What does this number represent – $ 1,000,000,000,000.00?
This is the potential "dollar-dollar" market & # 39; is calculated by Canadian company magazine for the Canadian baby boomer collection by 2020. It is a $ 1-trillion heritage.
What about this number – $ 2,300,000,000.00?
This is the annual purchasing power of the 50plus cohort in the United States, where baby boomers control 50% of all discretionary income.
Because of not only the size of this generation, but also their prosperity, individual orientation and success, Baby Boomers have led this cohort to demand – throughout their lives to date – that market serves their needs.
And this is not just the case in North America. According to a McKinsey study conducted in France in 2010, the authors found that "… the mature consumer sector – 55 and over – will dominate the whole in numbers, representing about two-thirds. by 2030. People aged 65 and over will represent almost half of that amount. " (McKinsey Quarterly, Bigger, smarter, more conscious value: The French consumer transformation , June 2010).
So it's not just baby boomer cohorts, but in the Western world, the population is getting older and the market that traditionally targets advertisers and marketers, the market for 18-30 year olds, is shrinking rapidly. And the economic model of supply and demand is still valid.
What will they buy?
Baby boomers will look for products and services tailored to their needs and desires. Examples include:
- Special travel packages. Holidays built around adventure excursions, hiking and trips to exotic locations will become even more attractive. I know the men on tree holidays in Costa Rica, others who have mountains climbed Mount Everest, a couple riding a bicycle in two Canadian provinces and a creature fishing in the Galapagos Islands. Then there are the boomers I know who opted for the most relaxing canoe vacation in Algonquin Park or backpacking in the Alps. And some boomers take anywhere from four to five vacation trips each year. (I thought these vacations were only for the young and affluent, and I thought that taking a two-week stay in Cuba at an all-inclusive resort was exotic! Now these vacation trips are for the most affluent).
- Organic, healthy products and services. If boomers want to live the age of 50 or 60 in the style they did when they were 30 or 40, then they need to stay fit and healthy. Look around the local supermarket to see how fast the organic portion and the number of products on the shelf are considered "good for you". Again, this increase is the result of the consumed cohort of these types of products. They want the convenience of a supermarket shopping experience, but want access to healthy products that were previously only available at health food stores.
- Mental and spiritual well-being. Why be physically fit and fit if your mental state is unhealthy? Personal and conservative life is growing, especially for those who want to exchange full-time work for part-time, semi-retirement or retirement – what boomers consider as the second phase of their lives. Helping these men move from their full-time role to the workforce, which in the majority of cases, is how they define themselves, is a service that will only increase demand. Boomers want to continue contributing to their community, their world. They want their contribution to be appreciated and their heritage welcomed. Services focused on helping them meet this need, helping them reconnect, will be valuable and popular. The increase in voluntary vacations where vacationers work on their vacations, volunteer their skills and knowledge and work to help others in other global communities have increased with the active involvement of this generation.
What does your business need to do to get a piece of this market?
Business owners and leaders must "promote" their brand. What does this mean? I specialize in the phrase "boomerize" & # 39; pay attention to the types of products and services that businesses need to supply to meet the market demand of the baby boomer generation. Boomerizing & # 39; your brand means expanding your product and service offerings or focusing on a niche market – creating a brand that reflects the values of that group and will attract this very strong and wealthy shopping group.
And it's not just about nostalgia, about creating a nostalgic buzz around your products. This generation is no more nostalgic than any other previous or current generation. They are interested in products and services that are tailored to them, healthy enough to keep them fit enough to stay as active as they want, to provide them with easy access to technology and environments that allow them to continue enjoying their lives.
Promote & # 39; your product, you don't just think about the age of this generation, but rather what drives that generation. Remember that this is the generation that, whether it is still in the workforce or actively employed, needs to succeed, to contribute, to achieve results.
Keep in mind that women of this age group. They are still interested in fashion, cosmetics and products that make them look and feel good. They have the money to buy quality, to look for products and services that help them relax and keep them refreshed. Look around the spa the next time you are there. I assume the majority of clients are over 40 years old. And when they leave the spa, they buy the products used during their visit. Extra sales!
Boomers grew up in workplaces where communication was the key to efficiency and success. They have transferred this communication know-how to social networking and are considered the fastest growing online marketplace group. It is one of the largest groups customizing their travel and leisure plans online, regularly using various online travel and leisure sites. About 78% of boomers are online spending, on a monthly basis, more than any other generation. They use Facebook, Twitter, LinkedIN and many other sites to keep up with their social, family, and workplace communities. Why not be a target market for these companies and individuals who market and sell products and services online?
Companies need to innovate, including focusing on value, increased interest in health and wellness, as well as travel and leisure options. Companies should also note that the impact of increasing digital connectivity-boomers, even with their age, will maintain their attachments to communities and social networks. (published by McKinsey study cited above).
Position your company as attractive to the 50plus team. Not only is baby boomer composting the target of 2020, but the aging population, in general, will mean that the elderly will continue to dominate the market.