Fourth age is the future

Los viejenials ya son el futuro - Sociedad, Economía

The latest generation of older adults is proving to be healthier and richer than their predecessors, spending more and more on technology, food and experiences instead of material goods. This has a very positive impact on the consumer market, so much so that brands are already calling this segment of the population "the fourth age", older people who dictate future trends.

According to a report published by Nielsen 360 last February is the generation that has led consumption in 2017 and will continue to do so in the coming years. More specifically, the concept of "fourth age" encompasses all those over 50 who have a greater purchasing power, have more free time and, little by little, enter the digital world in search of interesting offers, making the buy online and discover social networks.

This set of circumstances have made this generation the object of desire of all brands, weird?

The increase in spending by the elderly in the different sectors, including spending on events, dinners and trips, is driven by two key factors: greater mobility and money. Between 2000 and 2015, almost all regions of the world saw an increase in life expectancy, according to the World Health Organization, which probably leads to a growing proportion of older adults able to lead a more active social life.

In the European Union, for example, travel of older people has increased. The frequency of travel among those over 65 has increased at a faster rate than in any other age group. Travel agencies that specifically cater to the needs of these older adults have emerged, while other companies should address the needs and preferences of this group, including their demands for accessibility, groups of like-minded tourists, access to medical facilities, accommodation of dietary restrictions and options regarding the intensity and choice of activities offered.

"As the contribution increases companies and brands must reconsider the ways in which they promote their offers, and perhaps even expand their target audience," they say from Nielsen. "Retirees are willing and able to spend, and if service providers tailor their offers to meet the needs of the elderly, they will benefit from this growing segment of consumers."

Spain and Portugal

According to the National Institute of Statistics, the expenditure of homes for the elderly in Spain has grown by 30% between 2008 and 2016. The proximity stores, the neighborhood store of all life, have been reborn thanks to personalized attention and the proximity in the deal.

Alfonso Delgado, from Nielsen, talks about the importance of adapting to these consumers, noting the growing existence of companies that have services that make life easier for their customers: "They bring it to the house of that lady or man who can not transport so much weight, and that gives you the difference of buying in one place or another, "adding that these formats need to be readjusted" They do not need to buy a kilo of apples, but an apple, a pear and a banana for the next two days " .

In Portugal the scenario is not very different. "In the Portuguese market, the benefits of a high level of immediate consumption due to the progressive investment of the demographic pyramid, as well as the increasing purchasing power of the older age groups, is an injection for the economy", explains Pedro Pimentel, CEO of Centromarca - Portuguese Association of branded products, which represents more than 800 brands, referring to one of the conclusions of the study commissioned to Kantar Worldpanel by the association that directs.

Personalization and purchases in local stores are other trends identified in the study. "Personalization is creating, for example, specific spaces in the stores for the purchase of products destined for immediate consumption and outside the home, adapting the lay-out of the store and the attention to the clients of more advanced age, for whom it is possible to also create specific loyalty programs or incentives so that your visits to stores occur in periods of lower saturation ", exemplifies.