NEW$FLA$H, NEW$FLA$H – “Millennials carry M-Day 2015”. That’s right, 95% (T-1) of them will celebrate M-Day and those “tightwad” 18± to 34± yrs will spend by far more on M-Day 2015 than will any other generation! While it makes good sense given their stage of life cycle and family values, it makes NO sense from their spending habits. As we know Millennials are accused of being “cheap” and living off the good graces of their parents. Furthermore, Millennials are becoming parents later than any other generation. In sum, they make a wonderful contrast from their Boomer parent or grandparents who always have been accused of being gaudy spendthrifts. Rather, this youngest generation of American adults are platinum “penny pinchers” who view DEBT (including their student debt) as a terminal disease. Nonetheless, they lead the M-Day spending parade. WOW!
A RECENT HISTORY OF M-DAY VS V-DAY SPENDING
|2006||2007||2008||2009||2010||2015||∆ 10 -06||∆ 15 -10|
|V-Day||$ 13.2 B||$ 16.9 B||$ 17.0 B||$ 14.7 B||$ 14.1 B||$ 18.9 B||6.80%||43.20%|
|M-Day||$ 13.8 B||$ 15.7 B||$ 15.8 B||$ 14.1 B||$ 14.6 B||$ 21.2 B||5.80%||53.60%|
Given the Great Recession from 12/‘07 to 7/’09, M-Day has reasserted itself atop V-Day. In 2007, ’08 & ’09 V-Day spending sweet hearted ahead of M-Day. That turnaround was reversed or right sided in 2010. (We see the impact of the recession in the above info from ’06 to ’10 when V-Day’s increase was greater than that of M-Day. We also see the revenue from ’10 to ’15 when M-Day’s growth was greater.) Yes, those family focused MILLENNIALS are now in control of the whole V-Day & M-Day contest and therefore we do NOT expect M-Day to be capsized by V-Day at any time soon! MLLNNLS spend the most today on V-Day & M-Day. They avged almost $147 for V-Day and almost $230 for M-Day. (Adding to this diff is the fact that while, non-MLLNNLS spent $20 less for V-Day than M-Day they also spent $30 less for M-Day per purchaser)
THE M-DAY MILLENIAL IMPACT IN $$ & MILLENIAL SEN$E
- We re-mention the fact that MLLNNLS spend more on M-Day than V-Day and their positive $$ difference is greater for M-Day than is the diff for the 35 and older adults.
- Jewelry is MLLNNLS #1 gift (in terms of avg $$) at over $50½ per buyer with it being 22% of their total gifts. (Non-MLLNNLS spend $281/3 or 19% of their M-Day gift $$ on jewelry. It is also their #1 gift.)
- The traditional “M-Day outing” costs $33 for MLLNNLS’s on avg (14% of their M-Day purchasing). It is $31 (but a fairly robust 21%) of non-MLLNNLS M-Day (The ol’ mom to breakfast, to lunch outing is losing its luster for MLNNLS as it is being replaced by buying high tech/electronic gifts).
- The most amazing prod/serv gift DIFF comes in the area of Consumer Electronics (as noted above) with a MLLNNL gifting spend of $32.53 (14% of gifting $$ and a virtual tie for 2nd place with “Special Outing” on the gifting (see T-2)). No news that non-MLLNNLS have Consumer Electronics as their 7th biggest gifting category (at ONLY 5% of their total gifting).
- T-3 shows the earnestness of MLLNNL shoppers as their Top 3 shopping venues are Dept Stores, Onliners and Specialty Stores in that order. Non-MLLNNLS Top 3 venues are Dept stores, Specialty Stores and Discounters. (Online is ONLY #4)
- MLLNNLS proclivity for Electronics is well exemplified in T-3 with 91% Smartphone ownership and 51% Tablet ownership. (Non-MLLNNLS have but 66% & 47% ownership, respectfully).
- The diff b/t MLLNNLS & Non-MLLNNLS is their much greater willingness to Purchase Products AND Redeem Coupons using their devices. That diff is as startling as their diff in device ownership.
- 20% of MLLNNLS will use Smartphones to Redeem Coupons and 28% will purchase M-Day gifts with them. 58% and 7% of Non-MLLNNLS, respectfully will do the same.
- For Tablets, 10% of MLLNLS will Redeem Coupons with them and 30% will Buy using them. (The %s for non-MLLNNLS are 6% and 13%, respectfully).
T-1: M- DAY Gifting & to Whom
|MLNNLS||35 & Older|
|M-DAY Gifting to Whom?|
|T-2: M-DAY Gifting by Item|
|Category||Millennials||35 & Older|
|Jewelery||$ 50.52||22.0%||$ 28.30||19.3%|
|Special Outing||$ 32.75||14.3%||$ 30.78||21.0%|
|Cons elec, etc||$ 32.53||14.2%||$ 7.53||5.1%|
|Clothing & Accessories||$ 20.86||9.1%||$ 14.03||9.6%|
|Personal Services||$ 20.35||8.9%||$ 8.76||6.0%|
|Gift Card(s)/Certificate(s)||$ 19.15||8.3%||$ 17.63||12.0%|
|Flowers||$ 18.39||8.0%||$ 19.79||13.5%|
|Housewares, Grdn Tools||$ 13.08||5.7%||$ 4.78||3.3%|
|Other||$ 8.08||3.5%||$ 6.45||4.4%|
|Books or CDs||$ 6.21||2.7%||$ 2.90||2.0%|
|Combined Net Avg||$ 229.56||100.0%||$ 146.77||100.0%|
T-3: M-DAY Gifting by Venue & by Device
|Category||MLNNLS||35 & Older|
|M-Day Gift Shopping Venues?|
|Online & Catalog||39.8%||22.3%|
|Specialty Cloth Store||16.5%||4.5%|
|Ownership of Devices?|
|Smartphone for M-Day?|
|Tablets for M-Day?|