Consumer Habits & Spending
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THE TRENDERA FILES Trendera CONSUMER HABITS & SPENDING Volume 9, Issue 2, May 2018 Fox Home Entertainment THE TRENDERA FILES: CONSUMER HABITS & SPENDING CONTENTS INTRO 4 CRYPTO CHEAT SHEET 59 60 Let’s Talk Money 61 Coins That Are King 62 Crypto Currency STAT HIGHLIGHTS 64 10 Things to Know About Crypto 6 8 Consumers’ Financial Snapshot 14 Consumer Spending NOW TRENDING 66 17 Purchasing Attitudes 67 Lifestyle 22 Online vs. In Store 70 Entertainment 24 Brands 73 Retail / Shopping 28 Entertainment Trendera76 Digital SOCIETAL SHIFTS 33 STANDOUT MARKETING 78 35 New Money 39 Personalized Pricing 43 New Luxury 49 Collective Economics 55 The Entertainment Buffet Fox Home Entertainment2 TABLE OF CONTENTS WHAT’S HOT 82 84 Gen Z 8-12 86 Gen Z 13+ 88 Gen Y / Millennials 90 Who’s Hot 95 Digital Download: Essentials 96 Digital Download: Up & Coming KNOW THE SLANG Trendera98 QUARTERLY STATISTICS 101 Fox Home Entertainment3 THE TRENDERA FILES: CONSUMER HABITS & SPENDING Show me the money, you ask? Seems that the question still remains: What are consumers willing to spend their hard-earned money on, and why? With so many factors playing into this decision—income, age, gender, geography, values, beliefs, and cultural shifts, to name a few—it’s easy to see why there is not always a simple answer. We’re living in a time where there are more options, opportunities, and data points than ever before— and when even the Girl Scouts are accepting Venmo payments, you know that consumer spending is undergoing rapid change. That’s why we’re so excited to offer our two cents on where money and spending are headed. In this report, you’ll discover how younger generations (Gen Y and Gen Z) are breaking the bank in a myriad of ways. Thanks to their digital prowess, they’re ushering in a cashless society, flocking to cryptocurrencies, redefining luxury as we know it, and actually putting their money where their mouth is when it comes to issues that matter to them. At the same time, they’re (unknowingly) volunteering so much personal information to data brokers that the concept of “price” is evolving from a fixed standard to a variable amount that is directly tailored to the individual. They’re even revolutionizing media in demanding an all-you-can-eat entertainment buffet, where instead of paying for content piecemeal, they can subscribe and gorge themselves on as much as they like, no silver spoon needed. Our goal with this reportTrendera is to provide you with everything you need to understand the who, what, where, and why behind your consumers’ spending, as well as inspiration to cash in on the current cultural trends and how to reach them more effectively. As always, we hope you enjoy and welcome any questions you may have. TRENDERA Fox Home Entertainment4 INTRO Trendera Fox Home Entertainment5 THE TRENDERA FILES: CONSUMER HABITS & SPENDING Trendera STAT highlights Fox Home Entertainment6 STAT HIGHLIGHTS METHODOLOGY: Trendera surveyed 1207 nationally-representative consumers in April 2018. The survey was distributed online and mobile optimized. 