January 2016 MILLENNIALS AND DRIVING (USA)

Transcription

1 January 2016 MILLENNIALS AND DRIVING (USA)

2 THE NATION S LARGEST GENERATION IS DRIVING LESS 2 Comparing Millennials today (2009) vs. Gen X 20 years ago (1995) Young people this age who were employed in 2009 drove 7.1 miles less a day than their counterparts in Those in the city drove 6.2 miles less and those in the country drove 8.1 miles less vs. their counterparts in 1995 Citylab July 2015, Pew Research Center

3 TRENDS AFFECTING MILLENNIALS 3 Economic $35k average student loan balance for class of 2015 Delayed Life Plans 59% would rather rent a house than buy one Sharing > Owning 52% would consider car sharing or ride sharing services Sources: Wall Street Journal, Elite Daily Millennial Study 2015,, MRY Future of Mobility Study

4 ABOUT THIS RESEARCH To understand Millennial Economist readers (aged 18-34) and their mindsets when it comes to commuting, driving and car ownership, compared to older generations 4 Lifestyle -What are the trends affecting their lifestyle? -How do they currently commute? -Most important factors for a commute Driving -Motivations in getting driving licence -Interest in driving -Attitudes about driving Car Ownership -The biggest motivations behind owning a car -Likelihood to own in the future and why -Most important factors in shopping for a car

5 5 479 RESPONDENTS U.S. 440 RESPONDENTS UK 252 RESPONDENTS GERMANY METHODOLOGY Online quantitative study of Economist readers run by Fox Insight in August 2015 TOTAL RESPONDENTS: 1,171 ABOUT THE RESPONDENTS US RESPONDENTS: 479 AGE 18-34: 42% AGE 35+: 58% $100K+ HOUSEHOLD INCOME: 55% CLICK TO ADD SIGNPOST

6 MAJORITY OF MILLENNIALS LIVE IN BIG CITIES EMPLOYMENT STATUS AND MARITAL STATUS REFLECT GENERAL POPULATION BUT MILLENNIALS FROM THIS STUDY ARE MORE AFFLUENT 6 Major metropolitan city Type of area that you live in 40% 62% From this study General population Employed 72% 70% Student 24% 21% Town/Small city 19% 24% Married 27% 31% HHI $100K+ 42% 23% Suburban 17% 28% Rural 2% 7% The Economist Group Reader Panel; Age n=201, Age 35+ n=278, MRI Doublebase 2014

7 ECONOMIST MILLENNIAL READERS ARE MORE AFFLUENT AND INFLUENTIAL ECONOMIST READERS ALSO SPEND MORE ON VEHICLES 7 Household income $100K+ Economist Millennial readers: Index 196 Total Millennial population: Index 89 People often come to me for advice before making a purchase Economist: Index 160 Total: Index 125 Spend $30K+ on purchase/lease of vehicle in past year Economist: Index 206 Total: Index 129 Sources: GfK MRI Doublebase 2014, Ipsos Affluent USA 2015

8 MILLENNIAL RESPONDENTS ARE JUST AS LIKELY TO HAVE THEIR DRIVING LICENCE ECONOMIST READERS ARE MORE LIKELY TO HAVE THEIR DRIVING LICENCE 8 Do you currently have a valid driving licence? 18-34: 94% yes 35+: 99% yes General population 18-34: 81% 35+: 87% The Economist Group Reader Panel; Age n=201, Age 35+ n=278, MRI Doublebase 2014

9 THOUGH MILLENNIALS WANT TO DRIVE, THEY RE ALSO MORE LIKELY TO SEE DRIVING AS A GOOD LIFE SKILL 9 Main reasons for getting your driving licence I wanted to drive 77% 81% Driving is a good life skill to have I considered it a rite of passage to pass my driving test 41% 42% 48% 66% I wanted to buy a car My parents/friends thought it was a good idea to get my licence 15% 16% 12% 26% Other (please specify): I wanted a driving licence mainly for ID purposes 6% 7% 5% 18% The Economist Group Reader Panel; Age n=188, Age 35+ n=276

10 THUS MILLENNIALS ARE ALSO MORE LIKELY TO SEE DRIVING AS A UTILITY THIS OUTLOOK MAY IMPACT WHAT THEY LOOK FOR IN A CAR 10 To what extent would you agree with the following: I enjoy the drive as much as the destination itself 55% 57% Driving is purely a mode of transport to get from one place to another 33% 47% The Economist Group Reader Panel; Age n=188, Age 35+ n=276

11 DRIVING IS THE MAIN MODE OF TRANSPORT HOWEVER MILLENNIALS ARE MORE LIKELY TO USE PUBLIC TRANSPORT OR WALK/CYCLE 11 Transport method for majority of daily commute: Driving: 55% / 64% Public transportation: 19% / 11% Walking/cycling: 22% / 10% I do not commute regularly: 2% / 13% Live in major metropolitan cities: AGE % AGE % The Economist Group Reader Panel; Age n=201, Age 35+ n=278

12 A CONVENIENT COMMUTE IS THE MOST IMPORTANT FACTOR FOR ALL AGES BUT CONVENIENCE AND COSTS ARE EVEN MORE IMPORTANT TO MILLENNIALS 12 Most important factors in choosing the mode of transportation for daily commute Convenience it s easiest for me to access this mode of transport This transportation option saves me the most time I like being in control rather than rely on the schedule of others This is a cost-effective way for me to travel Ability to multi-task (e.g. read while commuting) This is an environmentally friendly way to travel Other (please specify): Commuting is also a way for me to exercise (e.g. walking) I like to commute with others 0% 0% 5% 22% 21% 16% 17% 14% 16% 13% 11% 32% 43% 42% 51% 52% 59% 67% The Economist Group Reader Panel; Age n=201, Age 35+ n=278

