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By 2030 the Baby Boomer generation (born
1946-1964) will all be over the age of 65 and
will total 72 million people, representing 20%
of the American population. By 2040, the
population of the U.S. over age 85 will
quadruple in size from present day to an
astonishing 19 million people. (Population)
The Baby Boomer generation is not the same
seniors of generations past. They are young at
heart, feisty, and are not going to fade quietly statistics reveal that over the past five years
into their golden years. With control over 70% cosmetic surgery procedures for patients over
of the $7 trillion U.S. household net worth, age 65 has increased by 352%. (ABC News, 2012)
seniors account for 40% of all consumer
spending. In addition, while most consumers Boomers account for 30% of all smart phone
are saving for retirement, kids college tuition, use and continue to embrace new
and paying mortgages, the Boomers are technologies including iPads, Kindles, and GPS
spending their hard-earned pensions, social navigation systems. According to a recent
security checks, IRAs, and 401Ks. Nielsen Report, seniors are "adopting
smartphones at a faster rate than any other
Now Its My Turn! age group." (Toor, 2011) Given these facts, it
is essential for businesses to discard
The Baby Boomer demographic has revealed anecdotal preconceptions about the
itself to be as self-conscious as a teenager, consumers over the age of 55.
more vain than the average celebrity, and
willing to spend big money to address both
traits. The over 65 crowd are enlisting for
nips and tucks at record levels. In fact,
"I think people are saying that people 80 years old
should be picking out their cemetery lot, should be
thinking about how many pills they're taking. I don't
want to think about cemetery lots. I want to think
about living."
Phyllis Porter, 80 year old grandmother after plastic surgery
for a facelift and breast implants.
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Vintage Modern Years of watching the Discovery
Channel, Travel Channel, and
During a recent investor call Peter Cooking Channel have sparked a
Nordstrom said that the retailer's desire in these would be travelers
older demographic of women’s to go on safari, scuba dive in Fiji,
wear shoppers “if you listen to to immerse themselves in
them closely [our over 55 Renaissance art and Architecture,
customers] clearly want to view and learn to cook in Paris like Julia
themselves as modern [and] we Child.
have a responsibility to deliver...
[However] the fit dynamic [of the apparel] will Although a handful of niche tour companies
need to change." In other words, while a have begun to address this enormous
grandmother prefers to wear clothing that opportunity, most businesses within the
reflects how youthful she feels, travel industry have, to date,
she still has the fashion wisdom missed the boat. Case in point, 90%
and mature figure that come with of U.S. branded airlines are
of age. Therefore, although she renowned for their terrible
will be shopping for skinny jeans customer service and complete
rather than 'mom jeans', she will lack of charm.
not buy the butt-crack-revealing,
ultra-low rise jeans that her Rather than capitalizing on the
granddaughter prefers. financial lifeline senior fliers could
provide, these airlines seem to go
Planes, trains, and out of their way to discourage
automobiles new business.
Baby Boomers in the U.S. and
"wheelchair assistance" The airlines' offer of
seniors around the world have been waiting
“assistance” to older passengers is limited to
until their golden years to see the world.
an embarrassing wheel chair ride. The
Santa Barbara based Inogen™ makes small and
portable products for oxygen therapy users.
Inogen ™ and hundreds of similar consumer
biotech companies are capitalizing on scientific,
manufacturing, and design innovations that will
allow aging populations to live longer lives, with
more freedom, at home, and even on the go.
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wheelchair itself is an uncomfortable, uglier
than hospital grade apparatus that is one-step
away from announcing to the world, “I’ve
arrived in the United States for my new
Kidney!” More likely, the case is that the
passenger in the wheelchair is actually a
rather wealthy Italian widow who has come
to shower her children and grandchildren
with gifts. She is perfectly capable of walking;
she just does not feel like doing it for 500
S o cia l Me dia & Se ni or s
meters down an empty and poorly lit
subterranean hallway at LAX after 15 hours of
flying and two layovers. Seniors are the fastest growing
segment of Facebook users, and are
This consumer demographic is an enormous expected to reach 55 million in the US
opportunity for cash strapped airlines. Seniors alone by 2020. (Madden, 2010)
would surely pay a premium for a concierge
service that provides hassle-free check in, 20% of Baby Boomers between 50-64
curbside baggage assistance, valet parking, years of age say they use use social
and chauffeured networking sites on a typical day.
electric cart
transportation to 13% of seniors over age 65 log onto
and from the social networking sites on a typical
gate. Like any day, compared with just 4% who did
good service so in 2009.
design, the
success or failure 10% of internet users over the age of
of a senior 50 say they use Twitter to share
concierge updates.
program resides in the details. Seniors will
enthusiastically sign up for an exclusive, Public libraries, adult education
"members only", five- star, white glove programs, and churches offer free
service that makes them look and feel like social media classes specifically
royalty. (Nielsen Wire, 2011) (Nielsen Wire, 2011) designed for seniors.
