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January 2016
MILLENNIALS AND
DRIVING (UK)
MILLENNIALS ARE GROWING IN SIZE BUT
DRIVING LESS COMPARED TO OTHERS
By 2019, the Millennial population is expected to grow to 17 million
(25% of the UK population)
2
England National Travel Survey 2014
Population estimates: http://www.neighbourhood.statistics.gov.uk/HTMLDocs/dvc219/pyramids/index.html
http://www.thedrum.com/bauer/welcome-real-millennial-generation-digging-deep-their-lives
1,719
3,608
4,874
5,593 5,295
1,231
3,348
4,776
5,799 5,403
17-20 21-29 30-39 40-49 50-59
Age
Average number of miles driven per
person per year
2009 2014
-40%
-8%
-2%
+4% +2%
25%
UK Population 2019
TRENDS AFFECTING MILLENNIALS 3
Sources: : Institute for Fiscal Studies (IFS), CityLab, Eventbrite UK 2014
Economic
£44K average student loan
debt after a 3 year
university course
Flow to big cities
50k net inflow into London of
young people aged 22-30 from
the UK’s other major cities
Experience > Owning
66% of Millennials feel more fulfilled by
live experiences than purchasing
an item of the same value
INCREASED TRANSPORT OPTIONS
AVAILABLE FUELLED BY THE ON-DEMAND
ECONOMY
4
WHAT WE WANTED TO UNDERSTAND
Is this difference in behaviour due to lifestyle differences or is it a generational difference?
Is there room for driving in Millennials’ lifestyle given their urban lifestyles and financial headwinds?
Given their experience over owning mindset, are cars just viewed as a conduit to experiences? Is it just a means to an end and if so, how does that impact how they view car ownership?
5
METHODOLOGY
Online quantitative study of Economist readers run by
Fox Insight in August 2015
TOTAL RESPONDENTS: 1,171
UK RESPONDENTS: 440
AGE 18-34: 46% AGE 35-54: 34%
£65K+ HOUSEHOLD INCOME: 58%
AVERAGE IN THE UK: £27K
ABOUT THE
RESPONDENTS
6
479 RESPONDENTS
U.S.
440 RESPONDENTS
UK 252
RESPONDENTS
GERMANY
ECONOMIST MILLENNIAL READERS ARE
MORE AFFLUENT AND INFLUENTIAL 7 ECONOMIST READERS ALSO SPEND MORE ON CARS
Source: Ipsos Affluent Europe 2015 – UK
Personal income £50K+ Economist Millennial readers: Index 133
Total affluent Millennial population: Index 62
People often come to me for advice before making a purchase Economist: Index 132 Total: Index 115
Spend £17K+ on their last car Economist: Index 156 Total: Index 96
OVER HALF OF MILLENNIAL READERS
LIVE IN BIG CITIES 8
The Economist Group Reader Panel; Age 18-34 n=203, Age 35-54 n=150
17%
8%
27%
49%
6%
7%
34%
54%
Rural
Suburban
Town/Small city
Major metropolitan city
Type of area that you live in
18-34 35-54
FOR BOTH GROUPS, PUBLIC TRANSPORT
IS MAINLY USED IN MAJOR CITIES 9 WHILE THOSE IN OTHER AREAS MAINLY DRIVE FOR THEIR COMMUTES
The Economist Group Reader Panel; Age 18-34 n=203, Age 35-54 n=150
3%
6%
7%
4%
12%
69%
0%
2%
5%
25%
19%
50%
Other
I do not commute
regularly
Cycling
Walking
Driving
Public transportation
Major metropolitan city
18-34 35-54
3%
14%
5%
18%
9%
51%
1%
2%
13%
18%
21%
45%
Other
I do not commute
regularly
Cycling
Public transportation
Walking
Driving
Small city, suburbs or rural
18-34 35-54
Main transport method for daily commute
CONVENIENCE IS MOST IMPORTANT
TRANSPORT FACTOR FOR ALL AGES 10 BUT CONVENIENCE, CONTROL AND COSTS ARE EVEN MORE IMPORTANT TO
MILLENNIALS
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 199, 35-54 n= 135,
16%
31%
21%
30%
41%
52%
20%
24%
30%
40%
46%
61%
Commuting is also a way for me to exercise (e.g.
