The demographic change towards an ageing population in the developed markets is a phenomenon that has been seen in recent decades, although now, due to the increase of the living standards, emerging countries are also joining that trend.
They have always been there, but now they are more. The world’s households are ageing rapidly due to a dropping birthrate and a longer life expectancy, better medical care and quality of life. However, although this demographic change has taken place in developed markets during the last decades, now it is also seen in emerging markets, according to the report Ageing Households: Challenges and Opportunities, prepared by Euromonitor.
In 2030, 35.4% of heads of household in the world will be over sixty years old. Therefore, economic decisions about household spending and consumption will be, to a large extent, responsibility of the elderly.
According to the document, governments are already prepared for the impact that this population group will have on society, with consequences such as the decrease in labor productivity, pressure on the state of well-being and challenges such as mobility, single-person households or unemployment. But are companies also ready for this challenge?
By 2030, 35.4% of heads of household will be over sixty years old
This demographic change is affecting companies from different sectors since this group of consumers has greater purchasing power and spending capacity. Although the current trend is towards attracting millennials or the generation Z, with specific actions to seduce these consumers, companies should also focus their strategy on older groups.
Technology companies will have the greatest opportunity to win over the group of elderly consumers, points out Euromonitor. Smart beds that monitor pulse and respiration, fall detectors, smart kitchen goods and video monitoring are some of the novelties that are being developed.
In the fashion sector, some companies have already developed advances such as the creation of more functional garments. That is the case of Easy Button, which has created articles with a button that helps dressing faster.
Technology companies will have the greatest opportunity to win over elderly consumers, according to Euromonitor
Due to the increase of elderly consumers, this population group is a niche barely explored by fashion companies, more focused on conquering young audiences, which offers a great opportunity for companies in the sector to specialize.
Amazon is another company that has become aware of the impact of older people on consumption and has developed an online 50+ store where it offers products that meet different needs, such as caring of dependent people or vitamins. In addition, the US giant has also launched Amazon Echo, an online home care center designed to help elders contact their family or to remind them to take their medications.