Cashing in on aging boomers - Sacramento Business Journal:

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“People wanted nothing to do with themature market,” said Maddy Dychtwald, senior vice presiden t of the company in San Now, the consumer products and services industryg can’t stop thinking about the matur market, especially since a baby boome turns 50 every 8½ seconds. At 78 million people, boomeres represent one-third of all adults in the Unitecd States. They control half of the nation’s wealth and, at leastg before the recession, were spending $2 trillion on consumer product and servicesa year. Boomers were expectedx to account for about 40 percenft of spendingby 2015, accordingb to a report in 2007.
So, retailers and marketersx are eager to figure out how to reachuthis generation. Some in the consumer products and services industryu are gettingit right, whiler many others still have much to learn — and said experts who specialize in marketing to baby Marketing to this 19-year generation is proving tricky. Although boomers are lumped together, they’re a diverss group with divergent life experiences giveb that they range in age from 44to 63. And like the rest of the they range from affluenr tofinancially disadvantaged. The way to marketr to boomers is by individuap life stage segments suchas empty-nesters and grandparents without mentioning age, consultants said.
“Thehy refuse to be calle d seniors. That is the worst thinyg you can do tothis group,” said Aliced Jacobs, a Roseville baby boomer who advises companies on generationa l marketing and teaches seminars and classesx on the topic, including through UC Davisx Extension. Although generalizing of boomers shoulf bedone sparingly, older baby boomer s refuse to grow up. They thin old age starts around 75or 80, said Matt founder of , a marketing researchj and consulting firm in Boomers see themselves as vibrant and They like trying new services and products, despited the myth that they are spokesman Anthony Deluise The association of people 50 and older no longerd uses “retired” in its name.
Boomers like print advertisinfg because they want lotsof information. Boomers also pay attentionj tonew media, and will click on eye-catching Internet ads. This generatiohn also likes products, services and shopping experiencea that make them feel special and consultants said. They don’t want to merely eat or buy They wantto dine; they want This is especially true since the recession Many boomers who are 60 had expected to retirse over the next five years. Now, they will likelyt work an extra three to five years because oftheir hard-hitr investments and pensions, Dychtwale said.
The good news is they won’ be on a fixed income and will still But their free time will bemore limited. More boomerss will be working and raisingb children or grandchildren while also dealing with theirf ownsick parents. As a result, “experience over thingsz become valued,” Dychtwald said. “There is a real shifg going on right now on what peopldare valuing.” Boomers in particulaf want to be responsiblre consumers. “It’s not about buyingf stuff to have stuff,” Thornhill Lifestyle centers — which combine upscalw stores with restaurants, entertainment and comfortablr places tolinger — provide the experiences that boomersw want.
Local examples are Sacramento’s Pavilions center and The Fountainwsin Roseville. The Fountains was designed, and fille with tenants and marketeds all with boomers in property manager GloriaWright said. For its concert The Fountains includes music that appeals to Water features and a train ride are meanr to appealto boomers, including olderr boomers who are “so into thei r grandchildren,” Wright said. Boomer-appealingf apparel retailers include Draper’s Damon’s, and Chico’s. Malls have focused on boomerx by clustering stores that targetthe They’ve added leather chairs and couches in the commo areas, and indoor children’s playgrounds.
“All makingv you feel special,” Jacobs As for adding experience, Raley’s supermarkets offer wine tasting and kitchen products retaile Sur La Table providescooking classes. Nordstroj offers boomers the attention they crave with free personal shopper who will do the chore on their while customer service representatives will book theatedr tickets or make dinner reservationesfor them. But some aspects of boomer-oriented service are lackingb atmany restaurants. People age 50 and olderf require twice as much light as a 25year old, Jacobe said, so restaurants dimming their lights to create mood just aren’yt working for boomers.
Restaurants need to add table lightsa so their customers can readthe menu. own solution? “I carry a flash-light.” Noisyy restaurants also aren’t addressing the decline in hearing sufferecd bysome boomers. Restaurants should provide more space between tablesand noise-absorption products, Jacobe said. Many marketers of beautyy care and wellness products are getting it right when it comesato boomers. Dove, a brand best known for its features boomers in ads and says beautg has noage limit. The company incorporated a cause-marketing program to build self-esteem and promote a widefr definitionof beauty.
Supermarketw and drug stores tried rollingout in-store healthj clinics, but mixed results have led some independeng clinic operators to scale back their efforts. Retailers also are adaptinfg existing products or offering new products or packaginh thattargets boomers. Discounter Target has color-coded prescriptio n bottles with largetype face. Cobra has a global positioninb system with oversized icons and text and back lightinhg toenhance visibility. Tropicana has an orangs juice fortifiedwith omega-3, thought to help hearg health and other conditions. Nivea introduced an anti-cellulites cream, while beauty retailer Sephora offersnumerous anti-aging beauty products.
Makers of yogurt and all sorts of products areaddiny fiber. Some products and services are created for the mature but havewide appeal, Thornhill said. As boomersx get older, they’ll continue to defy agingh with health club memberships and spas offerinbg massage and other consultants said. “We think boomers will spen money on maintaining vitality untilp they take theirlast breath,” Thornhill said. Boomers are redefining age, and the consumerf products industry hastaken notice. “Everybody is watchingv them,” Jacobs said.