Who are the buyers of the future at auctions
As I stated in last weeks’ article, “the long-term viability of the auction business is focused on attracting and retaining financially stable buyers. With baby boomers retired or retiring and tending to downsize, two generations comprise the bulk of potential auction buyers over the next two decades: Generation X and Millennials.” This is the second of a two-part review, focused on the Millennials:
What parts of the Millennial experience can help us understand how to focus the auction environment to meet their needs:
Who they are
Where they are financially
How they spend their time, what their interests are
What their expectations are in a buying/bidding experience
What comfort level they have with technology
Again, while each of these subject areas has been studied in infinite detail, this is an attempt to distill some learnings from multiple sources into an auction house useable form.
Who are Millennials
Millennials were born between 1981 and 1996, so the oldest is 43 and the youngest 28. They are more racially and ethnically diverse than any previous group and are the first “Digital Native” generation, being able to quickly acclimate to new technology, with tech being part of their everyday lives. Since 2019 they are the largest population cohort. They are better educated than previous generations, but there is a large gap in earnings between those with and without a college education. As a group they seek work with purpose, are ambitious and want to achieve their goals. They are politically more liberal when compared to earlier generations.
Where are the Millennials financially
Millennials bifurcate into the struggling and the wealthy. According to a 2024 MarketWatch survey, 43% feel financially insecure, however the top 10% of Millennials have 20% more wealth than the top Baby Boomers at the same age. As a group, Millennial average 401(k) balances have more than doubled to $59,800 in the last 5 years.
Millennials have high levels of debt, primarily student loans and credit cards, and have lower levels of home ownership. In the U.S., this generation was the most financially affected by the 2007-2009 Great Recession. Millennial women are emerging as a driving force in the economy with higher percentages in the workforce. Per McKinsey, Millennials are likely to inherit nearly 50% of $68Trillion from Baby Boomers by 2030.
How do they spend their time, what are their interests
Work consumes the majority of Millennials’ time, but flexible working arrangements (gig economy, work from home, flexible hours, project-based work) allow a much sought after positive work-life balance. They tend to be more indoor people, think yoga versus mountain climbing, online gaming versus fishing, with fitness and healthy eating also being major focuses.
Millennials’ interests tend towards experiences over material goods, with travel, dining, and events aimed at creating memories and personal growth. They are digitally connected and rely on tech for communication, community engagement, entertainment and daily tasks. They are focused on ethical consumption, and are more likely to support brands that demonstrate connection to their values.
Millennials’ collecting habits are focused on digital collectibles (NFT’s and in-game items), pop culture, movie memorabilia, vinyl records and fashion. Where millennials are interested in art, it is largely focused on contemporary and emerging artists.
What are their expectations in the buying / bidding experience
As the first generation of “Digital Natives,” Millennials expect their tech experiences to focus on usability and convenience, with ease of use, self-service, prompt responses, and personalization being key features. They are used to multi-channel experiences, particularly the ability to switch between desktop and mobile devices. Per Artsy, 90% of Millennials who purchased art in the past year did so online, which points to the perspective that this group would rather bid online than in person, and based on the rest of their digital experience this should be an interactive process.
What is their comfort level with technology
As previously set out, this Digital Native generation is very comfortable with end user technology, and expects regular updates to platforms and equipment. Their learning experience for new tech is online, multi-channel, and interactive.
Conclusion
From an auction house perspective, this generation represents the second largest growth potential group in the next decade. They are almost entirely focused on online engagement and are used to the concept of larger scale online purchases. For the immediate future they tend to be more engaged with collectibles, contemporary art, and digital at lower price points. They are enthusiastic about auctions, seeing them as a place to get deals on unique items.
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If you have a second, please answer our 1 question survey below.
Have you made changes to your auction experience specifically focused on younger buyers?
Yes, responding to client requests
Yes, but they only represent a small number of buyers at the moment
We are not yet seeing enough younger buyers
We already have and are focused on a younger bidder base
Not relevant to us
