Mary Furlong Silver Economy 2006

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Presentation during Masterclass on entrepreneurial opportunities on emerging babyboomer market.

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Mary Furlong Silver Economy 2006

  1. 2. <ul><li>Global Economy and Global Demographic Shift </li></ul><ul><li>Longevity ~ Financing Longer, Healthier Lives </li></ul><ul><li>Technology ~ Innovation Enhancing the Quality of Life </li></ul><ul><li>Lifestage Transitions ~ Creating Opportunities to Serve </li></ul><ul><li>Spirituality ~ Returning to Core Values </li></ul>China will have about 630 million people age 50 and above in 2050 - UN population projection, 1998 Top Five Boomer Trends
  2. 3. Today’s Conversation: Creating the Most Value and Finding Opportunities in Four Areas <ul><li>Health and Healthy Living </li></ul><ul><li>Entrepreneurship and Work </li></ul><ul><li>Entertainment </li></ul><ul><li>Spirituality and Giving Back </li></ul>
  3. 4. Healthy Living ~ Market Size by Category North Castle Partners LLC
  4. 5. Boomers and Healthy Living <ul><li>83% use vitamins </li></ul><ul><li>76% some form of exercise </li></ul><ul><li>Dramatic increase in health club membership – 55+ are fastest-growing segment of health club members </li></ul><ul><li>WebMD growth </li></ul><ul><li>Growth of yoga; yoga journal; cruises </li></ul><ul><ul><li>74% of health clubs offered yoga in 1999, up from 38% in 1995 </li></ul></ul><ul><li>28 billion mail order prescriptions 2001 </li></ul><ul><li>Intel, VC Firms </li></ul><ul><li>Job related Health Care </li></ul>
  5. 6. <ul><li>The 50+ demographic accounts for 45% of all healthcare spending </li></ul><ul><li>Health food retail sales have grown 23% per year over the last 10 years </li></ul><ul><li>The weight loss industry in the U.S. is estimated to be a $35 billion business </li></ul><ul><li>Use of spas has grown by a factor of 5.6 times over the last 10 years </li></ul><ul><li>63% percent of physicians are currently giving patients nutritional advice, up from 49% in 1996 </li></ul><ul><li>The most common reason for using supplements is for general health and wellness, rather than as treatment for an existing condition </li></ul>Boomers and Healthy Living The anti-aging product market is expected to grow to $29 billion by 2007
  6. 7. Example ~ Innovative Technology in Healthcare Wearable body monitoring products and services
  7. 8. Smart Entrepreneurs are Tapping the Boomer Market <ul><li>U.S. households headed by someone 40+ hold 91% of America’s net worth </li></ul><ul><li>The burgeoning U.S. boomer market is now over 78.2 million (born 1946-1964) - and represents more than $2 trillion in annual spending </li></ul><ul><li>People 50+ in the U.S. comprise 66% of all stockholders </li></ul><ul><li>They account for over 50% of all discretionary spending </li></ul>
  8. 9. Third Annual Silicon Valley Boomer Venture Summit Boomer Business Plan Competition $10,000 Grand Prize Winner Selected venture capital firms that support entrepreneurs serving the boomer market: Sequoia Phillips Draper Fisher Jurvetson North Castle Partners John White, CEO, iRhythm, Stanford, CA - an easy-to-use cardiac rhythm monitoring device and Amy Pruitt, Santa Clara University
  9. 10. Entrepreneurial Corporations Repositioned to serve the boomer marketplace: Philips – Technology and Healthcare Intel – Technology and Healthcare Intuit – Financial Services and Healthcare FedEx Kinko’s Qualcomm UPS Geek Squad/Best Buy Comcast Herman Miller AARP Discounts Costco Chico’s Clothier Kauffman Foundation – The Entrepreneurial Imperative http://www.kauffman.org/
  10. 11. Innovative Entrepreneurs Positioned to serve the boomer marketplace:
