“Millennials The Smashed Avo Generation?”Glenn Schultz
Millennials
Millennials
“One Generation’s Impossible
Is the next ones Normal” Samsung, 2017
Millennials
Millennials
• We are normal. Why badge as different?
• Baby Boomers were different but considered normal at their age
• This is not a criticism
• First Generation to be born with complete technology change
Millennials
Millennials
Who are Millennials?
• What makes them different?
• Why do we care?
• Threat or Opportunity?
• How do we adapt our Business?
• Need Your Input!
Data Source: Macquarie Research June 2017)
Millennials
Who are Millennials?
Greatest Generation Pre
1946
Baby Boomers1946 - 1964
Generation X 1965 - 1979
Generation YMillennials1980 - 2000
Generation Z2000 Onwards
• X, Y and Z = Often Confused• No Defined Boundaries
75 (+)
Years old
52 – 74
Years old
36 – 51
Years old
16 – 35
Years old
0 - 16
Years old
Millennials
Millennials - how are they reshaping the Australian Economy?
• Are a misunderstood demographic
• Aim to shed some light on characteristics
• How they will shape Income and Consumption Pie
• Important ramification on workforce – Transition in employment that is expected to occur
• Digital natives will become most powerful consumer in history
• Millennials will be empowered to customize their own hierarchy of needs and preferences
Millennials
The Largest Demographic Cohort
-200 -150 -100 -50 0 50 100 150 200
0
10
20
30
40
50
60
70
80
90
100
Australia: Population distribution - 2016
Females Males
Age
Silent Generation,
(75-91 yrs old)
Baby Boomers,
(52-74 yrs old)
Gen X,
(36-51 yrs)
Gen Y,
(16-35 yrs)
Gen Z,
(0-16 yrs old)
Greatest Generation,
(92+ yrs old)
103k,
0.4%
2.2mn,
9.1%
5.1m,
21.2%
4.78mn,
19.8%
7.1mn,
29.5%
4.8mn,
20%
• At 7.1m people and 29% of the population, Millennials are already biggest demographic cohort.
• Baby boomers at 5.1m people and 21% of the population
Millennials
Biggest by 2030 at peak income levels
• Millennials rise to 8.7m people and 29% of the population by 2030.
• 54% of the population(Gen Y and Gen X) Born into the Digital Age.
-250 -200 -150 -100 -50 0 50 100 150 200 250
0
10
20
30
40
50
60
70
80
90
100
Australia: Population distribution - 2030
Females Males
Age
Silent Generation,
(89+ yrs old)
Baby Boomers,
(66-88 yrs old)
Gen X,
(51-65 yrs)
Gen Y,
(30-50 yrs)
Gen Z,
(10-29 yrs old)
Next Gen,
(0-9 yrs old)
766k,
2.5%
4.5mn,
15.0%
5.0m,
16.5%
8.67mn,
28.8%
7.5mn,
25.0%
3.65mn,
12.1%
Millennials
Keeping Australia Younger – Millennial Effect
20
25
30
35
40
45
50
20
25
30
35
40
45
50
Median age by country Advanced economy median
YearsYearsAdvanced Economies: Median age
• Median Age (38 Years Old). Sustained by Millennials (26.5 Years Old) and new arrivals (27 Years Old) – Below advanced Economy Median
Millennials
Millennial Earning, Now, and in the Future
228.7
853.6
1241.4
0%
10%
20%
30%
40%
50%
60%
70%
0
200
400
600
800
1000
1200
1400
2017 2030 2050
Millennials Total Income Millennials earnings as % of total population earnings Number Millennials a % of working population
Year Millennials Total Income ($BN)
Millennial Earnings as % of Total Earnings
Millennials as % of Working Population
2017 $228.7 35% 40%
2030 $853.6 59% 53%
2050 $1,241.4 31% 32%
Millennials
By 2020 millennials will make up over a third of the global workforce
Millennials
Generation X “The Lost Tribe”
• Transitional Generation• Caught between two very different generations
Millennials
75% of Millennials would like more opportunities to work remotely• Millennials are the most likely
generation to say that they would change jobs, give up promotion opportunities, move locations, or take a pay cut to have flexible work arrangements.
Millennials
50% of millennials are open to non-traditional forms of employment in the future
• Technology and Infrastructure will provide tools for enabling people to connect and work remotely
Millennials
Oil and Gas, Defence and Insurance most unappealing to Millennials Globally
• It is no surprise that Company Brand and Values appeal to Millennials
• 58% of Millennials surveyed said they would avoid working in a sector solely because of negative image.
Millennials
Young people have adopted technology faster
• Digital Natives accelerating the shift to the fourth industrial revolution. (explanation next slide)
• Expect technological connectivity.
