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1MILLENNIAL MYTHS BUSTED Copyright © 2016 The Nielsen Company

MILLENNIAL MYTHS BUSTEDA N AU S T R A L I A N S N A P S H O T O F T H E C O N N E C T E D G E N E R AT I O N

D E C E M B E R 2016

2 MILLENNIAL MYTHS BUSTED

INTRODUCTIONThere has been a significant amount of research into the Millennial

generation, who seem to be an enigma for many companies

attempting to tap into their increasingly large buying potential.

They’re a new breed of consumer, who have been labelled as the

social media generation, the ‘me’ generation, the selfish and even the

lazy generation.

So just how true are these Millennial stereotypes and labels? This

report highlights five of the most common myths associated with this

generation and dispels them through insightful data and reasoning,

while exploring what makes them unique.

Millennials are becoming a new powerhouse of consumers who

are more educated, connected and demanding than their parents.

Their lives are in consistent states of transition as they join the

workforce, move into new homes and start their own families.

They are constantly busy, distracted and alert. Understanding their

defining traits, engaging with them on their platforms and delighting

them with useful products will put companies in the best position to

capitalise on the opportunities they present.

Millennials are ready to be a part of the conversation if you’re willing

to listen.


CONTENTSSUMMARY .......................................................................................... 4

MYTH #1: MILLENNIALS ARE THE SELFISH GENERATION .............................................................5

MYTH #2: MILLENNIALS ARE DREAMING OF A SUBURBAN LIFESTYLE ............................................................ 7

MYTH #3: MILLENNIALS ARE POOR ...............................................9

MYTH #4: MILLENNIALS ARE FRIVOLOUS WITH MONEY ............................................................. 10

MYTH #5: MILLENNIALS ARE DISTRACTED BY TECHNOLOGY .................................................... 13

WHY MILLENNIALS MATTER .......................................................... 16

4 MILLENNIAL MYTHS BUSTED Copyright © 2016 The Nielsen Company

SUMMARYAround the world, Millennials account for 24% of the population,

making them an incredibly significant market segment. They’re the

social generation - the founders of the social media movement who

are constantly connected to their social circles via the Internet and

mobile. They’re using it to stay in touch with friends, keep up with

family and voice their opinions on causes they care about.

You’ll find Millennials in cities where social interaction is right outside

their front door and where they’re able to enjoy some of the finer

things in life. They have, however, grown up in a difficult economic

climate and are therefore more inclined to be thrifty in certain areas.

Millennials are many things, but they may not be what you expect.

WHO THEY ARE OF THE AUSTRALIAN

OVER 40% OF MILLENNIALS ARE YOUNG FAMILIES

POPULATION AGE 18-34

29%

AVERAGE PERSONAL

INCOME $44K

31%

AVERAGE HOUSEHOLD

INCOME $94K

HOLD A BACHELOR’S DEGREE

OF MILLENNIALS WERE BORN IN AUSTRALIA

MORE THAN ONE IN FIVE SPEAK A SECOND LANGUAGE AT HOME

80%


Millennials are true blue Australians with 80% of the generation born

in the country. They are, however, incredibly diverse, with over one in

five of them speaking a second language at home, the most common

being Chinese. The majority (57%) enjoy being surrounded by different

cultures compared to 46% of Boomers, which influences their

purchase decisions and household consumption patterns.

While the Millennial generation has been referred to as the “me”

generation, they still express care and compassion for many areas

outside themselves. Almost half say that family is their number one

priority in life, and 71% put family before their career, demonstrating

the value they place on relationships.

Millennials live off lower than average incomes, but they still care

about giving. One in three support a charity with regular payments

and almost 40% say they think with their hearts rather than their head

when donating. If they don’t feel like they can give financially, they

donate their time with 40% saying they participated in volunteer work

over the past year - more than any other generation during the same

time period.

Unemployment is the number one social issue for 22% of Millennials

compared to 14% of those aged over 50. They’re also concerned about

education and health, with one in three obtaining a university degree,

and living a healthy and active life. While only 8% cite the environment

as the most important social issue, almost 50% of Millennials prefer

to purchase environmentally friendly products and 38% actively take

steps to minimise their environmental impact.

A MELTING POT OF DIVERSITY

THEY DO CARE

MYTH #1: MILLENNIALS ARE THE SELFISH GENERATION

MYTH BUSTED:THEY’RE DIVERSE, FAMILY ORIENTED AND CARE ABOUT

SOCIAL ISSUES FACING AUSTRALIAN SOCIETY.

6 MILLENNIAL MYTHS BUSTEDMILLENNIAL MYTHS BUSTED

Millennials’ busy lives don’t get in the way of their health. Most live by

a ‘work hard, play hard’ ethic. They are active and love being outdoors,

with just under four in five enjoying a trip to the beach and 54% going

for bushwalks in the last 12 months. Almost nine in 10 Millennials

have paid a visit to a doctor in the past year.

