The millennial generation is not only flocking to skincare products; it also represents changing preferences around how to find and choose skincare brands. Meanwhile, brick-and-mortar beauty brands like Ulta Beauty are embracing niche merchandising as a strategy to lure consumers. Millennials continue to drive innovation in skincare through their purchasing decisions.
They also want to buy natural, high-quality products, with a particular focus on sustainability. Glossier, for example, has been working on a social commerce project designed to connect customers with the company and with each other. Armed with the ability to easily research new skincare companies, and faced with a wider range of niche brands than ever, millennials are buying far more skincare products than any other generation.
Despite their concern for the environment and reputation as bicycle riders and public transportation commuters, a large portion of Generation Y is just as keen to get behind the wheel as their parents were.
The same trend can be seen in vehicle registrations. In , millennial drivers accounted for In , that figure climbed to But data tells a much different story. The demographic is maturing and is now poised to be a driving force in automotive marketing.
While older cohorts may favor luxury vehicles, such as high-end sedans and SUVs, millennial motorists appear more open to sedans, which are generally smaller, more efficient, and more affordable. Today, SUVs are outpacing sedans. However, if millennials continue to flood into the personal automobile market — a trend that accelerated even further in the pandemic — sedans could see a rebound.
While American automotive manufacturers have shifted their focus to the SUV and crossover markets, many foreign automakers remain committed to sedans, wagons, and other models, with the expectation that sedans will continue to command interest. Millennials also have a demonstrated preference for foreign-made vehicles.
Of the 10 most popular vehicle brands among millennial consumers, only 2 are American. Japanese automakers Honda , Nissan , and Toyota — routinely rated as among the most reliable vehicle brands in the world — typically top the list of the most popular vehicle brands among millennial consumers.
Another market that some analysts expected would see significant growth among the millennial cohort in coming years was that of the electric vehicle EV market.
However, perhaps surprisingly, millennials are not as partial to EVs as expected. This may, however, be an economic decision rather than an environmental one. But with many millennials seeking reliable secondhand vehicles over new purchases, the perceived price point and reliability of EVs may be dissuading them from making the leap from gasoline to battery power.
While millennials are leading the surge in auto purchasing, whether they shift their attention to EVs will depend on whether they can afford them. For the cohorts aged and , the critical factor in that decision is access to transit, according to a Journal of Regional Science study. In , there were more than 85, e-scooters available for rent in cities across the US, with more than However, as confidence in vaccine programs increases and people begin to resume their lives, micromobility startups could still achieve strong overall growth if they prioritize longer-term objectives and successfully navigate shorter-term challenges.
American cities in particular remain ideal environments for micromobility startups. In , for instance, Uber noted that its shared e-bike platform Jump was cannibalizing its ride-share business during peak hours :.
Top users of services like Jump and Uber are also significantly less likely than other respondents to buy a new car, according to the Shared-Use Mobility Center:. Many players in the micromobility space continue to develop new products to entice wary travelers back onto the roads, remaining confident in their future growth prospects.
Despite these setbacks, Bird announced its intentions to go public via SPAC in , and the company predicts it will become profitable by Spin originally planned to expand into the German, French, and UK markets in , but these plans were put on hold by the coronavirus pandemic. The company has since appointed a new CEO and intends to launch a new range of e-bikes in select cities in the US and Europe, moves that the company hopes will close the gap between Spin and competitors like Bird and Lime.
Other legacy transportation companies trying to adapt to a micromobile world include BMW , which is building its own line of electric bikes and motorcycles; Harley-Davidson , whose Serial 1 electric bike went on sale in March ; and Audi , which is building electric mountain bikes.
Other manufacturers have reevaluated their plans to enter the micromobility market entirely. General Motors , whose Ariv e-bikes had been deployed in several European cities as part of a limited pilot in , decided to terminate its line due to the impact of Covid One of the keys to success with micromobility will be the ability to work with municipalities to bring scooters and bikes to the road in a sustainable manner.
