Businesses Emerging From Aging Baby Boomers
The baby boomer generation, most of who are now in their late 50s and 60s, are one of the most important but overlooked market segments by many businesses today. This is unusual due to the fact that less than 5 percent of conventional marketing targets a demographic that accounts for nearly 80 million Americans and controls 70 percent of disposable income.
However, a few enterprising businesses and industries have realized the potential of this largely ignored, but important group. The result is that they are reaping the benefits of tailoring their products and services to target the baby boom generation’s $2.3 trillion annual spending power.
Appealing to Baby Boomers’ Sense of Adventure
The values and generational identity developed during the teen and early adult stages of life determine what a group of people born at about the same time associate with. The 60s and 70s were an age where young people looked to run out to the world and explore the new and exciting experiences far from their childhood homes.
It is this innate sense of adventure within this generation that has led the cruise industry to stand up and take note. The older generation has been the driving force behind the incredible growth in the luxury and adventure cruise business. This is largely thanks to the twin factors that they often have greater disposable incomes and more time to indulge their love of exploration.
Baby Boomers Seek Products That Help Them Express Their Independence
Most products available today are publicized through marketing that is targeted at young peoples, making baby boomers feeling – at least — ignored, and — at worst — patronized by the ads. Businesses can tap into the older crowd by having products designed with them in mind first and foremost.
One of the areas where the baby boom generation has felt ignored for a longtime is by the housing industry. Almost all developers and companies that sell homes market them at young people looking to have families in the future. However, some interesting developments have turned this kind of marketing on its head.
Pegasus Homes is one such company that actively seeks to find homes for the active retired pensioners who would like to maintain the independent lifestyle they are used to. With the average age of a homeowner being 78, and with the tremendous demand for Pegasus homes, CEO Peter Askew knows just how big his market is.
He attributes the success of Pegasus Homes to the company’s efforts to find the best and most desirable sites for the baby boomer generation. This means seeking out areas where their aged customers can walk to the shops, easily access public amenities and not be worried about crime.
The Baby Boom Generation Are More Savvy Consumers
In spite of having plenty of disposable income, this generation is generally more deal-savvy than the younger generation, having witnessed the birth and evolution of the consumer culture that is now part and parcel of modern retail business. They are, therefore, more likely to seek out retailers that offer high quality, value and affordability.
B&Q is one such retailer that has decided to dedicate one day of every week — Wednesday — to their older customers. Known as Diamond Day, many shoppers of the baby boom generation age can be found at local B&Q stores taking advantage of the DIY retailer’s 10 percent discount on items, offered to Diamond Card holders. The Diamond card is issued free of charge to all customers over 60.
The Diamond Card scheme now has over 2.2 million members, and has about 25,000 new members joining each month. The DIY store has credited the Diamond Card’s popularity among baby boomers to their natural ‘improve, don’t move’ instincts, as well as the fact that most active baby boomers are more skilled than younger people at DIY projects.
Author Bio
Joshua Turner is a writer who creates informative articles in relation to business. In this article, he describe a few emerging businesses catering towards the aging population and aims to encourage further study through gerontology degree programs
