Younger buyers are now in charge of driving the growth of ecommerce in all forms. And that includes B2B, B2C and B2B2C.
Millennial consumers prefer online versus in-store shopping, according to new data released today by ESW, the world’s leading global direct-to-consumer (DTC) ecommerce company. In its most recent Global Voices Survey, 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,” said 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 analyzed 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.
Key findings from the study:
- 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.
- Twenty-seven percent of Millennials 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.
- 25% of Millennials will spend more for consumer electronics, such as phones, games, and software, compared to 19% of Gen Z and Gen X respondents, and just 13% of Baby Boomers.
A deeper dive into “Power Shopper” spending indicates:
- More Baby Boomer power shoppers (35%) will spend more on health and beauty products online, compared to Gen Z (18%), Millennials (32%), and Gen X (24%).
- For luxury power shoppers, 52% more Millennials will increase their spend compared to Gen Z and nearly 23% more than both Gen X and Baby Boomers.
- 29% of Millennial power shoppers, compared to 21% of Gen Z, 23% of Gen X, and 27% of Baby Boomers, will spend more on apparel and footwear online.
- For online consumer electronics, 32% of Millennial power shoppers will spend more compared to 21% of Gen Z, 24% of Gen X, and 29% of Baby Boomers.
Shoppers willing to pay full price—or “Convenience Shopper”—data reveals:
- 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.
- 28% of Millennials 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.
- 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.