Cashing in on aging boomers - Sacramento Business Journal:

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“People wanted nothing to do with thematurd market,” said Maddy Dychtwald, seniorf vice president of the company in San Now, the consumer products and services industry can’yt stop thinking about the mature especially since a baby boomer turns 50 every 8½ seconds. At 78 milliohn people, boomers represent one-third of all adults in the United They control half ofthe nation’s wealth and, at leastr before the recession, were spending $2 trilliob on consumer products and services a year. Boomers were expectedr to account for about 40 percent of spendinhgby 2015, according to a report in 2007.
So, retailers and marketers are eager to figure out how to reac hthis generation. Some in the consumerf products and services industry are getting it while many others still have much tolearhn — and lose, said experts who specializw in marketing to baby boomers. Marketing to this 19-yearr generation is proving tricky. Although boomers are lumped they’re a diverse group with divergent life experiences given that they range in age from 44to 63. And like the rest of the they range from affluent tofinancially disadvantaged. The way to marketf to boomers is by individual life stage segments suchas empty-nesters and grandparents — without mentioning age, consultantsa said.
“They refuse to be callede seniors. That is the worsyt thing you can do tothis group,” said Aliced Jacobs, a Roseville baby boomer who advises companies on generational marketing and teaches seminars and classes on the topic, including through UC Davis Extension. Althougu generalizing of boomers should be done older baby boomers refuse togrow up. They thinkl old age starts around 75or 80, said Matt Thornhill, founder of , a marketing researcbh and consulting firm in Virginia. Boomersw see themselves as vibrant and They like trying new services and despite the myth that theyare brand-loyal, spokesmamn Anthony Deluise said.
The association of people 50 and oldeer no longeruses “retired” in its Boomers like print advertising because they want lots of information. Boomerws also pay attention to new and will clickon eye-catching Internet ads. This generatiojn also likes products, services and shoppint experiences that make them feel special and consultants said. They don’t want to merely eat or buy They wantto dine; they want experiences. This is especialluy true since therecessiohn started. Many boomers who are 60 had expectedf to retire over the nextfive Now, they will likely work an extra threde to five years because of their hard-hit investments and pensions, Dychtwals said.
The good news is they won’t be on a fixef income and will still But their free time will bemore limited. More boomersx will be working and raisinbg children or grandchildren while also dealint with their own sick Asa result, “experience over thinge become valued,” Dychtwald “There is a real shif t going on right now on what people are valuing.” Boomer in particular want to be responsible consumers. “It’ not about buying stuff to have stuff,” Thornhill said. Lifestylee centers — which combinr upscale stores with entertainment and comfortable places tolingee — provide the experiences that boomerds want.
Local examples are Sacramento’s Pavilionsw center and The Fountains in The Fountainswas designed, and filled with tenantsa and marketed all with boomers in mind, propertyy manager Gloria Wright said. For its concertt series, The Fountains includes music that appealszto boomers. Water features and a train ride are meanty to appealto boomers, including older boomers who are “sk into their grandchildren,” Wright said. Boomer-appealing apparel retailers include Draper’s & Damon’s, and Chico’s.
Mallse have focused on boomers by clustering storea that targetthe They’ve added leather chairs and couches in the common and indoor children’s playgrounds. “All making you feel special,” Jacobsd said. As for adding experience, Raley’s supermarkets offer wine tasting and kitchem products retailer Sur La Table providescooking classes. Nordstrom offerss boomers the attention they crave with free personal shoppersa who will do the chore ontheir behalf, whil e customer service representatives will book theatedr tickets or make dinner reservations for But some aspects of boomer-oriented service are lackinh at many restaurants.
People age 50 and oldetr require twice as much light as a 25year old, Jacobsd said, so restaurants dimming their lightzs to create mood just aren’t working for boomers. Restaurantd need to add table lights so thei r customers can readthe menu. Jacobs’ own solution? “I carrgy a flash-light.” Noisy restaurants also aren’g addressing the decline in hearing suffered bysome boomers. Restaurant s should provide more space between tablesand noise-absorption products, Jacobs said. Many marketers of beauty care and wellneses products are getting it right when it comesto Dove, a brand best known for its soap, featuresw boomers in ads and says beautyy has no age limit.
The company incorporates a cause-marketingh program to build self-esteem and promot a wider definitionof beauty. Supermarkets and drug stores tries rollingout in-store health clinics, but mixedf results have led some independengt clinic operators to scale back their Retailers also are adapting existinh products or offering new products or packaginh that targets boomers. Discountedr Target has color-coded prescription bottles with largetype face. Cobra has a global positioningg system with oversized icons and text and back lightinf toenhance visibility. Tropicana has an orange juice fortified with thought to help heart healthn andother conditions.
Nivea introduced an anti-cellulite while beauty retailer Sephora offersnumerous anti-aginfg beauty products. Makers of yogurt and all sorts of products areaddinhg fiber. Some products and services are created for themature user, but have wide Thornhill said. As boomers get older, they’ll continus to defy aging with healtyh club memberships and spas offering massaged andother services, consultants said. “Wwe think boomers will spend money on maintaining vitalitt until they take their last Thornhill said. Boomers are redefining age, and the consumet products industry hastaken notice. “Everybody is watchingy them,” Jacobs said.