Gen X, or more commonly referred to as Millennials are without a doubt currently India’s biggest spenders, as they have moved into their prime earning and spending years. Hence, matching their demands and requirements is ideally on top of every brand’s strategy and marketing tactics.
That being said, appeasing this generation isn’t easy as they are extremely opinionated and have high demands. Roughly born between 1982 and 1996, this generation has many peculiarities like their active lifestyle, tech-savviness and access to information, which makes them stand apart from other generations. This has greatly impacted buying patterns as they have specifics trigger points that compel them to make purchasing, which is quite opposite to previous generations. For example, a study found that Millennials prefer to spend money on experiences instead of possessions like houses, and cars, as compared to previous generations who would focus solely on saving to secure possessions.
But what makes this generation so different and how can brands connect with them? In this article, The Money Gig has conducted an in-depth analysis of the revolutionized buying pattern and how brands can adapt their strategies to target millennials.
Influence Of Technology In The Lives Of Millennials
Without a doubt, millennials are the driving forced behind India’s economic revolution, which is primarily influenced by the advancement of technology. For example, they have embraced online shopping majorly through mobile devices, and have taken advantage of the rapid expansion of broadband internet availability and reliability. This has led to the revolutionization of the business landscape across the country.
Moreover, this generation is better education and access to information, and also connected with the entire world, as compared to their predecessors. Additionally, they are also part of the shit in the dynamics of the middle-class population.
This has given rise to the GDP of India which was at $2.2 trillion in 2017 and is expected to touch $5 trillion in 2025, with per capita annual income also rising to $3,650 by that year. Even though India’s per capita income ranks well below other emerging markets like China or Brazil, the millennials of this country have played a huge role in advancing the Indian market with their growing spending ability and accessibility of the internet.
Financial Challenges Millennials Face
Many studies have proved that millennials prefer to spend more money on comforts. Mentioned below are a few statistics that prove this argument:
- 60% of millennials spend more than 500 rupees on a single coffee meet
- 70% of millennials will spend a little extra to eat at the hip restaurants in town
- 69% of millennials buy clothes for reasons beyond basic necessity
- Over 50% of millennials spend money on taxis and Ubers, instead of using public transport
Due to these habits, millennials, at large, are facing financial challenges due to overconsumption and unwarranted spending tendencies. Hence, a grave question that is often posed is that do millennials have the finances required in dire times of need? Are they saving enough for their retirement? While some millennials claim to not earn enough to save or invest, others are completely indifferent about this need. So, if they are prepared to tackle these challenges or not, only time will tell.
However, these financial challenges do pose a threat to certain brands as even though millennials are pegged as careless spenders, they do have certain criteria before choosing a brand to purchase from.
How Can Brands Connect With Millenials
As mentioned, millennials are extremely picky when it comes to choosing a brand to make a purchase. This is primarily due to two reasons; accessibility to information and cut-throat competition. Hence, there are certain factors that brands need to keep in mind and follow to effectively attract this generation.
Get One, Get Them All
Due to the rise of social media platforms, millennials are increasingly connected and have a huge influence on each other’s buying decisions. This has resulted in the formation of various social groups. For example, people who like the same type of music, or follow the same personalities share information about the brands they use, which influencers others in the group to follow the same. Hence, by targeting a particular social group, a brand will be able to market their products to a large number of audience.
Find The Emotion That Drives Them
Understand who your target audience is and what values drive them to make a purchase. For example, certain consumers like to purchase from brands that make them feel happy or passionate, while others like to collaborate with brands that promote diversity or uniqueness. Once you have identified what drives your target audience, ensure all your marketing activities, tonality, and language is focused on that value. This will increase the chances of the consumer buying from your brand.
Don’t ‘Sell’ Your Product, Tell A Story Instead
Millennials aren’t impressed by traditional marketing as they don’t feel special or connected with the brand. Moreover, outbound platforms like magazine ads, direct mail campaigns, or television ads don’t impress millennials. This is primarily because these ads are impersonal and can be considered as spam. Hence, brands should refrain from blast messages that are generic and don’t evoke any emotion. Instead, they should create content that is customer-driven and makes use of personalized marketing.
Mobiles Are The Most Important
Almost every millennials’ prized possession is their mobile. Right from sending an email, to shopping or ordering food, almost every activity is carried out on these hand-held devices. Hence, brands should optimize all their marketing activities for mobile phones, including their websites, apps, and advertisements.
Bring A Change
Millennials are love collaborating with brands that have substance and are attempting to bring a change in the world. Moreover, they like to associate themselves with brands that are supporting and promoting a cause that they strongly believe in as well. For example, many millennials will connect with brands that are eco-friendly or discourage animal cruelty.
Also Read – List of 15 Successful Indian entrepreneurs
For more information about the latest trends and patterns in the business world, or for business ideas and tips to being successful entrepreneurs, keep reading The Money Gig.
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