Millennials are a picky consumer group. And even though the some 80 million American millennials spend $600 billion annually, they’re oftentimes more browsers than buyers. This group’s spending power is projected to reach $1.4 trillion by 2020, or about 30 percent of all retail sales, so companies are very eager to capture this market.
A new survey by Indiana University’s Kelley School of Business of 600 students for its first-ever FIndex (Fashion Innovation Index) found college kids are turning away from such brands as Ugg, Michael Kors, Abercrombie & Fitch, Hollister , and Timberland.
“Whenever we have prolonged periods of pretty strong financial performance, what tends to happen for retailers is they become more conservative in their approach to product. They take fewer chances. Because last spring worked pretty well, they go back and think of things in terms of a sequel,” explains John Talbott, associate director of the IU Kelley School of Business’ Center for Education and Research in Retailing, in a press release.
Instead millennials are attracted to such brands as Kate Spade and Urban Outfitters, two brands that tend to refresh their image frequently, reports Refinery29. Plus, they have stores located near college campuses. Millennials tend to be unswayed by advertisements and instead are looking for fresh aesthetic, accessibility, and affordability when clothes shopping.
What’s your favorite brand these days?