Wake up call: Millennials are not the only consumer

It’s a message arriving from sources as varied as Stylus, whose recent
Decoded Futures summit in New York questioned our obsession with that most
cash-poor demographic, to the United Nations which released a report this
year stating that the population of all countries is expected to rise over
the coming two decades. But still it’s a message that seems to be going
unheard along the corridors of retail power.

Experts warn us to expand our view to include the generations that
bookend the millennials. According to Marshall Cohen, chief analyst at NPD
Group, “The fastest growing segment, with the highest discretionary
spending power, is the boomer demographic. Yet marketeers still put all
their eggs in one millennial basket.”And Visa Business and Economic
Insights 2018 reports that over 55s account for nearly half of all consumer
spending and over 70 percent of wealth in the US. Gen X is also not ready
to hang up its fashion credibility now that it has passed 40, yet it is
also underrepresented in media and marketing. According to Bankrate, Gen X
spends more on vices than any other generation––shouldn’t they be
well-dressed for their misbehaving?

Over-50s hungry for fashion

What is behind our shortsightedness? Millennials are not only cash-poor,
but they are over-served. Whereas over-55s do not see themselves
represented in the fashion industry to such an extent that they are forced
to spend their money elsewhere and account for nearly 60 percent of all
leisure travel spend. Conspicuously still absent from mainstream fashion
and beauty advertising, this demographic is however fashion-hungry as
evidenced by its success on Instagram. AdvancedStyle, by Ari Seth Cohen,
with 248,000 followers has spawned numerous style books celebrating
colorful, confident peacocks of a certain age. Not content with
stereotypical depictions of older women, Accidental Icon, Lyn Slater, has
577,000 Instagram followers and describes herself on her blog as “the woman
who does not consume garments, she lives her life in them and dresses
honestly, has original style without being eccentric…has the strength not
to be part of a group even while she is delightedly part of a group(s).”
Beloved 97-year-old New Yorker, Iris Apfel has 1.1 million followers,
starred in a documentary about her life and a Barbie doll made in her
likeness. More than just style influencers, these individuals are cultural
impactors, so why are brands ignoring their power?

Engage with Gen Z now

Marketers are also failing to future-proof their businesses by engaging
with another cash-rich consumer on the opposite end of the life experience
spectrum. According to Barkley 2018, the US Gen Z’s self-spend is 143
billion dollars per annum compared to the millennial annual self-spend of
65 billion dollars. Gen Z has grown up in a time of economic instability
amidst fast-paced innovations in digital technology which as a result has
made them, according to Forbes, “resolute, smart, pragmatic and
hard-working” and puts them “on track to become the largest generation of
consumers by the year 2020.” Tech natives, they are extremely connected,
pay attention to ratings and reviews, and have major influence on the
current household spend. They are also reversing the online shopping trend
exhibiting a preference for in-store shopping experience. According to
Forbes, “Gen Z leans on brands more when it comes to helping them craft
their identities” so while they currently consume more information than
products, they are informed. This is precisely the right time for brands to
begin to build loyalty with them.

Photos by Pixabay, FashionUnited.