One Word for Baby Boomers: Luxury
Named for an uptick in the post-WWII birth rate, this is the generation of optimism, exploration and triumph. Encouraged to achieve the “American Dream,” Baby Boomers are ambitious, but also materialistic. Since they grew up with parents that fought through the Great Depression, Boomers value the finer items in life – brand names included.
Continuously interested in prosperity and ownership – this is the “me” generation. Baby Boomers have more authority, are extremely loyal to their children and trust no one under 30 years of age. Therefore, marketers must appeal to the consumer-side of Baby Boomers.
Many Baby Boomers will pay the extra money for products with a “luxury” tag. Boomers view money as a status symbol. While they love a good discount (who does not?), they are the generation that you should target for luxury goods. After all, this group controls approximately 70% of all U.S. disposable income. In fact, this group spends approximately $120B annually on leisure travel; 99% of Boomers planned to travel in 2016.
Some areas of interest?
Fitness and health. There is a high demand (expected to increase!) for pharmacy prescriptions, vitamins, fitness clothes and accessories, gym and studio memberships, and other health-related products.
Pets are another area of high spend; Boomers fuel growth in the pet industry. They spend more on pets each year compared to other generations.
Entertainment. Boomers spend about 40% more on cable and TV/ surround sound products than other generations.
Lastly, they are the most interested in home improvement. They spend more annually on their homes (renovations and décor) than any other generation. Bingo. This is your sweet spot.
You can reach Boomers with more traditional direct marketing tactics. Catalogs, creative and email are all ways to get onto Baby Boomers’ radars. In fact, Baby Boomers appreciate direct contact more than anyone. “Personal touch” and the opportunity to have a relationship with someone (or a company/ brand) remains top of mind for Baby Boomers.
All in all, this is a generation to continuously target. However, the population is in fact aging and therefore, spending less on luxury items. This fact echoes some of the challenges luxury retailers are facing today – Gen X and Millennials are less willing to pay up for status. This means retailers must reconsider their marketing position to this group as well. As always, we are happy to help!
Pew Research Center
U.S. Department of Labor
Live Well Collaborative