“The ageing of populations globally is an issue that will increasingly shape both society and its consumer markets,” comments Matthew Adams, Consumer Analyst at Datamonitor and co-author of a new series of reports [1].
Europe is a relatively mature region
Consumers aged 50 and above accounts for a large proportion of the population in each European country. This is most apparent in Italy and Germany, where seniors account for more than one third of the overall population (38%) in 2007. In the case of Italy, this proportion should continue to grow as young families break from the historical national norm and have fewer children than previous generations. The Netherlands and the UK were the youngest nations, relatively in Europe in 2007, but the senior population still exceeded one third of the overall population.
This should make the Senior consumer particularly worth targeting in terms of potential market size alone.
Consumers in their 50s spot better quality products more easily
In addition to having the ability to spend, consumers must also show a willingness to spend in order to make them profitable targets. Matthew Taylor, Consumer Market Analyst at Datamonitor, the other author of the reports explains: “Seniors have many attributes in common with other age groups of consumers against universal criteria such as seeking good value for money.”
“With substantial assets and significant liquid capital, seniors are likely to ‘upgrade’ and choose premium products, particularly those ‘empty nesters’ who have less obligation to support the family and children,” says Taylor.
The recent ‘less is more’ philosophy might reinforce the pursuit of high quality products. The ageing of the Baby Boomers is also a factor in turning toward a less materialistic approach to the luxury lifestyle. With increased consumer awareness of ‘sustainability’, many products made with natural ingredients cultivated organically, or sourced from specific origins, are becoming popular among these sophisticated consumers. Taylor adds: “The appeal is not just related to the high quality image of such products; they also carry the signal that they are ‘danger-free’ and benefit from the natural substances they contain.”
Price is most important in personal care for Seniors
However, as far as personal care products are concerned, value-for-money is vital for targeting the seniors, who want a transparent price with clear product benefits.
The importance of product efficacy is in doubt though, as only 18.6% of all seniors rated this attribute as a main influence upon product choice. By way of counter-points, almost one half (48.1%) rate ’ease of usage’ highly, with more than 40% saying that ’preferred brand’ or ’habit’ has a high influence on decision to purchase. This attitude implies that few seniors can be easily switched to another brand, other than their preferred one, unless given at least a shot-term price inducement.