walking or cycling)
Ability to multi-task while commuting
I like being in control rather than rely on the
schedule of others
This is a cost-effective way for me to travel
This transportation option saves me the most time
Convenience – it’s easiest for me to access this
mode of transport
Most important factors in choosing the mode of transportation for
daily commute
18-34 35-54
OVER 80% OF MILLENNIAL READERS
HAVE THEIR DRIVING LICENCE
Do you currently have a valid driving licence?
18-34: 84% yes
35-54: 98% yes
11 ECONOMIST READERS ARE MORE LIKELY TO HAVE THEIR DRIVING LICENCE
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 203, 35-54 n= 150, TNS UK Automotive Study 2013
General population
18-34: 67%
35-54: 82%
11%
18%
33%
56%
71%
21%
21%
41%
71%
78%
My parents/friends thought it was a good
idea to get my licence
I wanted to buy a car
I considered it a rite of passage to pass my
driving test
Driving is a good life skill to have
I wanted to drive
Which of the following best describe the main reasons for why you
decided to get your driving licence?
18-34 35-54
MILLENNIALS ARE MORE LIKELY TO SEE
DRIVING AS A GOOD LIFE SKILL 12
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 170, 35-54 n= 147
BUT MILLENNIALS ARE ALSO EQUALLY AS
LIKELY TO ENJOY DRIVING 13
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 170, 35-54 n= 147
49%
61%
57%
63%
I enjoy the drive as much as the destination itself
Driving is fun – I enjoy driving on challenging
roads
To what extent would you agree with the following:
18-34 35-54
NEARLY 3 IN 4 MILLENNIAL READERS
CURRENTLY OWN OR LEASE A CAR 14
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 170, 35-54 n= 147, TNS UK Automotive Study 2013
Do you currently own or lease a car?
18-34: 71% yes
35-54: 88% yes
General population 18-34: 68% 35-54: 81%
51% of Millennial
respondents agree that it is
‘very important’ for them to
own a car in the future
1 OUT OF 3 MILLENNIAL READERS PLAN
TO BUY A CAR IN THE NEXT 2 YEARS 15 MILLENNIAL READERS ARE JUST AS LIKELY AS OLDER READERS TO BUY A CAR IN
THE NEXT 5 YEARS
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 203, 35-54 n= 150
34%
25% 23%
18%
38%
34%
9%
19%
Yes, within the next
1-2 years
Yes, within the next
2-4 years
Yes, within the next
5 years
No, not within the
next 5 years
Do you plan to buy or lease a car in the next 5
years?
18-34 35-54
Which of the following do you intend to do in the next 2 years?
(Age 18-34 respondents) 44% career advancement at current job 39% move house or relocate 17% have a baby
FOR BOTH GROUPS, CAR OWNERSHIP IS
MOTIVATED BY FREEDOM AND NEED 16 HOWEVER FREEDOM TO GO ANYWHERE IS MORE IMPORTANT TO MILLENNIALS
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 120, 35-54 n= 130
4%
18%
13%
35%
37%
54%
54%
62%
6%
8%
10%
35%
42%
54%
61%
78%
Other
I like to keep a car for emergencies
I wanted to buy a car to treat myself or my
family
I like to drive
I wanted a car to be able to visit my family and
friends
It’s convenient to my lifestyle
I need it - it’s one of my primary modes of
transportation
I like the freedom to go anywhere at any time
Why did you decide to buy or lease a car?
