Society will change because of population aging. The baby-boom generation’s age now ranges from 42 to 60. As the demographic bulge works its way from mid to late life, businesses will be—as Dick Stroud, author of The 50-Plus Market, states—compelled by economic logic to shift their center of gravity from the younger generation to the older generation.

The marketing world’s lack of interest in mature customers can have bizarre consequences. One example is media owners not differentiating between consumers who are 90 and those who are 60. Over-55 specialist Janet Kiddle, founder of Steel Magnolia, says ageism is rife. “Many brands segment their customers by attitude, but then apply an age-cap. Sometimes it’s 65; but many don’t segment beyond 55.”

Ignoring a group that accounts for 40 percent of consumer spending and a staggering 80 percent of personal wealth is nothing short of lunacy. So, it’s not surprising that some companies are putting a positive spin on aging, pronouncing “sixty the new forty,” and claiming that having changed the face of youth, the rock-and-roll generation will change the face of old age.

Such clichés are at best an over-simplification carrying an implicitly ageist message: older people are consumers too—just as long as they behave like young people. What also gets lost in the froth is the fact that individuals of the same age can be light years apart in life-stage: raising a family at fifty or babysitting grandchildren; globe-trotting at seventy or caring for a partner who is frail and dependent.

Some businesses are already negotiating the complexities of population aging. Just over a year ago, Thomson Holidays scrapped its “Young at Heart” brochure aimed at over 55s. Says head of product development Stephen Lane: “Many people in their fifties and sixties are adventurous—they don’t want to be labeled young at heart.” To cater for this segment, Thomson brought in sports breaks and spa packages and added yoga and tai chi to its leisure options. Says Lane: “We have to keep experimenting.” But he adds: “There are still a lot of people who want tea and biscuits and a brandy in the evening.”

Other far-sighted businesses are looking at how aging affects the human body. A prime example is Ford Motor Company which developed the Ford Focus with the aid of a special “third age suit,” allowing designers to get a taste of how it feels to drive with stiff joints, dulled vision and restricted mobility. Another innovator is the British home improvement firm B&Q, which sells ergonomically “inclusive” products. Says B&Q diversity specialist Joy Ward: “The products aren’t marketed for a particular age-group, but they are designed not to exclude people. If you make a lighter-weight drill or a garden tool with padded grips that suits an older person, everyone benefits.”

The emergence of inclusive design shows that businesses are waking up to the fact that mature consumers will reward brands that show them consideration. In fact, there is also an opportunity to make products specifically for older people. Some of the large IT firms, such as Intel and Philips, are exploring this niche. Among the latest advances are virtual networks designed to combat social isolation, and “smart home systems,” which raise the alarm when the resident is inactive or takes a tumble.

For the moment such experiments are dwarfed by the anti-aging industry, which revolves around functional foods and high-tech cosmetics to help baby boomers cheat the passage of time. But, the oldest cohort of mature consumers is expanding too, boosting the number of centenarians by eight percent each year. As the purchasing power of the oldest of the old rises, helped along by the trend for converting equity into income, it’s inevitable that firms will look more seriously at a group that many still term “geriatric.” Much as they might regret it, brands are being forced to accept that it’s the old, not the young, who represent their future.     

[24-Apr-2006]