millennials are hyper adept at multitasking and are fully immersed in both their digital and physical lives. Notably, findings from more than a dozen Nielsen Global Survey reports from 2013-2016, which polled the attitudes of more than 30,000 online consumers in more than 60 countries, revealed that millennials are a social, community-driven generation that values the voice of the individual.
Millennials are also a demanding generation that wants a more balanced, healthy lifestyle, and they want to be more informed about companies, their products and their business practices. They also expect products to do more for them and for their community. They excel in a fast-paced world that requires an on-the-go lifestyle. They value, even demand, connectivity, convenience and options that allow them to be in control. And these core values and characteristics will remain the key influencers and drivers for how millennials think, spend and act throughout their lifetimes.
To read more about the multicultural millennial shopper, click here.