Transcript Understanding the 50+ Population

The 50+ Market:
Your Next Great Opportunity
International Home Furnishings Center
October 24, 2005
Introduction: You’re 50, so what?
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What happens when you wake up and you are 50?
 You still have hopes and dreams and plans
 You are still working, living, loving
 Often caring for children and parents
 Probably in your peak earning years, and yet
You have dropped off many marketers’ radar
screens -- no longer an adult 18-49
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Introduction: You’re 50, what do you want?
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What do Americans 50 and older want?
 to continue to enjoy their lives to the fullest
 to have the homes and lifestyles they’ve always
wanted
 to be able to live in comfort
Not to be marginalized
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Why You Need To Know About This
Market
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It is enormous in size and wealth, and growing
It is complex
 3 distinct generations, not one
 they differ by mindset and life stage
Its growth is being fueled by Leading Edge Baby
Boomers
 they have influenced American society, industry
and marketing since 1946 and will continue to do
so as they age
 they are redefining what it means to grow older
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Myths of the Older Market
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Older people think and act OLD
There aren’t that many of them compared to the under
50 population, and they are dying off
They don’t have that much to spend, except on health
care products and services
They are brand loyal; they won’t switch brands, so why
spend money on them
They’ve grown comfortable with their home furnishings
and don’t want to change
They are techno-phobic and computer-illiterate
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Demographic Destiny
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Currently, 292 million people in the US
82 million are 50+ -- 28% of the population
by 2020, 116 million will be 50+ -- 36% of the population
Median age of population is now 36
 in 1980, it was 30
 in 1900, it was 23
When the Boomers begin turning 65 between 2010-2020
the 65+ population will grow 35%, while the under-65
population will increase just 4%
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The Healthiest, Wealthiest Cohort
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More than 90% of those 50+ have no functional limitations due to
health
Americans 50+ control more than two-thirds of HH wealth
 income levels are 35% above the US mean
 they represent two-thirds of all stockholders
Poverty rate for those 65+ is at an all-time low -- fewer than 10%
One in eight (13%) own more than one home
They spend $30 billion per year on their grandchildren, including
home furnishings
Three out of ten refurnished or remodeled their primary residences
in the past year (30%), and 17% expect to do so in the next year
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They Are Savvy, Independent Consumers
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Older people (45+) are no more brand loyal than younger ones
They will spend more for quality from a company they know and
trust
More than 60% of consumers 50 and older have Internet access
at home
 Even among the oldest segment (80+), one in three has
Internet access
 Consumers 55+ who buy online spend more online than any
other age group
They are more diverse in their thinking than younger people
since they have a lifetime of experience and knowledge which
they use to make decisions
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Beyond Demographics
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It’s even more important to understand where they are
“coming from”
Cohort groups are most influenced by events in their
formative years -- from 8 -18
Core values are established
The pull of the cohort group is redefining age
50 just isn’t what it used to be
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Three Distinct Segments
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GI Generation (Born before 1925)
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Silent Generation (1925-1945)
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Leading Edge Baby Boomers (1946-1955)
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GI Generation
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Born into a world without television; most
people did not have phones or cars
Grew up during the Depression, fought in
WW II and were defined by both
Believed in “the future” and the American
Dream, fueled by the GI bill
Created the world we live in today -consumerism, suburbia, discount
shopping, fast food, highways
First generation to own their own homes
in significant numbers
First generation to live long enough to
enjoy life after work
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Raising the Flag on Iwo Jima 1945
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The Silent Generation
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Came of age during the Cold War, the
McCarthy Era, years of conformity
Women were encouraged to marry,
discouraged from having careers
Defined more by what they weren’t
than what they were--neither war
veterans nor boomers—like the
proverbial middle child
When the turmoil of the 60s caught up
with them, there was a huge backlash
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Levittown, NY 1948
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Leading Edge Boomers
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Leading Edge Boomers (born ‘46-‘55) are all over 50
