We are witnessing the largest ever transfer of funds from one generation to the other - The baby boomers with a purchasing capacity of trillions. AGE WAVE founded by Ken Dychtwald has published extensive research and has a even books that address the opportunity with the segment.
An article this morning in brandchannel.com - Don't Ignore the Boomer Consumer; addresses the opportunity. Some of the nuggets follow:
- Boomers are 71 percent as likely as their younger counterparts to be willing to try new products and services, and 55 percent are just as persuaded by "effective advertising."
- "I think that it's a challenge to reach Boomers today because their lifestyles are very busy,"
- Boomers are a generation that loves to buy stuff but hates being sold to. A lot of brands think that their brands from the past are going to carry them through with Boomers to the present and to the future, and that's not the case. You have to earn your stripes every day."
- Boomers form a generation that makes buying decisions based on the latest sales
- Price-point sensitivity and brand fickleness can be attributed to the financial demands and strains of children, paying for college tuition, caring more and more for aging parents, and uncertain job outlooks—while still thinking about their own retirement.
- Boomers may view the necessities more as interchangeable commodities than branded musts, they certainly appear to like their share of indulgent luxuries and are not afraid of technology.
- "Boomers spend more money on computer hardware, software and cellphone service, and a whole host of electronics than any other generation,"
- What we see is a group that is very technology adaptive…and has the disposable income to pay for it
- "old age" and retirement are quite different from their parents' and grandparents'. The "golden years" of later life are turning out to be the "power years," with many refusing to accept the aging process as previous generations have.
- Boomers are less likely to associate retirement with "the beginning of the end" and are increasingly regarding retirement as a continuation of or a new chapter in life—be it new interests, new careers, or even new relationships.
- "They get to do [life] over. So you say to yourself, what is it they want to redo? Education, relationships, their physical appearance, their overall well-being—and they're spending money like crazy because they have it."
