The grey market has taken on a new lease of life in the last five years, just like the consumers who now make up the mature end of the cosmetics market. Now that this demographic is occupied in the main by the demanding baby boomers, manufacturers have had to rethink their marketing and NPD strategy to cater for these cool customers.
Once the territory of blue rinses and tweed skirts, the over 50s age group has undergone a wholesale makeover since the baby boomer generation entered the domain and the C&T industry has had to adapt to the changing needs of this generation.
Coined to describe those born in the aftermath of the Second World War, the term baby boomer widely denotes those born between 1946 and 1964 – though this period varies from country to country and historian to historian.
Baby boomers were the original guinea pigs for the modern consumer market as we know it today. As Steve Gillon puts it in Boomer Nation: The Largest and Richest Generation Ever and How it Changed America: “Almost from the time they were conceived, boomers were dissected, analysed and pitched to by modern marketers, who reinforced a sense of generational distinctiveness.” Baby boomers were also the first to be raised on television, were instrumental in the civil rights movements of the 1960s and 1970s and were the first to create a distinct identity for themselves, separate from their parents, through the media of popular culture: fashion, music, television, press and consumer goods.
According to Gillon, boomers now account for 39% of the US adult population. In Europe the weight of the baby boomer generation is also significant; in 2004 boomers held 80% of the UK’s wealth and purchased 50% of all skin care products sold, according to a BBC report, and the grey market is set to grow from 9.5m to 15m by 2040.
According to Eurostat, the EU’s statistics organ, the life expectancy of a 65 year old has also increased significantly since 1990. The average 65 year old man in any of the original 15 European Member States can now expect to live for another 16 years, versus 14 years in 1990. The average woman has even longer to enjoy her retirement and is now expected to live 20 years beyond the age of 65, versus 18 years in 1990.
As Giampaolo Lazieri, author of Eurostat’s focus Long-term Population Projections states: “The share of the population over the age of 65 will increase considerably in the EU. Indeed, the old age dependency ratio (persons aged 65 years and over compared with persons aged 15-64) is expected to approximately double. This means that whereas in 2004 there was one elderly inactive person for every four persons of working age, in 2050 there would be about one inactive person for every two of working age. Indeed, the number of persons aged 80 and over is expected to nearly triple, rising from 18m in 2004 to about 50m in 2051.”
Not only is Europe’s population ageing quickly, it is also ageing differently. Baby boomers have so far failed to display any of the typical characteristics of the stereotypical pensioner and if one word unites this group it is youthfulness. “One of the perceptions that has changed is at what age someone is considered old. These days, thanks to boomers reaching ages 42-60, old is something that occurs at age 75 and older, if at all,” explains Matt Thornhill of the Boomer Project.
“Today’s boomer consumer considers herself to be in the early to middle parts of middle age.” |
Matt Thornhill, The Boomer Project |
This youthfulness, however, refers strictly to youthfulness of spirit – as far as the baby boomer is concerned – and is not to suggest that they wish to turn back the clock. “Today’s boomer consumer considers herself to be in the early to middle parts of middle age. They are interested in slowing down the ageing process, minimising wrinkles and such, but they aren’t trying to stop it by freezing their face in time with radical plastic surgery,” points out Thornhill.
As time goes by
For the C&T industry this translates into the need for a dramatic reinvention of the anti-ageing market. Anti-ageing is the concern of the younger generation, while baby boomers are more fatalistic; the damage has already been done but they still want to look good, which means products for this age group need to promise to enhance, rather than prevent.
Whereas previously products aimed at the mature market were careful to avoid the age issue, masking their true target with euphemisms such as dry skin, dullness or firming, marketers are now more specific in their goals and have even started to segment their ranges to cater for ever more specific age groups. For although baby boomers do not consider themselves to be old, they aren’t afraid to own up to their age.
But key to the market’s success is a strategy that does not alienate the older generation. In the past beauty advertising has, broadly speaking, featured young, air-brushed and impossibly beautiful women, but marketing teams are now catching on to the value of a spoonful of reality. Baby boomers are now looking for role models that are prepared to admit their age but nevertheless look glamourous and at their best. Hence L’Oréal’s spokeswomen have become noticeably more candid in recent years – from Andie Macdowell’s “I’m 48” to Jane Fonda’s “I’m 68” – both of whom wear their age well yet look believable as representatives of the older generation.
