By the year 2025, millennials are forecast to make up 75 percent of the workforce. Their spending is also expected to increase to 1.4 trillion. As a result, companies are fiercely competing to capture the interests of the young population.
To win the hearts of this market, one should research the consumer needs. This could make a difference in revenue from making a couple of thousands of dollars per month versus making millions in a single month. While doing my own research on this topic, I discovered that many millennials are highly educated, career-driven, and have strong brand loyalty. With this information, millennials are self-conscious about wearing or using products that are sustainable, eco-friendly, and bring authenticity to their lifestyle.
Why Sustainability May Be a Driving Consumer Force
Purpose instead of profit. As a business owner, you may be concerned with making profit. While millennials are concerned about whether their purchase makes a positive impact. To meet this growing consumer demand, I’ve noticed some companies donate a certain percentage of their profit to charitable causes or non-profit organizations. Or rather, the company entirely changes its marketing strategy to associate themselves in the social movement itself.
They want to feel comfortable with the brand. If you ever heard of the term “vegan” bags, clothes, or makeup, it’s a phrase many people are self-conscious about. Millennials want to engage with corporations that promote products that are cruelty-free. They also care whether the brand practices sustainable manufacturing methods and ethical business standard. It may be often one of the most primary reasons consumers consider before making a purchase.
Millennials want to co-create products with companies. Studies have shown that 42% of millennials are interested in helping companies co-create future products and services. In a normal business setting, companies usually develop their own products to consumers. When it comes to millennials, many are willing to be more involved in how the products get created.
For a small company who’s starting to tap into this market, I’ve noticed most entrepreneurs work on their marketing themselves. Usually to save time and budget. For mid-to-large companies, business owners are shifting towards practicing socially responsible marketing that splits their intentions from self-interests and improvement in society. With this strategy, companies are able to empathize with the consumer needs and drive product sales.