With the festive shopping season now upon us, research from Dentsu uncovers key differences in the buying behaviours of various generations of shoppers.

According to dentsu’s Read the Room report, millennials are standing out from other buyers, focusing more on independent, local and luxury brands. In fact, millennials are almost three times as likely (28%) to buy from independent, small businesses even if it costs more. This is compared with only 10% of boomers. Millennials are also most likely to do all their shopping online (28%), above Gen Z (24%).

To align with these shopping behaviours, and appeal to a generation that makes up one fifth of the population, this holiday season retailers should look to enhance online experiences and offer local products and services. Similarly, they need to demonstrate purpose beyond profit, as two fifths (42%) of millennials are more likely to buy from brands that do so.

Dentsu’s data reiterates that today’s shoppers are looking to interact with brands that understand them. In fact, two thirds (65%) of millennials want to buy from brands that demonstrate emotional intelligence and understanding through their advertising. 

Paul Lynch, Integrated Solutions Lead, Commerce & Retail UK&I, dentsu, comments: “As retailers once again enter their busiest period of the year, the importance of connecting with customers on a deeper level cannot be overstated. Generational differences need to be taken into account so that brands can create demand in the right spaces. 

“Millennials with their potential spending power – both now and in the future – represent a significant opportunity. However, in order to connect with this generation, retailers must communicate purpose beyond profit and focus on personalised in the moment experiences. Brands that can effectively embody and communicate their values, whilst listening to their key audiences, will thrive in the changing consumer landscape.”