NEWSWIRE: 9/18/17
- Millennial Kashmira Gander notes that many of her peers (herself included) have become “obsessed” with houseplants. In addition to boosting mental health and air quality, these plants also afford single Millennials the opportunity to “have a go at caring for something other than ourselves.” (The Independent)
- NH: This Millennial's report on her generation's plant obsession nicely coincides with other recent reports on Millennials' pet obsession. (Like plants, pets are "family" members you can afford when raising a real family just has to wait.) See the report issued last April by the American Pet Products Association showing that Millennials accounted for 35% of all pet owners in 2015--thereby exceeding Boomer owners for the first time. (See: "Pet Care: The Four-Legged Bull Market.")
- Next month, Nordstrom will open a California store featuring manicures, onsite tailoring, and a café—but no clothes inventory. This radical strategy comes at a time when brick-and-mortar retailers are trying to create more added value for customers that venture out to the store. (The Wall Street Journal)
- NH: The future of retail is neither all digital nor all brick and mortar. It is the complementary mix of both--hi-tech and hi-touch--which is why the Nordstrom move makes perfect sense. Even eMarketer admits that 90% of the world's retail sales are still face to face. Amazon knows it has to learn how to manage physical stores at least as rapidly as the traditional brands have to master e-tail.
- Only 5% of Millennials between the ages of 21 and 34 have opened a mortgage—compared to 10% of Xers at the same age. While their parents prioritized homeownership, Millennials would rather save money by living with family and friends. (TransUnion)
- NH: This isn't just a difference in credit eligibility. Even in the highest super-prime credit tier, 16% of young Gen Xers were opening mortgages (at higher real rates), versus 13% of today's young Millennials.
- Contributor John Solari urges companies to cash in on Boomers’ institutional knowledge before they retire. For companies with aging workforces, the message is clear: Those that can successfully transfer knowledge from one generation to the next will come out ahead in the long run. (Reno Gazette-Journal)
- NH: Some economists are suggesting that the massive retirement of Boomers, who earn roughly twice the salary of incoming Millennials, is helping to restrain growth in average wages. If we assume that earnings track marginal labor product, this exodus may also help explain some of the recent slowdown in U.S. productivity growth. Retaining Boomer experience is an economic plus. And when employers can't retain it, finding creative ways to persuade Boomers to pass their experience on to newbies and "teach their children well" is the next-best plus.
- American Express is targeting Millennials with a no-fee Delta credit card. This card gives Millennials exactly what they want: a cheap and easy way to save for their Instagram-worthy travel experiences. (Bloomberg Business)
- While 68% of Millennials say that a quality education is key to success, only 22% believe that high school prepared them for the workforce. Millennials wish that their public education had better readied them for the tough economy and job market that was waiting for them upon graduation. (Echelon Insights/Walton Family Foundation)
- U.S. median household income rose for a second consecutive year to $59,039 in 2016—a 3.2% increase from 2015 and the highest level ever recorded. While these gains suggest that the nation is finally recovering from the recession, many economists and policy experts are worried that a tight labor market will constrain future gains. (U.S. Census Bureau)
- NH: Real median income growth in 2016 (+3.2%) was, as expected, a slowdown from 2015 (+5.2%). In 2015, the big driver was rising real gains and improving terms of trade from plunging energy and food prices. In 2016, the gain came solely from a further rise in the share of Americans with full-time year-round wages. It did not come from any appreciable gain in wages per full-time worker. Following a trend now dating back to 2014, these gains were disportionately enjoyed by younger Americans (especially <25), immigrants, and residents in major urban centers.
- Contributor Pamela Danziger argues that it’s a mistake to think that Millennials will like luxury goods as they grow older. She makes a solid point: The air of exclusivity that shrouds luxury brands doesn’t sit well with ever-inclusive Millennials. (Forbes)
- NH: Excellent op-ed on Millennials and luxury. See also this recent report from Deloitte.
- One in three Millennials wish they had grown up when their parents were kids, while just 15% of older generations say they would rather have grown up today. In danger of becoming the first generation to earn less than their parents did, Millennials would certainly consider trading places. (Resolution Foundation)
- NH: This survey speaks to the surprisingly conventional Millennial outlook on the world. (A recent Economist survey came to a similar conclusion.) Try to imagine, after all, how many young Boomers in 1970 would have preferred growing up in the 1920s! In the era of Trump, to be sure, lots of Americans are expressing nostalgia about the past. A 2013 PPRI study showed that a majority of Americans (54%) say that "American culture and way of life" has changed for the worse since the 1950--with men and women agreeing equally and a surprising share of African-Americans (39%), Hispanics (43%), and Millennials (49%) also agreeing. (See: "Did You Know? Those Nifty '50s.")
- Fully 51% of all grocery purchases were influenced by digital media or information last year, a near-doubling YOY. Savvy shoppers are increasingly aware that the sticker price they see is not necessarily the best around—and are scouring digital media for deals before heading out to the store. (Deloitte)
- NH: The more consumers pay attention to digital media, the less they will care about shelf displays. Say goodbye to rising slotting fees (which incredibly constitute roughly 25% of big grocery chains' earnings). And brace for further shrinkage in CPG brand equity.
DID YOU KNOW?
It Takes a Virtual Village. Raising a child is a costly endeavor full of packed schedules and plenty of headaches. But the sharing economy is here to help: A growing array of apps and services are geared toward helping young parents save time and money. Take apps like thredUp and goBaby, which allow parents to buy and rent lightly used clothing and baby gear at a steep discount. Services that free up parents’ time are invaluable as well: Using TaskRabbit’s personal assistant services, parents can essentially be in two places at once. Need a quick ride but don’t have access to a car? Uber vehicles come with pre-installed car seats in many cities. But undoubtedly the biggest drain on a new family’s budget is child care—and here too the sharing economy comes to the rescue. SittingAround helps coordinate “babysitter co-ops” where parents can trade free babysitting services with neighbors who are available at different times of day.
