Retailers are urged to ditch millennials in favor of older shoppers. Retailers should stop wasting so much time trying to win over millennials because theyÛªre often broke. Instead, they should target older shoppers with more money to spend. ThatÛªs a key finding from a report by Forrester Research Inc.
Tag: baby boomers
U.S. adults enjoy donating to their favorite charities but they don’t intend to increase what they are giving in the near future. Charities will have to compete hard to improve their bottom line and one way to accomplish this goal is to target specific age groups with certain marketing strategies. A new report from Blackbaud can help charities determine how to proceed.
Neuroscientists have been studying how the human brain responds to stimuli in a retail environment for some time now. The results of studies that have tracked shopper emotions through specially designed wearable electronic devices while they are in stores or looking at ads may help marketers sway purchase decisions. But, early research released by Nielsen Neurofocus shows that marketers will need to adjust their messaging according to the age group of the target audience.
Automakers are shifting toward targeting Baby Boomers, who have weathered the financial crisis better than millennials. According to a new study from J.D. Power and AARP, people age 50 and older now buy more than 6 of every 10 new vehicles sold — 62%. In contrast, buyers age 18 to 34 now are just 13% of the new-car market — down from 24% in 2001.
Value and practicality are at the core of any shopping experience, but beyond the basics, shoppers are looking for self identification and novelty. Moreover, retail relevance factors vary significantly by age with the biggest difference between Gen Y and Boomers. For the next generation of shoppers, shareability of the experience is much more important, as the ideal shopping experience is both self-affirming and social.
Marketers have long counted on the Baby Boomer generation to spend heavily on goods and services after retirement. But the recent economic downturn has battered the portfolios of many consumers in this age demographic. New research from AARP shows where marketers how they can best connect with Boomers as this large consumer group begins to turn age 65.
The aging Baby Boomer population and other health conscious consumer cohorts favor supplements as an affordable way to stay healthy compared to costly prescription drugs and preventable medical procedures, according to “Nutritional Supplements in the U.S., 4th Edition” by market research publisher Packaged Facts. U.S. retail sales of nutritional supplements continue to grow, fueled by growing consumer awareness about health maintenance, in addition to pressure by the media and government to enforce product accountability. Packaged Facts forecasts annual sales growth in nutritional supplements will gradually improve over the new few years and sales will exceed $13 billion in 2014, yielding a compound annual growth rate of 7%.
The quest for “the good life” continues to drive Baby Boomers to sacrifice today, so that they can enjoy the finer things tomorrow. According to MainStay Investments’ Boomer Retirement Lifestyle Study, 76% of the Baby Boomers surveyed (age 45-65 that are not yet retired) say they are willing to spend less now to invest for a more comfortable lifestyle in the future. Forty percent of the Boomers surveyed said they will have to delay retirement in order to afford the lifestyle they want to live. Besides working longer, Boomers are saving more, adjusting their portfolio allocations, and seeking help from financial advisors–in that order. In addition, the majority of Baby Boomers believe that healthcare coverage, internet connection, shopping for birthdays and special occasions, and pet care are basic needs. And about half of those surveyed consider annual family vacation or weekend getaways, having eldercare/home aid, professional hair cut/color and funding children/grandchildren’s education to be basic needs as well.
Two in three Baby Boomer women (65%) prefer to purchase apparel online because they dislike the service they receive in department stores and 13% only buy their clothes online in order to avoid the in-person hassle, according to Vibrant Nation. More than eight in 10 (84%) find sales staff are indifferent, inexperienced, invisible, and “outright rude.” An additional 32% claim an “age bias,” pointing out that younger sales associates ignore older consumers.
According to a new report by Mintel, the female Baby Boomer population is more web-savvy than ever, and they could be wielding their digital dollars at online beauty sites if retailers play their cards right. One in ten respondents to a recent Mintel survey report using some type of online retailer to purchase cosmetics and skin care aids, and the female Boomer population is expected to increase by 30.9% from 2005-2015. When looking strictly at online sales, 8% of those surveyed visit mass merchandiser sites for beauty products, 8% order from Wal-Mart.com, 8% order from Target.com, 5% patronize drugstore sites like CVS or Walgreens and 8% visit other unnamed online retailers.
According to a recent survey by the American Academy of Cosmetic Surgery, anti-aging procedures such as facelifts and blepharoplasty (eyelid lifts) are on the rise. So are botox and fillers. Baby boomers are aging but they don’t want their looks to do the same, therefore, many are turning to cosmetic surgery. Facelifts rose 44% from 2008 to 2009 in procedures by AACS members, totaling 34,455 in 2009. Blepharoplasty procedures went up 42%, from 42,602 to 60,507. Similarly, non-invasive anti-aging procedures such as Botox (up 157%) and fillers (up 245%) rose exponentially.
According to a recent study by Communispace, the recession has added considerable stress to this already overburdened population known as “the sandwich generation,” baby boomers who support kids, parents, relatives and themselves at the same time. Over 20 million Americans belong to this unique consumer segment. Feeling stretched, overwhelmed, and under-supported this segment of consumers has particular needs and hopes that marketers must understand. For example, 77% would adapt the things they’d purchase to accommodate parents; for example, when buying a new car they’d consider buying one with a larger trunk (to hold a parent’s wheel chair or walker), rather than one that is comfortable or gets good gas mileage. A “considerable number” of people are looking for more culturally and linguistically appropriate services for their elderly parents (many of whom don’t speak English).