retail

For Holiday Shopping, Gen Y Loses Its Tech Edge

Scott-Erickson

As Deloitte continues to sift through its recent holiday spending survey, it’s noticing some unexpected generational differences as shoppers ready their Christmas lists. But there are also some big non-differences, as well, explains Scott Erickson, a Minneapolis-based partner in Deloitte’s retail practice. “When it comes to online and social media, we are seeing a bit of flattening of the bell curve,” he tells Marketing Daily. “It used to be that we saw a much higher usage in Gen Y, and now we’re seeing that the people utilizing digital and online experiences are spread pretty widely across all age and income groups.”

We asked about other segment distinctions:

Q: So how does Gen Y differ, at this point?

advertisement

advertisement

A: They’re still bigger users of social media when it comes to shopping, and it’s more broadly adopted. They’re also a lot less concerned about privacy in social media. Just 38% of those 18 to 24 say they have concern, versus 58% of those who are 55-plus. And they are more likely to be looking for deals. For example, Gen Y consumers are most likely to embrace the Black Friday tradition, with 42% getting involved. And 37% say they’ll shop on Cyber Monday.  Among shoppers who are 25 or older, just 24% will shop on Black Friday, and 20% on Cyber Monday.

Q: What are the main income distinctions?

A: Well, lower income shoppers (earning less than $100,000) are certainly emphasizing finding bargains, especially via the Internet. They’re the most likely to express concerns about the economy and stability in their jobs. And they are spending a higher percentage of their income on necessities. But they aren’t pulling back too much. Overall, 59% of those in our survey plan to spend the same or more than they did last.

Q: Typically, lower income consumers do less online shopping. Still true?

A: Not really. We saw this preference to shop online across the board, with the Internet climbing 13 percentage points to tie discounters as the No. 1 place to buy gifts. It offers them more opportunities to shop on price, and get better deals.

Q: What were the other surprises?

A: The big drop in popularity for gift cards: They fell from No. 1 to No. 2 in our survey for the first time. They’re still very popular, with 45%, but clothing moved into first place with 48%. (Books were a distant third, with 35%.) We’ve explored it a bit, and think that it certainly has something to do with people trying to be more personalized. But it matches what retailers are doing with social media, online and in stores. They are really trying to get more personalized in their offerings, and technology is making it easier for them.

Next story loading loading..