Home' Forge : Vol 2 No 2 Contents March of the millennials
The younger generation presents a complex
marketing challenge for companies
Much has been written about the corporate challenges of attracting
and retaining millennials -- that supposedly headstrong generation of
'digital natives' born between 1980 and 2000. Less considered is how
millennials will reshape the global economy.
Investment bank Goldman Sachs says that millennials are the biggest
generational cohort in United States history: there are 92 million
millennials compared to 77 million baby boomers. They are the world's
frst true digital natives, and the most connected generation to date.
Millennials also have less money to spend compared to previous
generations, and are encumbered with high levels of student debt.
As in most other advanced economies, Australian millennials face
record-low wages growth, less job security and more casualised
work in many industries.
These trends are changing millennial priorities. Fewer than one in fve
US adults aged 18 to 31 are married and living in their own house; in
1968, almost half of all people this age were married home owners.
About one-third of millennials in the United States choose to live at
home with their parents.
Millennials are putting off -- or giving up on -- major purchases, such
as a house or even a car. They are more interested in access to items,
rather than ownership of them, says Goldman Sachs. They are also
delaying marriage more than previous generations, and have a daily
commitment to wellness and exercise.
There is some good news for millennials. By 2020, millennials and
generation X (those born from the early '60s to early '80s) will control
more than half of all investable assets, or about US$30 trillion, according
to accounting frm PwC.
A massive intergenerational wealth transfer is underway as generation
X and, to a lesser extent, millennials inherit their parents' wealth over
the next 10 years and beyond.
PwC believes that wealth management frms will need to embrace
‘robo-advisers’: technology-based systems that automate fnancial
advice and help generation X and millennials invest inherited wealth.
These generations are, anecdotally, far more comfortable with software
algorithms that choose how and where they should invest, compared to
PwC writes: 'The generational shift of wealth represents an
extraordinary opportunity for fnancial advisers. However, this
wealth transfer isn't without its challenges for advisers. Shifting
client expectations, the emergence of new competitors, and
disruptive technologies are just a few of the key challenges facing
The collision of these trends could have profound implications
for the global economy. Millennials and generation Xers have less
fnancial capacity now to make major purchases, but within a few
decades they could beneft from the biggest intergenerational wealth
transfer in history.
The trend is already underway for the oldest generation Xers, who
will inherit billions of dollars of their parents’ wealth in the next fve to
Festivals boom stops rock stars going bust
Mega-events are outplaying individual tours
in the digital age
Ever wonder why more rock and pop music seems to be written for
giant music festivals: all thumping baselines and anthems that appeal
to large audiences in outdoor arenas? Or why so many nostalgia acts
from the '80s and '90s are making comebacks at festivals?
It's money, of course -- lots of it, for groups such as hip-hop duo
OutKast, which earned an estimated US$60 million for a 40-festival
reunion tour in 2014, according to Rolling Stone magazine. But for many
more acts, music festivals are vital for their survival.
Technological disruption has all but killed revenue from album sales
for most artists. Subscription-based streaming services, such as Spotify,
have crunched artists' earnings from music sales as online album and
song purchases fall. And a new generation of music consumers prefers
to pirate music entertainment for free.
Business forecaster IBISWorld estimates that only 7.7 per cent of artists'
revenue comes from album sales. To survive this trend, musicians
worldwide are increasingly relying on live shows, particularly summer
Music festivals are big business. An estimated 32 million people
attend at least one US music festival each year, according to Nielsen's
'Audience Insights on Music Festivals'. Fans are paying US$180 to
US$450 to see dozens of musical acts at a festival.
6 // fast lane
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