Life may end at 54 in terms of Madison Avenue ad executives, but in real life spending, consuming and wealth continue, in size, for many years after.
While older consumers are often overlooked by more active and fashionable spenders, such as Millennials and Gen Z, research shows that millions of seniors have the net worth, disposable income, as well as the free time and energy that should boost merchants and brands.
PYMNTS research shows that while many older Americans are experiencing the hardships imposed by inflation, baby boomers and seniors are holding on despite it.
The “New Reality Check: The Paycheck-To-Paycheck Report: Generational Divide Edition” study series, a collaboration between PYMNTS and LendingClub, found that baby boomers and seniors tend to be least affected by pressures between paychecks.
With savings being the best defense against the paycheck-to-paycheck struggle, this study indicates that “savings balances for consumers who do not live paycheck to paycheck are increasing from generation to generation. Baby boomers and seniors are the consumers with the highest average savings among those who live paycheck to paycheck without having to pay their bills ($7,961) and among those who don’t. not paycheck to paycheck ($22,866).
Get yours: New Reality Check: The Paycheck-to-Paycheck Report: Generational Divide Edition
Although some brands are already targeting seniors – the Jitterbug cellphone being one example – and others that are targeting the untapped purchasing power of older generations, when it comes to fitness-associated retailers, the category is not not too crowded.
In short, the shortage of senior-oriented products from some of the hottest brands in apparel, fitness and more is one of the big missed opportunities in the industry, but that could change.
Active AND Affluent
Still an avid walker at 84, Nike co-founder Phil Knight collaborated with Nike designer Tinker Hatfield on his Nike CruzrOne athletic shoe. In a video on the Nike site showcasing the sneakers, Knight said, “There has to be a shoe for the slowest runner, and that’s me.”
Peloton hopes that seniors will adopt the stationary bike. In a blog post on aging and exercise, Peloton cycling instructor Kendall Toole said: “You never age out of fitness – I encourage people in their 60s to be bold and courageous and know that they are also welcome in Peloton. For them, exercise should be about the relationship between physical and mental agility.
Senior lifestyle site Retirepedia notes that while Peloton doesn’t currently have a specific bike designed for seniors, “Seniors may find the Peloton Bike+’s larger screen easier to see, but this will weigh on its higher price.
For its part, Lululemon’s latest revenue reflects continued strong demand for its high-end, full-price workout gear. And while the company has made great strides this year expanding its customer base with the expansion of menswear and the addition of tennis, golf and footwear lines, its seniors-specific outreach has not. is part of this strategy.
Even so, websites like Sixty and Me have been doing the marketing for major athleisure brands, naming Lululemon, Nike and others to their list of “Best Workout Clothes for Older Women.”
Seniors are willing to spend
During the pandemic nesting trend, some companies were thinking of seniors with new products. The New York Times reported that “IKEA has started selling upright chairs with a higher seat to make getting up easier, angled footrests to promote blood circulation and jar tongs to help unscrew lids, among its products intended for people with reduced mobility, including the elderly. ”
“The range is part of an effort to imbue catering design for people of different abilities across IKEA products,” said Britt Monti, a senior designer who worked on the collection. IKEA was hesitant to label the line as specifically for older people,” the NYT reported.
That same story noted a similar trend in cosmetics, saying “in beauty and skincare, older consumers tend to spend more, making them a key demographic for companies like L’Oréal SA. . In France, women over 65 spend 184 euros, or $223, on beauty products each year, compared to 120 euros for those aged 25-30, said Delphine Viguier, global brand president of L’Oréal Paris.
Late last year, AARP launched its AgeTech Collaborative™ stating in a press release that “a new platform to help AgeTech innovators generate big new ideas and send thriving products in what is now an $8.3 trillion economy led by those 50 and older. Innovation will be key to helping people live longer, healthier lives in years to come, says the association, which has 38 million members.
In its Longevity Economy report, AARP said the senior cohort “is expected to spend $27.5 trillion by 2050 (61% of total spending).”
Lily: AARP’s AgeTech Collaboration Drives Innovation for Seniors While Tapping into an $8.3 Billion Market
For all PYMNTS retail coverage, subscribe daily Retail newsletter.
We are always looking for partnership opportunities with innovators and disruptors.