Millennials - a large population of 1.8 billion people and the largest generation currently. People tend to lump them all together under the “Millennial” label despite the large age range (early twenties to late thirties). It makes you wonder if the differences between millennials across the world are overlooked too.
The large majority of millennials1 around the world live in Asia, according to management consulting company A.T Kearney. In absolute numbers, India, China, the US, Indonesia and Brazil have the largest millennial populations globally.
Whether they live in developing or developed countries, millennials tend to live in cities, are tech savvy and enjoy cross-border shopping.
But not all millennials are quite the same. Depending on where they live, they differ in:
- How they make purchasing decisions:
For the millennial consumer2 of developing economies like India and China, it’s the brand, wealth and status. Wealthier than their parents and grandparents due to rapid income increases, millennials in developing economies are driven by the urge to have what previous generations did not.
Reports suggest that they favour expensive tech products (like the latest iPhone) and luxury brand goods.
Millennials of developed economies like the US on the other hand have a more frugal mindset and scrutinising attitude towards brands. They’re concerned more with the authenticity, environmental-soundness and value of the product than the actual product itself.
- How they view their future:
Millennials in developing economies seem to be more optimistic about their future than those in developed economies.3 They foresee a lot more growth for their economy and expect to be financially better off and happier than their parents.
In a sense, the future does seem brighter for millennials in developing economies. There is still much potential for their countries to grow, with many new and unprecedented opportunities through the introduction of new technology and jobs. So it is highly likely they will be the wealthiest generation of their country ever.
With millennials a prime target market for businesses and institutions, understanding the differences between millennials around the world can help investors identify sustainable business models. Eastspring Investments is present in eleven Asian markets – home to the world’s largest millennial population. We have our finger on the pulse of the trends that will shape tomorrow’s investment landscape. Get more insights from our market leaders, here.