Although some municipalities have welcomed micromobility startups with open arms, others have been resistant to allowing them to operate within city limits. The city of Santa Monica, California filed a criminal complaint against Bird after the company deployed its fleet of e-scooters in , and city attorneys in San Francisco issued cease-and-desist letters to Bird and Lime in , claiming the scooters were a public nuisance.
Several other cities across the US, including Nashville, San Antonio, and Seattle, have introduced legislation in recent years either restricting or outright banning micromobility startups from operating in those cities following complaints, accidents, and fatalities. For micromobility companies looking to capitalize on millennial consumers, a key challenge will simply be figuring out how to operate in the urban geographic locations that the generation prefers.
Despite being saddled with the highest student loan debt of any generation and the fastest-rising cost of living in a decade, millennials are often characterized as being inept when it comes to their finances.
The reality, however, is that nearly half of millennial Americans are actively saving for emergencies, retirement, and even future homes. Despite lower earnings than Gen Xers or baby boomers had at their age, millennials are more likely to have savings goals, manage their debt better, and do a better job of sticking to their budgets. Millennials make up the vast majority of users of web and mobile personal finance apps, which are year by year becoming increasingly popular tools to help users better understand, organize, and improve their finances.
With more than half of American smartphone users using at least one full-service banking app and almost one-fifth using a standalone budgeting app, consumers across demographics are embracing fintech products.
Gen Y users, though, rely on mobile banking and standalone budgeting apps even more than their older counterparts. One of the most popular verticals for personal finance tech is banking. That distaste has created a huge opportunity for digital-first challenger banks like Revolut , Chime , Nubank , Qapital , Monzo , N26 , and Uala. Many financial analysts see these trends as lasting changes rather than temporarily anomalies.
As leaders and entrepreneurs, we can use this knowledge to our advantage. Gen Y wants to do something important with their purchases. This is an instant gratification generation; simplicity is essential. When we share something we like with people we like it creates a bond, and this is especially meaningful to Gen Y. This is a BETA experience. You may opt-out by clicking here. More From Forbes. Nov 11, , am EST.
Emma Spagnuolo: Gen Z is our latest generation. Bo Finneman: Great question. Emma Spagnuolo: So I think it goes both ways, actually. On the one hand, you have Gen Z needing to influence their parents in order to get what they want.
And I have to say, the teens, the moms, and the grandparents were all sort of dressed alike. When we think about Gen Z, what are some of the characteristics that come up? How is this younger generation typically described? Or are they a bit elitist in terms of their beliefs and their perspectives or their demands on brands? And what is it actually trying to build for us as a society? Lucia Rahilly: Do you see that same shift happening with millennials?
Is that common across both cohorts? Emma Spagnuolo: Yes. What we see is an acceleration. These are trends that started for sure with millennials over the last couple of years. Lucia Rahilly: And so how is that emphasis on values and sustainability—how does that relate to value as a priority? Are Gen Zs, in other words, willing to pay a premium for sustainable goods with a story that makes them feel guiltless about consumption and so forth? Before, it was pretty easy.
To your point, it goes to societal values, it goes to status, it goes to social influence, et cetera. That dimension has become far more important than what it was before. And this is a place where millennials and Gen Z diverge. Lucia Rahilly: To what do you attribute that shift in mindset from exclusivity to uniqueness? I like the aspect of having true thoughts of my own.
And the other thing that ties in is that the overall ecosystem in which Gen Zs are buying is fundamentally different. And maybe three quick sources. One is that niche brands are popping up more than ever. Second is the way in which you can buy them is becoming more and more available and distributed.
And the third is the overall importance and scale of social media as a platform to showcase yourself has grown. Lucia Rahilly: How do Gen Zs look at the phone? How much are they using their phones? Are they using their phones to shop more than previous generations? Emma Spagnuolo: So there are two points to this answer. They shop across all types of formats. Bo Finneman: I remember even five years ago, when we would work with chief marketing officers, the concept was your overall annual plan and your major campaigns and what you were going to release across a multitude of media channels.
It certainly is a massive amount of change in terms of both how you approach it day to day and the capabilities you need to have.
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