Insight into Generation Y

And why you feel you owe them

Location	Industry	Trend Watch
Singapore, Worldwide	Retail	Insight

The term ‘Millennial’, those belonging in Generation Y born between 1977-1995, has been thrown around the retail industry in the recent past, having identified them as the key consumers in today’s marketplace. While affectionately embraced by the generation itself, their parents (generally of the Baby Boomer generation) and those outside it tend to have a negative view on the millennial attitude.

In previous generations, there was a structured working mentality of reaping what you sow – everything from your education to your corporate network will help you gain success in life. In short, those who worked hard will be rewarded by the capitalist system with possessions of a house, a car, and essentially, life stability.

On the surface, there has been a paradigm shift away from traditional capitalist constructs amongst the young adults these days. A large percentage of Millennials have moved back into their parents’ home after graduating with a university degree, and changing career paths at the drop of a hat. Their priorities have faltered from establishing a stable suburban life for the future to concerns of popularity on social media.

The apparent disregard for adult responsibilities and expectations of parental support have led Baby Boomers to believe that their children are projecting an increasingly entitled attitude, with many feeling as though Millennials believe they are owed the luxuries of a hardworking life without earning it.

Misconceptions of Millennials
Before you go and label Millennials lazy and self-centred, consider this: Millennials earn 20 per cent less than their parents at the same age.  According to US Federal Reserve data, university-educated Millennials today are earning only slightly more than a Boomer without higher education in 1989. Riddled with student debt in low wage entry-level jobs, their net worth is also cut in half in comparison to their parents, with a median net worth of USD $10,090.

In Singapore, this generation gap is highlighted through car ownership. The Independent stated “it is more expensive to be a carowner as a millennial than it is for any other age group”. Tight government control over cars sees a 100 per cent mark-up of open market value, making car ownership virtually unaffordable.

Home ownership in Singapore also faces the same problems; while it is a point of aspiration of Millennials, HSBC’s global survey found that 69% of young adults indicated that saving enough for a deposit is their biggest hurdle. Another survey conducted by CBRE found that 63% have chosen to stay in their parents’ homes, while a large majority of those living independently are renting their accommodations.

With large financial burdens of purchasing assets resting atop this generation, priorities inevitably shifts to a life of faster luxuries, as the rising popularity of on-demand taxi hailing apps, such as Uber and GrabCar, and increasing accessibilities to rent homes make life feel easier to manage. Letting go of the pressure of saving up to buy a house or a car, Millennials are now more inclined to spend their disposable income on consumer products and convenience.