MEET THE MILLENNIALS

North America’s Largest Group of Consumers

David Coletto, PhDChief Executive Officer

Abacus Data Inc.@ColettoD

david@abacusdata.ca

I speak with groups all over North America who are struggling how to understand and react to the immense generational change we are experiencing.

• It’s normal to be worried. • But this change also brings incredible

opportunities. • I will spend a lot of time talking about how we are

different and why it matters. • But it is also important to remember that we are no t

THAT different. • We share many of the same values, priorities, and

perspectives of older generations.

WHAT’S THE POINTThree things to take away from

my talk today.

1. Millennials want pretty much the same things as older generations but there are some important differences.

2. Millennials are disrupting many industries. Those who understand the disruptions and react can benefit from them.

3. Something unique is happening when it comes to Millennials and tourism, including sports tourism. More so than any other generation, we have a fascination with food, and travel.

THE MILLENNIALS 101

BORN BETWEEN 1980 & 2000

Generation Y is the most racially and ethnically diverse generation in history, the most

tech-savvy and entrepreneurial, the most

educated, and the first to have more women than men obtain

postsecondary credentials.

Estimated Canadian Millennial Population:

9.3 Million

% of Canadian Population:

25.6%

% of working age Canadian adults by

2020:

43%

We have the joysticks of Canada and America in our diverse, well-

educated, well-travelled, tech-savyhands.

We will ultimately decide who governs us, which brands live or

die, and how we will work.

The behaviors and choices of younger generations have

historically been an indicator of future workplace, consumer,

and social trends.

RAISED BY BABY BOOMERS.

SHARED VALUESEXPRESSED DIFFERENTLY

WHY ARE WE SO DIFFERENTFROM PREVIOUS

GENERATIONS

UPBRINGINGUPBRINGING

Focus on children

(Gen X, latch-key kids because both of their parents weren’t home)

IMPACT: Blurred traditional lines of authority

Strong desire for connection

Institutionalization

Self-esteem, lack of failure

Constant collaboration, engagement,

IMPACT: Need for constant feedback and recognition.

The need to share.

Agree/Disagree: Growing up, many people told

me that I could achieve anything I wanted.

85%Source: Abacus Data, Oct 2012, n=1,004

TECHNOLOGYTECHNOLOGY

Imagine 18-year old James.

He’s likely the CIO of his household and workplace.

Changes the relationship between kids and parents. Kids control what their parents get

and are hugely influential.

Give example of a focus group session I recently moderated.

Referrals / Reviews

Declining Deference

Instant Reaction

AmplificationSharing Economy

Connected by Isolated

Harder to reachIsolated from many forms of broadcast media

37%

14%10%

29%

14%

33%

7%

17%

8%3%

Millennials 36+

Facebook TV News website Radio Word of mouth

If a major news event occurred, where would you most likely hear about it first?

85%

43%34%

25%

7%

Social Media Use (18 to 29 years old)% who use at least once a day

WE ARE CONSTANTLY CURATING.

WHAT DOES THAT MEAN? IT MEANS WE ARE CONSTANTLY DECIDING HOW THE WORLD OUTSIDE SEES US AND THE INFORMATION WE CONSUME GETS TO USE.

FACEBOOK PAGETWITTER FEEDSMART PHONE BACKGROUNDRING TONESFITBIT

Research on relationship between social media and loneliness is clear.

Spending time online isolates usAmplifies depression and jealousyLowers self-esteem

Everyone’s lives on Facebook seem so damn perfect. We have remind ourselves that it’s a carefully curated front.

SOME THINGS MOST ARE SURPRISED TO LEARN ABOUT MILLENNIALS.

On average, Millennials have 5.5 devices connected to the

Internet in their homes.

48% of Millennials say they rely most on their mobile

phone to access the Internet.

42% of Millennial men are now the primary cooks in

their family.

Over 1 in 4 Canadians aged 18 to 29 DO NOT subscribe to cable or

satellite.

A FINAL DIMENSION…

THINK BACK...

HOW OLD WERE YOU WHEN YOU...

� Finished your education� Moved out of your parents home� Found a full-time job in your field� Achieved financial independence� Bought your first home� Had children� Travelled abroad� Bought your first car

� Finished your education – 50%� Moved out of your parents home – 63%

� Found a full-time job in your field – 46%� Achieved financial independence – 60%� Bought your first home – 48%� Had children – 23%

Canadians Aged 20 to 35...

PERCENTAGE OF MILLENNIALS WHO HAVE DONE ALL?

