NEW GEN Z 101: Unlock & Outlast Microtrends
Apr 16 2018
Wanting everything where and when they want it is a well-known characteristic of Millennials. They are a generation increasingly short on patience, which is one of the reasons that the on-demand economy has taken off the way it has in recent years with ever more meal kits, subscription boxes, and ride-hailing apps. This fast-growing economy of convenience often targets young consumers who consider time a luxury and are looking for ways to cut out steps to streamline their lives so they can gain more time to do what they actually want. In fact, seven in ten 13-35-year-olds agree with the statement, “I get very frustrated by things that waste my time.” And though brands in this market tend to target young consumers for whom ordering paper towels on Amazon and getting takeout delivered to their doors may be in the service of binge-watching their favorite shows, this growing economy is being driven in part by a less visible demographic than your typical impatient 13-35-year-old: Millennial parents.
If you think about it, this shouldn’t come as a surprise. Being a parent today is even harder than it was in the past in some ways. Though Pew Research has found that more women are staying home with their kids now than in 1999—the lowest point for stay-at-home moms in history—many Millennials still face the dilemma of needing two incomes to raise a family amid rising housing costs, student debt, and low salaries—not to mention young women’s drive to have a career. And if the rise of the on-demand economy is all in the service of saving time, there’s no one more in need of extra hours in their days than working parents.
On top of that, however, Millennial parents are a fast-growing demographic with massive spending power. According to research from Barkley, 40% of Millennials are already parents today, a cohort that is expected to increase to 80% over the next decade according to Crowdtap. That translates to more than $1.3 trillion in buying power, which is why we’ve warned in the past to recalibrate your expectations for Millennial spending habits in anticipation of parenthood. And since many 18-35-year-olds grew accustomed to—and came to expect—the ease of grocery delivery apps and laundry services when they were time-poor singles, it would make sense that they would rely on these services even more as parents.
In our recent trend report, we checked back in on the time-saving solutions young consumers are embracing now more than ever before and decided to see just how much Millennial parents are using—and boosting—the on-demand economy. Here’s what they had to say:
Almost across the board, Millennial parents are participating in the on-demand economy far more than their non-parent peers—the only service they’re not using more than non-parents is ride-hailing apps. And while using banking apps, ordering household necessities online, and using food delivery apps are the top three services Millennial parents use, they only use these slightly more than 18-35-year-olds without kids. When it comes to the services that they’re using a little less, we see a massive disparity between parents and non-parents. Five times as many parents have hired someone to run an errand for them than non-parents, and three times as many parents have used a personal shopper or clothing subscription box. Additionally, 58% of Millennial parents agree that there’s never enough time in the day, and 46% agree with the statement “with all the technological advances today, I shouldn’t have to do mundane tasks”— proof that when it comes to marketing convenience, parents may be the way to go.
This is made all the more true by the fact that Millennial parents overwhelmingly think that brands are “missing the mark” on what they want. Millennials are known for their desire for authenticity in marketing, and that doesn’t change with parenthood—Ypulse’s parenting survey found that 94% of Millennial parents say they like when people are honest about how hard it is to be a parent. Additionally, according to Adweek, 51% of parents believe advertisers have an outdated view of motherhood and don’t understand them. Which is why we also asked Millennial parents to tell us what services they would be interested in from brands:
Again, across the board, Millennial parents beat out non-parents in their level of interest in time-saving services. With so many parents interested in on-demand services, brands can get in with Millennials by offering convenient solutions to the tough time-wasting problems of parenthood.
To download the PDF version of this insight article, click here.
Who should we send this Article to?