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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