Their focus on wellbeing influences their purchase behaviours, with

62% of Millennials seeking organic cues while shopping for groceries

and 60% stating they like sustainably sourced products, reiterating

their caring nature.

THEY LOOK AFTER THEMSELVES

WHILE SHOPPING FOR GROCERIES, MILLENNIALS LOOK OUT FOR

62% 61%

54%60%

ORGANIC CUES

SUSTAINABLY SOURCED

HIGH IN PROTEIN

GLUTEN-FREE

Source: Nielsen Q3, 2014 Consumer Confidence Survey

7MILLENNIAL MYTHS BUSTEDMILLENNIAL MYTHS BUSTED Copyright © 2016 The Nielsen Company

Cities are the economic hub of the nation and Millennials are opting

to live in urban areas before suburban or rural communities. In fact,

three in four Millennials choose to live in the five metro capital cities

across Australia where they have greater access to their living needs.

Sydney and Melbourne are hotspots with 44% of Millennials residing

in these urban areas, further demonstrating their preference for

locations that offer a variety of work and leisure activities that satisfy

their broad repertoire of hobbies - from enjoying nightlife to camping

and going to the beach.

BIG CITY LIVING

MELBOURNE

PERTHSYDNEY

BRISBANE

ADELAIDE

3 IN 4 MILLENNIALS CHOOSE TO LIVE IN MAJOR CITIES

MYTH #2: MILLENNIALS ARE DREAMING OF A SUBURBAN LIFESTYLE

MYTH BUSTED:THEY’RE LOOKING FOR AN URBAN CENTRE WHERE THEY

LIVE IN CLOSE PROXIMITY TO ALL THEIR NEEDS


Most Millennials do not live in a stable household. They’re likely to be

renting an apartment with three or more occupants; which they have

lived in for less than five years. They’re transitioning through a variety

of life stages from living at home with parents to moving out with

housemates or a partner, getting married or starting a family of their

own. Millennials are a very mixed bag in this respect; however, 50%

of them have children in the home, and of these, three in five have

children aged under five years old, highlighting their propensity to be

young families.

One in two Millennials spend less than an hour each day commuting

to and from work or study locations each day due to their urban living

arrangements. For this reason, only 67% can drive and only 63% own

a car. This is in comparison to those aged over 35, with 88% being

able to drive and 86% owning a car. With lower statistics for driving

and car ownership, Millennials are 65% more likely to be catching

public transport and almost one in four use car sharing services

regularly

MILLENNIALS DON’T DRIVE AS MUCH


Source: Nielsen Australia Consumer and Media View, National Survey 6 2016 (Aug15-July16), Australians 14+

Millennials are likely to have a lower than average personal income,

earning $44,000 compared to the Australian average of $46,000.

However, they are also likely to live in affluent households that earn

an average of $94,000 per annum. While they earn less, two in three

don’t believe they got a raw deal from life and 60% of Millennials are

happy to pay extra for quality goods.

Just under half of all Millennials fall into the white collar occupation

category with the largest proportion being Professionals (17%). They

are success-driven, working overtime and studying to help advance

their career. So, while they may not be financially poor, 56% feel

they’re time-poor and can’t get everything done. For this reason,

many Millennials turn to services such as Netflix and Catch-Up TV for

convenience and the ability to access information and entertainment

when it suits them.

Over one in four would describe themselves as affluent, which aligns

with their inclination to pay extra for quality products that enhance

their self-expression and convey a certain image.

AVERAGE PERSONAL AND HOUSEHOLD YEARLY INCOME ACROSS AGE GROUPS

AGE GROUP

18 - 34$44,459$58,406$44,051$46,047

$94,071$101,407$74,442$88,073

35 - 49

50+TOTAL

POPULATION

PERSONAL INCOME HOUSEHOLD INCOME

MYTH #3: MILLENNIALS ARE POOR

MYTH BUSTED:THEY LIVE IN AFFLUENT HOUSEHOLDS, LIKE THE FINER THINGS IN

LIFE AND ARE HAPPY TO PAY MORE FOR QUALITY PRODUCTS

10 MILLENNIAL MYTHS BUSTED

Millennials are often viewed as the financially irresponsible generation

who waste their earnings on the latest trends. While almost 25% do

believe they are usually the trend setter in their friends’ circle, six in

10 say they’d hold out on buying something until it goes on sale. This

behaviour is reflective of their lower than average income and the

need to be a little more thrifty in their purchasing habits than other

generations.

In saying this, however, Millennials seek convenience when it comes

to food as they’re leading increasingly busy lives. Around four in five

have been to a fast-food outlet in the past month, with McDonald’s

the number one choice, followed by KFC, Hungry Jacks, Subway and

Dominos. They’re also looking for energy to keep up with their hectic

schedule, buying higher amounts of energy, sports and iced tea drinks

than other generations, to stay on top of their commitments.

