Accounting for 24 percent of the U.S. population, Millennials’ purchase power is substantial, making it critical for marketers to understand how this group spends their money. Research from Nielsen on millennial shopping habits demonstrated that though many are just beginning their professional careers, Millennials already spend about $200 billion each year, and they are willing to spend on the things that matter to them. For example, Millennials are 38 percent more likely than their older counter parts to buy natural and organic products. Millennials also make fewer shopping trips than their older counterparts, but spend more dollars (i.e., $54 compared to $43 for Baby Boomers).
The research examined how Millennials see brand momentum (i.e., whether brands are “on the way up,” “holding steady,” or “on the way down”). The data showed 68 percent of the top 50 brands that were “on the way up” one year show gains in overall brand equity two years later, demonstrating the importance of perceived brand success. Of the top 10 brands ranked “on the way up” by Millennials (i.e., EOS Lip Balm, Kind Bars, Wonderful Pistachios, Chobani Flip Yogurt, Naked Juices, Downy Unstopables In-Wash Scent Boosters, Chobani Oats Yogurt, Essie Nail Polish, Tide Pods Laundry Detergent and Dove Men Care Deodorant), 83 percent have experienced sales gains in the past year, with 57 percent posting double digit growth.