What: A deep dive into the psychology of the younger customers in Europe and US.

Why it is important: Their contradictions do not hide the fact that retailers need to adapt to them: they will not make any effort to do so on their own.

The Economist discusses the shopping habits and characteristics of young consumers, specifically Gen Z and millennials.

These groups have thin wallets and expensive tastes, they prize convenience and a social conscience, they want shopping to be seamless and personal and they crave authenticity while being constantly immersed in a digital world. They are also affected by the economy and the uncertainty of their future due to the financial crisis of 2007-09 and the pandemic. They have less wealth than older generations and they tend to spend impulsively due to access to means of spreading payments. They also have a heightened expectation of convenience and lower tolerance for long delivery times. They are always on and often prefer subscriptions and quick fixes for everything from fashion to furniture.

In addition to the characteristics and shopping habits outlined above, the Economist also mentions that young consumers value transparency and authenticity in the brands they purchase from. They are more likely to support companies that align with their values and have a positive impact on society and the environment. They also have a strong desire for personalization and customization in their shopping experiences. They want to feel like they have a connection with the brand and that their preferences are being taken into account.

Furthermore, businesses should focus on creating a seamless integration between online and offline experiences for young consumers. While they value the convenience of online shopping, they also appreciate the tactile experience of shopping in physical stores and the opportunity to interact with sales associates.

The article also notes that young consumers are increasingly using social media to research and discover new products, which means that companies need to have a strong presence on these platforms in order to reach this demographic. Additionally, businesses must be aware of the power of influencers and the impact they can have on young consumers.

How the young spend their money