Generation Y and Technology Poised to Conquer the United States of America

An emerging segment of young Americans, including the so-called "Generation Y" (born between the 1980s and 1990s) is on track to become the most influential consumer group in the United States, threatening to overshadow the large and affluent Baby Boomer contingent that has shaped American consumer profiles for decades. Consultant Micah Solomon recently stated in Forbes that "Despite many clichés in the media about this generation (ramen eaters, poor, unemployed, and so on), Millennials are not only the largest generation in U.S. and world history, but are also poised to hold the greatest purchasing power. It's estimated that Millennials in the U.S. will spend $200 billion annually by 2017 and $10 trillion over their lifetimes as consumers."

The preferences, expectations, and unique experiences of this group radically impact consumption habits in the United States. A recent Goldman Sachs report stated: "One of the largest generations in history is about to enter its prime spending years. Their unique experiences will change the way we buy and sell, forcing companies to examine how they do business for decades to come." Since most young Americans have grown up with digital technology, their consumer choices demand intense technological interaction. Their familiarity with technology continues to drive the growth of online shopping, (via smartphones and tablets), as well as the development of social media sites where they can seek advice before purchasing goods or services and share their shopping experiences with friends.

Beyond retail, their influence will also be felt in other sectors. According to the Goldman Sachs report, "As Millennials reach the age to buy homes, their reluctance to enter the housing market may change: consequently, the size of this demographic and its willingness to settle down in the future could lead to an increase in home sales." Indeed, in the 2015 Generational Trends Report
on home buyers and sellers, the National Association of Realtors reported that individuals under 34 years-old currently make up the largest share of home buyers, representing 32% of all purchasers. When Google conducted a survey in 2014 regarding home buying, it found that individuals aged 18 to 34 were twice as likely to plan a home purchase compared to those aged 35 to 54.

Mobile Online Shopping Continues to Change Consumer Behavior in the United States

The volume of sales from smartphones increased by 375% between 2008 and 2013. This strong growth, combined with an ever-growing number of shopping applications, has boosted mobile online shopping, radically changing how consumers in the United States purchase a wide range of goods and services. A recent survey conducted by Fluent, an advertising technology company, revealed that in 2014, more than half of smartphone owners made purchases from their devices, with nearly one in five iPhone users and one in ten Android users reporting at least seven purchases.

A recent survey conducted by the US Federal Reserve highlighted how mobile devices are transforming the retail shopping landscape. "The prevalence of smartphones with barcode scanning software and internet connectivity has altered consumer behavior in the retail environment." Among smartphone owners, 47% reported using their mobile devices in-store to compare prices with online shops, and 33% used an app to scan barcodes and compare prices.

Consumers are also using their smartphones to obtain product information: 31% scanned a QR code from a newspaper, magazine, or billboard to learn more about a product, and 42% used their phone to access reviews or product information while shopping in-store. Specifically, the survey noted, "Many consumers who use their smartphones to compare stores subsequently adjust their purchasing decisions: 69% reported deciding where to make a purchase only after comparing prices, and 79% stated they changed their minds about what to buy after reading reviews on their smartphones while inside a store."