• 2.5x more likely to adopt tech early compared with other generations
Millennials
The Industrial Revolutions
First Industrial Revolution • 18th to 19th Centuries• Rural societies become Industrial and Urban• Iron and textile industries, development of the Steam Engine
Second Industrial Revolution • Between 1870 and 1914; just before WWI• Electric Power to create mass production• Telephone, light bulb, phonograph and internal combustion
engine
Third Industrial Revolution • 1980’s onwards• Mechanical devices to digital technology• Personal computer, internet, information and communication
technology(ICT)
Fourth Industrial Revolution • Now• Technology embedded in societies and even the human body• Robotics, Artificial Intelligence, Nanotechnology, quantum
computing, biotechnology, internet of things, 3D printing, autonomous vehicles
Millennials
The proportion of Digital Natives is set to soar
• Increased internet adoption and smartphone usage
• Logistical improvement in Supply Chain Transforming how World consumers Goods and Services
• Can Insurance Keep Up?
Millennials
Worldwide internet usage by age group
• Smartphones are the tech gateway device for younger demographics
• What do you use smartphones for?
Millennials
Time online with mobile by generation
• 77% of 18-24 year olds reach for their phone first when nothing is occupying their time
Millennials
Demographic composition of major social networks
• Social Media is integral to daily lives
• Leading to increasing demand for a “one-stop-shop” network interface
• WeChat in China(Amazing!!)
Millennials
Millennials share more feedback online
• Look at Reviews on the move, provide regular feedback online, price compare and make informed and researched purchasing decisions
Millennials
Smartphone to look up a product while in a shop
• 85% of Millennials trust online product reviews
• 65% from like-minded individuals
• 57% from people they follow online
• 53% from Social Networks
Millennials
Millennials looked up the following in a shop
• Where the eyes go the dollars follow: The generation that grew up online, shops online
• How will this translate to Insurance/Risk Advice?
Millennials
Australia’s Lag in online purchases
• Australia is behind Global Average.
Millennials
The shift to services from manufacturing will accelerate in the era of millennials
55
60
65
70
75
0
4
8
12
16
20
Jun-74 Jun-84 Jun-94 Jun-04 Jun-14
Agriculture Mining Manufacturing Construction Services (RHS)
Australia: Output by sector
(% share of GVA)%%
Millennials
The shift to services from manufacturing will accelerate in the era of millennials
• Buying a Car and a TV are now the lowest and second lowest priorities for Millennials
• Millennials are prioritising experiences and the purpose of goods and services over materialism
• Australian Economic output has shifted from a focus on manufacturing goods to providing services
Millennials
Share of monthly spending by demographic cohort (%)
• Millennials have different spending patterns
• Does “Lesser” home ownership have an effect
• Millennials will be different. As they grow older will they assume same spending patterns as baby boomers?
Millennials
Australia benefiting from declining interest in studying in the US
50
55
60
65
70
75
80
85
90
95
100
5/29/2016 6/29/2016 7/29/2016 8/29/2016 9/29/2016 10/29/2016 11/29/2016 12/29/2016 1/29/2017 2/28/2017 3/31/2017 4/30/2017
Trend in Google searches
Study in Australia: (Worldwide) Study in USA: (Worldwide)
Millennials
Australia benefiting from declining interest in studying in the US
• International education is already one of Australia’s top services exports
• Key growth sector that will support economy over next decade.
• Millennials are first generation of EDTECH Learners (Online)
• STEM (Science, Technology, Engineering and Mathematics) will become more relevant for Next Gen jobs
Millennials
Millennials drive mainstreaming of sustainable consumerism
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Pay extra for sustainable products
Check the label for environmental impact
Prefer to work for a sustainable company
Gen Z Millennials Gen X Boomers Silent
• Millennials put their money where their mouth is on the sustainability and ethics of goods and services.
• Millennials are potentially more critical and less forgiving of CorporateMisbehaviour
Millennials
Most Millennials -Why the ‘Ys’ Love TV Ads
Millennials
Why the ‘Ys’ Love TV Ads
Millennials
Millennials
Millennials
Millennials
Gen Y Women
Millennials
Gen Y Women
Millennials
Gen Z Infographic
Millennials
Gen Z Infographic
Millennials
Gen Z Infographic
Millennials
So…..
• Millennials are different
• Big Influence as a Customer
• Bigger Influence as a Business Owner
• Their needs are different
• Transacting with Millennials successfully requires change – to what?
• We need your input…You are Millennials!
Millennials
Man and Machine – Not Man versus Machine• Old Philosophy: The world of high performing academia is the perfect specimen of
intelligence.
• Human intelligence working in a silo can be riddled with bias and problems with scale
• New Philosophy: A world where artificial intelligence is destined to reign supreme (e.g. Watson, Deep Blue or Hal).
• Artificial intelligence working in a silo doesn’t take into account the nuances of marketing science.
• Man and Machine – The power of human intelligence and amplifying with technology.
• Offers a scenario where humans still own the central role in directing machine intelligence.
Millennials
Man and Machine – Not Man versus Machine
• Man + Machine = Amplified intelligence (uses the strengths of each – people and Tech – to push the boundaries of what we can achieve).
Questions:
• Is there a “Crossover” of Millennials requirements and man + machine?
• Is this the future of Risk Advisory Business?