18-34 35-54
CAR OWNERSHIP USED TO EQUAL
IDENTITY AND STATUS 17 BUT TODAY’S TECHNOLOGY AND SOCIAL MEDIA HAVE ALTERED THE DEFINITION
OF IDENTITY AND STATUS
Then Now
THE CAR THEY DRIVE IS LEAST LIKELY TO
REPRESENT MILLENNIALS’ IDENTITY 18
HOBBIES AND SENSE OF FASHION ARE MUCH MORE IMPORTANT TO MILLENNIALS
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 203, 35-54 n= 150
18-34 35-54
My hobbies/interests 68% 56%
My nationality/cultural
heritage 54% 54%
My career standing 52% 53%
The city or neighbourhood
where I live 28% 32%
My sense of fashion 23% 14%
The technology products
that I own 15% 10%
My online presence 12% 8%
Other 11% 12%
The car that I drive 5% 14%
Thinking about your own personal 'identity', which
of the following come to mind?
MILLENNIALS SEE CARS AS AN INDICATOR
OF STATUS OVER OTHER THINGS 19
THIS BODES WELL FOR LUXURY AUTO BRANDS WHICH CAN SERVE AS STATUS SYMBOLS
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 203, 35-54 n= 150
18-34 35-54
My career standing 74% 65%
How much money I earn 37% 33%
The city or neighbourhood
where I live 36% 36%
The car that I drive 19% 15%
Other 16% 19%
My sense of fashion 14% 11%
Technology products that I
own (such as my phone,
tablet, computer)
13% 9%
The watch/jewellery I wear 8% 10%
Which of the following best convey 'status' for you
personally?
TOP PURCHASING FACTORS ARE FUEL
EFFICIENCY AND AFFORDABLE PRICE 20 FUEL EFFICIENCY IS MORE IMPORTANT TO MILLENNIAL RESPONDENTS WHILE SIZE
OF CAR IS MORE IMPORTANT TO THE OLDER GROUP
The Economist Group Reader Panel, Base: UK respondents 18-34 n= 203, 35-54 n= 150
1%
2%
5%
13%
13%
16%
17%
20%
22%
25%
26%
29%
32%
33%
44%
Payment options
Model year
Car security
Exterior design
Environmental impact/friendliness
High performance (power…
Safety rating
Car technology/innovation
Comfort
Size of car
Brand reputation
Enjoyable to drive
Reliability
Affordable price
Fuel efficiency / gas mileage
Top 3 factors in buying/leasing a car
(Total respondents)
18-34 35-54
Fuel efficiency 52% 37%
Affordable
price
33% 32%
Size of car 20% 31%
Environmental
impact
15% 9%
Notable differences
RESPONDENTS WOULD BE MOST LIKELY TO
PAY MORE FOR COMFORT AND SAFETY 21
The Economist Group Reader Panel; Age 18-34 n=203, Age 35-54 n=150
Safety technologies
18-34: 58% 35-54: 59%
Comfort while sitting
in the car
18-34: 60% 35-54: 62%
Alternative power sources
(e.g. electric or hybrid)
18-34: 49% 35-54: 40%
Connectivity tech(e.g.
connect to smartphone)
18-34: 55% 35-54 : 53%
Higher quality interior
design
18-34: 34%
35-54 : 48%
Features worth paying more for in a car
Millennials care more about alternative power sources while the older generation cares much more about high quality interior design .
TAKEAWAYS
Millennials today are more likely to live in big cities where driving is less suitable but they are still interested in
driving and owning a car in the future.
Continue to communicate to Millennials as they’re interested in driving but may not be in a position to
purchase a car at this stage in their lives.
Compared to older readers, Millennial readers are more motivated by convenience, costs and control
when it comes to a commute.
A focus on affordable costs makes Millennial readers more pragmatic shoppers which has implications on
how to communicate fuel efficiency and affordability. For convenience, are there technologies that can
help with convenience – e.g. connectivity technologies that can sync the car with one’s phone?
Owning a car represents two main benefits to Millennial readers. They are more likely than the older
audience to appreciate the freedom to go anywhere that comes with a car. Secondly, Millennials still see
cars as an indicator of status over other things which bodes well for luxury car brands.
These are traits that auto brands can use to resonate with Millennials through their Marketing
communications
22
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