Millennials Embrace High-Low Budgeting

High-Low BudgetingMillennials are savvy shoppers and are often smart about their spending. They research items before they buy them, get their friends’ opinions, find the best deals, and search for discounts or coupons. However, they’re also interested in luxury items and to make such purchases, they embrace high-low budgeting. This means, they’ll splurge on items they really want, such as a tablet or handbag, but they’ll shop at more affordable stores, make their own items, and prepare their own food in an effort to cut back on spending. According to Ypulse research among 1200 14-34-year-olds, 51% say they’re sometimes willing to splurge on luxury items, but they always buy inexpensive items to balance it out. We’ve been noticing this behavior which reflects how resourceful Millennials are and how they’ve adapted in today’s economy.

For example, technology is of huge importance to Millennials and they’re willing to buy the latest devices, which they consider crucial for entertainment and communication purposes. They’re also willing to splurge on some staple clothing items that they know they’ll get plenty of use out of. They’ll even buy designer items on occasion, however, they’re highly aware of how to do so in the most affordable way. They embrace flash deal sites like HauteLook and Gilt Groupe, where they can buy such items for less. They also pay close attention to when stores offer free or reduced shipping and when coupon codes are available. In fact, 43% say they won’t buy an item online if they can't get free shipping.

Additionally, they’re interested in designer collaborations for less such as Target for Neiman Marcus, which enable them to have a taste of luxury in an affordable way. They’ll also buy inexpensive basics at mass merchandisers such as Target or Walmart, trendy items at fast…

 
 

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Millennial News Feed

Quote of the Day: “I like shopping at Trader Joe’s, because it’s a fun alternative to the usual chain supermarkets to pick up specialty items that are tasty.”—Male, 33, MD

This year’s Olympics will be the most social yet—thanks to the digital generation. According to a study, Facebook will be the leading platform adults use converse during the event, but 35% of 18-24-year-olds and 19% of 25-34-year-olds plan to use Snapchat to share Olympic content. Compared to other age groups, Millennials will be two times more interested in human-interest stories and meme-worthy moments during the event. (Business Wire

Promposals aren't just a viral trend, they are now the most expensive prom cost for some. A study by Visa Inc. has found that an American household spends an average of $324 on promposing, and parents are increasingly footing the bill: In 2015, parents paid for up to 73% in of prom costs, up from 56% in 2014. Companies like The Heart Bandits are cashing in on the trend by charging upwards of $1000 to plan promposals, and brands are as well: Men’s Wearhouse Inc. declared March 11th promposal day on social media to sell tuxes for the occasion. (Bloomberg

Gap Inc. has launched a new athleisure line for children ages six to 14, bringing the high-fashion workout trend to the pre-teen set. Athleta Girl, an extension of the activewear brand Athleta, is categorized by activities like “run,” ”yoga and studio,” and “swim.” According to the fitness brand, the label was in demand: “A girls’ line is something our customers have been asking for. Girls today want to dress sporty. They are living more active lives.” Marketing and design for the line is leaning on girl power, with graphic tees showing off slogans like "Dream crazy big." (JezebelRacked)

As esports continues to grow, brands are figuring out to how to tap into the potential marketing goldmine. This year the global esports market will make $463 million, and will reportedly rake in $1.1 billion in 2019. Brands have begun sponsoring teams by adding their logos to players’ jerseys or hats, but they could potentially expand to leagues in the future. The key to effective branding will be “genuinely offering something new or valuable to the audience.” (VentureBeat)  

Can a brand create online influencers? In an approach that could be described as “reverse influencer marketing,” Mars is attempting to revive the classic candy bar 3 Musketeers with young consumers through a digital-only campaign featuring the “Musketeens”—three unknowns they want to turn into YouTube stars. The teens look and act like established YouTube influencers, and have been able to garner 400,000 video views. But the response has been split, with a large portion of users calling out the videos as annoying ads. (Digiday

Quote of the Day: “I consider luxury items as something that is nice to have, but that I can also live without.”—Female, 23, FL

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