Imagine a group of over 92 million people (in the US alone) that think alike but are different; are considered narcissistic and entitled yet giving and charitable; and, are taking over the world. I speak, of course, of millennials. Whatever your sentiment to this ‘next generation’, one thing is clear. To get ahead, we need to throw ourselves into their mosh pit.
Goldman Sachs recently noted that millennials- those born between 1980 and 2000, one of the largest generations in history, are moving into their prime spending years. This group, with a different worldview and having grown up at a time of rapid change, are poised to reshape the economy, as their unique experiences are changing how we buy and sell. Their role as influencers are shaping economies and bringing down barriers.
In most key markets such as the US, Australia and India, millennials are overtaking baby boomers in spending. These dynamic digital natives are driving businesses and startups to innovate and evolve at a rapid pace. Are we keeping up? Do we need to?
Keeping up with the millennials
Today, the path to success isn’t linear. Millennials aren’t just planning on working for one company for 20 years and not question authority. The disruptors who trade in Bitcoin and communicate on Snapchat are taking risks their parents would never have dreamt of. Investors are taking note and looking at startups that are capturing the way millennials want to do business in future.
Silicon Valley and start-ups across the world took on traditional banking institutions by offering financial products as alternatives to traditional banks. Investors dug deep to fund these financial services that speak to a new and growing base of users. Alley Watch noted that at the root of the interest is an effort to capture the way millennials want to do banking in the future. Where in the past, young people would work, earn and save a little to secure larger loans, new models such as peer-to-peer lending have forced banks to evolve to meet the needs of millennials.
Victoria’s Secret has learnt the lesson of not engaging with millennials the hard way. It’s CEO resigned recently and the company announced it would stop producing its iconic swimwear line. In an age where Kim Kardashian and social media stars are taking over the Internet, fashion labels and conversations, Victoria’s Secret failed to keep up.
It also did not appeal to women at the other end of the spectrum, who look for brands that are charitable, ethical, environmentally conscious and diverse. As New York Post said, millennials are redefining what is appealing, not just with regard to women’s bodies, but with regard to a company’s values purpose and ethics.
Why should we get into their mosh pit?
So why should we all care and does this really affect me (a baby boomer or Gen X)?
As millennials re-define how individuals and brands succeed, their influence will extend beyond Uber, Spotify and Netflix to everything else. A recent survey found that 23 per cent of Americans find artwork on Instagram and Pinterest instead of the traditional route of going to museums.
Sotheby’s, a brand established in 1744, responded to such trends by going online and using digital channels way back in 1999 to engage with millennials. Their willingness to innovate and try digital platforms, well before even online shopping became a thing, has paid off globally – particularly in newer global markets such as China.
As start-ups try to connect, do business and compete globally, how we foray into new markets could and will evolve. How millennials engage presents us with opportunities to tap into their networks and interact with switched-on audiences willing to experiment with new ideas and those open to innovation. Influencers will play a greater role in extending our reach and footprint globally.
As millennials’ affinity for technology shapes everything from shopping and banking to entertainment and the sharing economy, startups and investors are presented with the opportunity to adopt and evolve.
These social media doyens and tech rats are a perfect fit for the entrepreneurial subculture that doesn’t follow the norms of workplace etiquette or enterprise structure. The millennials are what the entrepreneurial ecosystem needs to expand its ability to change the world, one company at a time.
Renata Cooper is the CEO of Forming Circles Global
