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Sunday, 17 August 2014

Baby Boomers plan luxury purchases

Warc, 7 July 2014
NEW YORK: Over half (52%) of "upscale" US Baby Boomers plan to buy one or more luxury product or service over the next 12 months, a new report has shown.

According to the Shullman Research Center, this demographic is defined as people with a personal net worth of over $1m or who live in households with at least $250k annual income, Marketing Charts reported.

Representing roughly 9m of the total US population, upscale Baby Boomers account for about 12% of all 75m Baby Boomers in the country, the study said.

It revealed 30% of them intend to take a luxury holiday over the coming year, compared to 8% of "mass market" Baby Boomers and 12% of all US adults.

Other significant differences of purchase intention between upscale Baby Boomers and the rest of the adult population include buying premium beers (15% versus 9% of all adults) and buying premium cosmetics (18% versus 8% of all adults).

Elsewhere, 27% of upscale Boomers plan to buy premium wines (versus 7% of all adults), 10% intend to buy a premium liquor (versus 6%) and 9% plan to buy designer collection clothing or accessories (versus 3% of all adults).

With these upscale Baby Boomers accounting for nearly a quarter (23%) of total estimated net worth, marketers have been advised not to neglect them by concentrating only on millennials, who account for 21% of total net worth.

A separate study by Marketing Charts, "Advertising to Baby Boomers: The Why and How", found Baby Boomers control 39% of total discretionary spend in the US compared to just 21% among millennials.


Data sourced from Marketing Charts, Shullman Research Center; additional content by Warc staff

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