What has changed about your purchasing habits since the pandemic?
Besides picking up new habits such as cooking, yoga, TikTok dances, the list goes on, I’m sure you have experienced some changes to your behavior. Undoubtedly, the pandemic has altered most human behavior, and more specifically: purchase behavior
Millennial’s & Generation Z’s Market Share
According to Euromonitor International’s recent podcast, Millennials and Generation Z make up 46% of the global population, as reported in 2019. That means that if businesses effectively target these two generations, they will reach approximately half the world population as consumers.
As the age of these two generations ranges from the early 20s to late 30s, this age group is experiencing some of the biggest lifestyle changes. These include graduating college, getting their first real job, owning a home, and from a business perspective. It is crucial to understand the buying behaviors of them to make money off of this very large market.
With that in mind, it’s important to understand what affects buying behavior. Also, to notice that there must be some repercussions from the pandemic that will ultimately alter the way Millennials and Generation Z purchase items from now on.
Apex of Learning Financial Responsibility
Besides going through a very monumental time in their life where financial responsibility becomes crucial to sustaining an economically comfortable lifestyle, adding COVID to the mix has definitely impacted purchase decisions. These generations are now facing pressures they never could have foreseen. Whether it be unemployment, remote work, or moving back home, it’s been an adjustment.
Because of this, Millennials and Generation Z won’t progress into the same behaviors that their parents and their grandparents had developed in their 20s & 30s because they didn’t do it all through a fucking worldwide pandemic.
Surely, buying habits by all generations have been altered in some way. Seeing as buyers were forced to stay inside reducing storefront activity and spiking the use of e-commerce, things were bound to change. Purchasing behavior as it was pre-pandemic might never return to what we often found considered normal.
With an enormous amount of layoffs caused by the pandemic, young people were especially impacted. Lan Ha, population manager from the aforementioned podcast stated “[h]istorical data shows that during economic recessions, youth unemployment rates rise faster than the overall unemployment rate,” and that “[t]he pandemic could be the most formative experience of young people’s lives, given the disruption it may cause them.”
Millennials & Generation Z Buying Habits
Millennials and Generation Z are now choosing to shop online rather than in-person. They will research the brand or company they buy from before making a purchase. They do this to ensure that the company aligns with their own personal values. These generations prioritize health and wellness products and those companies that use sustainable practices.
In addition, it’s very important that businesses have a strong social presence. Millennials and Generation Z will often search a company they are deciding whether to give their money to on social platforms to make judgments on if they will actually make a purchase. Having an effective social presence will further assist companies. This makes them more easily shareable. Millennial and Gen Z consumers often spread the word on social media about their favorite companies to their friends.
Ultimately, the pandemic will be responsible for everlasting impacts on Millennial and Generation Z buying behaviors. It will ensue long after its end: similar to the Great Depression’s impact on the Baby Boomer’s stereotypical frugality.
From a business standpoint, make sure you are effectively marketing towards these key generations. Though some may say that they ask a lot from the businesses they purchase from, the companies should do their part to step up and make those changes that will appease such a large market.
Featured image source from: Unsplash.com
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