Millennials are rewriting the rules of holiday shopping, ditching big-box stores in favour of small, independent businesses and embracing the ease of online retail.
New research from Dentsu shows this tech-savvy and values-driven generation stands out from other age groups, shaping how retailers approach their busiest time of the year.
According to Dentsu’s Read the Room report, 28% of millennials favour buying from small, independent businesses, nearly triple the rate of boomers (10%), even when prices are higher. Millennials are also leading the shift to online shopping, with 28% planning to do all their shopping online, ahead of Gen Z at 24%.
The findings reveal that retailers looking to attract millennials, representing one-fifth of the global population, should prioritise enhancing their digital shopping experiences and offering locally sourced or independent products.
Furthermore, brands that demonstrate values beyond profit are more likely to resonate, with 42% of millennials favouring purpose-driven businesses.
Millennials also value emotional intelligence in brand interactions, with 65% expressing a preference for businesses that show understanding and empathy through their advertising.
Paul Lynch, Integrated Solutions Lead, Commerce & Retail UK&I, Dentsu, said: “Millennials, with their potential spending power, both now and in the future, represent a significant opportunity. However, in order to connect with this generation, retailers must communicate purpose beyond profit and focus on personalised in-the-moment experiences. Brands that can effectively embody and communicate their values, whilst listening to their key audiences, will thrive in the changing consumer landscape.”
Brands that embrace these insights and adapt to the evolving consumer landscape are likely to thrive during the festive season and beyond.