13 CAR OWNERSHIP USED TO EQUAL IDENTITY, STATUS AND FREEDOM BUT TODAY S TECHNOLOGY AND SOCIAL MEDIA ALTERED THE DEFINITION OF IDENTITY AND STATUS AND HELPS FULFIL CONNECTIVITY 13 Then Now

14 THOUGH CARS MAY NOT CONVEY IDENTITY TO MILLENNIALS AS MUCH OVER 20% OF MILLENNIALS AGREE THAT CARS HELP CONVEY THEIR STATUS WHICH BODES WELL FOR LUXURY AUTO BRANDS 14 Thinking about your own personal 'identity', which of the following come to mind? Which of the following best convey 'status' for you personally? 8% 21% The car that I drive The car that I drive 18% 16% The Economist Group Reader Panel; Age n=201, Age 35+ n=278

15 NEARLY ALL CURRENTLY OWN OR LEASE A CAR 15 Do you currently own or lease a car? 18-34: 82% yes 35+: 97% yes General population 18-34: 74% 35+: 90% The Economist Group Reader Panel; Age n=188, Age 35+ n=276, Q2 2015

16 TRANSPORT, FREEDOM AND CONVENIENCE ARE THE MAIN REASONS FOR CAR OWNERSHIP 16 The older generation is more likely to buy a car because of transport need while Millennials are more likely to buy out of convenience. 76% 85% 67% 66% Why did you decide to buy or lease a car? 61% 52% 39% 33% 40% 36% 15% 16% 12% 7% 3% 5% It s one of my primary modes of transportation I like the freedom to go anywhere at any time It s convenient to my lifestyle I wanted to be able to visit my family and friends I like to drive I like to keep a car for emergencies I wanted to treat myself or my family Other (please specify): The Economist Group Reader Panel; Age n=155, Age 35+ n=267

17 NON-CAR OWNERS DON T CURRENTLY NEED A CAR OR ARE DETERRED BY THE COSTS OF OWNERSHIP 17 Main reasons for not currently owning or leasing a car There are plenty of public transport options in my area Costs of owning a car (buying a car, insurance, maintenance costs) I can walk or cycle to get to most places in the area that I live in I have access to a car via family/friends The responsibility of owning a car (e.g. maintenance) 73% 44% 67% 33% 48% 22% 36% 22% 33% 22% Other (please specify): 6% 33% I have no interest in driving 3% 0% The Economist Group Reader Panel; Age n=33, Age 35+ n=9

18 1 IN 4 MILLENNIAL RESPONDENTS PLAN TO BUY A CAR IN THE NEXT 2 YEARS THIS CORRELATES WITH THEIR LIFE PLANS OF CAREER ADVANCEMENT, RELOCATION AND STARTING A FAMILY 18 Do you plan to buy or lease a car in the next 5 years? Which of the following do you intend to do in the next 2 years? (Age respondents) 25% 34% 20% 29% 25% 30% 19% 18% 49% career advancement at current job 46% move house or relocate 19% have a baby 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 The Economist Group Reader Panel; Age n=201, Age 35+ n=278

19 TOP PURCHASING FACTORS ARE FUEL EFFICIENCY AND RELIABILITY FUEL EFFICIENCY AND PRICE ARE MORE IMPORTANT TO MILLENNIALS WHILE ENJOYABLE TO DRIVE IS MORE IMPORTANT TO THE OLDER GENERATION 19 Top 3 factors in buying/leasing a car (Total respondents) Fuel efficiency / gas mileage Reliability Affordable price Safety rating Enjoyable to drive Brand reputation Car technology/innovation High performance (power Comfort Size of car Environmental impact/friendliness Exterior design Car security Model year Payment options 2% 1% 4% 10% 9% 28% 26% 25% 25% 25% 20% 19% 18% 45% 43% Fuel efficiency % 38% Reliability 41% 44% Enjoyable to drive Affordable price 17% 31% 34% 24% The Economist Group Reader Panel; Age n=201, Age 35+ n=278

20 RESPONDENTS WOULD BE MOST LIKELY TO PAY MORE FOR SAFETY AND COMFORT 20 Features worth paying more for in a car Safety technologies Comfort while sitting in the car Alternative power sources (e.g. electric or hybrid) Connectivity tech(e.g. connect to smartphone) Technology that keeps track of fuel efficiency 18-34: 59% 35+: 68% 18-34: 54% 35+: 65% 18-34: 53% 35+: 42% 18-34: 49% 35+: 44% 18-34: 40% 35+: 32% The older generation cares much more about safety technologies and comfort while Millennials care more about alternative power sources and fuel efficiency. The Economist Group Reader Panel; Age n=201, Age 35+ n=278

21 TAKEAWAYS 21 Driving is relevant to both groups as it is the main mode of transport for their daily commutes even though most respondents live in major cities. However there is still room for improvement for Millennials as they are more likely to use public transportation or walk/cycle on their daily commutes. When it comes to commuting, both groups value convenience and time-saving over things like cost and the ability to read on a commute. Millennials are more likely than the older generation to value convenience and affordability. Focus on technologies that can help with convenience e.g. connectivity technologies that can sync the car with one s phone. Although Millennials enjoy driving as much as the older generation, Millennials are more likely to see driving as a skill/utility. This translates to what Millennials are looking for in a car as they seem to be more pragmatic shoppers (fuel efficiency and reliability are the most important factors). What are interesting ways to communicate these functional benefits to this audience?