More than half of millennial consumers, 59 percent, prefer to shop at retailers that offer financing options, according to a new study by NewComLink. The survey looked at more than 2,000 consumers between the ages of 18 and 34, also known as Generation Y, whose annual spending power as a group is estimated to be $200 billion.
"Gen Y represents the future of retailing, and its members are more aware of—and open to—second-look financing options than the generations that came before them," said Jeff Byal, CFO at NewComLink.
Gen Y shoppers are knowledgeable about retail financing options. As many as 32 percent are aware of second-looking financing options, compared to only 33 percent of shoppers 55 and older. Additionally, 56 percent say the availability of financing options impacts their final purchase decision, compared to just 36 percent of those over the age of 55.
While most age groups said they were more likely to use financing for appliance and furniture purchases, 38 percent of the Gen Y group would also use it to buy electronics, versus 27 percent of the general population, and 27 percent would use it to buy jewelry, versus 11 percent of the general population.
Gen Y is also more likely than older consumers to need alternative credit options. According to Experian, the average consumer between the ages of 19 and 29 hold $23,332 in debt.
Despite their foothold in the digital age, 89 percent of millennials who intend to buy one or more gifts plan to do so at the mall this holiday season, according to a study by Simon Malls. And social media is playing an important role in holiday shopping, as 77 percent of millennials are looking for recommendations from family and friends for gift advice, especially on social networks. Nineteen percent of millennials will look to Facebook this holiday season, 14 percent to Pinterest and 7 percent to YouTube. Millennials even prefer webrooming to showrooming by 5 percent.
*This story originally appeared in FierceRetailIT"s sister publication, FierceRetail.
-See this NewComLink press release
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