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Retail assistant: Excuse me, can I have your phone?

Me: * looking slightly taken aback*

Retail assistant: I want to help you install the XXXX with XXXX mobile app.

Me: Oh… okay. *proceeds to enable Wi-Fi, before handing her my phone*

The above exchange had taken place, right after I had bought a new pair of shoes (in early-2016) from a retailer that I really liked. After about five minutes, I had my phone back, with the added membership-based app. Perhaps the retail assistant knew that I was a loyal customer, as I had previously bought another pair from the same physical retail outlet.

If you can resonate with the above conversation, chances are you’re a millennial, with some knowledge of how the retail industry is transforming. What was previously done in person and offline can now be done quickly, with the Internet. With the app, I can easily be notified of friend referrals and rewards gained, to name a few.

The Internet has made almost everything possible. The advancement of the Internet, along with the recognition that consumers had changing lifestyles over the years brought about electronic commerce. Those who can afford an Internet connection, have an accepted mode of payment, can easily navigate online shopping websites, and have the patience to wait for their orders to arrive will likely benefit from at least one online marketplace. Since the millennials are often thought to have first-hand experience of the online world, it is no wonder the retail landscape is changing.

In a press release by a multinational consulting firm, a top executive reveals that in order for retailers to stay relevant in the years to come, they must go all out to meet customers’ expectations. He also adds that retailers should embrace new technologies to create new value for consumers, especially when millennials are often agile and in favour of instant gratification.  These points are further echoed by an academic attached to an Australian branch campus in Malaysia. Speaking at a marketing conference, he says that connecting with a customer and personalising the experience or product have become even more crucial. When physical stores/malls lack the ability to do so, customers will be inclined to either shop at a) other, better physical stores/malls or b) online.

For a particular millennial, also an executive attached to the Malaysian subsidiary of one of Southeast Asia’s online shopping sites, everything one does depends on two factors: time and venue. Following an occurrence that spurred him to try online shopping, he can definitely appreciate the convenience that comes with online shopping. However, he still goes to physical malls to mingle with his friends, for example.

The promising outlook of online shopping that is being offered to millennials has, in turn, impacted the banking industry.  In a study conducted by the Malaysian unit of a Singapore-based bank, a 26% increment in credit card spending was recorded among cardholders in their mid-20s to mid-30s in the first half of 2016. This is in comparison with the same prior-year period.

In the same survey, it was found that millennials spent most on air travel and the accompanying hotel or accommodation. The fashion and retail categories are also popular among the millennials, as per the study.

At the same time, it can be said that millennials are more inclined to cultivate good online spending habits, especially in times of economic uncertainty. As such, financial institutions and banks have spoken up.

It is worth noting that some popular online-only startups have taken to brick-and-mortar to provide customers with a better experience. What does this mean? We can only wait and see!