53% of Americans between age 50
and 64 and 21% in the 65+ group use
wireless internet connections (Pew
Internet & American Life Project, 2011)
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Action Plan: How to Become Geezer scooter
a Remarkable Airline gangs
1. Promote the Senior The Quadrophenia
Concierge Program to generation is switching from
the neglected senior four stroke Vespas to plug-in
demographic. mobility scooters. Just as in
their youth, these three
2. Empower your new senior advocates to wheeling seniors crave
spread recommendations via Social mobility and independence. They watched
Media. their parents lose autonomy when they could
no longer drive, and they are desperate to
3. Capitalize on the deep loyalty and avoid that fate. Baby Boomers are holding
appreciation earned from the offspring of onto their car keys, buying handicap scooters,
the traveling seniors. These younger and and finding ways to remain mobile and
more lucrative business independent. Nevertheless,
travelers would likely they face roadblocks at every
follow their parents and turn as municipalities enact
grandparents to an laws limiting, and in some
airline that treats them cases prohibiting the use of
well, and would handicapped scooters. (Rules
for users of powered wheelchairs
recommend the airline
and mobility scooters (36-46), 2012)
to social media friends (Steyn & Chan, 2008) (Report:
and followers. Mobility Scooters, 2006)
4. Leverage social media to soft launch a Dream car generation
new 'Friends and Family' program that
promotes and rewards consumers based The Baby Boomer generation grew up during
upon their aggregate loyalty in addition to the era of the futuristic Dream Cars and
their individual frequent flier mileage powerful Muscle Cars and they do not want
accumulation. to drive dull, powerless sedans into the
sunset. They want the power and style of a
5. Wow your newly loyal customers young Shelby, the luxury of a Bentley, and the ease
and old. Over deliver. Always delight. Be of access of a walk in bathtub.
transparent. Be responsive. Be respectful.
Continue to listen and learn from them
Simple improvements to current car designs
through social media.
would be a great first start towards
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5. #2 old age is no place
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addressing this lucrative them accessible while
consumer demographic. improving the original
design. Current models
Entry and exit offered include a
heights need to be redesigned Honda
at a comfortable Element, Chrysler PT
sedan-like level, Cruiser, Toyota Sienna,
even on sporty or Handicap accessible Scion XB by FMI and Scion XB. Signature
SUV models. This design elements include
may involve a fold truly awesome gull-wing
out step design or similar innovation. doors and floor tracks that allow users to sit
The seat height needs to be in their wheelchair and drive.
ergonomically correct for aging Boomers
with bad knees and hip replacements. Aging in Place and
universal design
Easy and functional access should be
added behind the driver's seat to Aging-in-Place is a term that has been
accommodate wheel chairs and walkers. bandied about ever since statisticians realized
that in the year 2010 more Americans would
Trunk depths need to be corrected so that be over the age of 50 than under. However,
seniors can easy lower and lift out little has been done to address the
groceries. opportunity and need in a proactive manner.
At present, the substantial senior and Even during the housing boom when billions
handicap accessible auto market is served of dollars was poured into the residential
exclusively by aftermarket manufacturers like housing market at fiscally unsustainable levels,
Freedom Motors Inc in Battle Creek, Michigan. the percentage of homes, which were
designed for Aging in Place was negligible.
According to their website, FMI is on a Additionally, while home improvement and
"mission of constant innovation and DIY retailers have returned to profitability,
improvement." FMI Company President and they offer few products in the Aging in Place
Owner, Sieto van Dillen says, "we enjoy and universal design categories. The majority
providing our customers with cutting edge of home decor, fixture, and hardware
wheelchair accessible vehicles that they can products that comply with and have been
be proud of”. (Freedom Motorworks, Inc., engineered for universal access are
2012). While their competitors retrofit vans commercial grade for hospitals and
and trucks to accommodate handicapped retirement homes. As a result, the prices are
drivers, FMI takes popular cars and makes hospitality market high, the designs are stale
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and institutional, the materials industrial, and
the decorating appeal is zero. Even if they begin to need day-to-day
assistance or ongoing health
Aging in Place care during retirement, most
Statistics (82%) would prefer to stay in
their homes
The National Association of
Home Builders predicts that Aging-in Place is
the Aging in Place already a feature of new
remodeling market accounts healthcare legislation as a way
for approximately 10% of the to improve service, maximize
$214 billion home the value of dollars spent, and
improvement industry, and cut costs to a broken Medicare
continues to grow annually and Medicaid system.
