While Asia Pacific millennial consumers shop online, only physical stores and particularly shopping centres give them the experiences and social elements they want, says a new report.
Millennials shop online an average of 4.7 days a month, but visit shopping centres an average of three days a month for other reasons apart from buying, such as dining out, banking and visiting exhibitions.
However, slower economic growth and a desire to save money for buying a home may inhibit spending on leisure activities, suggests research by commercial property adviser CBRE Research. Its inaugural Asia Pacific Millennials: Shaping the Future of Real Estate report says this emerging “superclass” demographic actually has similar long-term lifestyle priorities with other generations despite being more likely to spend their time and money on leisure activities and experiences like travel, entertainment and dining than previous generations.
“In order to leverage on millennials’ spending habits, retailers are recommended to increase the experience-based element of their offering and focus on providing an environment for visitors to socialise and relax,” says CBRE Asia Pacific head of research Dr Henry Chin.
As well as increasing F&B, cinema and entertainment elements in their shopping malls, retail landlords should consider organising more live events to attract millennials, he says, warning that they should also carefully manage their tenant mix to ensure they still cater to other generations.
The millennials report is based on a global survey by CBRE Research last December. It covered 13,000 people between 22 and 29 years old to examine how they live, work and play, and what this means for real estate.
For the Asia Pacific region, the report involved 5000 respondents evenly representing Australia, China, Hong Kong, India and Japan. The survey also explored differences between millennials of different gender, employment status, marital status, education and income.
Inaccurate perceptions
It found that perceptions of millennials as preferring informal employment, changing jobs regularly and avoiding financial responsibility are inaccurate in the region. Consistent with previous generations, most millennials were found to be spending prudently in order to save money to buy a home.
While this demographic aspires to carve out a stable career, the report finds that it does take into account factors such as office design when choosing an employer, with 71 per cent of respondents willing to give up other benefits for a better office environment.
Millennials are also increasingly demanding the freedom to work anywhere, anytime—more than 60 per cent in Asia Pacific want flexibility and mobility for their career.
Job loyalty is also stronger than perceived, with two-thirds expecting to work for the same company, or for a small number of companies, throughout their career.
Almost two-thirds of the region’s millennials still live with their family because of both cultural practices and financial factors. In most major markets surveyed, the high cost of residential property is providing challenges for millennials.
While 65 per cent of respondents said they plan to buy property in the future, 63 per cent said they are forced into renting as they are unable to buy.
“The millennial demographic in Asia Pacific is a game-changer for businesses across the board. Their life, work and play priorities and habits will shape economics, redefine opinions on workplace design and functionality, and drive new attitudes toward consumption and experience for the foreseeable future, ” says CBRE Asia Pacific CEO Steve Swerdlow.
