Archive for the 'Retail' Category

From Rocking Horse to Rocking Chair

Lina Ko July 13th, 2009

According to The Economist, businesses everywhere now realize that in future there will be a lot more older folks with money to spend. In most developed countries the baby boomers were more numerous, better educated and better paid than any generation before them. When these boomers retire, they will want to do it in style.

The glossy magazine published by America’s AARP, a powerful lobbying organization for the over-50s, and its Canadian counterpart Zoomer, published for CARP by ZoomerMedia, are bursting with ads. If those advertisers have got their market right, this group of customers can be persuaded to buy a variety of products, from travel and financial services, to mobile phones, medicines and comfy beds.

Some businesses are already adjusting their ranges to cater for the grey market. Volkswagen, for example, has developed a car called the Golf Plus that has higher seats and more space than the standard model. A number of consumer packaged goods manufacturers have started making smaller pack sizes for older, smaller households. Japan, which has already had lots of practice with older consumers, has developed some ingenious new products for the sandwich generation. They include a furry robot seal, sold as a pet substitute, that has proved a hit with lonely ‘mature’ folks.

As previously posted on my blog, advertisers are often accused of trying too hard to sell to the young when much of the spending power is now concentrated in older age groups. But marketing to baby boomers and seniors is not that easy. Attempts to ‘seniorize’ ads, for example, have mostly drawn a poor response because their targets think of themselves as younger than they really are. That refusal to acknowledge being ‘old’ will only get stronger as the boomers start transitioning to seniors.

There are many shades of grey as this is such a heterogeneous group. Barack Obama is a trailing-edge boomer while Hillary Clinton is a leading-edge one. Both ran for president of the United States and the former won. When boomers become seniors, some may already be in frail health and living in old-age homes; while others may still be running for president of the United States, as John McCain did last year.

Model Boomers

Lina Ko February 17th, 2009

It seems at long last that the fashion industry is getting it – you need boomer models to appeal to boomer consumers! According to The Globe and Mail, 50-year-old Madonna is donning the ads for Louis Vuitton; 52-year-old Jerry Hall is the new face of Chanel; 50-year-old Twiggy is the model for Marks & Spencer; Helena Christensen, in her late 40s, is modelling underwear for Agent Provocateur. The list goes on and on – Ines de la Fresange, a former Lagerfeld muse, just walked the Paris haute couture runways at 51. On TV, former models Cheryl Tiegs (61) and Iman (54) are appearing as hosts and guest judges on shows such as True Beauty and Project Runway. At 42, Cindy Crawford touts her own line of furnishings and 40-year-old Jennifer Aniston was the recent cover girl for GQ magazine.

With the demographic reality of an ageing population, this makes sense as the fashion industry realizes that the disposable pounds, euros and dollars lie in the pockets of a much older age group. Of course, we need to remember that older women now look better – so most mature women models are now proud to let people know their age. The biggest satisfaction for older women boomers must be J. Crew’s recent accomplishments  – donning senior citizen Lauren Hutton as its 2009 spring cover girl – and, at the same time, supported by U.S. first lady Michelle Obama and her daughters. Who thought J. Crew can be cool again?

Boomers May Keep Economy Going

Lina Ko May 12th, 2008

According to a recent survey conducted by Ipsos Reid on behalf of the Canadian Newspaper Association, Canada’s wealthiest demographic – baby boomers – still plans to spend big money in the coming months in spite of the slowing economy.
 
Eighty percent of the 1,980 boomers surveyed said they still had “big buying power.” And many indicated they fully intended to exercise that power with large purchases. Almost 40 percent of boomers said that taking a vacation topped their spending priorities for the next 12 months. Purchasing home electronics, appliances and a car – as well as mutual funds – also ranked high as priorities.
 
The Toronto Star also reported that the survey revealed that in a world where 74 percent of advertising money is directed at a younger audience, 40 percent of boomers feel neglected by ads. The survey also shows newspapers are the medium of choice for boomers, with 65 percent indicating they don’t see a time when their paper will be replaced by something else.
 
Advertisers and marketers are still ignoring an important demographic although I have to say there have been some improvements. In these times when we know the economy is shrinking, perhaps marketers should speed up in paying attention to the boomer demographic who still has money and is willing to spend.

Sophisticated Boomers Demand Pricier Wines

Lina Ko January 21st, 2008

Last week The Canadian Press filed a news story that the LCBO is shifting its focus towards the more costly premium brands that have been driving sales in the last year. According to the LCBO, there is a growing sophistication in the marketplace and that’s global in nature – not just confined to Ontario. Sales in the over-$10 ranges have been growing.
 
