Clubs may soon find that they have more companies competing for the attention of their traditional target market. Though it’s been clear that the population of those 65 and older has been growing at an unprecedented rate, the expansion of the aging population is on the brink of redefining consumer culture worldwide.
For the past half-century, marketing initiatives have been driven by the need to appeal to younger audiences, but, according to the recent study by A.T. Kearney, “What do Mature Consumers Want,” the older generation’s wants, needs and habits create a new crop of consumers primed to become the hottest market for products and services.
In developed nations, there have been more people over age 60 than under age 15 since 1998, and the same is expected to hold true across the globe by 2047. Worldwide, the 60 and older population is growing at the rate of
2.6 percent each year, and the 80 and older population is growing at a rate of 4 percent per year—far outpacing the general population growth of an annual 1.2 percent. What does that mean in terms of actual numbers? In 1950, the population of those over 60 came in at about 200 million. At the start of the 21st century, that number had jumped to 600 million. Last year saw an even more rapid increase to 800 million, and the number is expected to reach 2 billion by 2050.
Members of the older demographics tend to control a large portion of a country’s wealth, regardless of declines in salary after retirement. In the United States, those ages 50 and older own 80 percent of U.S. financial assets and control 50 percent of the nation’s discretionary income.
Not only do older consumers control a substantial amount of wealth, they also spend it. In 2010, consumers age 60 and over spent more than $8 trillion dollars, and that number is projected to rise to $15 trillion in yearly spending by 2020.
To appeal to this highly sought after demographic, marketers and retailers will need to make some substantial adjustments, as mature consumers look for different things in both products and experiences than do the younger generations. For instance, older consumers view shopping as a social and leisure activity (two-thirds of those between ages 70 and 80 shop twice a week or more), but, they have different considerations than their younger counterparts. Many retailers have focused on speed and price competitiveness, but mature consumers tend to value higher quality goods and more attentive service—proving to be more brand-loyal and less concerned about pricing.
Many mature shoppers also gravitate toward convenient locations—68 percent prefer smaller stores closer to home that offer a more pleasant overall shopping experience to their big-box counterparts located away from city centers. As consumers age, it becomes more difficult for many of them to navigate large stores. Sixty-three percent of those under age 70 and 75 percent of those over age 70 would like to have a place to sit down when shopping. Many also have trouble bending down or reaching up for products on either low or high shelves, making the availability of customer service staff highly desirable.
Advertising for mature consumers also needs to be reconsidered. According to the study, many of the participants had a negative perception of advertising today—either finding it too loud or too heavily focused on younger consumers. Another recent survey by Age UK also raised some interesting concerns: two-thirds of the participants believed that the advertising specifically geared towards the mature target demographic portrayed older individuals in a negative light, and three-quarters reported that they could not relate to most advertising geared towards them at all.
Understanding what mature consumers want—providing information and services that allow them to pursue their passions—will be a vital component of appealing to this key demographic as they become a driving force behind the market economy.
Jackie Abrams is NCA’s communications manager.