Much has been made of young generations such as millennials setting new consumer trends and how companies should respond, but in reality, there are perhaps better opportunities available to target older generations then younger ones. Consumers over the age of 55 at present have been shown to be more tech savvy than ever, more online and increasingly looking for leisure and entertainment opportunities.
Key Questions Answered:
- Why has this generation got so much spending power over the millennial generation?
- How can they be better targeted with products and advertising campaigns?
- What products really suit the senior age group?
- What holiday, property, technology and retirement products does this group favour?
Scope
The ‘gray dollar’ generation are more likely to own property than any other group, have more liquid capital than any other and are increasingly less likely to save inheritance for younger generations. There are opportunities arising in a number of product areas, including technology, property and housing, marketing, financial products and holidays and leisure. Many companies have yet to realize that they actually have an ideal product for senior consumers already but are failing to maximize the opportunity due to not properly targeting this consumer group.
Key Highlights
- The share of money spent on holiday and leisure by senior consumers exceeds that of any sub-group of working age people. Companies must now cater for that part of the demographic to prosper.
- Dubbed the ‘gray dollar’, seniors in society have long been known to possess extensive spending power. Major brands are increasingly marketing products towards retirees, adjusting store design and tailoring products to their needs.
- The last few decades have seen phenomenal rises in real estate prices, as much as 18% over the last ten years in the UK, and the age groups that have most gained from this process are those which are already on the property ladder. This trend is actually strengthening and older buyers control more of the global property market than ever before and younger generations are buying much less.
Reasons to buy
- Examine just why senior consumers are such a valuable customer group.
- See the progress made by some companies in targeting this demographic.
- Explore the opportunities available and how the group is changing in nature.
- See what the risks are to this group and how their lifestyle might be affected.
Table of Contents
Table of Contents
Executive Summary 2
Grey dollar controls holiday and leisure markets, but it may not dominate forever 2
Businesses have yet to appeal ...
Table of Contents
Executive Summary 2
Grey dollar controls holiday and leisure markets, but it may not dominate forever 2
Businesses have yet to appeal to the ‘grey dollar’ – times may be about to change 2
Property & assets are increasingly owned by older generations 2
Retirement Plans: Looking for leisure in old age and managing finances 2
Seniors are far more tech literate and want tech solutions 3
Grey dollar controls holiday and leisure markets, but it may not dominate forever 8
Seniors are the most valuable customer group, far exceeding their numerical size 8
Government regulatory changes are helping to boost the power of the grey dollar in vacations 9
‘Grey dollar’ is becoming harder to win due to immediate economic circumstances 10
Rising number of seniors across the world is driving expansion of international travel and tourism market 10
Older consumers in the United States have particularly high influence upon vacation market 11
Whilst the ‘grey dollar’ is courted now, that may change with time 12
Businessess have yet to appeal to the ‘grey dollar’ – times may be about to change 14
Major retail brands are increasingly appealing to older consumers, but doing so is not without challenge 14
Appealing to desires of senior consumers, rather than age, will unlock spending potential 15
Focusing upon age does not help companies access the ‘grey dollar’ 16
Marketing to seniors needs to be matched in product development and the retail environment 17
Property & assets are increasingly owned by older generations 19
In the UK in particular, seniors own a great deal of property 19
Equity release industry is becoming big business 20
Second properties are becoming increasingly common with older generations 21
As many nations age, it is wise to focus property construction on seniors 22
Senior property market is developing but much more can be done 23
Retirement Plans: preparing for old age and managing finances 25
Dementia has no cure and is absorbing social care budgets 25
Implementing solutions to pensions crises is tough but necessary 27
Innovative pension products are beginning to form that could help senior consumers be more affluent 28
The Pension Dashboard scheme could help to keep senior consumers more knowledgeable and affluent 29
Many pension companies are trying to put their products in better software forms 30
Robo advice could be a solution to avoid large fees from a financial advisor 30
Seniors are far more tech literate and want tech solutions 31
Communication technology designed for over 65-year olds is a growth industry 31
Many of the latest devices are perfect for seniors, but not marketed as such 32
There are more apps for older consumers than ever before 32
New alert technology allows elderly people to stay at home, keeping many out of care systems 33
Internet of things is changing how care is delivered to an aging population 34
Remotely taking doctors into homes: technology streamlines treatment of elderly patients 35
Mobility presents growing business opportunities for innovation 36
Some companies are beginning to recognize the opportunities 37
Key Findings 38
Appendix 39
Sources 39
Further Reading 39
Millennial Consumers: Understanding key trends driving consumer behaviors, (2018) MarketLine Theme Report 39
Ask the analyst 40
About MarketLine 40
Disclaimer 40
List of Tables
List of Figures
List of Figures
Figure 1: UK travel and tourism market value ($bn) 2010-2017 8
Figure 2: George Osbourne, Budget announcement 2014 9
Figure 3: Millions ...
List of Figures
Figure 1: UK travel and tourism market value ($bn) 2010-2017 8
Figure 2: George Osbourne, Budget announcement 2014 9
Figure 3: Millions of Chinese citizens aged 65-years and over, 2000-2016 11
Figure 4: Millions of UK citizens aged 65 and over, 2000-2016 12
Figure 5: Helen Mirren, L’Oréal advert 14
Figure 6: Daphne Selfe, Drapers 15
Figure 7: Saga ‘Keep Doing’ campaign 17
Figure 8: Ford ‘third age suit’ 18
Figure 9: Percentage of age group that owns property in UK 19
Figure 10: Price to earnings ratio UK, annual median salaries new and existing property 1997-2017 20
Figure 11: Total UK property ownership by age group 21
Figure 12: Median value of assets for household by age 2017,$ 22
Figure 13: Moving concerns of over-55s 23
Figure 14: McCarthy and Stone retirement property options 24
Figure 15: Total UK weekly spend on recreation and food & drink by age group 2017 ($) 25
Figure 16: UK spending on dementia care by source 2015 ($bn) 26
Figure 17: Population over 65 estimates by 2050, key countries 28
Figure 18: UK’s Pension Dashboard Project 29
Figure 19: Standard Life online servicing 30
Figure 20: Percentage of recent internet users by age UK 2011-2016 31
Figure 21: Apple i-watch SOS function 32
Figure 22: Apple i-watch SOS function 34
Figure 23: Specialized Turbo Vado e-bike 36
Figure 24: Specialized advertisement for the Turbo e-bike 37