What inflation? My Millennial Keeps Outspending Me.

What inflation? My Millennial Keeps Outspending Me.

My millennial daughter showed me a new dress she bought for a friend’s wedding. In the bag was also a pair of jeans. I sneaked a look at the price tag, and couldn’t hold back my shock. “$200?” I said, “Are you nuts?” Why don’t you buy your jeans where I do? “Where’s that?” she asked.” I buy jeans at Marshalls and never pay more than $20.” Her disdain was cringeworthy.

I get it; we’re different generations. But, we’re in the midst of a recession with soaring inflation.

And jeans are not her only extravagance. She will spend $80 or more for a pair of yoga pants. The ones I find at my less-pricey retailer are from popular brands, and never cost me more than $11. Is this just a snob thing, or is it a generational trend?

Can you spot the differences? Oh yeah, the prices.

When I think back to myself at 28, my spending habits were more like my daughter. Having disposable income for the first time is all about gaining independence, establishing a signature look, and achieving status.

Cheapskates Versus Big Spenders—it’s a Generational Thing

Here’s an interesting insight from Cotton Incorporated Lifestyle Monitor:

One thing in the fashion industry’s favor is that 69 percent of millennials “love/enjoy” clothes shopping. That’s far higher than any other age group, from boomers (38 percent), Gen X (58 percent), Gen Z (52 percent).

Although millennials do most of their shopping online, apparel is a category that they prefer to buy in store, and they’re not averse to pricey items. This is not ordained, however. In order to keep a loyal fan base, brick-and-mortar retailers are in a race to up their game—create novel shopping experiences — in order to entice younger consumers. And the successful ones seem to stay abreast of trends.

A Lesson from LuluLemon

One example is LuluLemon. An established favorite among Gen Y, Gen Z and millennial consumers, LuluLemon is heralded as an innovator and the creator of the athleisure category. The brand was the first to embrace yoga, and it has paid off with revenues at a market cap of $45 billion.

They spotted the return to short shorts, and their popular “Booty Shorts” version is designed to draw the eye to partially exposed butt cheeks. My parents would have said “No way,” but my own kid pulls them off, and I see high schoolers wearing them to school every day. Times change.

What this brand does to perfection is to create a community of like-minded fans. They offer free in-store yoga classes. They hold events called Sweat Life where customers can join in classes—everything from yoga and boxing to spinning and energy-trampoline workouts. Their philosophy? “A person is more likely to invest in you if you’ve already invested in them.”

Another business strategy where this brand excels is to restrict inventory. This gives them a similar standing to iconic names like Chanel. They only make just so many items. So by keeping inventory low, they drive up desire—and sales.

Forbes Agrees:

“Retailers must constantly adapt their in-location experiences to fit customers’ evolving priorities, preferences, and concerns. From a growing desire for tech experiences to omnichannel engagement with brands, customer tastes are shaping retailers’ priorities.”

Lifestyles or Lifestage?

When I question my daughter’s taste for expensive apparel, it strikes me that, at 28, her lifestyle is far more social than mine. In 2022 alone, she and her fiance (now husband) have 10 weddings on their social calendar, including their own. But it doesn’t stop with weddings; there are bachelorette parties, showers, and engagement events. Each involves new stuff: dresses, shoes, and gifts. The gifts and shoes were all online purchases, but the dresses and other apparel items have been in store.

As for me, I paid for a wedding, and I bought two evening dresses for the big day, as well as a hot pink one-shoulder number for the rehearsal dinner. I have only one kid and the bride had two dresses, so why not me? My purchases were all in store. Needless to say, it was an expensive year.

I look at 2022 as a one-off. My lifestyle is less fancy than my daughter’s. I work with my business partner. Our office is either my kitchen or hers. We are both workout junkies; she starts at 7:00 a.m. and I end the day at the gym or yoga studio. So, we wear yoga pants. If we have a client call, we dress business casual on top. This is not to say we don’t have social lives that call for fashion moments. But I’m still going to shop my closet first.

My business partner, on the other hand, finds her shopping preferences somewhere in between me and my daughter. The sleepless nights and messy feedings are behind her, so she feels more compelled for self care. This includes being more conscious of her appearance and the durability of her clothing. So, she spends a bit more than me, but less than my daughter.

The Rise of Dupes

A current TikTok sensation is Dupes. These are knock-off fashion items that look like a popular brand but are a fraction of the cost. They’re even catching on with snooty Millennials like my kid. This is a social media-driven trend. With the insurmountable number of photos posted online, wardrobes must be ever shifting. Heaven forbid anyone be photographed wearing the same dress twice.

The Great Consumer Shift

Ever since COVID, daily trips to the office have become a thing of the past, and fashion hit the skids for a while.

McKenzie cites COVID-19 as the driver behind the movement away from in-store to online shopping. There has been a 15 to 30 percent shift to e-commerce since the start of the pandemic, with millennials and high-income earners in the lead. This includes all categories from apparel and accessories to OTC medicine, personal care products, food and takeout, even jewelry. Another major trend is the move away from established brands…

“36 percent of consumers are trying a new product brand and 25 percent are incorporating a new private label product. Of consumers who have tried new brands, 73 percent intend to continue incorporating new brands into their routine.”

Living Your Truth

Whatever your generation, it is fair to say that lifestage and lifestyle are intrinsically linked. I wish I had a crystal ball so that my beautiful millennial kid could see that, chances are, she’ll end up like me one day. The adage is true: you are your mother’s daughter.