the golden economy: the consumer marketplace in an ageing society
DESCRIPTION
TRANSCRIPT
![Page 1: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/1.jpg)
The Golden Economy: the consumer marketplace in an ageing society
David SinclairHead of Policy and Research – ILC-UK
![Page 2: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/2.jpg)
Summary
• The older consumer has money
• They value good service
• Lots of companies get it wrong
• Age not best predictor of behaviour
• There is money to be made by those who get it right.
• But! Is there no such thing as “the older consumer”
![Page 3: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/3.jpg)
We influence Government policy and debate
The ILC-UK was established in 2000 to explore and address the new longevity revolution and its impact on the life-course and society.
• Think Tank
• Global (12 ILCs)
• Evidence Based
• High visibility around Westminster (e.g. 17events/1000 people in 2010)
• Engage at highest levels of Government
• Focussed on life-course
![Page 4: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/4.jpg)
Some of our publications
![Page 5: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/5.jpg)
It’s a big market
• Older people’s spending reached an estimated £97bn in 2008 (over 65)
• The over 50s spent £276bn in 2008. This represents 44% of the total family spending in the UK
ONS Family Spending 2010
![Page 6: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/6.jpg)
The World is Ageing
![Page 7: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/7.jpg)
How much further will we age?
Aubrey de Grey believes that human life expectancy at birth in 2100 will be 5000 years
“I think the first person to live to 1,000 might be 60 already”
![Page 8: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/8.jpg)
Or perhaps more realistically?
"In ancient times, half our children would have died by the age of 20. Now, in the western world, 98 per cent of them are surviving to the age of 21.
"Our life expectancy is now so good that eliminating all accidents and infectious diseases would only raise it by two years. Natural selection no longer has death as a handy tool."
![Page 9: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/9.jpg)
But irksome for Her Majesty
“I cannot say if the Queen will sign every card in the future. But I can confirm that if the number of centenarians does reach 1 million then the sovereign retains the right to review the policy and raise the age threshold that warrant a card”
Source: A Spokesman February 8th 2006
Moving the goal posts Ma’am!
![Page 10: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/10.jpg)
An ageing society means more older consumers
• The 65+ age group now accounts for 20% of the UK consumer population (16+), and is expected to rise so that in 2030 over 65s account for 25% of the consumer market. PRFC for ILC-UK
• The older market will grow by 81% from 2005 to 2030 while the 18-59 year old market will only increase by 7%. EU figures quoted by Stewart
• In the UK, the number of consumers over 60 years old could increase by 40% over the next 30 years. Meneely, Burns and Strugnell (2008)
![Page 11: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/11.jpg)
What makes a consumer an older consumer? Impact of biological ageing on consumption
• Loss in physical strength may make opening jars/bottles more difficult
• Older people losing mental capacity/dementia may find difficulties with problem solving or processing information. They may also find it difficult to shop around or exercise choice
• Those housebound can be excluded from the physical marketplace
• Ageing can make it more difficult to carry heavy weights and can also result in reduced appetite (Twofers!)
![Page 12: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/12.jpg)
Difficulty with shopping, communicating and handling money
![Page 13: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/13.jpg)
Impact of social ageing in the consumer marketplace
• Older people could assume that certain products and services aren't for them and therefore don't consider purchase
• Older people may assume that certain technologies are for younger people and don't consider their use as a means of engaging with the consumer market
• The media and corporate sector may strengthen the negative impact of social ageing through ageism
![Page 14: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/14.jpg)
Are older consumers changing?
“It is blindingly obvious that there is enormous difference between the seniors of yesteryear and people of the same age today.” Saga 2008
We have a wealthy cohort (on average) (and there are more of them)
Recent retirees “are more strongly defined by the impact of consumer society on their lives and expectations of post work life than previous generations”
![Page 15: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/15.jpg)
But is this a new phenomenon?
“They have fewer ties to family responsibilities... With their homes paid for their major housing concern is for property taxes and repairs... Being essentially free from obligation, they may spend their income and assets as they wish. Here is a potential market, therefore for those marketers who wish to appeal to it. It is a new market, almost unrecognised which must be developed with care as it depends upon the changing role of older persons in our society and the realisation that they are more free than their predecessors in the past century.”
Dodge, 1962
![Page 16: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/16.jpg)
Let’s not assume older people are all the same
![Page 17: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/17.jpg)
Many like to travel
![Page 18: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/18.jpg)
And they want to have fun
When you get to retirement age and your
kids are off your hands and the mortgage
is paid, my opinion is: go and enjoy it”
![Page 19: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/19.jpg)
If they aren't the same, how do we segment?
