Almost a third of millennials say that they are set to spend significantly more online and less in-store this year, with three quarters more planning to keep their online spend the same at the expense of in-store shopping.
In its most recent Global Voices Survey, ESW, a leading global direct-to-consumer (DTC) ecommerce company, finds that more than 27% of Millennial shoppers say they will spend significantly more online and less in-store this year across categories including health & beauty, luxury, apparel & footwear, and consumer electronics.
The study also revealed that nearly 73% of Millennial shoppers plan to spend the same or more online in 2023, which will make this cohort the leader in global ecommerce spending this year.
“The Millennial consumer remains fully committed to their preference for online shopping over physical retail,” says Patrick Bousquet-Chavanne, President and Chief Executive Officer, ESW Americas. “Millennials’ spending power has grown to $2.5 Trillion, and they are not yet even in their prime earning years. They are spending more online than in-store across several categories, and these results indicate that brands must continue to evolve, improve, and optimize their ecommerce to attract and retain this increasingly powerful demographic.”
The survey’s sample pool of more than 16,000 respondents across 16 countries comprised international shoppers across all demographics. It was further analysed based upon shoppers who pay full price as well as “power shoppers”, or those who have spent $2500 or more online in the last 12 months.
The report goes on to find that nearly 50% more Millennials will increase their online spending for health and beauty products compared to Gen Z, and 42% more than Gen X and Baby Boomers, while 27% will spend more for luxury goods online in 2023, compared to 20% of Gen Z, 22% of Gen X, and 21% of Baby Boomers.
77% more Millennials will increase their online spending for apparel and footwear versus Baby Boomers, with 25% of Millennials spending more on consumer electronics, such as phones, games and software – compared to 19% of Gen Z and Gen X respondents, and just 13% of Baby Boomers.
The data goes on tp reveal that shoppers across the board are increasingly willing to pay full price for convenience, giving rise to a new cohort of ‘Convenience Shoppers’. Here the study shows that nearly 70% of Millennials will spend more online on full price health and beauty products compared to Gen Z; 50% more than Gen X; 80% more than Baby Boomers, while 28% will spend more on full price online luxury purchases this year compared to 17% of Gen Z, 25% of Gen X, and 19% of Baby Boomers.
For full price footwear and apparel purchases online, 20% of Millennials will spend more this year versus 14% of Gen Z, 15% of Gen X, and 11% of Baby Boomers. A quarter (24%) of Millennials will spend more on full price consumer electronics purchases this year compared to 14% of Gen Z, 20% of Gen X, and just 8% of Baby Boomers.
