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Millennials most affected by coronavirus: Study

Posted By Luxury Daily News Service On In Featured,Industry sectors,News,Research,Retail | No Comments
Millennials are critical to luxury brands' future. Image credit: “Meet the HENRYs: The Millennials that Matter Most for Luxury Brands” (Paramount Book Publishing, 2019) Millennials are critical to luxury brands' future. Image credit: “Meet the HENRYs: The Millennials that Matter Most for Luxury Brands” (Paramount Book Publishing, 2019)

 

By Luxury Daily News Service

What impact is the coronavirus having on consumer purchase decisions and behavior? The one segment the pandemic has affected the most is millennials, according to newly concluded research from First Insight, a digital product testing and decision-making platform. “As the coronavirus continues to impact our economy, millennials are emerging as the most concerned generation,” said Greg Petro, CEO of Warrendale, PA-based First Insight, in a statement. “While most consumers are worried about the virus’ overall impact, the behavior of millennials is changing more dramatically than any other generation – they are cutting their spending, stocking up on groceries, using public transportation less and staying indoors,” he said. Here are the key findings by consumer sentiment and the economy, impact on purchase decisions and spending and impact on consumer behavior: Consumer sentiment and the economy The majority of consumers in the United States (66 percent) are worried about the coronavirus spread

  • More women (71 percent) than men (60 percent)
  • Baby boomers (72 percent) and Gen Z (73 percent) are worried, however, the majority of millennials (61 percent) and Generation X (56 percent) are also concerned
Ninety-three percent of respondents say that the coronavirus will somewhat or significantly impact the economy
  • 95 percent of women and 91 percent of men say that the coronavirus will impact the economy
  • 95 percent of baby boomers, 92 percent of Gen X, 90 percent of Gen Z, 92 percent of millennials say that the coronavirus will impact the economy
Impact on purchase decisions and spending Forty-four percent of respondents say coronavirus spread has impacted their purchase decisions
  • More men (47 percent) versus women (41 percent) say it has impacted their purchase decisions
  • More millennials (54 percent) say the coronavirus has impacted their purchase decisions, versus only 33 percent of baby boomers, 42 percent of Gen X and 49 percent of Gen Z
Thirty-five percent of overall respondents said the news about the coronavirus is impacting where and how they shop
  • More men (38 percent) than women (33 percent)
  • Younger generations are being impacted the most (37 percent of Gen X, 38 percent of Gen Z and 39 percent of millennials, versus only 26 percent of baby boomers)
Twenty-eight percent of respondents said news about the coronavirus is impacting how much they are spending on products
  • More men (32 percent) than women (25 percent)
  • 19 percent of baby boomers, 29 percent of Gen X, 28 percent of Gen Z and 36 percent of millennials
Thirty-five percent of respondents have cut back on spending in preparation for impacts of the coronavirus
  • Slightly more women (35 percent) than men (34 percent) have cut back on spending
  • 40 percent of millennials and 41 percent Gen Z say they have cut back on spending, compared to 23 percent of baby boomers and 36 percent of Gen X
Twenty-two percent of respondents say they are buying more products in anticipation of the spread of the coronavirus
  • More men (24 percent) versus women (20 percent)
  • More millennials (34 percent) versus 25 percent of Gen Z, 18 percent of Gen X and 12 percent of baby boomers say they are buying more products in anticipation of the spread of the coronavirus
When asked what product respondents were buying more of, grocery is being bought the most (19 percent), followed by household products and personal care items at 13 percent, health products at 12 percent and beauty products at 7 percent
  • Men are buying more than women: Men - grocery 22 percent, personal care items 14 percent, health and household products both 13 percent and beauty products 7 percent; Women - grocery 17 percent, household and personal care items both 13 percent, health 11 percent and beauty 6 percent
  • Millennials are buying the most: 30 percent saying they are buying grocery (the highest percentage)
Thirty-two percent of respondents say news about the coronavirus is impacting how much they are spending on services and experiences (i.e. restaurant meals, entertainment, travel)
  • More men (36 percent) than women (28 percent)
  • 21 percent of baby boomers, 33 percent of Gen X, 31 percent of Gen Z and 44 percent of millennials
Thirty-seven percent of respondents say the news about the coronavirus is impacting what products they are purchasing
  • More men (40 percent) than women (34 percent)
  • 24 percent of baby boomers, 34 percent of Gen X, 41 percent of Gen Z and 48 percent of millennials
Impact on consumer behavior Thirty percent of respondents say they are shopping less frequently in-store
  • Slightly more women (30 percent) than men (29 percent) are shopping less frequently in-store
  • More millennials (39 percent) versus other generations are shopping less frequently in-store (compared to 36 percent of Gen Z, 25 percent of Gen X and 22 percent of baby boomers)
Twenty-one percent of respondents say they are shopping more frequently online
  • More men (24 percent) versus women (18 percent) are shopping more frequently online
  • Millennials (30 percent) are shopping more frequently online (compared to 24 percent of Gen Z, 20 percent of Gen X and 8 percent of baby boomers)
Twenty-nine percent of respondents say they are taking advantage of BOPIS services to get products delivered without going in-store, with 18 percent using curbside pickup, 17 percent using subscription services, and 13 percent opting for autoship
  • Men vs. women:
    • BOPIS: 28 percent women, 31 percent male
    • Subscription services: 16 percent women, 18 percent men
    • Curbside pickup: 16 percent women, 22 percent men
    • Autoship: 14 percent women, 12 percent men
  • By generation:
    • BOPIS: Baby boomers 20 percent, Gen X 28 percent, Gen Z 47 percent and millennials 22 percent
    • Subscription services: 8 percent baby boomers, 19 percent Gen X, 19 percent Gen Z, 23 percent millennials
    • Curbside pickup: 13 percent baby boomers, 13 percent Gen X, 22 percent Gen Z and 30 percent millennials
Forty-nine percent of respondents say that due to the coronavirus outbreak, they are concerned about receiving apparel or other products that were produced in impacted areas such as China
  • More men (50 percent) than women (48 percent)
  • More millennials (52 percent) say they are concerned compared to 42 percent of baby boomers, 47 percent of Gen X and 51 percent of Gen Z
Twenty-six percent of respondents say news about the coronavirus is impacting where respondents are working (working from home more)
  • More men (31 percent) versus women (20 percent)
  • 17 percent of baby boomers, 24 percent of Gen X, 33 percent of Gen Z and 27 percent of millennials
Thirty-eight percent of respondents say the news about the coronavirus is impacting how frequently they go out in public
  • Slightly more men (38 percent) than women (37 percent)
  • 28 percent of baby boomers, 37 percent of Gen X, 41 percent of Gen Z and 46 percent of millennials
Forty percent say the news about the coronavirus is impacting how much they use public transportation
  • More men (43 percent) than women (38 percent)
  • More millennials (50 percent) and Gen Z (48 percent) than baby boomers (27 percent) and Gen X (38 percent)
Methodology First Insight’s findings are based on the results of a U.S. consumer study of a targeted sample of 500 respondents fielded on Friday, Feb. 28. The study was completed through proprietary sample sources among panels who participate in online surveys. Definitions including birth year ranges for each generation are listed out below:
· Baby boomer (1946-1964) · 29 percent
· Generation X (1965-1979) · 21 percent
· Generation Z (1995-2012) · 22 percent
· Millennials (1980-1994) · 21 percent
· Silent generation (1928-1945) · 7 percent