• Companies use different ways to segment the market
including
• Chronological age; Generational segmentation; income; life
stage; cognitive ages and vales
• There is no such thing as a single “older consumer”
• Chronological age is widely used a poor tool for
segmenting the population
• Some research finds that age has little impact on
consumer demand
![Page 20: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/20.jpg)
The Baby Boomers as a Segment
• Different generations have different experiences and attitudes (e.g. Exemplified by attitudes to sexual behaviour and religion)
• Baby Boomers often talked about as the “new older consumer”
• There were 2 baby booms (can we say they are the same?)
• Arguably the boomers are more rather than less heterogeneous than previous generalisations
![Page 21: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/21.jpg)
The Baby Boomers
• Yes, arguably the first generation of modern consumers
• There is lots of misunderstanding – often used as a term for all older people. They aren't “elderly”
• There is no strong evidence that this group will be different consumers to previous generations (they say they will)
• Few identify with the term baby boomers (40% Cultures of Consumption)
![Page 22: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/22.jpg)
Cognitive age and segmenting
• Stronger evidence of link between cognitive age and attitude
• But there is a link between cognitive age and income
• Cognitive age impacts on the way marketers present the older consumer
• People think they are 15 years younger than they are and marketing imagery represents this.
![Page 23: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/23.jpg)
Social Participation and Age
![Page 24: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/24.jpg)
Yet people would like to participate more
![Page 25: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/25.jpg)
There are some very wealthy people not spending
![Page 26: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/26.jpg)
It’s not just about money.
![Page 27: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/27.jpg)
Distribution of net household financial wealth1: by age of household head (2006/08)
![Page 28: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/28.jpg)
Are older consumers ignored?“Just because I’m over 60 nobody wants to sell me anything anymore” Germaine Greer
“Advertisers and marketers are astonishingly neglectful of older audiences even for products primarily sold to older people” Mike Waterson, Chair World Advertising Research Centre
• Advertising/marketing agencies rarely asked to pitch for the older consumer
![Page 29: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/29.jpg)
Why don’t companies target older people?• Perception of a lack of buying
power
• Stereotyping of older people as “powerless, ugly, dowdy or uninspiring” (alongside an obsession with youth)
• Lack of information about older people’s sensitivity to marketing Tynan and Drayton (2008)
![Page 30: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/30.jpg)
But some companies are getting more interested
“Coca Cola moved into the wine, coffee, tea and orange juice markets during the 1980s to capture older consumer markets who were less interested in their coke brands” Simcock and Sudbury 2006
“Anheuser Busch, the largest US beer maker, attempted to reach the 50 plus age group and wound up creating one of it’s top selling brands” Green 2004
![Page 31: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/31.jpg)
How might an ageing society change the consumer marketplace?
• Older people currently spend more than other ages on: drugs and healthcare; personal care; and coffee
• They represent a significant market for new cars and travel.
• Clothing spend declines with age
• But less on eating out, movies, theatres, petrol and champagne
• Certain industries will need to adapt to an ageing society
![Page 32: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/32.jpg)
Even beer …
“German beer
consumption fell 2.1% in
2009 based on an ageing
population”
Bloomberg.com
![Page 33: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/33.jpg)
Categories of household expenditure by age of household reference person (2007)
![Page 34: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/34.jpg)
Average Weekly Expenditure by Age of Household Reference Person
![Page 35: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/35.jpg)
Growth in expenditure (BIS)
![Page 36: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/36.jpg)
The older consumer as giver and recipient
• Marketers note that older consumers buy a relatively high proportion of toys (25%?) and confectionary
• Grandparents spend £50,000 on their first grandchild (Oct 2010)
• Younger children/grandchildren often buy for the older person
• In other words, people aren’t always buying for themselves.
