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 do not want any of the candidates currently in the running to win the election.”—Male, 22, FL

Snapchat clone Snow is continuing to pull in massive numbers. In a little over a year, the app which lets users add effects, stickers, and filters to their selfies, share their images and videos in a “Story,” and send self-destructing messages, has over 80 million downloads—in comparison, Snapchat had about 10 million downloads in a year after launching. Despite the majority of downloads stemming from Asia—particularly in China where Snapchat is banned—brands like Burger King and Nescafe are jumping on the platform by introducing stickers that can be used on the app globally. (Digiday)

The credit card that has gone viral with young consumers has launched their first marketing campaign. “Reserve What’s Next” is a video series for Chase Sapphire Reserve, featuring James Corden interviewing “innovators in the restaurant, transportation, and lodging fields.” It is aimed “at travelers interested in what’s next in travel,” which describes experience-hungry Millennials. The president of Ypulse, Dan Coates, says the behind-the-scenes approach of the new ads will especially appeal to young consumers, because they “love to geek out over things, digging into the process behind the product.” (The New York Times

They may be digitally-savvy, but Millennials are falling for tech scams more often than you think. A global survey from Microsoft and the National Cyber Security Alliance, found that two in three consumers have experienced a tech support scam in the past year, and 50% of 18-34-year-olds reported to have “continued with a fraudulent interaction.” Pop-ups, unsolicited email, and scam websites have given “an edge” to scammers, who are using them to trick even the “savviest members” of the generation. (Fox News

Nature is often the backdrop for ads targeting Millennials, but many times its intention often misses the mark. The “Millennials-gone-wild” trend in advertising is evoking a sense of freedom for young consumers and allows them to be “more in touch with things that are real, things that are natural as a counter effect to all the digital they have around them.” However, brands need to stay aware of over-saturation, particularly within the apparel industry where the imagery has become stylized and less authentic. (MarketWatch

Dole Food Co. is joining forces with Disney to get kids to eat their fruits and veggies. To fulfill their shared mission of “providing high quality produce to help families lead healthier lives," Dole and Walt Disney Co. have produced a new line of produce branded with Disney characters that will be sold starting next month. The strategy is in line with the food industry’s shift in marketing to focus on parents when selling kids’ products by emphasizing 'health-related benefits,' and adding 'all natural' and 'no sugar' labels. (Los Angeles Times)

Quote of the Day: “The issue I most care about during this presidential election is how we are going to resolve this massive student loan problem.”—Male, 23, PA

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