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  • “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 Boomers 1946 - 1964

    Generation X 1965 - 1979

    Generation Y Millennials 1980 - 2000

    Generation Z 2000 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

    YearsYears Advanced 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