Millennials should be included in your business plan. Here are the reasons why it is time to include millennials in your car wash target market.
Car wash business owners should be a step ahead of their competitors. Apart from technological breakthroughs, eco-friendly processes, and innovative equipment researches, they should be familiar with the consumers. It is important to explore the various advancements in the car wash industry’s target market. In order for one to keep up with the ever-changing needs of the times, a car wash business owner should learn what’s new in the market. He should be aware of the growing trends that are affecting the car wash industry. Studies show that there is an emerging demographic in the market that is worth targeting for your car wash business: the Millennials. Millennials exist in technologically advanced societies. They are also known as the Generation Y, the generation that came after Generation X as defined by the Free Dictionary.com. The Urban dictionary.com describes millennials as having high regard of themselves and their capacities. To give a more specific category to the group, investopedia defined them as those born between 1984 to 2004. The millennials are critical players of the economy. In fact, according to a December 2014 article on Forbes.com, “Millennial customers are about to become the most important customers your business has ever seen. ” Authors William Strauss and Neil Howe gave a lot of insights about millennials and their effect in various aspects of economy, culture and the American society in the book “Generations: The History of America’s Future, 1584 to 2069”.
Here are the reasons why it is time to revisit your car wash business plan to include millennials
Millennials are now the largest group in the US population – and still growing! In October 2014, the Council of Economic Advisers of the Executive Office of the President of the United States released a report, 15 Economic Facts About Millennials. According to the report, millennials now represent the largest generation in the United States, comprising roughly one-third of the total population in 2013. This is supported by the Census Bureau’s estimate that the millennial population in 2014 was 74.8 million and will increase in size in 2015 to 75.3 million. This makes the millennials the biggest group, surpassing the projected 74.9 million Boomers population. Furthermore, the millennial generation continues to grow as young immigrants expand their ranks. In fact, their population is projected to peak in 2036 at 81.1 million. With these projections, now is the best time to get back to the drawing board and pencil in millennials into your target market. Targeting millennials will give you a large customer base that is for the long-term. Millennials have significant buying power that is increasing year by year. The figures show that millennials make up more than 25% of the US population. The question, now, is do they have buying power? According to studies, they do. In 2012, the millennial generation’s spending was estimated at $65 billion a year. In fact, Gourmettrailer.com shares that a large department store chain has started to implement changes to cater to the Millennial generation. In 2014, another report entitled “The Reciprocity Principle: How millennials are changing the Face of Marketing Forever”, millennials accounted for $1.3 trillion in direct annual spending . These figures are expected to increase every year as their population continues to grow as reported by Retail Leader.com. Millennials are expected to spend more than $200 billion annually starting in 2017 and $10 trillion in their lifetimes. What’s more, according to Millennial Marketing, millennials can have influential power on the discretionary purchases of the older generation. The growth of the millennial generation’s buying power is projected to be directly proportional to the growth of its population. Now, this is clearly an opportunity that is too good to pass up. Their growing number and their influence on the spending capacity are reasons enough to include millennials in your car wash business’ target market. Millennials are the most studied generation. So you finally decide to include millennials in your car wash business’ target market. Yes, market research can be quite tedious and time-consuming. But with millennials, data gathering is much easier. According to the US Chamber of Commerce Foundation, millennials are likely the most studied generation to date. There are data to find pretty much whatever you are looking for. You wouldn’t have to start from scratch. You have general information and plenty of statistics available to you that you can use for your various marketing strategies. All you’ll need to do is narrow it down to specifics appropriate to your market. Millennials want and need cars! In the past several years, studies have shown that millennials do not care about cars as evidenced by the number of cars sold to millennials. According to reports, millennials would rather lease a car or not own a car at all. Apparently, millennials in the past years were just too young to afford to buy their own cars then. They were just either renting them or using the cars of their parents. Now, they have grown up and started proving the studies wrong! According to an article on Bloomberg Business, millennials accounted for 27 percent of new car sales in the U.S. last year. This is an 18% increase from 2010. While car-buying for millennials will not be what it was for Boomers, they have surpassed Generation X and are now next to Boomers in terms of new car sales according to a business article online of the Atlantic.com. Another research result suggests young adults that have popularized car-sharing options may be warming to traditional ownership. Some 71% of young adults would rather buy a car than lease one and 43% are likely to purchase a vehicle in the next five years, according to a survey from social site Elite Daily and research consultants Millennial Branding as published by Time.com.
Millennials may not be falling back in love with cars, but more and more of them are definitely buying cars. As their population grows older every year, we can expect that more of them will start buying their own cars. Their ever-growing population, increasing buying power, and improving car ownership can mean good news for your car wash business. If you are ready to revise your car wash business plan and include millennials in your target market, let the car wash business experts help you. Subscribe to our newsletter now!