This type of beauty advertising was pioneered by Unilever’s Dove brand, whose Campaign for Real Beauty is set to revolutionise the way the industry approaches marketing to the older generation. Dove’s latest skin care launch demonstrates perfectly how the mood has changed. Instead of anti-ageing claims the company has chosen a different tack, labelling its range Pro-Age. The range comprises hair care, skin care and deodorants and is targeted specifically at the over 45 age group. “The new range will communicate the message that beauty has no age limit,” says Silvia Fernandez, Dove brand executive. “No woman should be made to feel that getting older is bad. We want to encourage women to trade up to a product that has been specifically designed to nourish mature skin and hair. By launching the new range we seek to introduce an attitudinal change in the anti-ageing category, from negative and fear driven to affirmative and hope driven.”
This trend towards accepting the ageing process has translated itself directly into NPD. There has been a refinement of the term ageing to reveal several separate and specific complaints that far exceed the blanket anti wrinkle banner. Several brands have turned to dermatological research, that highlights the changing needs of the skin and hair as time marches on, to inspire new ranges aimed specifically at mature consumers.
“Older consumers care less what others buy or use, they want what works for them. The brand is also less important than the emotional and functional benefits” |
Matt Thornhill, The Boomer Project |
Dr John Gray, P&G’s Skin Care Research Centre, explains that the body ages in identifiable stages and, therefore, a woman’s C&T needs will change as she grows older. A woman of menopausal age, for example, will experience declining oestrogen levels leading to dehydration of the stratum corneum, which will make the skin appear older and thinner than it really is. Moisturisers need to be formulated to offer sufficient covering power to prevent moisture loss. Moisturising properties are also high on the agenda for bath and shower gels and cleansers should be formulated without recourse to harsh astringents.
Elderly skin, meanwhile, can be very dry and very thin, and this means that the skin is prone to injury and broken veins are common as small blood vessels become vulnerable. Perhaps we will begin to see healing ingredients, such as calendula, crop up in moisturisers targeted at this age group. Make-up will need to mask the redness caused by broken veins and offer innovative formulas that are adapted to covering deeply lined skin.
Post menopausal skin is also said to suffer from a loss of key minerals. Thus we have witnessed the arrival of L’Oréal Paris Age Re-Perfect Pro-Calcium, which claims to redress the calcium deficiency that is a by-product of old age. J&J’s RoC has also addressed the particular concerns of this generation with CompleteLift for sagging skin.
Uneven pigmentation is another major worry for more mature women and sales of lightening formulas have rocketed in the past two years. In Italy this category has been so successful that trade association Unipro has started to track its growth separately. Nivea, Collistar, Dior and Guerlain all cater for this market.
Role models
The 40-60 age group presents a number of challenges for marketers for a variety of reasons. First this generation has reinterpreted women’s role in society. That means that there is no easy way to predict the baby boomers’ current family role. “Just because you know their age, you can’t assume what life stage they are in. They could be a grandmother at 48, or not until they are 68. There are women over 50 with kids in elementary school or with grandkids in elementary school. Knowing age doesn’t tell you much anymore,” agrees Thornhill.
Secondly this age group are less influenced by their peers than the younger generation. Mature women will be loyal only to brands that speak to them individually and show results. “Older boomers are less brand loyal than younger consumers. That’s because young people want to buy brands that help them belong to a group or cohort. They want the brand for the social badge it provides. Older consumers care less what others buy or use, they want what works for them. The brand is also less important than the emotional and functional benefits,” says Thornhill.
Last the mature shopper frequents different retail channels. Women aged 35-54 and 55-70 are almost twice as likely to use the TV shopping channel than women aged 18-34, according to WSL Srategic Retail, but less likely to use the internet to make purchases.
As the western population gets older, manufacturers and marketers are getting wiser. Several companies now cater for the mature market, but launches are concentrated in the skin care arena. Perhaps 2008 will be the year for John Frieda Grey?
Grey matters: skin care brands designed for golden oldies
Aged 40+
– Nutrix Royal (Lancôme)
– Expérience de l’Âge (Decléor)
– DNAge (Nivea)
– Pro Age (Dove)
Aged 50+
– Premium ßx (Lancôme)
– Nuxuriance (Nuxe)
– Multi Intensif (Clarins)
Aged 60+
– Platinéum (Lancôme)
– Age Re-Perfect Pro-Calcium (L’Oréal Paris)
Aged 70+
– Magnifica (Collistar)