Over 50 and ready to shop: serving the aging consumer

Abstract

PurposeThe purpose of this paper is to provide a framework to better understand the emerging aging consumer markets. It identifies new principles to better serve the ranks of the 50+ consumer market as those segments grow in number and economic influence.Design/methodology/approachThe framework was developed following industry and literature reviews and analysis of secondary data from the Social Security Administration, Census Bureau, US Department of Labor, UN Population Division, and AARP.FindingsDemographics point to a significant rise in the importance and complexity of consumer markets in the age 50+ segments. There are psychological, social, economic and biological changes that affect the spending habits and priorities of these consumers and, while there are excellent examples of companies taking these factors into account in designing products and services, it is clear that we have only begun to consider how best to serve aging and generally affluent consumers.Practical implicationsThe aging consumer is rapidly moving from being something of a cursory footnote on corporate product/service plans to being a dominant market force. Companies with a deep understanding of the unique needs and priorities of the age 50+ segments, and which design products and services informed by this understanding, will gain a significant competitive advantage over those that overlook these characteristics and preferences.Originality/valueThis article provides both a framework for companies to assess the needs of the emerging 50+ consumer market, as well as examples of companies that have begun to innovate with an eye toward serving this increasingly complex and well‐heeled population.