OK boomer, you may have money, but you’re not spending it.
Younger consumers, even though they have less saved than older Americans, are the ones opening their wallets as the U.S. economy recovers. Millennials and members of Generation Z are spending even more than they did before the pandemic as vaccines proliferate around the world, American Express Co. Chief Executive Officer Steve Squeri said during a virtual investor conference Friday.
“We assumed there was such pent-up demand – not only for travel, but such a pent-up demand for consumer goods – that the U.S. recovery would be like it is right now,” Squeri said. “When you look at your millennials and your Gen Zs right now,” they’re at “125% spending of what their pre-Covid levels were in 2019.”
That’s helped revive overall spending on AmEx’s cards, which nevertheless remains down this quarter compared with pre-pandemic levels. Covid-19 forced the company, long known for its cards that provide special perks for travel and dining, to reshape its business and focus its rewards on things like wireless and streaming services. As vaccines abound, AmEx is benefiting as consumers get back to vacationing and eating out.
While consumers have returned to the skies for domestic travel, businesses have yet to get their workers back on the road, Squeri said. AmEx now believes corporate travel won’t return to its pre-pandemic levels until 2023, he said.
The company is eyeing whether it can offer debit cards in markets outside China, Squeri said. Still, he cautioned, the firm is wary after a previous experiment offering prepaid debit cards to unbanked individuals ended with the division being dismantled less than a decade after its inception.
Squeri said that American Express is “very conscious about the brand” and needs to decide whether offering a debit card would fit in with the company’s largely high-end and aspirational products.
“It really didn’t work for us — the unbanked was really not our customer, and the prepaid market was not our customer, and we learned that,” Squeri said. “But is there something in between our everyday credit card and the prepaid card? And that potentially could be a debit card. That all needs to be worked out.”
Be Patient, Build Relations: Millennial Bosses Parth Jindal, Ritesh Agarwal Advise Gen-Z
Word Of Advice
The millennials are all grown up, and now as top bosses, they have some words of wisdom to give to the next generation.
Millennials in the workforce are shaping the world around us. Take for instance the likes of Mark Zuckerberg (Facebook), Brian Chesky (Airbnb), Evan Spiegel (Snap) and Ben Silbermann (Pinterest). As driven by mission as money, the generation once described as lazy and entitled is aged between 36 to 38 and has risen to influential roles.
Here is the advice they would like to give to the newer generation coming into the workforce:
‘Don’t Be Seduced By Titles’
Nikhil Kamath, Co-founder, Zerodha
“Do not be seduced by designations and job titles. Instead, focus on finding work in a company with a progressive and innovation-driven culture. As a generation that has grown in an all-digital age, sustaining growth in this rapidly transforming ecosystem is not easy. Seek a mentor who complements your strengths. Do not be intimidated by other’s experience…Do not underestimate the value you bring to the workforce. Look for exponential experiences early in career — not linear ones.”
‘Build A Network’
Rashmi Daga, Founder, FreshMenu
“My advice to Gen Z employees would be to spend time with work colleagues and build longlasting relationships. This will help them build a positive environment at work and a great learning opportunity with easy exchange of ideas. They could get an opportunity to learn across functions and be involved in upcoming cross-team projects. Being focussed on every learning opportunity would be the fastest path to progress for a leadership role.”.
‘Learn By Doing’
Ritesh Agarwal, Founder, OYO Hotels and Homes
“Having set out on my entrepreneurial journey at a young age, the words of my mentor, Peter Thiel, have always stuck with me. He wanted us to focus on learning by doing. Today, OYO is driven by millennials and Gen Z, and I keep telling them how important it is to be passionate about everything you do and the importance of learning by doing. Patience, perseverance and grit are the other qualities that allow you to be focused and seize each opportunity that comes your way.”
‘Be A Sponge’
Ameera Shah, MD, Metropolis Healthcare
“Absorb and learn as much as you can. I did that during my internships. I felt that I should be going beyond my area of learning. If I was put in one division, I was rarely found there. I would be all over the company, learning everyone’s jobs. I am curious about how things work and just learning from everybody is very important.”
