Insights / Multichannel
Generation Y Consumers Spend Big on Trends
- 22nd February
- Campbell Phillips 154
The elusive Generation Y consumer can be a difficult beast to convert, however IBM and American Express have released some business insights that reveal their shopping habits.
Data collated by American Express Business Insights and IBM Global Business Services reveals great insight into the spending habits of Gen Y shoppers.
Year on year, these consumers spent 33 percent more in 2011 on premium brands, according to American Express. In reaction, retailers have been under pressure to develop their e-commerce and mobile apps as these shoppers continue to explore alternative channels.
Department stores with strong online presences have proven very popular internationally, with Nordstrom and Saks topping the list in catering to younger customers and their hunger for designer apparel and accessories. On the other end of the scale, fashion house Burberry has been challenging retail preconceptions by blending an e-commerce offering with social media alongside runway shows. In this way, Burberry has proven it’s possible to break down the usual chain of supply, providing new season product direct from the factory.
Meanwhile, IBM has predicted that men’s apparel sales will rise more than eight percent in the first quarter of 2012, outpacing other categories. Part of this prediction incorporates the growing trend of blokes spending more on accessories, like bracelets and bags. Men’s apparel and accessories grew by roughly 14 percent in the second half of 2011, reaching $US6 billion.
Ed Jay, Senior Vice-President at American Express Business Insights said, “Gen Y men are among the fastest group growing out of the recession [where a] higher proportion of the wallet [spend] is on luxury fashion.”
While the data is mostly US-centric, online retailers everywhere should take note. Australian merchants are likely to discover local consumers display similar spending behaviour, indicating that it could be a big year for the designer labels in 2012.