8-53 YEARS OLD, evenly distributed 114 GEN Z (8-12)* *includes children and parents of children 8-12 due to legal restrictions 286 GEN Z (13-23) 406 GEN Y (24-38) 401 GEN X (39-53) TrenderaMALE/FEMALE SPLIT for each generation STAT highlights Fox Home Entertainment7 THE TRENDERA FILES: CONSUMER HABITS & SPENDING CONSUMERS’ FINANCIAL snapshot Money-conscious Gen Zs are well on their way to building a successful financial future. Not only are they saving and wary of debt, they are optimistic and empowered having learned from Millennials’ mistakes. Trendera GEN Z Note: Gen Z stats reflect 13-23-year-olds. Fox Home Entertainment8 STAT HIGHLIGHTS THEIR FINANCIAL OUTLOOK: CONSUMERS’ FINANCIAL snapshot aware | smart | confident MONEY IN SAVINGS: MEAN $9.1k | MEDIAN $710 CREDIT CARDS: 0123 4567 8910 1 JAKE SHOPPER WHAT THEY’RE SAVING FOR: CAR 37% COLLEGE 35% TrenderaVACATION 23% FUN FACT: Gen Zs are significantly more likely than older generations to say you should never have debt (31% Gen Z, 23% Gen Y, 19% Gen X) Fox Home Entertainment9 THE TRENDERA FILES: CONSUMER HABITS & SPENDING CONSUMERS’ FINANCIAL snapshot Cash-strapped Gen Ys are recovering well, despite reaping the financial and emotional consequences from having graduated into an economic recession. With better jobs and more cash on hand, this generation is ready and willing to spend. Trendera GEN Y Fox Home Entertainment10 STAT HIGHLIGHTS THEIR FINANCIAL OUTLOOK: CONSUMERS’ FINANCIAL snapshot aware | stressed | anxious MONEY IN SAVINGS: MEAN $17.6k | MEDIAN $4.2k CREDIT CARDS: 0123 4567 89100123 4567 8910 2 JAKE SHOPPER JAKE SHOPPER WHAT THEY’RE SAVING FOR: VACATION 38% HOUSE / CAR 34% TrenderaINVESTING 24% FUN FACT: 20% of Millennials buy their groceries online and 1 in 4 make student loan payments every month Fox Home Entertainment11 THE TRENDERA FILES: CONSUMER HABITS & SPENDING CONSUMERS’ FINANCIAL snapshot While Gen Xers have the most money stored away they aren’t doing all that much better than their Millennial counterparts. Perhaps that’s why so many are feeling uneasy about their financial situations and feel like they should be doing more. Trendera GEN X Fox Home Entertainment12 STAT HIGHLIGHTS THEIR FINANCIAL OUTLOOK: CONSUMERS’ FINANCIAL snapshot stressed | anxious | aware MONEY IN SAVINGS: MEAN $23.7k | MEDIAN $4.7k CREDIT CARDS: 0123 4567 89100123 4567 8910 2 JAKE SHOPPER JAKE SHOPPER WHAT THEY’RE SAVING FOR: RETIREMENT 37% VACATION 29% TrenderaCAR 24% FUN FACT: Nearly half (49%) of Gen Xers say they should be saving more than they currently are. Fox Home Entertainment13 THE TRENDERA FILES: CONSUMER HABITS & SPENDING CONSUMER SPENDING Unless otherwise noted, stats refer to consumers 13-53 years old. MONTHLY SPENDING SUMMARY MENU GROCERIES RESTAURANTS CELL PHONE TV $270 $90 $80 $70 MOVIE TICKET MOVIE TICKET CLOTHES ALCOHOL (21+) MOVIES VIDEO GAMES $65 Trendera$35 $20 $20 MAKEUP GYM MEMBERSHIP MUSIC $20 $14 $12 Fox Home Entertainment14 STAT HIGHLIGHTS CONSUMER SPENDING PAYMENTS THEY MAKE EVERY MONTH: CELL PHONE 68% CREDIT CARD 58% CAR INSURANCE 50% MEDIA SUBSCRIPTION SERVICE 47% CAR PAYMENT 42% MORTGAGE 35% MUSIC SUBSCRIPTION SERVICE 22% STUDENT LOANS 16% MEDICAL BILLS 14% WHAT THEY’D DO ANTICIPATED SPENDING WITH $100: IN 6 MONTHS: SAVE IT FOR THE FUTURE 22% WILL SPEND MORE 28% 16% BUY CLOTHESTrendera 49% WILL SPEND THE SAME SAVE IT FOR A BIG PURCHASE 13% WILL SPEND LESS 23% Fox Home Entertainment15 THE TRENDERA FILES: CONSUMER HABITS & SPENDING DEBT 1 IN 4 CONSUMERS ARE CONCERNED ABOUT THEIR DEBT 49% SAY THERE’S GOOD DEBT AND BAD DEBT 40% OF GEN YS AND XERS PLAN TO PAY OFF THEIR DEBT IN THE FUTURE 28% SAY DEBT IS A NECESSARY PART OF LIFE CRYPTOCURRENCY 34% of Millennials and 22% of Gen Zs own cryptocurrency, compared to just 13% of Gen Xers WHEN IT COMES TO CRYPTO... 