Retail industry professionals see high potential in Millennials as their annual expenditure is expected to increase from 600 billion U.S. dollars in 2013 to 1.4 trillion U.S. dollars by 2020. That will equal a share of about a third of total U.S. retail expenditure.
Recent statistics show that when asked why they shop at their favorite retailer some 59 percent of Millennials named price-consciousness as primary reason. As of 2016, the average female Millennial purchases about eight hundred U.S. dollars’ worth of apparel annually, a lower amount than Generation Xers but higher than that of Baby Boomers’. Female Millennials also tend to own a higher number of beauty products than women from older generations.
In general, Millennials are seen as internet and tech savvy consumers: by 2019 nearly 80 percent of Millennials are expected to have made an online purchase in the United States. A 2016 survey has also shown that 67 percent of Millennials are likely to purchasing from websites that use chatbots, an increasingly common feature on many online stores. Social media sites such as Facebook and Twitter are also being used to advertise various products to their users, a high percentage of whom are Millennials. Hair, beauty, and apparel products are by far the most popular items purchased by Millennials after sharing them via social media.