with the aging median population. (AARP, Moreover, amazingly it has bi-partisan
2012) support. (AARP Wyoming, 2012) (Fagan &
Cabrera)
Partially driven by the trend towards
shorter hospital stays, 10 of the 20 fastest Communities in place
growing occupations are health-care
related. Opportunities abound for communities willing
to focus their resources and attention on the
Currently employing 1.3 million people, Aging in Place market. Cash strapped
home health care related job openings are municipalities willing to pioneer a new model
expected to grow at a rate of 50% through
2020.
Home health care related revenue is
forecast to exceed $72 billion in 2011.
(Wang & Ohngren, 2010)
91% of seniors prefer to Age In Place
rather than relocate into a retirement Walk-In Bathtubs are a great example of a
community or assisted living facility well-designed product for independent living.
(AARP, 2012); 63% plan to stay in their They have been updated nicely for easy and
current homes, 12% plan to buy another affordable residential retrofit. The styles
home, and 26% are unsure. (55+ Housing: offered, though limited suit any home decor.
Image source (Walk-In Bathtubs, 2012)
Builders, Buyers, and Beyond, 2009)
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7. #2 old age is no place
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for urban planning focused on Wireless Access Zones (WAZ) provide
cradle-to-grave living can seek universal broadband service to entire
public and private funding for communities. Through economies of
Aging in Place infrastructure, scale, WAZ facilitates construction of
transportation, and education. the costly infrastructure necessary for
high-speed internet access. A
mHealth. The growing trend community WAZ would reduce
towards mHeath (mobile individual and business utility costs
smart phone and tablet while improving connectivity,
access) and eHealth (electronic health records) productivity, and industry modernization.
will require seniors to have high-speed
internet access in order to stay connected to Going Green for the Gray. Another great
remote health monitoring devices. One way community infrastructure project would be
to address this growing need is for the installation of renewable energy sources.
communities to offer Municipal Wireless In addition to improving the air quality of the
Networks. region, it would help fixed income seniors
offset or eliminate costly heating and cooling
Flipping for Good. Consider a community that bills.
is suffering from a housing overhang, high
unemployment and diminishing industry. A Aging in style
concerted effort to update homes on the
market to be stylish, affordable, and Aging in The home furnishings industry has been blind
Place compatible would help to differentiate to the lucrative opportunity that the Aging in
the homes from the glut of real estate on the Place market offers. While the housing crash
market. It would also benefit the community triggered sales of furniture to drop off a cliff,
by raising property values, attracting new the over 50 demographic increased their
industry, and creating sorely demand for Aging in Place furnishings. Baby
need jobs. Boomers are increasingly
interested in rejuvenating their
Learning for Life. Local colleges homes to meet their empty-nest
could offer home health care decorating preferences and
and geriatric specialties as lifestyle needs. For Seniors,
continuing education and Aging in Place also means Aging
degree courses to provide a in Style.
ladder up for the unemployed
and underemployed. “We boomers don’t plan on
quitting anytime soon,” said
ASID member Pat Rowen in an
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8. #2 old age is no place
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article entitled, The Boomer Boom is Coming. fiscal wisdom, level of taste, and creaky
“We want it all: comfort, beauty, function, bones of their biological age.
safety and style.” (Mallers, 2009)
Global Geriatrics. By 2050 the world
While a handful of companies have addressed population over age 55 years will have
the functional needs of the Aging in Place doubled from its present day total share of
market, the styles are rather depressing, and 15% to 28%. (Tomorrow Today, 2012)
scream, "I'm old and feeble!" Contrary the
rules of Decorating 101, these products do Middle Age in the Middle Kingdom.
not reflect the fashion sense and lifestyle of By 2050 38% of the Chinese population will
the consumer. The same grandmother who is be over the age of 55. (Tomorrow Today, 2012)
shopping for skinny jeans wants a sofa that With the One Child Rule, China is facing
looks great while at the same time is at a challenges from an aging population that
comfortable height for sitting and standing. defy their cultural norms. Savvy companies
will look towards China and other BRIC
Conclusions countries for lucrative market share.
Breaking the Mold. Listen, watch and study Hot or Not. The same rules that apply to
today's senior demographic. Consider the the cars the Baby Boomers want to drive
opportunities available to them and and be seen in applies to their furniture:
obstacles in their way. How can your They want to look hot, but they won't when
company capitalize on its strengths to it takes them 10 minutes to get in and out
address those opportunities for innovation of their car or sofa.
and market gratification?
