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