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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Quote of the Day: “When a brand can adapt to all shoppers, it makes me trust them more.”

—Female, 24, MI

A startup is leveraging angry tweets to let brands find new consumers, and engineer some incredibly personalized marketing. Customer service listening tool SocialRank Realtime allows brands to view a dashboard of tweets from consumers “who might be fans of theirs in the future.” For example, after viewing a tweet from a potential consumer about a flight delay, an airport restaurant might send over a cup of coffee to their location. The tool touts its ability to let brands to create “real relationships” with consumers and has already signed on Juicy Couture and Aéropostale. (Business Insider)  

Teens are watching influencers on YouTube, but what are the teen influencers watching? According to an Influenster survey of 14-51-year-old “tastemaker consumers,” 93% of 14-18-year-old influencers are watching product reviews—compared to 86% of overall respondents. Haul videos came in next in popularity at 76% (24% more than overall), followed by unboxing videos at 71% (19% more than overall). Seven in ten teen influencers are also watching YouTube videos at least once a day, and 42% say they can watch between six to 15 per sitting. (eMarketer

Pokémon Go is still going. The revolutionary game, which attracted 500 million users in eight weeks last summer, has made an estimated $1 billion in the last seven months and reports “a very large level” of users. The second version of the game will soon be released, with 80 new monsters to catch—which is good news for brands. According to the CEO of Niantic Labs, the game will soon be integrating ads that fit in organically to the platform, and the game’s partnership with Starbucks on a Pokémon Go beverage “opened a lot of people’s eyes to start imagining other cool things that you can do.” (Adweek

Wattpad is the latest company getting into storytelling via text messages. The social publishing platform has launched mobile app Tap, where readers can discover “chat-style” stories across genres like horror, romance, drama and more. Although fiction app Hooked and kid-targeted Amazon Rapids takes a similar approach, Tap is the only one that takes a “voyeuristic” angle, giving readers the feeling that they’re reading through someone else’s chat messages—a move that can appeal to teenagers and young adults. (TechCrunch

Nordstrom is going above and beyond the “typical department store” offerings to reach young consumers. Earlier this week, the retailer launched the Lab—an incubator venture that showcases indie, new designers with “completely different audiences, messages, and points of view.” Each season will bring a new crop of designers, and according to the retailer, new stories: “It's the full package — who is the designer, what is their story, what do they stand for, why are they doing what they are doing, who is it for. There’s an authenticity [in that].” (Racked

Quote of the Day: “For my engagement ring, I want a tattoo. No ring.”—Female, 30, AZ

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