Research Shows Gen Y Leads Purchasing Decisions

Generation Y, the valuable demographic born in the 80s and 90s, is seen as one of the most lucrative market segments for many online brands. Now, a new study reported in an article by USA Today asserts that Generation Y surpasses the Baby Boomers in purchasing power and heavily influences most family purchase decisions.

Often studied by marketers as the leaders in new fashion trends, Generation Y is turning away from department stores, such as JC Penney or Dillard’s, and favoring high-end brands like Abercrombie & Fitch, Coach, and Express for their clothing needs. They are also more likely to bargain shop at places like Goodwill or similar thrift stores than to shop at department stores, mixing a need for high-fashion with a sense of fiscal frugality.

Similar trends can be traced across the retail spectrum, from automobiles to electronics. Generation Y’s need for immediacy will steer them towards discount webs sites offering free shipping such as eBay Express or Overstock.com and away from text-intensive sites with poor navigation. Retailers would be smart to acknowledge that Gen Y associates a quality made web site with a quality brand and vice versa.