When circumstances change, consumers’ tastes also change. According to a recent Deloitte report, modern consumers are becoming more and more distinct from previous years.
Conventional wisdom, typical American consumers have certain characteristics.
Based on popular culture and years of experience and data, we all think that an ordinary consumer might be looking for a home, car, restaurant or shopping mall. However, when circumstances change, consumers’ tastes also change. According to a recent Deloitte report, modern consumers are becoming more and more distinct from previous years.
To understand how changes affect markets and investments, we need to rethink and update the image of modern consumers.
In the analysis, Deloitte relies heavily on demographic and economic factors to summarize the three main changing trends of consumers. These three characteristics greatly affect the way businesses and investors operate.
Visual Capitalist has summarized as below:
1. Consumers are increasingly diverse
Regarding racial factors, 75% of the Baby Boomer generation (born between 1946 and 1964) were white, while the Millenials (born between 1981 – 1996) were 56% white.
Diversity factors also turn to other aspects, such as gender identity and sexual orientation.
2. Under greater financial pressure
Today, consumers are better educated than before, but that trend also has a high price.
In fact, the cost of education increased by 65% between 2007 and 2017. On the books, student loans in the US have a record debt of $ 1,500 billion.
Other costs have also increased, making 80% of consumers unable to increase their incomes in the past decade.
3. Delay important milestones in life
Having a marriage, having a baby and buying a house all have one thing in common, they can be expensive.
An adult under the age of 35 now has a 34% lower net worth compared to the 1990s, making it difficult to spend on milestones.
In fact, couples today marry on average eight years later than in 1965, while the US birth rate is at its lowest level in three decades. At the same time, homeownership of people aged 24 – 32 has decreased by 9% since 2005.
Talents / Economics & Consumption
* Source: VietnamBiz