Almost 31% of the Spanish population is over 64; According to the latest data from the National Institute of Statistics (INE), which refers to 2022, they are more than five points compared to two decades ago, when the rate was just 25%. Year after year, it’s hard for big companies to bet on the so-called “silver” economy.
“It will be a set of companies or economic activities targeting the 60 to 65-year-old and older consumer segment,” says Ana Isabel Jimenez Zarco, professor and researcher of economics and business studies at the Open University (UOC). of the i2TIC Group.
“This is an interesting group for brands because it allows them to create market niches with high purchase and consumption potential.” Neus Soler, Associate Professor in Economics and Business Studies at the UOC and researcher in the i2TIC group.
They have time and money
In addition to being in the sixties, this group has a profile More purchasing power than other people. Their average net income will be 14,762 euros in 2022, according to data from INE, while the second-highest income group aged 45 to 64 is at 14,225 euros per year, and the Spanish average drops to 13,008 euros. Also, according to the study “Seniors, a group unfairly forgotten by brands”, a digital medium aimed at seniors produced by 65ymas.com and ComScore, a profile dedicated to the environment and business sectors such as automotive. , beauty and fashion, sports, telecommunications, information and travel are of interest.
“They are the new travelers because, in addition to having more money, they have more free time and better health than previous generations at the same age.”, both UOC professors agree. INE data confirms this; Current life expectancy in Spain is 80 years among men and 86 years among women. And, Jiménez Sarco clarifies, their consumption behavior is not very different from that of people aged 30 or 40 or younger, and it is part of the population with an important and universal weight, because the consumption pattern does not differ much. If they live in America, Europe or Japan.
But, despite this profile, why is it difficult for big companies to bet on them? “Companies have not focused on this group because the retirees of the generation before the boomers (those born between 1945 and 1964) were not in a good financial position. However, this situation is beginning to take a turn, as the retiring boomers, who are earning more than their parents, have higher pensions. And so, they’re starting to be preferred by these companies,” notes Soler. In addition to more retirement, many of them have created retirement plans and invested in investment or real estate funds, which makes their economic situation more comfortable.
“Instead of forgetting about this profile, I think we should propose targeting big brands as long as they are profitable.” Soler clarifies.
Jiménez-Zarco also says that many brands don’t choose them because, for reasons of cost-cutting, they focus only on the digital market. Some of these consumers prefer to shop in person, even if they are in tune with new technologies. “Their consumer behavior values human treatment and direct contact, and often what happens is that many brands do not have this channel to address them,” explains the UOC professor. Now, if they look at the market, they will definitely make this change, he says. Jiménez Zarco gives the example of banking institutions: “Those who choose only the online method will not reach this group, but those who maintain branches (even if they close many) will find it very easy.”
truly, There are already industries that are starting to see the potential of this niche. Above all, they have a special interest in food and pharmacy (vitamins, antioxidants, calcium-rich products), financial institutions, tourism and leisure, sports or technology, home automation products. According to two experts, it is only a matter of time before this number of industries expands further.