  11. 12. Entertainment, Passion, Play, Learning Drivers: Escapism, Connection, Fulfillment <ul><li>Mastery </li></ul><ul><li>Gardening </li></ul><ul><li>Golf </li></ul><ul><li>Music </li></ul><ul><li>Digital photography </li></ul><ul><li>Catered peak experiences </li></ul><ul><li>Connections </li></ul><ul><li>Pets - 100 million </li></ul><ul><li>Hobbies – a $25.7 billion industry in 2001 </li></ul><ul><li>Scrapbooking - $2.5 billion in sales, 2003 </li></ul>Of interest ~ Most Harley-Davidson motorcycles are being sold to people over 40 and 50. Best Buy has opened a new store, EQ Life , targeting mature woman. “Health, wellness and technology in harmony” http://eq-life.com/
  12. 13. U.S. Casual Online Gaming – Mass Market Entertainment <ul><li>70+ million people play online casual games at least monthly </li></ul><ul><ul><li>Approximately 50% of all US online population </li></ul></ul><ul><li>All ages play online gamers </li></ul><ul><ul><li>40% are age 40 or older </li></ul></ul><ul><li>59% of Casual Gamers are Female </li></ul><ul><li>Tend to be middle income </li></ul>© 2006 Frank N. Magid Associates, Inc. Age 13-17, 12% (6-11 mm) Age 18-39, 48% (32-38 mm) Age 50-64, 20% (11-17 mm) Age 40-49, 20% (11-17 mm)
  13. 14. Video Games: It’s an Growing Business. Boomers are Playing In 2006, 25% of gamers are over 50 ESA 2006 Report (Entertainment Software Association) and Ages Entertainment Source: NPD TRSTS. Includes HW, SW, PE for consoles & portables; excludes PC SW as illustrated by SOA Market Research. The total video game market in 2006 has begun to pull away from 2005.
  14. 15. Spirituality and Giving Back <ul><li>75% of men and nearly 90% of women report that spiritual well-being is important to their quality of life </li></ul><ul><li>56% of Americans 45+ attend church at least every 2 weeks </li></ul><ul><li>40% report that helping others is the most satisfying spiritual/religious experience </li></ul><ul><li>42% say they are “very spiritual” – 34% say they are “very religious” </li></ul><ul><li>52% surveyed boomers have a “quiet time” during the week </li></ul>
  15. 16. Reaching Boomers: They are Online in Record Numbers Source: Safa Rashtchy, Piper Jaffray, The Future of the Internet and Boomers, June 20, 2006, Silicon Valley Boomer Venture Summit Boomers: Represent between 38% - 40% of Internet users Broad Internet users with heavy use of productivity and communication tools and largest eCommerce demographic
  16. 17. What’s Next? <ul><li>The wireless and empowered boomer offers unprecedented business opportunity on a global scale </li></ul><ul><li>New communities and connections will catalyze social change </li></ul><ul><li>The boomer revolution will be the deepest and most significant in our history </li></ul><ul><ul><li>It will influence the cars we drive </li></ul></ul><ul><ul><li>The way we live </li></ul></ul><ul><ul><li>The countries that we travel to </li></ul></ul><ul><ul><li>The causes that we give to </li></ul></ul><ul><ul><li>The children that we raise </li></ul></ul><ul><ul><li>The grandchildren that we celebrate </li></ul></ul><ul><ul><li>The legacy that we leave </li></ul></ul>
  17. 18. About Us Silicon Valley Boomer Venture Summit & $10,000 Boomer Business Plan Competition June 19, 2007, Santa Clara University, Santa Clara, CA www.boomerventuresummit.com Upcoming Book…. Turning Silver into Gold: How to Profit in the New Boomer Marketplace , Mary Furlong, Ed.D, Prentice-Hall, March 2007 What’s Next Boomer Business Summit March 5-6, 2007, Hyatt Regency Chicago www.boomersummit.com Mary S. Furlong, Ed.D CEO Mary Furlong & Associates 3527 Mt. Diablo Blvd. #128 Lafayette, CA 94549 [email_address] 415-902-8671 http://www.maryfurlong.com

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