08 December 2023

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Millennials: New Trends in the Global Economy

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According to Goldman Sachs Asset Management, millennials no longer represent the market of the future; instead, they are currently the most influential consumer generation, serving as the driving force behind global economic development.

To understand the future of consumption, it is crucial to delve into Generation Y, analyzing their interests. Often labeled as digital natives, technology plays a fundamental role in their lives. Unlike previous generations, they prioritize experiences and services over material possessions. They prefer new methods of communication and digital interaction, pay significant attention to physical well-being, and maintain a focus on sustainability. Combining all these elements with their aggregate income surpassing that of previous generations, it can be said that, from a demographic perspective, they will represent the wealthiest group in the future. The income evolution of millennials will have a disruptive impact on the market, shaping global spending and consumption based on their preferences and needs.

The task for investors and, even more so, for businesses is to understand these preferences in advance to be prepared. Two areas are the focus of Generation Y:

1. Technology: Digital natives thrive on technology, conducting online shopping through e-commerce, seeking entertainment online through specific platforms, and remaining constantly connected. Additionally, artificial intelligence and machine learning are becoming increasingly integrated into everyday life.
2. Sustainability: Millennials have grown up in an era where the impact and effects of climate change have become very evident and, in some ways, irreversible. In this regard, their approach to sustainability is much more than a simple point of interest—it is a true philosophy that accompanies their daily lives and cuts across all fields, sectors, and industries. Given the centrality attributed to this theme, consumption and behavior patterns are strongly influenced by it. Many studies even emphasize that millennials not only prefer spending on sustainable issues but also working for sustainable companies. Therefore, all these aspects must be considered by business models.