Magazines Archives - 2007 March

Retailers Must Adapt To Secure Growing Grey Market
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RETAILERS and marketers of luxury goods should focus more attention on the elderly, said Euromonitor International in a new report: The Swing Generation: Marketing to the Over 65s.

From 2000 to 2005, the percentage of the total world population over the age of 65 grew from 7.1% to 7.5%, said Euromonitor, adding that consumers of this generation tended to be in good health, with high disposable income — reason enough to be a target audience for all consumer-goods players.

Gina Westbrook, research director for Euromonitor International, explained: “Many over 65s are determined to enjoy retirement, doing and buying all the things they feel were denied to them earlier in their lives.

“This presents significant opportunities for all consumer industries, but particularly for marketers of luxury goods and services.”

The rising number of people over 65 is already leading to strong growth for a number of consumer markets, particularly those with a focus on improving health. Functional-food products, for example, grew by 96% between 2001 and 2006, according to a Euromonitor research.

The cosmetics industry, too, is introducing a number of products for the older woman. According to Euromonitor, nourishers/anti-agers was one of the fastest-growing sub-sectors within the cosmetics market between 2001 an 2006, growing 99% to reach sales of US$12.7 billion. The market research company said more skin-care companies are expected to follow suit and develop skin-care products for the older skin.

Euromonitor also advised retailers in all consumer sectors to adapt in order to profit from the growing consumer segment. Adaptations such as simpler packaging, larger keypads and stronger flavours to suit older palates will work towards improving business’ performance over the coming years, it said.