Modern not Morose. Products and services
need to be designed for a customer that
feels like a 30 year old, but has the maturity,
" There is no doubt that Baby Boomers are at the early
stages of what promises to be a long-term and lucrative
love affair with life. We aren’t simply writing a new
chapter of our lives, we’re writing a brand new book."
(Baby-boomer Magazine, 2011)
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Dream Cars for Dreamers. This
generation remembers when air
travel required passengers to dress
Maturity is a bitter
in their Sunday best. They grew up
disappointment for which
during the Dream Car era and
coveted muscle cars in Road and no remedy exists, unless
Track magazine. laughter can be said to
remedy everything.
Freedom. With newfound freedom
and money to burn, seniors want to Kurt Vonnegut
be able to travel wherever,
whenever and however they want.
Now Its My Turn. After years of taking care
of others, seniors want to feel like they are
the ones being pampered. They feel that
they are owed some respect, which is quite
different from pity.
Follow the Money. As state and federal
agencies, insurance companies, and
retirement accounts converge towards the
lucrative 'Golden Years' consumer
demographic, astute businesses will kick the
innovation train into high gear to catch up
with an already moving freight train of
younger than you think seniors who are
ready to consume.
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resources
"Booming Business" (Trendwatching, 2007)
Entrepreneur Magazine, December 2010 & 2011 “Top 10 Francise Trends for 2011”, Senior Services
Publix (UK) - In-store health clinic “The Little Clinic” Operates like a preventative and urgent care facility.
United States Senate Special Committee on Aging
CareGiverList.com
Adminstration on Aging
National Institute On Aging
Leading Age, "Why Aging in Place Faces Serious Challenges" (Bloom, 2011)
North Carolina Senior Health Program
Aging Online blog : Tech and Social Media for Elders,
Boomers, and Seniors
PSFK "Hour-by-Hour Breakdown of Media Consumption by
Generation" (Ryan, 2011)
"Aging In America in the 21st Century: Demographic
Forecasts from the on an Aging Society (MacArthur Research
Network, 2009)
mHealth is Cool but is Anyone Using It? (Alwan, 2011)
The Silver Generation, trend report from Trend Connection
"Home and Community Preferances of the 45+ Population"
AARP, by Theresa A. Keenan, Ph. D November 2010
"Maintainable Independence and Quality of Life: Livable
Community Surveys in Allen County and Indianapolis, YouTube Playlist
Indiana." AARP, by Joanne Binette November 2011
National Association of Home Builders, Certification program
for Aging in Place (CAPS)
"Baby Boomers Want Convienience and Energy Efficiency in New Homes According to New Survey"
National Association of Home Builders, September 15, 2009
"Aging in Place 2.0: Rethinking Solutions to Home Health Care Challenge", Met Life, Mature Market
Institute.
"Housing for the 55+ Market: Trends and Insights on Boomers and Beyond" Met Life April 2009
Met Life Foundation Education Program
Philips Home Health Care
"GE Threatens Philips With Push into Home Health Care", Bloomberg, Marcel van de Hoef and Rachel
Layne - April 3, 2009
"Communities in Place", by Jane Hickie, Stanford Center on Longevity
" Silvers Summit/ Digital Health 2012", "Best Panel at Silvers Summit" and " Silvers Summit- The Chats"
report from CES by Louis Tenenbaum
Diabetes: GE Challenges "Four Titans" , By Liz Beaulieu, HME News, January 27, 2012
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Excerpt: GE estimates that the over-the-counter blood glucose monitoring is a $7 billion market--and
growing. There are 2 million new diabetes cases diagnosed in adults 20 and older each year, Hayne says,
citing data from the American Diabetes Association."
Accessibility Planning Guide for Bathrooms: Regulations for Universal Design, by Hafelle
"Why Build Using Universal Design?
"Residential Remodeling and Universal Design" from U.S. Department of Housing and Urban Planning
Broadband Infrastructure Investment in Stimulus Packages: Relevance for Developing Countries, by
Christine Zhen-Wei Quian, World Bank
"The Critical Role Broadband Plays in Today's Economy", by Deputy Assistant Secretary for
Communications and Information Anna M. Gomez, 27 January 2012 National Telecommunications and
Information Administration
Broadband Opportunities Program (BTOP): Expanding Broadband access and adoption in communities
across America. : The American Recovery and Reinvestment Act provided the Department of Commerce’s
National Telecommunications and Information Administration (NTIA) and the U.S. Department of
Agriculture’s Rural Utilities Service (RUS) with $7.2 billion to expand access to broadband services in the
United States.
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