The over-50’s are far less likely to be swayed by discounting than their younger counterparts according to new data from YouGov and KPMG has revealed.
Significant disposable income is seen as the driving force behind senior shopping habits, with older customers no longer having children living at home or a mortgage to pay for. In fact, the new data shows a total 60% of those over 70 feel positive about their finances, compared to only a third of those under 50.
“All these brands have been shooting themselves in the foot saying: ‘We’ve got to promote, promote, promote’, despite value remaining flat. Could this be the impetus companies need to shift towards premiumisation and differentiation?,” said KPMG head of consumer markets Liz Claydon.
YouGov consulting director Louise Vacher said: “How consumer focused businesses react to the opportunity the research highlights will help shape their success or otherwise in the years ahead.”
Categories such as alcohol were identified as already reaping the benefits of the wealthier older shopper, with one in five over 70s now spending more on alcohol to drink at home. All brands and retailers would profit from a change in focus, YouGov and KMPG claim, advising that it would be better to promote new products with small premium-priced samples.
YouGov also encouraged firms to reconsider their packaging for the increasing numbers of older shoppers, praising Nestlé’s experiment with robotic hand technology, which mimics arthritis in order to design easier to open packaging.