TURNING SILVER INTO GOLD: ARE
YOU GETTING YOUR SHARE OF THE
LUCRATIVE OVER 55s MARKET?
Did you know that 1 in 3 babies born this year will live to celebrate their 100th birthday? 1 It’s not just
that we’re living longer; the over 55s are rewriting the rules of ageing too with 43% of 60-65 year olds describing
themselves as being in “middle adulthood” 2. These days we’re reinventing ourselves with every decade from our 50s
through to our 80s and beyond.
Unsurprisingly, businesses are keen to make the most of the opportunities presented by this so-called ‘silver
segment’. According to the Office For National Statistics (ONS), the over 50s are responsible for 80 percent
of the UK’s wealth, with the 55 to 64 year olds having the biggest disposable income 3. Meanwhile a study by
Age UK found that the over-50s wield almost £280 billion of annual purchasing power 4, which is only set to grow.
DECIDE. helps turn the stereotypes on their heads to reveal an active, tech-savvy and gregarious mix of
people that define themselves by how they feel, not by their age. And we highlight how brands can transform
their approach to product design, packaging, digital and shopper marketing to engage these diverse and lucrative
consumers, by understanding their needs and motivational triggers.
Here, we focus on 4 key categories to understand what the implications are for engaging with the over 55s...
LET’S START BY TAKING A HEALTH CHECK:
Life expectancy exceeds ‘healthy life expectancy’ by 7 years 6, making the
onset of age-related illnesses a real issue for even the most young-at-heart.
Core areas of concern are:
• Cardiovascular health • Bone and joint health
• Brain and memory health • Vision
As such, there is huge potential for brands to develop and position
products that help the over 55s prevent health deterioration in
these key areas. For example, volume sales of Vitamin B have
increased by 39% since 2013, when research showed its
potential to protect against Alzheimer’s disease 7.
98%
of over 65s are
doing at least
one activity to
maintain
long-term
health5
1 What Are The Chances Of Surviving To Age 100? Office for National Statistics, March 2012. 2 Later Life In The United Kingdom, Age UK, September 2014.
3 Family Expenditure Survey, Office for National Statistics, 2012. 4 The Golden Economy - The Consumer Marketplace in an Ageing Society, International Longevity Centre for
Age UK, December 2010. 5 Later Life In The United Kingdom, Age UK, September 2014. 6 Opportunities To Target The Ageing Through Functional Food And Drink, Euromonitor,
November 2013. 7 Vitamins and Supplements, Mintel, September 2013
© DECIDE.
Meanwhile, the market for products claiming to improve
cardiovascular health has risen 34% globally in 7 years.
Today’s over 55s are busier than ever. Many will work for another decade or more, while 73%
expect to care for a family member, either older or younger. A balanced diet is key to keeping
them active, but many struggle to prioritise nutritious meals. And consequently 1.6 million
over 65s are estimated to suffer from malnutrition. In addition, this age group are also
most likely to cut back on snacks to manage their weight.
Developing functional foods and low calorie snacks with added health benefits could
help brands to retain market share as the population ages. DECIDE. recognises Nãkd
bars, the fastest-growing healthy snack brand in the UK, as strong innovators in this field who
draw attention on pack to the added value their products can bring.
“By communicating a ‘nutritious’ and ‘keeps you
going’ positioning, healthier snacks can offer the
over 55s a convenient solution for their busy,
on-the-go lifestyles.”
Anne Crawford, Research Assistant, DECIDE.
WHAT ABOUT THIS FOR A BEAUTIFUL OPPORTUNITY?
Women over the age of 50 - the UK’s most affluent demographic - index higher than the market average when it
comes to buying beauty and styling products. And this lucrative market is set to grow. By 2020, the number of
women aged 45 to 59 will increase by 9 percent, the 60 to 74 age group by 12.6 per cent, and the over 75s
by 18 per cent 8.
Yet it’s well documented that women over 55 feel stereotyped and patronised by the beauty industry, as a recent
survey found that beauty brands lack empathy and understanding. According to Fighting Fifty, “only 7 percent of all
advertising shows a woman over 50. And when it does, it’s often for chair lifts, walk-in baths or funeral planning.”
In addition, adverts for anti-ageing products are almost always fronted by young models, or older models who are
impossibly wrinkle free. This misrepresentation is alienating to the over 55s consumer. Older women don’t want to look
20 again; they want to feel comfortable and confident in their own skin.
DECIDE. believes beauty brands need to shift their focus from anti-ageing to agelessness, to change the
language from “younger looking skin” to “healthier skin that glows with confidence”.
In 2012,
women over 50
spent £2 billion
on cosmetics and
toiletries -
41%
of total spend9
“Using attractive older models, complete with the signs of ageing, is
a great way to promote ageless beauty. American Apparel recently
used a 62-year-old model to promote its lingerie range, with the slogan
“sexy has no expiration date”. Within a day, the campaign received
1,000 likes on Facebook and 8,000 on Instagram”
8 9 Older Women: The Forgotten Demographic, Imogen Matthews, July 2012.
© DECIDE.
DECIDE.
ARE YOU LOOKING GOOD TO TARGET THE
MALE GROOMING MARKET?
As the use of male grooming products becomes more socially acceptable in the
UK, we’re seeing an increase in brands targeting this growing market. The men’s
toiletries market reached £597 million in 2012, up 11% in five years. And the trend
is set to continue, with sales of men’s toiletries and fragrances forecast to
increase by 8.4% to reach £1.03 billion by 2017 10. But lessons from the mature
market of women’s beauty do not apply here.
