Increasingly recognised, largely misunderstood. That has been the lot of the post war baby boomers since the 1960’s when their presence sparked the consumer era. Astute business and marketing teams are now fast appreciating the economic power of these grey nomads/post war baby boomers who control 76% of the nation’s disposable and discretionary wealth. That represents an immense capacity to earn, invest and spend, often in a discerning manner without the constraints of high debt levels.
Moreover, demographers now forecast that by the year 2015 the Australian and New Zealand populations will have more people aged 50 years and older than will be aged under 20 years.
Significantly, the words of Pete Townsend, leader of the 60's English pop group The Who still have currency:
'I hope I die before I get old'.
The elasticity of the life expectations of those in the mature market seems to have no bounds. Indeed, those in their 50's are now deemed to be middle aged.
Therefore, these consumers do not perceive themselves to be old, greying or decaying. Their self perceived key attributes are of independence and activity. They want both to be recognised and respected. Little appeal is held for highly structured bus tours and passive pursuits when on holiday.
They, women in particular, tend to want to go to the extreme and experience the thrill of tandem parachuting, bungy jumping and white water rafting.
The grey nomads/post war baby boomers are also inclined to be leaders rather than followers. It is they who are most influencing the drift in household expenditure to services, in preference to consumption of more goods. This was evident last Christmas with the increment in the expenditure by families eating out, holidaying together, hiring yachts and experiencing life challenges. Each was part of Christmas gift giving. That trend is here to stay and will increase in the ensuing years.
Interestingly, for those in the mature market segment, home is where the heart is. They are spending more time in the home and more money on their home than ever before. Family unit sizes are declining as a consequence of the falling fertility rate. However, house sizes are increasing.
Television sets are being replaced with home entertainment systems. The mature males now spend more each year on computer games then they do on videos or DVDs for home entertainment. You just can’t take the kid out of a grey nomad. Just ask the women!
It is the male post war baby boomers who represent the greatest potential for increased demand for retail pharmacies and other health professionals. They are discovering their own bodies, but not their own mortality. They have a lust for life and a desire to live well and 'forever”.
Expenditure on health, medicine and well being is expected to quadruple during the next 20 years. Now that is healthy.
To realise and convert that potential into sales will require retail pharmacists to change their thinking and for retail pharmacies to change their presentations, product mixes and staff member profiles.
A particular point of appeal of the mature consumer is that they are typically more loyal and influenced by the inherent reassurance of brand names, than those aged under 40 years of age. They recognise value and willingly pay for the trust of a proven product, service or relationship.
Many business owners and marketers will need to place greater emphasis on satisfying the needs of this numerical and economically important market segment with respect to the two largest industry sectors in the world, being finance and tourism. These consumers may not be here for a long time, but they are here for a good time. For example, retail entertainment remains the key fundamental of the marketing, merchandising, promotion and advertising presentation of a shopping centre.
Moreover, it is misleading and financially disadvantageous to retailers to dismiss grey nomads as those who each year undertake 4 to 6 month caravan holidays in the north of Australia during the winter months. In reality, those couples represent some 7 to 9% of the total target audience. Indeed, each day there are more grey nomads boarding an aeroplane in Australia for an interstate or international holiday than there are hitching up the caravan to the motor vehicle.
That is significant to the retail travel industry where commissions are being reduced, profit margins are being squeezed and fee—for—service is being tentatively introduced. On—line flight bookings still represent less than 3% of the sector—wide turnover. These people seek out and respond to advice and recommendations on their pursuit for instant gratification.
Therefore, having fun with and offering fun for the mature market is a serious (and profitable) business.