 Came of age during the first child-centric era (Dr. Spock,
Howdy Doody), the first mass consumers
 The 1950s was a time of unprecedented growth and
prosperity
 The Woodstock generation, the protest generation
Formative years were the turbulent 60s
 Cold War, assassinations, Vietnam
 Civil Rights movement, Women’s
movement, student protests
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Leading Edge Boomers
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Have always embraced the new and unknown, maybe because
they felt so safe and secure
Their numbers alone would be enough to change the world of
aging, but it is their expectation that business and industry
should meet their needs that is
redefining everything
 “60 is the new 30”
 “age rebelliously”
 “the new middle age”
They are still trying new things,
new places
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GI Generation - 10 million, 80 and older
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Optimistic
Patriotic, sense of history
Entrepreneurial
Can-do spirit
Outer-directed
Traditional values, family
oriented
First “senior citizens”
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Silent Generation - 42 million, 60-79
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More cautious
Little sense of their place in
history
Corporate rather than
entrepreneurial
Outer-directed, mediators
Highest rate of divorce
Never felt “young” till they
were middle aged
First beneficiaries of the
Women’s and Civil Rights
Movements
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Leading Edge Boomers – 40 million, 50-59
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Rebellious and self-confident
Connected to the times in which they
grew up
Best educated, professionals
Made up their own rules
Inner directed, individualistic
Redefined gender roles and
relationships
Married later or not at all
Re-inventing aging and “retirement”
The tail that has wagged the dog of
society for the past 50 years
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Generations Defined by Their Wars
GI:
World War II
Silents:
Korea
Boomers:
Vietnam
Greatest Generation
Forgotten War
The Divisive War
Great national victory
Stalemate
Tragic national loss
Massive public support,
fought on the home front
Passive public support
Lack of public support,
anti-war demonstrations
Serving was a peak life
experience
Neither home-front
activities nor anti-war
demonstrations
Avoiding service was more
of a bond than serving
United the country
Ignored by the country
Divided the country
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Communications Implications
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GI Generation
 Watch more television
 Patriotic, traditional values
 Respond to messages showing them as independent
Silent Generation
 Still read newspapers regularly
 Value opinions of experts
 Respond to images of extended families, groups of friends
Baby Boomers
 Use the Internet for information and shopping
 Anti-authority, less likely to respond to testimonials
 Respond to nostalgic settings, especially from the sixties
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Housing Trends
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Three out of four “seniors” live in conventional housing
 Most prefer to “age in place” rather than move to health-related
facilities
More than half of Leading Edge Baby Boomers will modify their
homes over the next few years, allowing them to age in place
 Levers instead of door knobs
 Grab bars, walk-in showers in larger bathrooms
 Retractable chandeliers for easier access
 Wider doorways
 Skid-proof flooring materials
 Chairs and sofas that are easy to sit in and get up from
 Furniture that is easy to move for cleaning
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Housing for Older Adults
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GI Generation was the first to move to Retirement Communities,
starting in the early 1960s
 Most were age-restricted communities (55+)
Now called “Active Adult Communities,” to appeal to the younger,
more active Silents
More recently, Continuing Care Communities have become popular,
especially with people in their 70s and 80s
Nursing home development is slowing down, while Assisted Living
and other congregate living facilities are being built
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Boomer Trends
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Leading Edge Baby Boomers who want to sell the homes where
they raised their families are looking for more luxurious housing
 They can have the homes they always wanted
 Separate guest suites (for visiting family)
 Dedicated home offices
 High-end, well appointed kitchens and baths
 Cutting-edge technology built in
They won’t be ready for congregate living facilities for another 15-20
years
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Implications for Home Furnishings
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Empty Nesters may downsize in space but go upscale in
quality and luxury
 They can redecorate without worrying about children
messing up their new furniture
 They can buy the homes they always wanted and
furnish them accordingly
Second or vacation homes are a growing trend
Products should be designed to provide maximum
comfort and accessibility
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More about the 50+ Market and Home
Furnishings
Opinion 50+ is…
 Omnibus study among a projectable sample of 500
people per month, or 6,000 per year
 Quick, cost-effective way to size a market, identify
behaviors, test purchase intent, or learn about attitudes
 A way to track attitudes, awareness, or behavior over
time
We studied home furnishings in August