According to the LCBO’s most recent annual report, sales of wines priced between $12 and $15 drove up sales $17.6 million. Wines priced between $15 to $20 jumped by 15 per cent, accounting for $64 million in sales for 2005-06.
 
The tastes of discriminating Ontario consumers are not just confined to wine. While sales of standard brand spirits declined by 1.4 per cent, sales of premium bottles jumped almost six per cent. People who used to buy blended scotch a decade ago are now being drawn to pricier single malts. The growth is pointing to higher-quality wines, spirits and beers.
 
While boomers are known to be enjoying life and seeking the best quality in everything, let’s not forget that in the grand scheme of things, wines priced between $12 and $15 are not rare vintage wines coveted by wine connoisseurs. This price range is still considered value for money. We should also bear in mind that as boomers age, they are even more health-conscious, and drinking in moderation becomes a priority. It will be interesting to see whether any research has indicated that boomers have traded up in quality, but have gone down in overall alcohol consumption to stay healthy!

Retailers Find It Tough To Serve Boomers

Lina Ko September 7th, 2007

Retailers who target baby boomers may make many mistakes before getting it right. Reitmans Canada, the country’s largest specialty women’s wear merchant, announced yesterday that they had failed with their Cassis stores and are in the process of revamping the chain. Last fall, Cassis was launched to cater specifically to 45- to 60-year-old women by offering bigger sizes at higher prices. This concept failed because boomer women still want youthful styles while defying the ageing process, and are also not ready to pay too steep a price for them.
 
The new Cassis outlets will offer new merchandise that are more stylish, higher quality, better fitting and not as expensive. Reitmans hopes to appeal to boomer women who want to look smart and elegant, but still follow the fashions of the day.
 
U.S. retail giant Gap Inc. encountered similar difficulties in attracting baby boomers. They closed its struggling Forth and Towne chain in the U.S. after failing to find the right fit for female boomers.
 
The truth of the matter is boomers may not really want to shop at separate stores. Older women do not want to dress like an older woman. The 50-year-old woman thinks she’s 40, and the 40-year-old woman thinks she’s 30. Everyone thinks they are younger than they are and to be seen shopping at a store for ‘older’ women is not good for their self esteem. Perhaps retailers should first master the shopping psychology of boomers before opening separate stores for boomers.

For Your Eyes Only

Lina Ko August 28th, 2007

I’m delighted to see the publishing industry finally catching up with the visual needs of baby boomers. According to the Calgary Herald, this is the publishing industry’s answer to wide-screen televisions. Esteemed publishing houses such as Penguin Group, Harlequin Enterprises, Random House and HarperCollins have introduced large-print lines designed to appeal to squinting baby boomers who are discovering that standard type is challenging to read.

The new paperback and hardcover books feature bigger types and more generous spacing. Baby boomers are too vain to admit that they can’t make out the type they used to be able to read. Instead, they say bigger print is easier to read in bed, on the treadmill or on the beach.

In 2010, all boomers will have reached that milestone birthday of 45 and many will feel the effects of presbyopia, the inability to focus on objects close up.  These numbers add up to an expanding market for easier-to read books, a category in the past limited mostly to senior citizens. Large-print titles used to be more expensive than regular-print books, but that is beginning to change as well.

I don’t need reading glasses for now, but it’s comforting to know that marketers like Amazon.com are featuring a special section of large-print books on its website and HarperCollins Publishers has introduced HarperLuxe, a line of full-sized paperbacks with 14-point size type and wider margins. Boomers can also purchase innovative taller paperbacks about an inch bigger than standard versions to allow for easier-to-read formatting.

Catering to Ageing Boomers

Lina Ko March 27th, 2007

As baby boomers age, health conditions like heart disease, diabetes, and arthritis become a primary concern. Companies that recognize the potential for marketing innovative products to baby boomers with health ailments will surely surpass their competition.

There are nearly 4.5 million Canadians living with arthritis and recently The Arthritis Society launched an initiative to endorse products that are “arthritis friendly.” Companies seeking commendation from The Arthritis Society must submit their products for an evaluation conducted by a third-party agency and receive a passing grade based on product performance.

Fiskars, the manufacturer of quality lawn and garden tools, has received approval from The Arthritis Society for its PowerGear products for being arthritis-friendly.

Fiskars PowerGear Pruners, Loppers and Hedge Shears use a patented gear design to provide the user with an additional mechanical advantage that reduces cutting effort, strain and fatigue. These products can be identified by The Arthritis Society’s “arthritis-friendly” logo.

With the considerable buying power that baby boomers possess, I wonder which company will be next to introduce a ground-breaking product that addresses the health concerns boomers face?