30-35: 19%

ACCELERATED MATURITYDELAYED ADULTHOOD

DELAYED…

FAMILIESHOMEOWNERSHIP

FINANCIAL INDEPENDENCE

DESPITE THIS DELAYED ADULTHOOD, MY GENERATION WILL EVENTUALLY BE THE MOST ECONOMICALLY POWERFUL.

THE WEALTH TRANSFER THAT WILL TAKE PLACE BETWEEN BOOMERS AND MILLENNIALS WILL BE ENORMOUS. LARGER THAN AT ANY POINT BEFORE.

WHAT WE LEARNED

1.Our digitally saturated lives means we crave sensory experiences.

2.We were raised to believe we can achieve anything, that life is worth living, and we need to experience it fully.

3.Our parents instilled a incredible sense of self-esteem in us.

4.And we are constantly curating.

WHAT IS THE IMPACT OF BEING SO DIGITALLY

FOCUSED?

INTRODUCING

GENERATIONEXPERIENCE

WE ARE FOOD OBSESSED!

Which of the following are you interested in?

55%44%

42%38%37%37%

34%31%30%

27%26%

24%23%

16%

Food & drink

Travel and Adventure

Lifehacks (tips, tricks, time savers)

Music & Entertainment News

Health, wellness, and medicine

Science, tech and new discoveries

Fitness lifestyle

Sports

National and international news

Fashion, Beauty & Style

Career/Professional Development

Home improvement

Celebrity & Pop culture Entertainment

Cars & Automotive

Source: Abacus Data Survey, March 2016

TELL STORY OF PERRY AND DAVID

• Two weeks ago, I was out looking for new office space in Ottawa with two real estate agents and a collegue I’m looking to share space with. So 4 guys.

• We sat down, at this incredibly authentic Mexican restaurant in Ottawa’s byward market (more on that in a minute).

• I kid you not, for the entire 30 minute conversation, they were talking about the latest kitchen toys they purchased. My collegue had just got a sue vite machine. Anyone know what that is? Well they went on and on about they types and cut of meat they were using in this machine.

• Coravin – my turn

• My generation spends 14 times more money on food than an average middle class family and that 87% of us will splurge on a meal even when money is tight.

Authenticity has overtaken quality as the prevailing purchasing criterion.

Authenticity is tricky. We all want it, but it means very different things to different people.

The pursuit of authenticity is the rabbit hole that never ends.

genuine

realskilledfaithful

legitimate

original

tradition

honest

Authenticity is about honesty, or the perception of it.

Andrew Potter wrote that:“The demand for authenticity is one of the most powerful movements in contemporary life, influencing our moral outlook, political views, and consumer behaviour.”

It’s about our desire to return to simplicity – to go back to our roots.

simplicity.

connection.

control.

These three things go to the heart of my generation’s fascination and love with food and travel.

Our lives our insanely complicated, fast moving, and impersonal.Travel and food is the opposite of that.So if you want to connect and sell products to us, keep that in mind.

We find connection and stimulation through eating out and cooking.

The pleasure of breaking something down to its elements and touching each one, holding the fruits of a hard day’s work.

WE DON’T KEEP IT TO OURSELVES

5WAYS TO THINK ABOUT

SPORTS AND MILLENNIALS

#1“DO” vs. “HAVE”

IT’S ALL ABOUT THE EXPERIENCE

Take, for example, Pittsburgh. Once known by Canadians only for its collapsed steel industry and Crosby-led hockey team, Pittsburgh is gaining traction among Millennials for its cool restaurant scene. The official Pittsburgh tourism website devotes an entire section to food . The Globe and Mail recently suggested that the city was the best city in America to eat a sandwich . Foodie ‘demigod’ Anthony Bourdain has long praised the city .

#2QUALITY

AUTHENTICNATURAL

VALUE

#3WE WANT

CONVENIENCE.

#4TELL US A STORY

BUT BE REAL.

#5

DISRUPTION IS HAPPENING

SOME FINAL THOUGHTS

Why care about Millennials? If for no other reason, there’s a lot of us. Our size and uniqueness has the power to shape markets, kill brands, and pick winners.

And the good news for all of you, we LOVE food. We love eating, cooking, talking about food, learning about where it comes from. It’s how we connect with friends, family, and other loved ones.

But we are changing the market. We demand transparency. We want to know what’s in the food we eat, where it’s from. And it’s not just for nutritional or political reasons. We want to make a connection and we want to highlight our personal brands.

So when you think about everything I’ve shared with you today, always come back to one basic question.

Do you want to be Netflix or Blockbuster?

THANK YOU.

DAVID@ABACUSDATA.CA@COLETTOD