68% DON’T UNDERSTAND IT 58% SAY IT’STrendera A GAMBLE 50% SAY IT’S THE FUTURE OF MONEY 47% THINK IT’S A SMART INVESTMENT 42% THINK IT’S SAFE 35% THINK IT’S FOR PEOPLE WHO WANT TO DO SOMETHING ILLEGAL Fox Home Entertainment16 STAT HIGHLIGHTS PURCHASING ATTITUDES & behaviors 54% would rather inherit a lot of money than earn it 65% themselves would rather never have to work again than never have to 78% work out again would rather spend 70% money on a cool would rather eat a meal experience than a out with friends than luxury item see a movie with them 53% in theaters say it’s important to spend money on yourself THEIR FAVORITE THINGS TO SPEND MONEY ON: Eating out atTrendera restaurants Shopping Traveling $ Clothes $ Cool experiences Fox Home Entertainment17 $ THE TRENDERA FILES: CONSUMER HABITS & SPENDING WHERE THEY PURCHASE 53% 42% 22% Department Mass market Amazon CLOTHES store retailer MOVIE TICKET MOVIE TICKET 26% 19% 19% Mass market Beauty / specialty Drug store MOVIES retailer store 27% 25% 12% Mass market Specific Amazon MUSIC retailer website 22% 17% 16% TrenderaAmazon Specific Mass market VIDEO GAMES website retailer 24% 21% 13% Mass market Amazon Specific MAKEUP retailer website Fox Home Entertainment18 STAT HIGHLIGHTS WHAT THEY SAY IS BECOMING MORE IMPORTANT IN PURCHASING DECISIONS IN THE PAST YEAR: DEALS / DISCOUNTS 83% USER REVIEWS 73% FRIEND RECOMMENDATIONS 70% EXPERT REVIEWS 62% BRAND’S CUSTOMER SERVICE 61% BRAND NAME 56% BRAND WEBSITE 53% WHAT THEY SAY IS BECOMING LESS IMPORTANT IN PURCHASING DECISIONS IN THE PAST YEAR: CELEBRITY ENDORSEMENTS 78% INTERNET CELEBRITY ENDORSEMENTS 77% SOCIAL MEDIA PRESENCE 59% TV ADS 58% USER-GENERATED CONTENT 56% BRAND MISSION STATEMENT / VALUES 54% TrenderaGREAT ADS 51% Millennials are significantly more likely to compare prices while shopping in store and check for online coupons and promo codes before purchasing. Price Comparison: Gen Z: 53%, Gen Y: 60% Gen X: 45% Checking for coupons & promos: Gen Z: 43%, Gen Y: 57%, Gen X: 54% Fox Home Entertainment19 THE TRENDERA FILES: CONSUMER HABITS & SPENDING EMOTIONAL SPENDING: PURCHASES THAT MAKE THEM FEEL... 40% 39% 37% Eating out a Shopping Clothes HAPPY restaurant 35% 33% 30% Snacks Streaming Gym memberships / CONTENT subscription workout classes 31% 30% 30% Live events Cool experiences Traveling EXCITED 21% 19% 9% TrenderaInvestments Gym memberships / Traveling SUCCESSFUL workout classes 15% 12% 8% Investments Gym membership / Shopping / Apps / ANXIOUS workout classes Online games Fox Home Entertainment20 STAT HIGHLIGHTS WHAT THEY SAY IS WORTH THE MONEY: TRAVEL 84% EATING OUT AT A RESTAURANT 82% EVENTS 66% NEW CAR 66% BOTTLED WATER 61% PROFESSIONAL GROOMING 53% WHAT THEY SAY IS NOT WORTH THE MONEY: DESIGNERTrendera CLOTHES 65% PREMIUM MAKEUP 64% ORGANIC FOOD 56% COFFEE FROM A COFFEE SHOP 52% Fox Home Entertainment21 THE TRENDERA FILES: CONSUMER HABITS & SPENDING ONLINE VS. IN STORE 28% 35% of consumers regularly see of consumers regularly see something in store and something online and then then purchase it online.