Survey results show millennials are more inclined to shop in-store than online
Technology continues to shape the fast-changing retail environment, with millennials leading the on-line shopping movement. Or are they?
According to a new global survey of millennials by CBRE Group Inc., 70 percent of millennials actually say they prefer to shop in a store instead of online. What’s more, their responses suggest that this preference is unlikely to dramatically change in the future.
The CBRE survey is one of most extensive and detailed global research projects on millennial preferences, with 13,000 millennials aged between 22 and 29 across 12 countries responding. The survey sought to better understand how this hard-to-figure-out generation approaches lifestyle choices through live, work and play, and what this means for future trends in real estate. Roughly 2,000 of the respondents were in the U.S., half on the East Coast and half on the West Coast.
Almost half of the respondents want to be able to have a desired product immediately and they want to be able to see, touch, feel, test and try out the product in store. While a total of 27 percent of shopping is done online by the majority of millennials, popularity of online shopping varies dramatically by country due to the differing retail dynamic in each country.
Other findings from the survey regarding how millennials shop today include:
In countries with an established international network of retailers, it is likely that online penetration will be higher than those where retailers are more focused on local markets. For example, millennials in the U.K. and U.S. reported a higher percentage of their non-food shopping done online – roughly 39 percent and 36 percent, respectively – than the global average of 35 percent. Meanwhile, Mexico and Spain produced the lowest percentage of participating countries at roughly 15 percent and 20 percent, respectively.
When the millennial shopper does buy online, they want the items delivered to their own home. A significant two thirds of people said they preferred home delivery, followed by delivery to place of work, while ‘click and collect’, lingered as a third option.
Leisure is also an increasingly important part of a millennial’s life and 50 percent of their income goes to dining out, shopping and going to movies and live events.
“The findings of our global research have dispelled some assumptions and reinforced others,” saidAnthony Buono, Chairman of CBRE’s Global Retail Executive Committee. “The fact that millennials have joined the workforce during a time of global economic change has had a profound impact on places they work, live and play. From a retail perspective, it is a certainty that the physical store retains its position of importance in the shopper’s journey. Online is seen to complement in-store shopping rather than conflict with it. This means that the need for retailers to create compelling experiences to ensure shoppers have a reason to visit again and again has never been greater.”
Please click here to download the full report.
Methodology
The findings presented in this report are based on a variety of primary and secondary research. Initially, a literature review of existing research was undertaken, covering more than 200 articles and publications, to assess the body of existing knowledge around millennials and identify relevant topics for our primary research. CBRE then commissioned Ipsos MORI to conduct an online survey of 13,000 millennials, defined as those born between 1986 and 1993 (i.e., currently aged between 22 and 29). They surveyed 1,000 respondents in each of 12 countries across the three major global regions: Americas: Canada, Mexico and 2,000 responses from the United States (1,000 from the East Coast, 1,000 from the West Coast), Asia Pacific: Japan, China, India, Hong Kong, and Australia, Europe: Germany, Spain, France and the U.K. Within each country, the sample was constructed to ensure an equal balance of male and female respondents, as well as an equal ratio of 22–25 year olds and 26–29 year olds. To supplement the data from the IPSOS survey, an equivalent online survey was circulated to CBRE employees. In part, the objective of this internal survey was to compare the views of millennials with those of older generations, so the survey was open to employees from all age groups. It was completed by 6,893 respondents from 52 office locations around the world, 27% of whom were between the ages of 22 and 29. In total, the data in our survey reflect the views of nearly 20,000 people from across the globe. Finally, a series of discussion forums were held with CBRE employees around the world to explore some of the key themes of the report in greater depth.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
