Generation Y don’t want cheap – they seek ethical behaviour.
Today’s young adults born after 1980 are known as Generation Y or the millennial generation – research indicates that they would rather experience life and be happy than buy new things (Forbes). How can the cost-leadership model align with this? An example of value migration in full force – post shares and views amounting to nearly 250k on the articles above prove this. If we look at Sports Direct Shares below (HL.co.uk), we can see a significant decline over three years which may be due to a shift in lifestyle and not addressing the needs of Generation Y. Smart businesses will be adapting their offer to include the needs and align with the values of Generation Y. A New York Times report says: “Rather than chasing the money, they (Generation Y) appear to want a career that makes them happy — a job that combines the perks of Google with the flexibility of a start-up“
Millennials want business owners to be different and show the love
There are three reasons millennials buy products or services, according to Josh Dykstra of Fast Company; they want to do something with the product, they want to tell others about the product and/or they want a product that says something about them. Millennials also care deeply about the well-being of the planet. Millennials understand that many products and services are made overseas, and they are not happy or confident that these products were made by people who were treated fairly! Millennials are employees and customers.
Not forgetting other generations, there is a general trend towards wanting to know where our products are made. We want convenience and quality over cost. Most of us know that if we buy cheap, we pay twice. We want to buy from people who are fair and ethical – that’s why there are so many comparison sites show pros and cons as well as cost. The proof is looking at the number of shares and likes on the articles I mentioned above.
- Dykstra JA (2012), Why Millennials don’t way to buy stuff, [cited 30/9/16, https://www.fastcompany.com/1842581/why-millennials-dont-want-buy-stuff]
- Esfahani Smith E, Aaker J L (2013), Millennial Searchers, http://www.nytimes.com/2013/12/01/opinion/sunday/millennial-searchers.html?nl=todaysheadlines&emc=edit_th_20131201&_r=1