![Page 37: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/37.jpg)
Representation of older people in advertising
• Older people, particularly women, are under-represented in advertising (NB Cognitive age effect) IPC/Simcock and Sudbury (2001)
• Where older people are represented, evidence that it is for products such as “pain relievers, digestive aids, lacistives and denture forumlas” Freimuth and Jamison (1979)
• There is limited evidence that older people are badly represented in advertising Simcock and Sudbury
• We’ve started to see more examples of companies using older models (e.g. Dove)
• Scant evidence and no consensus that using older models puts younger people off the product/service Simcock and Sudbury (2001)
![Page 38: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/38.jpg)
Representation of Older People
![Page 39: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/39.jpg)
Representation of Older People
![Page 40: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/40.jpg)
Technology – an opportunity (and a challenge)
Around 820,000 older consumers (65+) in the UK made an internet purchase PRFC Analysis for ILC-UK (EFS 2007)
![Page 41: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/41.jpg)
New technology will change the older consumer
“One day soon the Gillette company will announce the development of a razor that, thanks to a computer microchip, can actually travel ahead in time and shave beard hairs that don't even exist yet”
Dave Barry
![Page 42: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/42.jpg)
Artificial Intelligence entity
passes A level
Possible technology innovations to 20502010 2020 2030 2040 2050
Artificial Intelligence causes redundancies
Computer controlled hunger suppressant
Emotion control devices
Auto-pilot cars
Holographic TV
Full voice recognition PCs
Thought input mechanisms widespread
Viewers can choose film roles
Global voting on some issues
Tooth regeneration
Listing of individual DNA
Circuits made with bacteria
Bionic Olympics
Active skin makeup
Disposable phones
Digital mirrors
Face recognition doors
Smart bath
Individual pollution credits
Human memory
enhancement
Virtual holidays
Hydrogen fuel stations
Self drive cars
VR windows
Prison countries
Invisibility cloak
Self clean houses
Global ID card
Robocops
Human memory downloads
Nuclear fusion
Humanoid robots beat national football team
Artificial brain
Brain downloads
Virtual displays
Wave energy =50% in UK
![Page 43: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/43.jpg)
Technology limited by imagination
![Page 44: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/44.jpg)
Google knows!
![Page 45: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/45.jpg)
“But how much smaller do we want a phone?”
• Some/many do but: “I don’t want to live in a smart-home – I’d rather be dead”
• Moral and ethical debates – can’t afford to ignore them
• Must help older people choose technology when it is right for them (tagging/urine tests)
![Page 46: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/46.jpg)
Inclusive design
![Page 47: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/47.jpg)
Can you read the menu?
In many European cities one of the main groups eating in restaurants are those over 50, yet very few 50 year olds are able to read a menu by candlelight with out their reading glasses. That is because the menus are usually designed by younger people in print shops, not for senior citizens. What a crazy situation: the people who the restaurants want to market to cannot read any of their sales literature. Patrick Dixon (2008)
![Page 48: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/48.jpg)
Shopping Around
Mixed evidence but in terms of insurance; utilities; communications technologies, thereis evidence that as we get older we are less likely to shop around. WHY?
• Older people are happy with the product?
• Difficult to calculate the benefit of switching (telecoms/utilities)
• There are few alternatives (e.g. upper age limits)
• Switching is a hassle
• Reduced information processing abilities (but does experience compensate for age?)
• But if marketers assume people don’t shop around they won’t target them.
![Page 49: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/49.jpg)
Direct and indirect age discrimination
“Interflora, Britain’s biggest
flower delivery business, has
been accused of ageism as their
new ‘happy birthday’ balloon
range only goes up to 60 years
old.” Telegraph, September 2010
![Page 50: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/50.jpg)
Ghost Town Britain (& Transport/toilets)
![Page 51: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/51.jpg)
Other findings
• Limited evidence about older people and ethical consumption
• Mixed views on brand loyalty
• Mixed evidence on the best way to reach the older consumer
• Incomprehensible jargon and modern phraseology a barrier to the market (esp. financial services)
![Page 52: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/52.jpg)
Other findings
• The end of the cheque could have a negative impact on the older consumer
• Older consumers are often the main target for fraud, scams and mis-selling
• Need for an age friendly retail environment: In 2009 Tesco announced it was building an older person friendly retail environment complete with wider shopping aisles and brighter lights
![Page 53: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/53.jpg)
Other findings
• Some Investigate! participants argued that they had less choice than when younger
• Investigate! volunteers also highlighted access to information and advice about what was available in the consumer market
• Examples of good customer service – but it is often poorly promoted.
![Page 54: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/54.jpg)
Do we need to take age out of the equation?
Age Neutral approach argues that:
• An Age Neutral approach should be taken to marketing
• Needs of older people are not that different from other adults
• The principals of marketing to all ages are the same
• Lifestyle or interest is going to be more important than age
Dick Stroud
![Page 55: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/55.jpg)
Summary
• The older consumer has money
• They value good service
• Lots of companies get it wrong
• Age not best predictor of behaviour
• There is money to be made by those who get it right.
• But! Is there such a thing as “the older consumer”?
![Page 56: The Golden Economy: the consumer marketplace in an ageing society](https://reader035.vdocuments.site/reader035/viewer/2022081518/5463ba38b4af9f3f3f8b463c/html5/thumbnails/56.jpg)
Many thanks
David Sinclair - Head of Policy & Research,International Longevity Centre (ILC-UK)
Twitter:
@sinclairda@ILCUK