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Affluence Over 50: Second Home and
Pleasure Boat Ownership
Second Home/Pleasure Boat Ownership
by Generation
16% 16%
13%
12%
12%
10%
12%
4%
Total
GI
Silent
Own Second Home
Boomers
Own Pleasure Boat
Source: Opinion 50+, July/August 2005
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Base=1002
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Home Furnishings
Refurnishing or Remodeling Primary Residences
37%
30%
28%
25%
17%
15%
13%
Total
GI
24%
Silent
Past year
Boomers
Next year
Source: Opinion 50+, July 2005
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Base=501
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It’s time for a change, and I can afford it
Reasons for Refurnishing/Remodeling
37%
Old furnishings worn out
Can afford to make
changes I've been waiting
to do
16%
New furnishings for me,
not children
My tastes have changed
11%
8%
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Boomers’ furnishings more likely to be worn out,
while GIs’ want things just for themselves
Reasons for Refurnishing/Remodeling
by Generation
43%
46%
41%
33%
29%
23%
14%
14%
10%
10%
6%
My tastes have
changed
6%
New furnishings for
me, not children
GI
Silent
Can afford to make
changes I've been
waiting to do
Old furnishings worn
out
Boomer
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People 50 and over want furnishings that
are more comfortable and easier to care for
Kind of Decor When Redecorating
40%
27%
19%
19%
14%
7%
More
Easier to care
comfortable
for
More
luxurious
Affordable to More casual
replace
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More formal
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Affordability is most important to the oldest
segment, luxury to the middle group
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More than half the GIs responding said affordability was
a major criterion (57%), but it’s much less important to
Silents (17%) and Boomers (11%)
Boomers are more concerned about comfort (49%) than
are Silents (33%) or GIs (29%)
Luxurious furnishings are more appealing to Silents
(29%) than to Boomers (11%)
Ease of care is a factor for all segments
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Bedrooms and living rooms are the most likely to
be redecorated in primary residences
Rooms Redecorated Past Year/Next Year
37%
37%
29%
20%
20%
16%
15%
2%
Bedroom
Living room
Kitchen
Den/family
room
Bathroom
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Dining room
Home
office/study
Other
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Bedrooms and living rooms are the most likely to
be redecorated in primary residences
Rooms Redecorated Past Year/Next Year
by Generation
42%
40% 40%
36%
33%
29%
28%
20%
30%
30%
24%
22%
18%
20%
22%
24%
20%
17%
10%
8%
6%
3%
0%
Bedroom
Living room
Kitchen
Den/family
room
GI
Bathroom
Silent
Dining room
Home
office/study
0%
Other
Boomer
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Flooring and wood or upholstered furniture are the
most popular items when redecorating
Products Bought for Redecorating Past Year/Next Year
45%
45%
33%
30%
19%
Flooring/carpeting
Wood/upholstered
furniture
Lighting/lamps
Window treatments
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Other
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Boomers seem to favor furniture pieces and
lighting; Silents are more likely to change flooring
when redecorating primary residences
Products Bought for Redecorating Past Year/Next Year
by Generation
61%
58%
50%
47%
39%
36%
36%
29%
30%
27%
20%
10%
10%
Flooring
Wood/Upholstered
Furniture
Lighting
GI
Silent
Window treatments
9%
8%
Other
Boomer
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On average, people spent more than $4,800,
but one in eight spent more than $10,000
Amount Spent/Expect to Spend for Redecorating Past Year/Next Year
18%
17%
13%
13%
12%
Under $1,000
$1,000 to $2,000
$2,001 to $3,500
$3,501 to $5,000
13%
$5,001 to $10,000 More than $10,000
Mean=$4,829
Median=$3,625
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The oldest segment tends to spend the most
Segment
Mean
Median
GI Generation
$6,914
$7,500
Silent Generation
$5,170
$3,969
Leading Edge
Boomers
$4,030
$2,750
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Presence of Children Under 18
Children Under 18 Living In Household
18%
9%
5%
Total
GI
4%
Silent
Source: Opinion 50+, July 2005
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Boomers
Base=381
37
Internet Usage
Access To The Internet
83%
63%
58%
34%
Total
GI
Silent
Source: Opinion 50+, July 2005
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Boomers
Base=501
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Internet Activities
Main Activities On The Internet
63%
52%
47%
27%
21%
16%
24%
20%
16%
23%
19%
17%
11%
11%
21%
13%
16%
12% 11%
12%
5%
E-mailing
Reading
news
Booking
travel
Playing
games
GI
Silent
Other
shopping
Healthcare
information
Financial
information
Boomers
Source: Opinion 50+, July 2005
Base=314
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Learning more about the 50+ Market
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Traditional research
 Surveys—phone, central location, online
 Focus groups
Seminars and workshops
 Product-specific, category-specific
 New product development, positioning,
communications
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Main Take-Aways
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Three segments in the 50+ population
 GI Generation (80+)
 Silent Generation (60-79)
 Baby Boomers (50-59)
They want home furnishings that are comfortable,
informal but high quality, and easy to care for
Communications strategies and executions should be
tailored to the segments’ “personalities”
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