Millennials are a significant part of the broad consumer pool, outnumbering boomers in 2019 with 72.1 million people between the ages of 23 and 38. They drive entire industries with their purchase preferences. The beauty industry felt this change most significantly over the past decade because young people approach their personal care differently than previous generations.
Here are a few significant reasons why millennials make buying decisions and how the path to purchase can reveal promising financial trends for experts.
Millennials were the first generation to grow up with rapidly advancing technology, including the internet. They use it to make targeted purchases that nearly guarantee their satisfaction. Researchers estimate that 40% of millennials read about products online before buying them. When it comes time to bring something home, half of the generation prefers to buy something online than drive to the nearest store.
Instant reviews and digital-exclusive discounts are significant factors in convincing customers to use their virtual shopping cart. Millennials take advantage of these resources to understand what they’re buying before making a purchase.
Another route on the path to purchase is working with influencers. Millennials are 54% more likely to buy something when that product receives promotions from a social media influencer. Instagram stories and YouTube videos reach them on their daily-use platforms and the ads come from people they already trust or admire.
Collagen has recently become much more popular with young people after companies connected with influencers. Although it’s always been a natural way to moisturize and brighten dry skin, young people only got on board after it reached their social media feeds. People with massive followings like Khloe Kardashian and Cassie Cameron mention collagen products and their young followers suddenly want in on the trend.
The collagen market expects a 5.5% growth rate by 2026, likely because companies jumped to work with influencers and branch outside of traditional health guru and anti-aging devotee audiences.
Millennials make 20% less than boomers did at the same age, so they’re more used to budgeting for only the necessities. They want to buy products that fit into established routines rather than splurging on a product they’ll only need once a week. Beauty and personal care companies that market products towards this type of use may gain more millennial consumers.
When millennials find a company that makes an excellent product for an affordable price, 60% of the generation will stick with the same brand for future purchases. They’re highly loyal because they research products and get to know brands over social media. It solidifies their loyalty more so than less internet-active generations.
Websites with try-on 3D simulations and companies with augmented reality apps will gain more millennial consumers because the younger generation wants technology to improve their shopping experience. When choosing a beauty or personal care product, they can use these resources to try foundation against their skin tone or test a new look without the financial risk of making an untested product.
There are numerous ways to dive into millennial personal care and beauty trends. Approaching marketing and sales from a researched perspective will guide industry leaders to make targeted decisions that give young people the experience they need without compromising profitability.