MILLENNIALS & GEN Z

PLICO IS DESIGNED FOR THE PRESENT AND FUTURE GENERATION — SO UNDERSTANGING WHAT MAKES THEM TICK AND HOW PLICO CAN PLUG THAT GAP

Millennials have often been described as lazy and entitled people- who have a hard time meeting their parents’ expectations as well as have a hard time managing money and time. They are portrayed as these people who eat avocado toast or pay money for overpriced coffee as well as often living with their parents, having a hard time keeping their jobs and drowning under credit card debt.

A study conducted by the Pew Research Center shows how the millennials have faced many setbacks that have hindered their growth and progress. Some of these issues are stagnant wages, increasing student debt and increased medical and housing cost that has also had a major impact on the spending prowess of the millennials. Therefore, they on an average spend less than the previous generations. The ones that don’t have a college degree have a hard time getting well paid jobs which in returns affects how they spend and invest money.

According to a recent survey conducted by the The Harris Poll on behalf of the CNBC, out of the 1000 adults between the ages of 33-40 it was noticed that the majority of their monthly spending was linked to housing.

“Housing constitutes almost 37 percent of their spending, it is closely followed by Transportation which comprises of 20 percent after which the rest of the budget is spent on Food (14.4) percent, Personal Insurance and Pensions (10.7) percent, Entertainment (4.8) percent, Health care (4.7) percent and education (4.6) percent”

As per the data published by the Furniture Today journal, between the year 2012 to 2014, Americans over the age of 70 years stopped purchasing furniture almost altogether and their share of furniture-based expenditure dropped from $17.7 billion to $3 billion. But this deficit was well made by the spending done by the millennials. Whose spending power jumped by almost 142 percent and led to the expenditure growth to $27 billion from $11.1 billion. Therefore, catapulting them into becoming the customer to be focused on

While millennials are choosy and do their research when looking to buy luxury goods, what is important is knowing the factors that help in their decision making . Referring the graph it is easy to understand that Quality Products is the most important factor as well as Uniqueness and Story associated with the product follow closely. Being able to relate with it and associating the product with emotions such as fun and inspiration is another characteristic that Millennials follow closely when interested in the purchasing these goods.