Today Millennials are worth 7% of the retail market; however, Nielsen

predicts that by 2021 their share will jump to 17%. This means that

over the next five years Millennials will account for a growth of $6.1

billion within retail, demonstrating the immense buying power this

generation will hold in the future.

While Millennials may be demanding better products, they do need

to balance their wishes with their wallets. They make fewer shopping

trips per year than their older counterparts and spend less - $48

versus $58 per trip for Generation Y. Millennials, however, do spend

more than other generations in pharmacies and, when they do

shop Millennials spend more on baby food and less on ice cream in

comparison to Generation X, Y and Boomers, demonstrating their

likelihood to be young families who are health conscious.

GROWING UP AND GROWING THEIR SPEND

MYTH #4: MILLENNIALS ARE FRIVOLOUS WITH MONEY

MYTH BUSTED:WHILE THEY’RE HAPPY TO SPEND MORE ON QUALITY PRODUCTS,

MILLENNIALS ARE SAVVY SHOPPERS WHO OFTEN WAIT FOR SALES


AGE BRACKET SUPERMARKETS PHARMACY CONVENIENCE

Source: Nielsen Homescan, Total Australia, 52 weeks ending 1 October 2016


MILLENNIALS (<35)

GENERATION Y (35-44)

GENERATION X (45-54)

BOOMERS (55+)

MILLENNIALS (<35)



BOOMERS (55+)

81 / 6 / 7

$48 / $35 / $8

91 / 6 / 7

$58 / $33 / $13

99 / 7 / 11

$57 / $34 / $9

107 / 9 / 21

$45 / $31 / $6

AVERAGE BASKET PRICE $ PER TRIP

AVERAGE SHOPPING TRIPS PER HOUSEHOLD



ANNUAL $ SPENT PER HOUSEHOLD AMONG CATEGORY BUYERS

$88

$81

$18

$28

$217

$271

$370

$365

$65

$93

$102

$96

$90

$95

$111

$141

BABY FOOD

PET FOOD

ICE CREAM

VITAMINS

MILLENNIALS (<35)



BOOMERS (55+)


In today’s digitally-driven world, being connected is an important part of

Millennials’ lives. They are technologically-savvy, being the first generation

to come of age with the Internet, laptops and mobile phones. Ninety-three

percent of younger Millennials (16-24 years) and 90% of older Millennials

(25-34 years) own a smartphone which they use to stream TV shows and

movies, text, take photos and post updates on their social profiles. An

astounding 83% sleep with their smartphone.

And it’s not just their smartphone they are attached to. On average, younger

Millennials have up to 11 connected devices - more than double that of

people aged over 60.

MILLENNIALS ARE ALWAYS CONNECTED

TOTAL NUMBER OF CONNECTED DEVICES IN THE HOME SPLIT BY KEY DEMOGRAPHIC SEGMENTS

TOTAL

MALE

FEMALE

16-24 YEARS

25-34 YEARS

35-44 YEARS

45-59 YEARS

60+ YEARS

888119875

Source: Nielsen Australian Connected Consumers Report, March 2016

MYTH #5: THEY’RE DISTRACTED BY TECHNOLOGY

MYTH BUSTED:THEY’RE CONNECTING IN DIFFERENT WAYS THROUGH NEW

PLATFORMS AND ARE SOME OF THE FIRST TO TRY NEW TRENDS


Millennials use social media to express and share their opinions, with

65% of the generation using it as a way of feeling connected to others.

They’re less concerned with privacy and security in comparison to

their parents and have less reservations sharing personal information

online. For them, fear of missing out (FOMO) is a real thing, with

36% feeling out of touch if they can’t check their networks. They’re

most likely to be on Facebook, Youtube and Instagram and are more

connected than any other generation.

SOCIAL MEDIA IS IN THEIR DNA

ACTIVE SOCIAL MEDIA PROFILES OF MILLENNIALS

SOCIAL MEDIA PLATFORM

85%79%39%26%

39%25%22%22%37%12%

21%6%

11%19%

YOUNGER MILLENNIALS (16-24 YEARS) OLDER MILLENNIALS (25-34 YEARS)

FACEBOOK

YOUTUBE

INSTAGRAM

TWITTER

SNAPCHAT

TUMBLR

LINKEDIN

Source: Nielsen Australian Connected Consumers Report, March 2016


Unsurprisingly, younger Millennials are the most likely to regularly

use mobile phone applications (82%) and almost all (98%) 16-24 year

old smartphone owners have ever downloaded an app. The uptake

of tablet applications, however, differs from smartphone app usage,

with older Australians over the age of 60 more likely to download and

regularly use tablet apps than their younger counterparts aged 16-24

years. Smartphones are Millennials’ vice and while they’re still using

tablets and laptops, you can almost guarantee they won’t leave the

house without their phone.

