This presentation from SIS International Research covers insights and stats on key United States demographics: Baby Boomers, Generation X, Generation Y and Hispanic culture. It also delivers changing U.S. shopping patterns and retail distribution patterns.

1. SIS International
Custom Research
INSIGHTS INTO THE
CHANGING US
CONSUMER MARKET
2008…… Going Forward
Presented by SIS International Research
2008
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2. OUTLINE OF PRESENTATION
! SIS Insights – The Changing US Consumer Market
! SIS Capabilities and Industry Expertise
! Our Research Methods and Capabilities
! SIS Online Research Panels
! Benefits of Using SIS International Research
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3. SIS INSIGHTS
THE CHANGING US CONSUMER
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4. SIS INSIGHTS – THE CHANGING US
CONSUMER
• Market Drivers:
– The Aging Baby Boomers
– What happened to Generation X?
– The Powerful Force of Generation Y
– Growing Hispanic Culture and Market Segment
– Changing US Shopping Patterns
– Changing US Retail Distribution Patterns
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5. BABY BOOMERS
• The Aging Baby Boomers:
– Post World War II births 1946-1964
– Approximately 77 million people
" High level of income [$64,700 Median Household Income]
" High level of education [46% are college educated
" High percentage of home ownership [57% home ownership]
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6. BABY BOOMERS (cont.)
• The Aging Baby Boomers (cont.)
– Most do not want to retire in their 50’s and 60’s
• Over 80% intend to keep working, and 56% of them hope to do so
in a new profession. For many, the new job would be in community
service
– Many are currently being downsized from companies
– 16.4% or 5.6 million of Baby Boomer workers aged 50+, were self-
employed.
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7. BABY BOOMERS (cont.)
• Implications of the Aging Baby Boomers
– Increased mobility to warmer climates in the southeast and southwest
– Simplification of lifestyles; “Less is More”
" Not as loyal to brands as same age group in decades past
– Baby Boomers are seeking:
" Streamlined financial services
" Smaller homes – yet multiple homes
" Alternative healthcare methods – reduction in medical benefits
" Part time jobs to supplement their income for retirement
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8. BABY BOOMERS (cont.)
• Immigrants make up 12% of “early boomers” (born 1946-55) and 15% of “late boomers” (1956-64)
• Control 70% of the total net worth of American households - $7 trillion of wealth
• Own 80% of all money in savings and loan associations
• Spend more money disproportionately to their numbers than any other age group
• Watch television more than any other age group
• Read newspapers more than any other age group
• Account for a dramatic 40% of total consumer demand
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9. GENERATION X
• What Happened to Generation X?
– Generation X is defined at those children born from 1963-1978 and is currently
age 28-42, the primary earning years.
– This segment is now turning “30” and “40”
– Sons and daughters of the women's liberation movement in the 1970s and grew
up in day care centers and child care surrogate parents
– Are more conservative and more serious vs. the upcoming Generation Y market
segment
– Yet – will ultimately inherit the baby boomers’ lifetime savings and investments
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10. GENERATION X (cont.)
• Implications for the Generation X Market Segment in the US
– More “diagnostic” research is needed to determine their values, product
preferences, psychographics, etc.
– The “mobility index” of this generation needs to be determined and tracked
– Brand preferences can be “polarized” as they are “sandwiched in” between the
Baby Boomers and Generation Y in the US
– It is important to segment this age group rather than merge them in with the
Generation Y or Baby Boomers generation
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11. GENERATION X (cont.)
• In 1970, 47% of Boomers between 18 and 24 lived with their parents
• In 1992, 54% of Xers between 18 and 24 lived with their parents. An
increase of 15%.
• In 1975, the median age for first marriages among Boomers was 23.5 years
for men and 21.1 years for women.
• In 1992, the median age for first Xer marriages was 26.5 years for men and
24.4 years for women.
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12. GENERATION Y
• The Powerful Force of Generation Y
– 1982 – 2002
– Sometimes known as the “Millennials”
– Are technologically literate and “connected” to the internet
– Have an extremely high degree of “global brand awareness”
– Are “indulged” by their parents
– Are less driven by “monetary goals” and have a moderate – high degree of awareness of social and environmental issues
– Have a “sense of adventure”
– “Know what they want, when they want it and how to get it”
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13. GENERATION Y (cont.)
