Generational Home Appliance Purchasing Power and Habits

Goals

To identify the general purchasing power, trends in appliance buying, and other habits and/or insights surrounding appliance purchases by generation (Millennials, GenX, and Baby Boomers).

Early Findings

For purposes of these early findings, the three requested generations will be defined as:
However, it is important to note that not all marketing reporting classifies these generations in the same way, and there is some overlap in generations when data is analyzed in 10-year increments.

MILLENNIALS

  • Epsilon's transactional database indicates that younger Millennials (aged 25-35) spend $322.5 billion annually.
  • Americans between 36 and 54 spend $357 billion annually. (note: this represents an overlap between generations)
  • The average online retail spend in the home improvement category for millennials is $1849.
  • The average online retail spend in the mass merchandising category for millennials is $1787.
  • The average millennial consumer unit typically contains 1.4 salaries.
  • 33% of millennials are homeowners (6% of those with no mortgage) and 67% are renters.
  • The US Bureau of Labor Statistics indicates the following annual spend figures by category:
    • Major Appliances — $198.09
    • Small Appliances — $92.08
    • Miscellaneous Household Equipment — $695.57

GENX

  • Americans between 36 and 54 spend $357 billion annually. (note: this represents an overlap between generations)
  • The average online retail spend in the home improvement category for GenX is $1853.
  • The average online retail spend in the mass merchandising category for GenX is $1762.
  • The average GenX consumer unit typically contains 1.7 salaries.
  • 62% of GenX consumers are homeowners (14% of those with no mortgage) and 38% are renters.
  • The US Bureau of Labor Statistics indicates the following annual spend figures by category:
      • Major Appliances — $303.14
      • Small Appliances — $138.80
      • Miscellaneous Household Equipment — $824.77

BABY BOOMERS

  • 2019 data from "Epsilon’s transaction database confirm that Baby Boomers as a whole spend the most on an annual basis."
  • "81% of individuals ages 50 years and older have made purchases online, Epsilon found that the older generations prefer to shop in-store to experience the products and for easy returns."
  • The average online retail spend in the home improvement category for Boomers is $1841.
  • The average online retail spend in the mass merchandising category for Boomers is $1557.
  • The average Boomer consumer unit typically contains 1.3 salaries.
  • 76% of Boomers are homeowners (36% of those with no mortgage) and 24% are renters.
  • The US Bureau of Labor Statistics indicates the following annual spend figures by category:
      • Major Appliances — $295.40
      • Small Appliances — $134.58
      • Miscellaneous Household Equipment — $943.23

SUMMARY of EARLY FINDINGS

Several high-level purchasing insights were found for each generation which generally indicates the viability of continued research to reach the full goals of the project with the caveat that there is the possibility of crossover in generational definitions. Further research would provide age ranges within the generations when possible.

Additionally, the provided request regarding appliances did not mention whether high-end (like washers, dryers, refrigerators) or general appliances (like toasters, blenders, coffee machines) should be focused upon. As such, the early findings have provided general data found in each category.

Proposed next steps:

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