Younger Millennials love their social media applications with 84%

using them on a regular basis, making them the heaviest users in

Australia by six percentage points. More than three in four (78%) of

older Millennials use social media regularly. Both groups are also avid

users of applications that serve a purpose such as weather, transport

or banking services, highlighting their inclination to use technology as

a means of improving their lives.

APP HAPPY


WHY MILLENNIALS MATTER

Millennials account for 24% of the world’s population making them a

big piece of the pie As they come of age and start spending more, they

will become a powerful generation with an immense amount of buying

potential.

Those who are able to understand Millennials, engage with them

and delight them will be in the best position to capitalise on the

opportunity they present

Source: Nielsen “The Keys to Unlocking the Millennial Mindset”, 2016

HOW TO CONNECT AND ENGAGE WITH MILLENNIALS

Support their causesMillennials care about social issues and while they may not be writing

cheques to charities, they do want to give back. They’re happy to spend

more on products if the companies can demonstrate social betterment

- making them incredibly receptive to cause marketing. If giving back

to the community and getting involved is easy, they’ll happily take part

and will spread the word via their social channels.

Find them in the citiesThey’re not dreaming of a suburban lifestyle. Three-quarters of

Millennials live in the five metro cities across Australia. Appeal to

them via urban formats that are easy and convenient.

Give them a dealThey’re not poor but they’re still not financially stable. They want

quality products at a great deal and will shop around for the best price.

Provide them with a deal that’s easily accessible (via their mobiles,

social media or online) and they’ll pay you back.

Reach them via social media and mobile Millennials are connected 24/7 to their smartphone and social media,

meaning these are effective ways to reach them. Be authentic, real and

relate to them on various platforms to appeal to them.

Millennials are a new breed of consumer - always connected, always

busy and always looking for the next big thing. They’re ready to be a

part of the conversation; and if you’re willing to listen, you will reach

them.


ABOUT NIELSEN CONSUMER & MEDIA VIEWNielsen’s Consumer & Media View offers a treasure chest of insights

about consumers and what makes them tick. Its comprehensive

coverage genuinely gives a 360 degree view of the consumer across all

areas of daily life. This information can be used to address business

issues to help understand what motivates consumers or how they

interact with different media. It can tell you exactly which websites

your target consumers are visiting, the television programs they are

watching, what they are reading or listening to, and this can be built

into communications strategies and plans.

ABOUT NIELSEN’S HOMESCAN SHOPPER PANELUnderstanding how household shopping behaviour affects your store

and brands’ sales will allow you to fine-tune your marketing decisions

and ultimately yield the greatest return. Our Shopper Panel is robust,

trusted, credible and one of the biggest shopper panels per capita in

the world. It monitors shopper behaviour across a panel of 10,000

households, which is projected to represent the Australian population

and retailing landscape.

ABOUT NIELSEN’S AUSTRALIAN CONNECTED CONSUMER REPORT 2016The Australian Connected Consumers Report has been published

since 1997 and is now in its 18th annual edition. The 2016 report

analyses the responses of 4,802 online Australians aged 16 years and

above through an online survey methodology. All responses were

collected during December, 2015. The report was released on Thursday

31 March, 2016.

The Australian Connected Consumers Report 2016 provides a

comprehensive view of the way Australians consume and obtain

content in today’s increasingly digital world. The outcomes equip

businesses with an understanding of the evolving marketing

landscape in which they operate, in order to seize new opportunities

and uncover those that are on the horizon.

DISCLAIMERThe information contained in this report is based on compilations

and/or estimates representing Nielsen’s opinion based on its analysis

of data and other information, including data from sample households

and/or other sources that may not be under nielsen’s control. Nielsen

shall not be liable for any use of or reliance on the information

contained in this report.

SOURCE AND METHODOLOGY


ABOUT NIELSEN Nielsen Holdings plc (NYSE: NLSN) is a global performance

management company that provides a comprehensive understanding

of what consumers watch and buy. Nielsen’s Watch segment provides

media and advertising clients with Total Audience measurement services

for all devices on which content — video, audio and text — is consumed.

The Buy segment offers consumer packaged goods manufacturers

and retailers the industry’s only global view of retail performance

measurement. By integrating information from its Watch and Buy

segments and other data sources, Nielsen also provides its clients with

analytics that help improve performance. Nielsen, an S&P 500 company,

has operations in over 100 countries, covering more than 90% of the

world’s population.

For more information, visit www.nielsen.com.

Copyright © 2016 The Nielsen Company. All rights reserved. Nielsen and

the Nielsen logo are trademarks or registered trademarks of CZT/ACN

Trademarks, L.L.C. Other product and service names are trademarks or

registered trademarks of their respective companies.16/10610

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