• Implications of The Powerful Force of Generation Y
– Impact on the new design of products [everything from iPods, clothing,
cars they want to drive, retail stores they want to frequent, etc.]
– Less influenced by their parents than previous generations
– New product development and design research should be researched
at this age
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14. GENERATION Y (cont.)
• 70.4 million youth, ages 5-22, composing approximately 26% of the US population.
• 75-98% of the teenagers have a computer at home, depending on HHI.
– ~ 75-80% of have access to the Internet from home.
• Teenagers have an average of $100/month disposable income.
• 15% HS students have a co-signed credit card; 11pc have their own
• 30% of teenagers have checking accounts
• They feel “crunched” for time.
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15. Some characteristics
of the generations
• Matures (prior to 1946) • Generation X (1965-1980)
– Dedicated to a job they take on – Work to live
– Respectful of authority – Clear & consistent expectations
– Place duty before pleasure – Value contributing to the whole
• Baby boomers (1946-1964) • Gen Y/Millennials (1981-1994)
– Live to work – Live in the moment
– Generally optimistic – Expect immediacy of technology
– Influence on policy & products – Earn money for immediate
consumption
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16. HISPANIC CULTURE AND
MARKET SEGMENT
• The Growing Hispanic Culture and Market Segment
– “Spanglish” is the third language of the US
– 35.3 million people, or 12.3% of the US population (2000), up 57.9% from 1990
– Projected to reach 59.8 million people by 2020 or 17.8% of the US population
– Compared to other immigrant cultures, the Spanish immigrant culture in the US
tends to keep their language and culture
– Hispanics are increasing their financial wealth in the US and their political “clout”
– Market research needs to segment their preferences for new products, brand
preferences and lifestyles and values
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17. HISPANIC CULTURE AND
MARKET SEGMENT (cont.)
• Implications of the Growing Hispanic Culture and Market Segment
– Hispanic consumers have distinct retail store and brand preferences
– Hispanic Generation X and Y are “vastly” different from Hispanic baby boomers
who migrated to the US
– The Hispanic market segment needs to be researched and analyzed vis-à-vis the
Caucasian, African American, Asian segments, and other ethnic segments in the
US
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18. CHANGING U.S. SHOPPING
PATTERNS
• The Rise of “Lifestyle Shopping Centers”
– In 2005, approximately 191 million shoppers shopped in malls each month in the
US, up from 181 million in 2004
– Women shoppers outnumber men shoppers 2:1 and men spend an average of
10 minutes less per mall visit
– In 2005, shopping center “inclined sales” totaled $2.1 trillion, up from $2.0 trillion
in 2004
– The trend: toward building outdoor shopping areas and adding lifestyle sections
to existing enclosed malls
– The lure of entertainment, shopping, and food in an outdoor center
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19. THE CHANGING US SHOPPING
PATTERNS (cont.)
• Changing US Retail Distribution Patterns
– Shoppers are now turning to shopping in “Town Centers” in the US
– “Town Centers” are open air malls vs. Regional Centers which are enclosed malls
– “Lifestyle Centers or Town Centers” are smaller [150,000 – 500,000 square feet] vs. [400,000-800,000
square feet] than a regional center mall
– Town Centers offer upscale and national and local specialty stores ; dining and entertainment [e.g.
Whole Foods, The GAP, Barnes and Noble, etc] vs. Regional Malls which offer fine line department
stores, mass merchandisers, mainline specialty stores and food courts [e.b. Macy’s, Sears, etc.]
– Men and women, who are not big shoppers will come to town centers for dining and entertainment
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20. THE CHANGING US SHOPPING
PATTERNS (cont.)
• The Future for Shopping in the US
– Typical malls, or “single use retail environments” will disappear as
“economic hubs” grow to include residential and office buildings
– Retail and entertainment centers are the future
– This evolution will have an impact on today’s retailers
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21. MARKET RESEARCH IMPLICATIONS
• Implications for US Market Research
– Consumers need to be surveyed regarding their retail shopping
patterns and preferences
– Increased intercepts in a variety of malls and “open” town
centers to gain insights into representative consuming habits
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22. SIS International Statistical
Tracking System
On-going Environmental Scan
On-going Monthly Tracker
Indices A B C D
Statistical & Segmentation Analysis
Net Result:
• Draw comparisons between segments
• Draw comparisons between regions
• Ability to analyze month to month comparisons
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23. Navigate the
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