The grey, gold, ethnic dynamic by Dick Stroud

Dick Stroud dick@20plus30.com

The grey, gold, ethnic dynamic

www.20plus30.com

Slide 2 The grey, gold, ethnic dynamic

The next 30 mins…

oldies

the rich ones

sub-segments

what to do?

Slide 3 The grey, gold, ethnic dynamic

oldies

the rich ones

sub-segments

what to do?

Slide 4 The grey, gold, ethnic dynamic

Demographics

+ Spending power

Slide 5 The grey, gold, ethnic dynamic

Slide 6 The grey, gold, ethnic dynamic

Baby Boomer Generation

US BIRTH RATES

Slide 7 The grey, gold, ethnic dynamic

UK BIRTH RATES

Slide 8 The grey, gold, ethnic dynamic

The UK “double boom”

56 - 60

36 - 50

Slide 9 The grey, gold, ethnic dynamic

Slide 10 The grey, gold, ethnic dynamic

Today 2017

65-69

70-74

75-79

80-84

85+ 350,000

200,000

230,000

700,000

710,000 Boom 1

old-old

Slide 11

The next 10 years

The grey, gold, ethnic dynamic

65+

20 -40 321,000

2.2 million

18-25 0

Slide 12 The grey, gold, ethnic dynamic

UK Demographics

+ 4 million

Slide 13 The grey, gold, ethnic dynamic

Health of the older customer?

Slide 14 The grey, gold, ethnic dynamic

Life expectancy

60 70 65 75 85 80 90 95

Men

Women

Healthy life expectancy

Slide 15

Life expectancy

The grey, gold, ethnic dynamic

82.2

86.0

72.5

78.1

≈10 years

≈8 years

Slide 16 The grey, gold, ethnic dynamic

Slide 17

The over-55s

The grey, gold, ethnic dynamic

45% 23%

Slide 18

Geography

Mosaic Small Town Seniors

% of constituency population

The grey, gold, ethnic dynamic

Slide 19

Income +Assets wealthy 50+

The grey, gold, ethnic dynamic

Slide 20 The grey, gold, ethnic dynamic

Demographics

+ Spending power

Slide 21 The grey, gold, ethnic dynamic

UK wealth distribution

Slide 22 The grey, gold, ethnic dynamic

More Healthy Wealthy

older people

Slide 23 The grey, gold, ethnic dynamic

oldies

the rich ones

sub-segments

what to do?

Slide 24 The grey, gold, ethnic dynamic

£s 5.2 trillion

Slide 25

2.6 Million

Meet the Charmed Generation

Wealth OF UK CONSUMERS

Net Capital Wealth

45 - 64 65+

£200,000 - £500,000

43% 35%

£500,000 - £1,000,000

42% 40%

Slide 26 The grey, gold, ethnic dynamic

Income of your customers (£25k)

2.4 million

Slide 27 The grey, gold, ethnic dynamic

Socio-economic analysis

UK population aged 55 - 70

Slide 28 The grey, gold, ethnic dynamic

55+ = 17 million

The Charmed Generation

≈ 2.5 Million

Slide 29 The grey, gold, ethnic dynamic

► 20% of the retired have a mortgage (average £38,000)

► 30% have credit card debt of 3 months+ (average £6,000)

► The 60+ are the fastest growing group with significant debt problems

Slide 30 The grey, gold, ethnic dynamic

Property Pensions

Parents Prudence

Why are they ‘charmed’?

Slide 31 The grey, gold, ethnic dynamic

Slide 32 The grey, gold, ethnic dynamic

Slide 33 The grey, gold, ethnic dynamic

Slow income growth

Contract employment

Debt from funding education

Cost of credit card debt

High cost of housing

Healthcare and education costs

Slide 34 The grey, gold, ethnic dynamic

A third of 30 year old men live at home

Young graduates face an effective tax rate of 50%

Average home = £200,000 Median wage <£20,000/year

Insecure Pressured Over-taxed Debt-ridden

Slide 35 The grey, gold, ethnic dynamic

15 20 70 40 30 60 50 80

Age

Charmed Generation

ipod generation

Slide 36 The grey, gold, ethnic dynamic

►  Approx 2.5 million people

►  The Charmed Generation have:

►  Wealth (lots of it!)

►  Income (disposable)

►  A ‘one time’ market opportunity

►  Economically strong compared to their children

Slide 37 The grey, gold, ethnic dynamic

oldies

the rich ones

sub-segments

what to do?

