A.T. Kearney: Aging Baby Boomers More Brand Loyal

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September 27, 2011

Retailers may have to reconsider how they market store brands to aging Baby Boomers, who are more brand loyal and less price sensitive than younger shoppers, according to a new study from consultancy A.T. Kearney.

Mature consumers are much more brand loyal than younger consumers and manufacturers will need to work closely with retailers to coordinate an effective response to the aging consumer market, according to the report. "The most important finding in our study is that older shoppers do not think they are adequately served by marketers, retailers or manufacturers."

"One intriguing finding that emerges from the Global Maturing Consumer study is that in a number of different ways, the views of respondents seem to intensify, or to shift, after the age of 80," said Martin Walker, senior director of A.T. Kearney's Global Business Policy Council. "The over-80s are globally much more loyal to established brands, and less willing to spend money on products that offer health benefits or are considered green."

Respondents over the age of 80 are more eager to have age-specific products and shopping environments tailored for them. "It is almost as if 80 is the new point of self-definition for becoming old. If so, this represents a noticeable change from the traditional concept that old age begins at retirement," Walker said.

Brands Matter
Retailers that largely focus on speed and price competitiveness, may miss reaching mature consumers, who are more demanding on quality and services, and are less price sensitive. Older shoppers spend more time in stores and evaluate brands more on quality, packaging and ease of use. Stock up sales or buy-one-get-one free promotions fall flat for older shoppers who use smaller amounts of product.

Manufacturers responding to the aging market will require a rethinking of product design, particularly in labels and directions, said James Morehouse, A.T. Kearney partner and vice president. Legible prices and easy-to-open packaging are priorities. Mature consumers do research, need access to online information and need easy-to-read information in larger font sizes since they take more time in stores prior to making a purchase decision.

Mature consumers form a worldwide market segment that spent $8 trillion in 2010 and will be spending $15 trillion annually by the end of this decade.

A.T. Kearney interviewed 3,000 people in 23 countries to find out what mature consumers are looking for in retail stores as well as from consumer packaged goods manufacturers.

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