Millennial women have all the power when it comes to not only financial spending decisions but purchasing power as well. After all, millennials represent a major force in terms of buying power, spending $200 billion per year.
Now here at Levo we know this and can see it. But we aren't sure the rest of the world is as aware of how important millennial women are as consumers. Brands are losing out on literally millions of dollars because they haven't figured out how to connect with this demographic. That's why we decided to team up with Merkle, a leading technology-enabled, data-driven performance marketing agency, on an incredible report called Why Millennial Women Buy. We found out some incredible statistics about how and what this group is shopping for and also why they are spending money on certain things. Women hold 85 percent of U.S. spending power, and $170 billion of that power is coming from millennial women, specifically. As of this year, they are expected to represent the largest spending power of any generation.
But if you think you know what these women are spending their money on, you may be surprised. As more women join the workforce and become the primary and sole breadwinners as well as entrepreneurs and side hustlers (40% of those surveyed claimed to have a side hustle), it is their careers that are driving their purchasing decisions. These part-time jobs or small side businesses create a “dual” identity for many millennials, and brands need to be aware of that. These women want to indulge but they are looking for the best ROI.
"Millennial women are a forcing function for innovation, both as consumers and in their careers. They are now both chief earner and chief spender, and it is critical for brands to understand and
recognize the role career plays in their consumer habits,” Alisa Leonard, President at Levo, said of the report. “Brands who understand and execute upon the values of diversity and inclusion, personalization, transparent and sustainable practices and meaningful engagement will win with this audience."
The report found that Millennial women are interested in brands with which they are proud to be associated, and they are intrigued by stories they can connect with. More than 47 percent knew the origin story of their favorite brand and 83 percent of respondents told us that a brand’s sustainability practices in influenced their purchase decision.
But millennial women aren't just spending, they are also paying off debt. Undergraduate debt is higher for women than it is for men, and by as much as 12 percent for women with children.8 To compound the stress, 85 percent of them also have a mortgage of between $100K and $300K.
Millennial women do fall right in line with the consuming over a great experience than a material object. Over half of those surveyed said their biggest purchase in the next 12 months will be on an experience.
This report is full of so many mind-blowing stats about how millennial women spend and essentially how they live. Please check it out and let us know your thoughts.