Opinion: Catering to China's millennials | The Daily Beacon

If you believe there is little need to understand the mindset of China’s millennial generation, consider the following statement from a report by consulting firm McKinsey & Company: By 2015, China will account for over 20 percent of the global luxury market, overtaking Japan as the world’s largest luxury market. China’s youth is leading consumption, and this trend is likely to endure as China’s economy continues to grow. As a result of economic growth, Chinese millennials have more money to spend and fewer reasons to save. In addition, China’s increased exposure to globalization and modernization is bound to prod the Chinese millennials to push the political envelope. This means that understanding the mindset of the current young-adult Chinese generation is vital to future Sino-U.S. Relations and the world economy at large.

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Opinion: Catering to China's millennials | The Daily Beacon

Zipcar Targets Millennials

The "Millennials" are Zipcar's most popular patrons according to an article on the MSN Money website today. The car-sharing company recently conducted a study that revealed that 18- to 34-year-olds are the most important market for the company and already constitute more than half of Zipcar's membership base. Zipcar competes with traditional car-rental companies like Hertz Global Holdings, Avis Budget Group and car-sharing services like Connect by Hertz, Enterprise's WeCar, UHaul's UCarShare and City Car Share.

Millennials formed about 23% of the U.S. population in 2010. The study examined the generation's attitudes toward personal transportation and car ownership and found them to be increasingly adoptive of collaborative consumption. The younger generation increasingly values access to cars over personal ownership. More than three-quarters (78%) of 18- to 34-year-old respondents conceded to challenges of car ownership with high gas prices, parking and maintenance costs. The study also noted social media and concern for environment as factors for Millennials driving less. This makes the age group strong adopters of car-sharing, and therefore the most lucrative and influential market segment for Zipcar.

Zipcar has gradually expanded its presence on over 250 U.S. campuses with all-inclusive rates that cover parking, gas, insurance, maintenance and roadside assistance. It has also entered into a two-year strategic alliance with Ford for its campus operations, offering attractive rates for student members.

University campuses not only serve as significant markets for Zipcar but renting cars to students also constitutes a long-term marketing strategy. Students who use Zipcars while in college are more likely to subscribe to Zipcar car-sharing than car ownership when they enter the job market. Zipcar is also attractive to the segment of students who face age restrictions with traditional car-rental companies.

Millennials Are Visual Learners

Most (76%) young people claim to be "visual" learners according to a recent survey by Albing International Marketing. But they tune out (or fast forward) through commercials both on television and the internet. Marketers should be exploring novel ways to communicate with Millennials on the internet. With their thirst for information and knowledge, an even larger number of Millennials (87%) claim to conduct "research" on the net before making both large and small purchase decisions. They are especially receptive to instructional videos and objective sources for information. Yet, Millennials are skeptical of manufacturer's websites and Facebook pages because they believe the comments are "planted" by the company. Instead they prefer YouTube videos and reviews on amazon.

For Millennials: Drinking and Shopping Don't Mix

"Oh my God! What did I buy last night??" Over 38% of Millennials in a recent AIM survey have shopped online "under the influence." And most of them (81%) had regrets the next day...

According to TIME magazine (December 30, 2011), drunk dialing, drunk texts, drunk Facebooking … there are many things one shouldn’t do while drunk. Add online shopping to the list.

Nowadays if you’re drinking, it’s advisable to hand over not only your keys, but your credit card as well, to a sober, responsible friend—ideally, one with good taste too. Why? The dangers of shopping while drunk.

Specifically, online shopping while drunk, which very well may peak during the holiday season, when consumers are in the mode to party and shop in equally large doses. The New York Times recently reported on the syndrome, which is hardly the only activity known to result in bad decisions when the beer goggles are on.

On the one hand, shopping when highly inebriated can double the fun and excitement of impulse purchases. First, there’s the initial fun that goes along with browsing and buying. Second, there’s the fun mystery factor—when a package is delivered and you have no idea what it is until it’s opened.

Everybody likes getting a surprise gift, after all, and shopping while drunk gives you the rare opportunity to buy what’ll feel like a surprise treat for yourself. You may even be surprised with how generous you are when you’re drunk.

Seriously, though, however fun tipsy shopping may be, it must also increase the chances of bizarre and stupid purchases at least by a factor of two. One regrettable example mentioned by a drunk shopper in the Times: a “Heart’s Greatest Hits” CD purchased from Amazon one blurry night. Like the purchase itself, listening to Heart is generally also pleasurable only when intoxicated—and then seems like a horrible idea the day after, when your head’s pounding with a killer hangover.

Few consumers think all that much about shopping while drunk. Unsurprisingly, though, e-retailers are keenly aware of the phenomenon. Almost half of Britons polled by one shopping site said they’d gone shopping online after drinking.

Naturally, sellers do what they can to tempt consumers into making purchases while they’re in good moods and don’t have their guards up. Many online sellers flood consumers with limited-time offers starting well after the dinner hour, when the odds are best that people have a few drinks in them. The Gilt Groupe, which specializes in high-end flash deals, says it’s adding more deals that kick off at 9 p.m. While sellers don’t overtly promote the idea of drunken shopping, hundreds of sellers, including QVC and eBay, take careful note of nighttime shopping patterns—which spike around 8 p.m. and often stay strong through midnight. It’s during these shopping “happy hours” that sellers often focus on fun, seemed-like-a-good-idea-at-the-time impulse purchases, such as Neiman Marcus fashions or a luxury hotel three-day getaway.

As the saying goes, nothing good happens at a bar after midnight. It’s pretty likely that nothing good or sensible is purchased after midnight as well.

So, Millennials, what do YOU think? Have you ever shopped under the influence? What do you think about retailers that specifically target online shoppers in that condition???