Consumer Packaged Goods
October 6, 2015
Changes in Millennial Consumer Behavior
Millennial consumers are much more environmentally conscious than any generation before, and a number of observable trends have resulted from it. One of those is a new focus on health rather than wealth. Another is an insistence upon company integrity. A third is a tightening of the proverbial spending belt. According to the 2014 American Pantry Study, 94 percent of consumers in the U.S. intend to keep spending cautiously, even if the economy improves.
Consumers also have the benefits of smart phones and social media to communicate thoughts and reviews of their experiences. As a result, a good brand is not enough to sell products anymore. Consumers looking for quality and integrity share what they think of a product once they discover which way it falls.
Millennial Purchasing Trends
Included with environmental awareness is the expectation of corporate responsibility. How does a company treat its employees? Is the product healthy, both in what it provides for the consumer and in how it was produced? Does a product’s packaging match the quality of the product itself?
Here are some of things millennials are looking for:
- Packaging and marketing that includes product benefits
- Products that contribute to a sustainable lifestyle
- A match between product quality and price (On the negative side is tricky advertising that makes a product look better than it really is. Millennials will post a warning about this)
- Products that are made to last as long as possible and packaging that supports it — no more planned obsolescence
- Good service – If purchased online, is the shipping timely? Does the product arrive in good condition?
- Website information showing how the company benefits its community and watches out for its impact on the environment
- Information consumers can share on social media about which brands are best to buy
Consumer Purchasing and Social Media
Have you ever looked to see what millennials share on social media sites? Products of all types are discussed on a regular basis. Consumers share reviews and create websites specifically for reviewing products, companies, neighborhoods and more.
- Amazon.com provides a method for customers to rate products bought from the site and its affiliated stores. Customers who read those reviews quickly learn to differentiate between fake reviews and real ones. They use that information to choose between brands. Amazon also posts alternative brands that others have bought instead of the one under consideration.
- Yelp is a well-used site that rates neighborhoods, companies and services. Reading through those reviews shows the power consumers have to influence each other’s purchases. Whereas the printed Consumer Reports utilizes professional reviewers writing about which brands offer the best value on specific products, Yelp provides a crowd-sourcing alternative for consumers actually using a product to share their personal experiences with it.
Because of the success of these two sites, many other such sites are branching out to focus on specific categories of products and services. And new online marketplaces are including review functions for the products they sell.
Two additional purchasing trends are worth mentioning here: the increase of online commerce and the trend toward purchasing and growing food locally. Both require adjustments in the thinking of consumer goods providers, always keeping in mind that millennial consumers share product experiences much more readily than ever before and that they have the means to do so.
In preparation for such changes in consumer expectations and spending, a company may benefit from a number of asset management services to ensure their equipment and machinery is up to par. EquipNet offers a number of resources to help their client’s effectively manage their surplus assets, including an Asset Redeployment Management System (ARMSTM), Project Management Teams to help clients reach their goals and meet strict deadlines, Procurement options to allow companies to benefit from up to 75% savings on equipment and much more.
Categorias: Consumer Packaged Goods