Men over the
age of 55 are
forecast to
outnumber men
aged 15-34 by
a massive
642,000
in 201811
Brands need to recognise that men are motivated
and influenced by different triggers. For example, just
under half of men spend no more than £4.99 on a moisturiser, compared to
38% of women, who are far more likely to treat themselves with premium
products12. When it comes to purchasing decisions, women are driven by research
and evidence, while men are more driven by their own opinion of the packaging and
product image, making it imperative for brands to speak their language. DECIDE.’s
branding experts see Bulldog Skincare For Men as a fantastic example of a brand
getting this right.
Men Over 55: Ageing Gracefully:
With men over the age of 55 forecast to outnumber men aged 15 to 34 by a massive 642,000 in 2018, the
mature consumer represents another huge growth opportunity for male grooming brands.
However, he brings his own challenges; just 27% of men aged 55 to 64 use a facial moisturiser, compared to 54% of
25-34 year olds13 and 13% don’t buy their toiletries themselves14. Despite this, current lifestyle changes are creating
a new market of mature men open to products to improve their image and give them a confidence boost – in the
workplace, at home, or even on a date.
AND FINALLY, TIME TO CELEBRATE AS THE ORIGINAL
TEENAGER COMES OF AGE
75%
over the
next
40 years16
As we age the number and sensitivity of our taste buds decreases. Perceptions of
salty and sweet deteriorate first, followed by bitter and sour. This impacts the enjoyment
of subtle drinks and poses an interesting question: do alcoholic drinks brands aim to offer a new
taste, or provide a passport to the emotional recall of previous experiences with their products?
Lager brand Heineken challenged its creative team to crowdsource
ideas on how to reinvent the beer drinking experience for over 60s
drinkers, using its IdeasBrewery.com platform. New types of beer,
packaging and serving methods were all discussed. Concepts
Sour
that emerged from the project included new bottle shapes,
wine-flavoured beers and a product reinforced with extra
iron to offer health benefits.
As the over 55s tend to be more concerned about health than younger
drinkers, DECIDE. identifies major NPD opportunities for healthconscious products within the alcohol sector, such as wines with lower
alcohol and therefore fewer calories. For example, First Cape launched a ‘light’
range of 5.5% abv wines in 2012, with options including smaller 50cl bottles.
Bitter
Sour
Salt
Sweet
Salt
10 Key Note Men’s Toiletries and Fragrances UK, August 2013. 11 12 13 Mintel Facial Skincare UK, May 2013. 14 Mintel Men’s Toiletries UK, October 2013. 15 16 The Golden
Economy - The Consumer Marketplace in an Ageing Society, International Longevity Centre for Age UK, December 2010.
© DECIDE.
The value of
the market
for the
over 55s
is set to
grow by
The over 55s market is vital to producers of alcoholic drinks. These consumers expect quality,
but they’re also prepared to pay for it. Yet, only around 10% of marketing spend is directed
at over 50s15, leaving them to feel misunderstood and marginalised when it comes to the
marketing of big brands, who instead focus on younger millennials.
NEW OPPORTUNITIES IN THE PALM OF YOUR HAND
Older consumers are proving keen to adapt to the growing trend for omnichannel consumerism.
A quarter of iPads are owned by the over 55s and 50 percent of this group uses the
internet to research products and services.
Personal recommendations are one of the most influential factors
driving purchasing decisions for this market and with the over 55s
being avid social media users, they regularly look up and share
tutorials, reviews and blogs 17.
In-store remains the most popular way to purchase products; however
the decision is often made prior to this online - what we call the zero
moment of truth. While there has been some recognition of the power
of digital media to engage the over 55s, brands could do a lot more.
“Communicating with the over 55s isn’t about treating them
according to their age and income. We must understand what really
makes them tick to help influence their decision-making at the First
Moment of Truth, so we can design and market products in a way
that addresses their individual needs, not our desire for people to fit
into tidy categories”
Rosy Parker-Blair, Client Services Director, DECIDE.
SO, HOW ARE YOU BROADENING THE APPEAL OF YOUR BRAND
TO CAPITALISE ON THE LUCRATIVE SILVER SEGMENT?
We’re currently working with a leading global battery brand on an initiative to envision pharmacists
about the challenges of older fingers and fading eyesight when trying to change small ‘fiddly’ batteries
in hearing aids.
By producing a demo kit that includes the tools to impersonate these issues, we’re helping pharmaceutical
staff to really understand for themselves the brand benefit, thereby enabling them to recommend the brand
more effectively to their shoppers.
WANT TO KNOW MORE?
If you would like to find out more about our growing over 55s portfolio, inclusive with case studies, insights and
OUR FULL REPORTS on the over 55’s Health, Beauty, Male Grooming and Alcoholic Beverage sector,
simply contact us. And see how we can help you ‘turn silver into gold’…
DECIDE. is a multi-award winning, strategic branding and design consultancy with over 61 years of
experience in helping brands IDENTIFY and WIN in the moments that matter.
We have research partnerships with world-leading academic institutions, including
Durham University Business School, and by further understanding the emotional
triggers that drive purchase decision-making for the over 55’s, we can ensure our
designs are a perfect fit for the mature consumer at the point they DECIDE.
TALK TO DECIDE.
Contact: Stephanie Kiens • Tel: +44 (0) 207 5827203 • Email: [email protected]
LONDON • NEWCASTLE • GENEVA
www.wearedecide.com
17 Reaching Out To The Older Demographic, Tracey McAlpine, September 2013