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The 50+ Market: Your Next Great Opportunity International Home Furnishings Center October 24, 2005.
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Transcript of The 50+ Market: Your Next Great Opportunity International Home Furnishings Center October 24, 2005.
The 50+ Market:Your Next Great Opportunity
International Home Furnishings Center
October 24, 2005
2IHFC October 2005
Introduction: You’re 50, so what?
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
3IHFC October 2005
Introduction: You’re 50, what do you want?
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
4IHFC October 2005
Why You Need To Know About This Market
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
5IHFC October 2005
Myths of the Older Market
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
6IHFC October 2005
Demographic Destiny
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%
7IHFC October 2005
The Healthiest, Wealthiest Cohort
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
8IHFC October 2005
They Are Savvy, Independent Consumers
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
9IHFC October 2005
Beyond Demographics
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
10IHFC October 2005
Three Distinct Segments
GI Generation (Born before 1925)
Silent Generation (1925-1945)
Leading Edge Baby Boomers (1946-1955)
11IHFC October 2005
GI Generation
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
Raising the Flag on Iwo Jima 1945
12IHFC October 2005
The Silent Generation
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
Levittown, NY 1948
13IHFC October 2005
Leading Edge Boomers
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
14IHFC October 2005
Leading Edge Boomers
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
15IHFC October 2005
GI Generation - 10 million, 80 and older
Optimistic Patriotic, sense of history Entrepreneurial Can-do spirit Outer-directed Traditional values, family
oriented First “senior citizens”
16IHFC October 2005
Silent Generation - 42 million, 60-79
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
17IHFC October 2005
Leading Edge Boomers – 40 million, 50-59
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
18IHFC October 2005
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 suppor t, 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
19IHFC October 2005
Communications Implications 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
20IHFC October 2005
Housing Trends
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
21IHFC October 2005
Housing for Older Adults
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
22IHFC October 2005
Boomer Trends
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
23IHFC October 2005
Implications for Home Furnishings
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
24IHFC October 2005
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
25IHFC October 2005
Affluence Over 50: Second Home and Pleasure Boat Ownership
13%12%
10%
4%
12% 12%
16% 16%
Total GI Silent Boomers
Second Home/Pleasure Boat Ownership
by Generation
Own Second Home Own Pleasure Boat
Source: Opinion 50+, July/August 2005 Base=1002
26IHFC October 2005
Home Furnishings
30%
17%
25%
13%
28%
15%
37%
24%
Total GI Silent Boomers
Refurnishing or Remodeling Primary Residences
Past year Next year
Source: Opinion 50+, July 2005 Base=501
27IHFC October 2005
It’s time for a change, and I can afford it
8%
11%
16%
37%
My tastes have changed
New furnishings for me,not children
Can afford to makechanges I've been waiting
to do
Old furnishings worn out
Reasons for Refurnishing/Remodeling
28IHFC October 2005
Boomers’ furnishings more likely to be worn out, while GIs’ want things just for themselves
14%
10%6%
43%
10%6%
14%
41%
23%29%
33%
46%
My tastes havechanged
New furnishings forme, not children
Can afford to makechanges I've been
waiting to do
Old furnishings wornout
Reasons for Refurnishing/Remodelingby Generation
GI Silent Boomer
29IHFC October 2005
People 50 and over want furnishings that are more comfortable and easier to care for
40%
27%
19% 19%
14%
7%
Morecomfortable
Easier to carefor
Moreluxurious
Affordable toreplace
More casual More formal
Kind of Decor When Redecorating
30IHFC October 2005
Affordability is most important to the oldest segment, luxury to the middle group
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
31IHFC October 2005
Bedrooms and living rooms are the most likely to be redecorated in primary residences
37% 37%
29%
20% 20%
16%
2%
15%
Bedroom Living room Kitchen Den/familyroom
Bathroom Dining room Homeoffice/study
Other
Rooms Redecorated Past Year/Next Year
32IHFC October 2005
Bedrooms and living rooms are the most likely to be redecorated in primary residences
40% 40%
28%
20%
36%
42%
20%
29%
33%30%
18%22%
30%
22%
17%
20%
24%
6%
10%
0%
3%0%
24%
8%
Bedroom Living room Kitchen Den/familyroom
Bathroom Dining room Homeoffice/study
Other
Rooms Redecorated Past Year/Next Yearby Generation
GI Silent Boomer
33IHFC October 2005
Flooring and wood or upholstered furniture are the most popular items when redecorating
45% 45%
33%30%
19%
Flooring/carpeting Wood/upholsteredfurniture
Lighting/lamps Window treatments Other
Products Bought for Redecorating Past Year/Next Year
34IHFC October 2005
Boomers seem to favor furniture pieces and lighting; Silents are more likely to change flooring when redecorating primary residences
20%
58%
39%
30%36%
61%
10%
27%
47%
10%
29%
36%
50%
9% 8%
Flooring Wood/UpholsteredFurniture
Lighting Window treatments Other
Products Bought for Redecorating Past Year/Next Yearby Generation
GI Silent Boomer
35IHFC October 2005
On average, people spent more than $4,800, but one in eight spent more than $10,000
18%17%
13% 13%12%
13%
Under $1,000 $1,000 to $2,000 $2,001 to $3,500 $3,501 to $5,000 $5,001 to $10,000 More than $10,000
Amount Spent/Expect to Spend for Redecorating Past Year/Next Year
Mean=$4,829Median=$3,625
36IHFC October 2005
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
37IHFC October 2005
Presence of Children Under 18
9%
5%4%
18%
Total GI Silent Boomers
Children Under 18 Living In Household
Source: Opinion 50+, July 2005 Base=381
38IHFC October 2005
Internet Usage
63%
34%
58%
83%
Total GI Silent Boomers
Access To The Internet
Source: Opinion 50+, July 2005 Base=501
39IHFC October 2005
Internet Activities
47%
63%
52%
16%
21%
27%
16%
20%24%
11%
19%17%
5%
11%
23%21%
13%12% 11%
16%12%
E-mailing Reading
news
Booking
travel
Playing
games
Other
shopping
Healthcare
information
Financial
information
Main Activities On The Internet
GI Silent Boomers
Source: Opinion 50+, July 2005 Base=314
40IHFC October 2005
Learning more about the 50+ Market
Traditional research Surveys—phone, central location, online Focus groups
Seminars and workshops Product-specific, category-specific New product development, positioning,
communications
41IHFC October 2005
Main Take-Aways
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”