Here's why retailers should keep close tabs on its millennial consumers

They are expected to dominate spending power by 2020.

With consumers increasingly embracing digital technology as a part of their daily routine, retailers and packaged good companies must enhance their understanding of the millennial behaviors and tailor-fit services based on the evolving trend in commerce.

According to a report by Accenture, e-commerce adoption continues to increase, with sales in the Asia Pacific region expected to rise 300 percent to $3.5 trillion (US$2.6 trillion) by 2020, with millennials dominating spending power at $8.1 trillion in disposable income.

"Retailers and CPG companies must improve their understanding of this tech-savvy, media-connected generation to capitalise on the huge opportunity and capture this powerful customer segment," the report stated.

Asia accounts for the largest amount of smartphone users globally at over 50%, with Singapore having the highest mobile penetration at 80%.

For Accenture senior managing director Teo Correia, this trend goes to show how digital is transforming the industry globally by empowering customers with more choices, insights, and control.

"Millennials expect easy and delightful experiences that are tailored to their interests and lifestyles. To win their loyalty, it is imperative for brands to keep it simple but make it personal using data-driven applications," he said.

Accenture's study surveyed more than 10,000 consumers across 13 countries and found out that 60% of millennials are comfortable with giving retailers access to their information in exchange for more personalised experience.

“We see successful brands ramping up their data and analytics capabilities to enable personalised customer experiences and pricing based on loyalty, purchase history, and demographics,” Correia explained.

He added,“The pace of change has increased and in a world where new markets and services are created almost overnight, connecting and collaborating to enhance their operations, services and business to better serve their customers will separate winning retailers from the laggards."