Millennials plan to spend more online this year, new study finds
People walk past empty shopping areas in lower Manhattan on April 17, 2017 in New York City.
Spencer Platt | Getty Images
Millennials have big plans for the year ahead, at least when it comes to their online shopping habits.
More than 27% of millennials plan to spend “significantly more” online and less in stores. this year, according to a survey by ESW, a global leader in direct selling that helps retailers expand DTC channels.
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This is a noteworthy update for analysts who are looking for a winner in the pandemic-era tug-of-war between brick-and-mortar stores and online stores. While at the start of the pandemic an unprecedented boom in online shoppingpersonal shopping has been poised for a resurgence as eager shoppers return to reopened brick and mortar stores.
But millennials, currently defined as people in their 25s and 40s, seem ready to stick with e-commerce, with 73% of survey participants saying they plan to spend “the same amount or more” online this year.
Overall, only 15% of millennials said they plan to spend less online in 2023.
Notably, according to the survey, which included 16,000 people in 16 countries, millennials diverge from other generations in some key spending categories.
People walk past empty shopping areas in lower Manhattan on April 17, 2017 in New York City.
Spencer Platt | Getty Images
When it comes to health and beauty products, nearly 50% more millennials are planning to increase their online spending compared to younger Gen Z, the generation that defiantly shaping the beauty industry.
Millennials also plan to buy more luxury online this year than Gen Z, Gen X and Baby Boomers, according to the survey.
Enthusiasm for online spending is especially noticeable when combined with the relative youth of millennials, a group that has not yet reached its “best earning years,” ESW North America CEO Patrick Bousquet-Chavanne said in a statement.
“They spend more online than in store across multiple categories, and these results show that brands must continue to evolve, improve and optimize their ecommerce to attract and retain this increasingly powerful demographic,” Bousquet-Chavannes said. .
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