“Millennials’ frugality is a boon to discount retailers.”
Millennials spend less on beauty than other groups because we tend to make less money. Interestingly enough though, we are more likely than other generation of consumers to buy more units of beauty products. According to a 2015 report from TABS Analytics, consumers ages 18–34 account for about 47% of heavy buyers of beauty (heavy buyers being those who buy over 10 products out of a possible 19 categories). Now that’s a lot.
This is because we look for deals. Millennials are always bargain-hunting and looking for ways to get more bang for their buck. But to other generations, our price consciousness translates to them perceiving us as frugal.
I’ll admit it: I’m frugal when it comes to any type of shopping. When I’m buying something I need, like my go-to Maybelline mascara, I’ll be the person to look at CVS, Rite-Aid, and Walmart before buying it, because even though it’s only a couple of dollars, I would rather spend less than more on it. 39% of my fellow millennials would do the same — they use coupons when purchasing personal care products in order to save where they can.
The problem with bargain-hunting in the beauty industry is that it doesn’t tend to happen that much when it comes to high end and luxury products, such as MAC and Clinique. So how then how do they still manage to convince our generation to buy their products?
I believe it’s due to the personal relationships consumers create with retailers. These consumers are willing to share private information with retailers in order to form deeper connections and allow them to better understand who they are buying from. With this information, retailers are able to present consumers with specific and relevant special promotions or coupons.
Others are finding ways to go around spending money in the beauty industry. They are DIY-ers and self-doers. Instead of going to a spa or salon, they are bringing home the products they needs to create their own “spa-days”. This way, consumers are able to get more out of their purchases. I’ll get a pedicure done every once in a while, when it’s absolutely necessary for special occasions or if my feet need a little extra care, but otherwise, I would much rather buy a bottle of nail polish from CVS and have it last me well over a year.
Our frugality is changing how retailers have to reach out to us. We are clearly willing to spend our money on things that matter to us, but we are very specific about where we want to spend it and on what products.
To learn more about how millennials are influencing the retail world, pre-order my book, Talk Beauty to Me: How Marketers Can Speak the Language of Beauty to the Next Generation, here.
