Europe is growing old. Many have discovered the economic implications … but there is room for growth in the “Powerful Elderly Citizens” (PEC) market. •19% of EU’s total population is over 65, and the upward trend continues. •Many of today’s PECs are in their prime. They live longer, make more money, and have more assets than other age groups. •While those over 65 pose some challenges to society, they are actively involved in the community, their families, and their businesses. Hence they represent an opportunity for savvy marketers and service providers. •Physical and mental challenges may come with age, but the can-do attitude remains! Today’s seniors know how to use technology, and they have more time and flexibility in their schedules than the younger generations. •PECs can be targeted based on their age or life stages, but they do not want to be addressed and treated as frail old people!

1. Europe in Full Bloom
Powerful Elderly Citizens (PECs)are Here to Stay!
October 2014

2. The number of PECs is growing
PECs have many different roles
But they have certain characteristics in common
Many products are a good fit for the PEC market
Marketing considerations
About the Europe in full Bloom researchers
Summary
Contents
Many PECs are healthy and active
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3. •Europe is growing old. Many have discovered the economic implications … but there is room for growth in the “Powerful Elderly Citizens” (PEC) market.
•19% of EU’s total population is over 65, and the upward trend continues.
•Many of today’s PECs are in their prime. They live longer, make more money, and have more assets than other age groups.
•While those over 65 pose some challenges to society, they are actively involved in the community, their families, and their businesses. Hence they represent an opportunity for savvy marketers and service providers.
•Physical and mental challenges may come with age, but the can-do attitude remains! Today’s seniors know how to use technology, and they have more time and flexibility in their schedules than the younger generations.
•PECs can be targeted based on their age or life stages, but they do not want to be addressed and treated as frail old people!
Summary
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4. The number of PECs is growing
The PECs outnumber the children
Source: Eurostat, ECB, OECD, Eurosystem Household Finance and Consumption Survey
% of population
EU 28
Live 14-28 years into retirement
Own their own homes
Households in age group 55-64 the primary residence:
% of households
With accumulated wealth
Age at start of retirement and average # of years in retirement
P
F
L
I
EL
B
SR
H
PL
D
A
SI
NL
DK
S
N
IRL
SF
SP
Under 15 years old
65 to 84 years old
Age at start of retirement
Average net worth, EUR thousands - EU 15
Year
%
Age
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5. Many PECs are healthy and active
More than 70% enjoy good or fair health
Source: Eurostat
% of 65+ population, EU 27
PECs travel a lot – and will travel even more
In most EU countries, more than 1/3 live alone
% of +65 old living alone
Self-perceived health
% of age group, EU 28
Increasingly use the Internet
Denmark
Greece
CAGR 2%
Mil. trips by people 65+ years old, EU27
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6. PECs have many different roles
Source: Press, interviews, analysis, Eric Klinenberg “Going Solo” 2012
•6 in 10 women aged 60-65 in Denmark take care of their grandchildren
•Elderly caregivers may at the same time be receivers of care
Caregivers
Volunteers
Employees
Receivers of Care and Services
Consumers
Citizens
Entrepreneurs
Residents
•1/3 over 60 in Finland live alone
•Need age-friendly homes (smaller, no stairs, less maintenance, secure)
•Most common health problems: eyesight, hearing, osteoarthritis, dementia
•Need for social services
•Healthcare system requires flexibility, but adaptability is limited
•The EU has 94M consumers over 65 (19% of total population)
•Want straightforward (non- complex) products of good quality
•Fewer purchases and high brand loyalty
Voters
•1/3 of 55-75 year-olds in the Netherlands do voluntary work
•Volunteer work brings elderly people into contact with other people, new technology, etc
•Receive pension payments
•Dependent on taxpayer-funded benefits
•Enjoy age-related discounts on fees for cultural and sports events, leisure, transportation
•Above average concern regarding health care, retirement savings systems, and inflation
•Below average concern about economic growth, unemployment, and climate change
•Slower and less impulsive
•Pragmatic approach, expert skills and qualifications, responsibility, commitment
•Less career-oriented than their younger colleagues
•Add experience to passion and energy
•Insights into customer needs
•Worry about succession
•Work to increase the value of their businesses
•Less dependency on future income
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7. But they have certain characteristics in common
Source: interviews, analysis
Characteristic
Implication
“I would like a better selection of clothes that are fashionable while disguising some of my age-related physical characteristics”
Woman, 68
“There are lots of travel offers for elderly couples - I wish there were offers for elderly singles”
Woman, 71
More time
Reaching 60 years of age often implies fewer work obligations and no childcare. The 60+ age group can invest time in new activities and look for the best deals at the lowest price
Lower expenses and generous pensions
Many over 60 years of age have financial freedom in that mortgages are paid off, pension funds are unlocked, and children have become independent
More flexibility
With fewer family-related duties, PEC’s may work during school-holidays and travel at off-peak times
Cautious/Suspicious
As traditional values fade, the 60+ are far more vulnerable and seek safety and comfort
Many living alone
Once children have moved out and if a partner has died or left the marriage, many individuals live alone in homes that are much larger than necessary
“Somewhat” disabled
Products and services offered to this age group should respond to potential shortcomings in physical or mental abilities
“I may not buy as many things as a 17-year-old does, but I spend more on each product”
Woman, 70
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8. Many products are a good fit for the PEC market: Examples
Senior sports equipment
Activity reminders software
Caregiver managed debit cards
Reverse mortgages
Touch screen easy-to-use computers
Mobility scooters
Senior travel agencies
Games for brains
Products:
Technology
Apparel
Mobility
Services:
Financial
Travel
Daily assistance
Design/architecture
Kitchens for all ages
Design products to ease daily life
Web shop
Architecture for all
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9. Marketing Considerations
Source: Today’s senior magazine, interviews, press clippings
Consider
Recommendation
“They are very diverse and they do not want to be considered ”seniors”
Danish travel agent
Know your customers
Decide which segment to address - do not address all 65+ as one group
Stick to the facts
Be straightforward and clear in your communication
Build relationships
Focus on relationships and build loyalty. The members of this group have time to invest in selecting the product and price they want
Use life-stage marketing
Use life-changing events (first grandchild, reaching retirement, etc.) to build rapport
Advertise with eyesight in mind
Customers may have reduced eye-sight, so choose advertising graphics they can see
“We are selling dreams, and nobody dreams of looking like a 70-year old”
Lifestyle expert
Don’t call them old
Avoid words like “senior” and “old”
Demonstrate your credibility
Look after your customers with fitting and regular communication and excellent service
“They have the time to search the internet for the best price. They would rather spend their money traveling economy twice than first class once”
Travel agent
Advertise with age in mind
In advertising, use models appropriate to their age and to which your customers can relate
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10. About the Europe in Full Bloom researchers
Seventh Sense
ACT
ACT is a research company helping business executives make their decisions based on the best available knowledge about markets, competitors, and project specific matters.
mail@actknow.dk
+45 2912 7772
Springforbivej 4
2930 Klampenborg
Denmark
Seventh Sense Oy Ltd. is a company providing services and solutions to meet the market and competitor intelligence needs of its customers.
leena@seventhsense.fi tel. +358 50 526 4248
P.O. Box 10
FIN-00941 Helsinki
Finland
Insensis
Insensis is a one-stop research agency for European business and market intelligence.
irene@insensis.be
+32 11 76 74 71
Nicolaas Theelenstraat 31
3500 Hasselt Belgium
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