How Millennials Are Changing the Transportation Industry
Millennials have been praised, questioned, and outrightly scolded for the ways they’ve impacted society. Born between the early 1980’s and the early 2000’s, millennials differ vastly from their parents, especially in their decisions regarding transportation. So, what does this hold in store for the automotive industry in South Africa?
Millennials tend to value practicality and efficiency over luxury. They are moving away from the idea that a car is a status symbol. More young professionals are making use of public or shared transportation to get from A to B in the quickest, easiest and most affordable way possible. Because of this, they also tend to be more open to new brands. If a brand can offer them a vehicle that aligns with their safety, comfort and financial needs, they might be willing to try it.
Unlike their Baby Boomer parents, millennials are not impulse buyers. Many of them carry debt due to student loans and with the unemployment rate being as high as it is, even fewer millennials are willing to take financial risks. Instead of relying on car dealerships for information about possible choices, this tech-savvy generation does its own research in advance. This grants companies the opportunity to expand their digital platforms and explore the largely untapped potential of online automotive marketing.
Instead of clinging to conventions and fearing what a change in demographics might mean, companies should jump at the chance to remodel and disrupt their traditional values/techniques and, just like this unconventional, ground-breaking generation, become the pioneers of their industry.