In 2020, millennials are expected to spend $1.4 trillion and as the biggest users of social media–and the most likely to make online purchases–they are shaping the future of how business is conducted, according to 5WPR’s first Consumer Culture Report.
In terms of in-store experiences, 68% of millennials said they’d prefer to find new products in the store, compared to finding them online.
Specifically affecting the beauty industry, all age groups–millennials included–said when it comes to discovering new beauty products/brands, brick-and-mortar retail is at the top of the list, beating out ads and Instagram, YouTube and Facebooki influencers.
Additionally, 38% of millennials typically learn about or discover new beauty products/brands they want to try in-store, while only 34% cite Instagram ads and 32% cite Facebook or YouTube ads.
When talking about social media, Facebook still dominates across all age groups–followed by Instagram, YouTube, Twitter, Snapchat, Reddit, Pinterest and TikTok, respectively. On Instagram, sponsored and non-sponsored posts have similar levels of influence, suggesting opportunity for brands to connect with their audience on this platform.
Also, 72% of millennials are also influenced by external sources, like articles and blogs, Instagram personas or celebrity endorsements, and news articles about a product are still the most impactful when it comes to purchase decision making.
Finally, 83% of millennials said it’s important for the companies they buy from to align with their beliefs and values, indicating the generation is raising the bar. It has also become a given that successful companies should be good corporate citizens and give back through charitable contributions and partnerships.