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How Do Millennials Feel About Sales Events?
At the end of every calendar year, there are back-to-back sales events. From Click Frenzy to Boxing Day, there are never-ending opportunities for retailers to unveil ‘big discounts’ and capture a new audience base. However, as the festive season approaches, will the next generation of shoppers embrace these events, or have times changed?
According to a report from Bazaarvoice, more than half of Gen Z and Millennials plan to buy at least half of their Christmas presents during the upcoming sales weekend. Moreover, approximately 30 per cent of these Aussies plan to spend more on Christmas presents in 2019 than last year.
This counts as almost double the number of other age groups who are planning to increase their Christmas spend this year. The report found that 85 per cent of the next generation shopper will take advantage of the upcoming sales events.
The four-day weekend sales events, from Black Friday to Cyber Monday, has its origins in the United States, but in recent years it has become increasingly popular within Australia.
“We’re witnessing a real shift in consumer spending in the lead up to Christmas this year and it’s being driven by younger Australians who have embraced Black Friday and Cyber Monday,” explained Kate Musgrove, APAC Managing Director of Bazaarvoice. “In previous years, retailers focused on Boxing Day sales and this was a peak spending period for shoppers.”
“With Black Friday and Cyber Monday sales now almost a given on the local retail calendar, 82 per cent of Gen Z and 78 per cent of Gen Y have had their shopping habits impacted in some way. Retailers who are geared up in meeting their online research and shopping needs will most certainly be reaping the benefits of this weekend’s sales period.”
As Gen Z and Millennials are digital natives, they can spend extra time determining the best price of a product, as well as assessing reviews to see which should be taken seriously, and which are fake.
“What’s also interesting from our research for retailers who want to maximise their revenue is that 97 per cent of Gen Zs and 96 per cent of Gen Ys say they are influenced by authentic reviews from other shoppers. What they particularly appreciate seeing are shopper reviews that also include photos and videos of products as they believe it helps them make the right purchasing decisions, which reduces the time and hassle of having to return items,” she added.
“Negative reviews can also be a good thing,” Ms Musgrove said. ““If a retailer receives direct customer feedback or a question then they really need to think of it as an early Christmas present because what a shopper is giving you, is a rapid and accurate insight on a product or service, which may need to be tweaked and improved in order to deliver a high-sales over Christmas.”
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