If you could only shop at one store for the rest of your life, would you pick Amazon, Walmart, or Target?
Did you answer Walmart?
If you did, you are like the majority of Millennial parents according to the Millennials as New Parents study. How did Walmart beat out e-commerce giant Amazon and Millennial favorite Target? Simple. Walmart meets Millennial parent consumer needs regarding price and convenience. Sure, what’s more convenient than ordering toilet paper on Amazon while in your jammies? Getting it now. While quality still plays a significant role in the purchase decision for big-ticket items and products that affect the well-being of the family, traditional retail and grocery purchases are typically based on two things for Millennial parents: price and convenience.
Price is king
In the same Millennial Parent Study, Millennial parents were asked to rank how likely they were to make a purchase based on price or quality on a sliding scale. Before becoming parents, nearly all Millennials agreed that quality was the deciding factor when making a purchase. However, after becoming parents, the answers shifted significantly towards price. This is especially true for parents in the Against the Grain and Under Stress orbits; only 17 and 15 percent respectively feel like they are financially secure. The increased financial burdens that come with parenthood means brands that are targeting Millennial parents must align their pricing models with the demand among a more pragmatic generation of parents. If a Millennial parent deems a product worthy of a premium cost, they will dish out the dough, otherwise they will look elsewhere for brands that are more within their budget capacity.
How can premium brands adapt to this budget-seeking generation?
First and foremost, it is important to remember that this Millennial parent pragmatism does not negate the high ideals Millennials held before having children. Instead, it focuses on how to make those ideals a reality. A major shift we have seen reflecting this trend is the emergence of popular (and affordable) store brands. Target’s Archer Farms store brand has done extremely well with Millennials and is quickly becoming the gold standard when it comes to private label. First of all, nothing about the brand screams that it is a discounted product. The design, artisanal style, and quality are all at a level that most premium brands own – minus the sticker shock. As a result, Millennial parents feel good about buying the store brand and do not feel like they are trading in on the quality.
Convenience is queen
While price is the ultimate deciding factor in a Millennial household, convenience comes in at a very close second. When we think about the major drivers for mobile and e-commence among Millennial parents, convenience is almost always referenced as a top reason to shop online. Although Millennials are far from selfish (they are the biggest proponents of cause marketing campaigns, you know) they grew up in an age where they have been able to get what they want, when they want it. When asked how much they agree with the statement, “The convenience of online shopping is very important to me,” nearly 70 percent of all Millennials agreed while non-Millennials were significantly less likely to agree.
The key here is not just that Millennial parents are including convenience as a part of their shopping preferences; it’s the integration of convenience and digital and mobile experiences at the right price. Millennials are by far the most likely generation to shop on their mobile phones or online and expect brands to create seamless integration between their different platforms and the brick and mortar store. Innovations like one-click check-out and finger scanning to log in or buy a product are the types of convenience that Millennials, especially Millennial parents, are looking for every day.
For more information about the content landscape, be sure to check out my new book Millennials with Kids, which will be released this August!