Fast growing, wealthy and largely ignored

It’s well recognised that the global population is aging, but what many may fail to realise is that this population ageing is without precedent and is “a process without parallel in the history of humanity” according to the United Nations. And it is also a demographic that many businesses are not paying enough attention to.

Speaking at a recent Tourism Summit, organised by industry body, Tourism Industry Aotearoa, Kim Walker of Australia’s Silver Group and co-author of Marketing to the Aging Consumer said that despite the vast number of consumers in the 50-plus age bracket, it is the least contested in terms of marketing.

In New Zealand those age 50 and over make up 34 percent of the population and 36 percent of visitor arrivals. In Asia Pacific today 54 percent of high net worth individuals are over 56 years of age.

Walker quoted Boston Consulting Group as saying that during the next two decades older consumers will be the primary drivers of consumer expenditure in Asia-Pacific, Europe and the United States.

But with only five percent of advertising directed at them, it makes this group the least contested demographic and ripe for businesses to target, according to Silver.

And they are very big spenders. In the US those aged 50 plus share of spend is 80 percent of leisure travel; 74 percent of prescription drugs; 51 percent of OTC drugs; 60 percent of healthcare spend and 41 percent of money spent on new cars.

In Europe they spend 45 percent of the money spent on new cars; 50 percent of facial care cosmetics; 55 percent of coffee and 50 percent of mineral water spend, according to Walker.

But targeting these older visitors needs a different approach.

Older visitors differ from younger ones in both their physiology and their psychology.

Walker said physiological aging was complex relentless and universal.

But the business opportunities are vast. And an old face in an advert is superficial but age adapted PR and services work, pointing to an eye specialist chain aiming at the over 60s, Wii Fit using Helen Mirren to promote its product and senior tours in Canada.

He says we forget that these older people are us. “These are me, people who do everything everyone else does.” They are normal consumers with a few years added in.

But older people’s physiology does change such as loss of muscle mass and a decline in mental reasoning can begin from age 45 meaning the the older brain is more easily distracted on your website. Some 27 percent of over 55s have some form of urinary incontinence; 50 percent of people over 60 have some loss of sight and can’t read product labels even with optical assistance.

Some 33 percent of those 65 to 75 have some form of hearing loss and 35 percent of older people are obese. Some 23 percent of those over 65 have hand arthritis. Walker says it boils down to ageing bodies and minds and that the 25 effects of ageing goes to every touch point where a brand touches customers.

Apple, in fact, epitomises an age friendly brand. Its advertising shows the product, the website is very simple and clean, retail is well lit and very accessible. Some 46 percent of all Apple products are sold to over 55s.