Slide 38

Numbers aged 50-59

The grey, gold, ethnic dynamic

Slide 39

Numbers aged 70-79

The grey, gold, ethnic dynamic

Slide 40

Numbers aged 80+

The grey, gold, ethnic dynamic

Slide 41

Attitudes

Meet the Charmed Generation

Do they really like the same milkshake

s?

Slide 42 Meet the Charmed Generation

Massive generalisations

  Less emphasis on networks

  Fewer social activities

  More resistant to change

  Interests are often replacement for work

  Family centric (ish)

  More social

  Work at retaining networks

  More adventurous

  Initiators of major life changes

  Family centric

Slide 43 The grey, gold, ethnic dynamic

Slide 44

A positive – happy group

Women (%)

50 – 70 25-49

Optimistic 74 68

Unhappy 31 39

Self confident 69 63

Bored 22 30

Feel pressurised 42 65

The grey, gold, ethnic dynamic

Source: DDB 2006

Slide 45

Health/Environmentally conscious group

Women (%)

50 - 70 25-49

“Make great efforts to take care of my health” 82 68

“Try and buy environmentally friendly products” 68 58

The grey, gold, ethnic dynamic

Source: DDB 2006

Slide 46

What drives the 50-70 year old woman?

►  “My time” – I have waited for it!

►  Authenticity – experiences trump possessions

►  Realism about ageing – look the best I can

►  Friendships – especially girlfriends

►  Finite life - no time to lose

►  Certainty - knows what she likes

►  Friends’ opinions - WOM works

The grey, gold, ethnic dynamic

Slide 47 The grey, gold, ethnic dynamic

A couple of “so what” examples

Men

Women Men Women X X

Slide 48 The grey, gold, ethnic dynamic

Women

Aged 60-74

56%+

Slide 49 The grey, gold, ethnic dynamic

Widowhood

Aged 60-74

35%+

Slide 50 The grey, gold, ethnic dynamic

70% of new retirement properties purchased by a women

Slide 51 The grey, gold, ethnic dynamic

Slide 52 The grey, gold, ethnic dynamic

oldies

the rich ones

sub-segments

what to do?

Slide 53

The numbers

000s

White 52,481

Asian 2,082

Black Caribbean and African

1,051

Chinese 243

The grey, gold, ethnic dynamic

Slide 54

The numbers

000s 65+ 000s

White 52,481 16.9% 8,869

Asian 2,082 5.3% 110

Black Caribbean and African

1,051 6.5% 68

Chinese 243 4.0% 10

The grey, gold, ethnic dynamic

Slide 55

Over- 65s

Female

White 58%

Asian 47%

Black Caribbean and African

49%

Chinese 55%

The grey, gold, ethnic dynamic

Slide 56

Over- 65s

Female Not born in

the UK

White 58% 5%

Asian 47% 95%

Black Caribbean and African

49% 93%

Chinese 55% 94%

The grey, gold, ethnic dynamic

Slide 57

Be careful – of generalisations

The grey, gold, ethnic dynamic

Female Not born in

the UK

Indian 50% 97%

Pakistani 45% 90%

Bangladeshi 34% 93%

Slide 58 The grey, gold, ethnic dynamic

Aged 60-74 Religion Jewish

Muslim

Hindu

Slide 59 The grey, gold, ethnic dynamic

Aged 40-59 Ethnicity

Indian

Pakistani

Black

Slide 60 The grey, gold, ethnic dynamic

Areas in UK with a highest number of ethnic residents aged 65+

Slide 61

Slide 62

Wembley Central (9% are 65+)

Slide 63

The older ethnic market

The grey, gold, ethnic dynamic

Small Highly fragmented

Geography

Culture

Slide 64

The older ethnic market

The grey, gold, ethnic dynamic

Poorly researched attitudes & behaviours

High wealth ►London-centric

Slide 65 The grey, gold, ethnic dynamic

oldies

the rich ones

sub-segments

What to do?

Slide 66 The grey, gold, ethnic dynamic

A disparate group

One thing in common

Slide 67 The grey, gold, ethnic dynamic

?

One big thing in common

Slide 68

What to do?

  Location   Channel / Media choice   Promotional creative   Household composition   Product design

The grey, gold, ethnic dynamic

Wo

me

n

2.5 Million 17 million

Slide 69

What to do?

  Location   Channel / Media choice   Promotional creative   Household composition   Product design

The grey, gold, ethnic dynamic

2.5 Million 17 million Ethnic

ity

Slide 70 The grey, gold, ethnic dynamic

Dick Stroud dick@20plus30.com www.20plus30.com www.the50plusmarket.com