As described by an article in Ad Age, the American consumer is undergoing some major changes. The population as a whole is older, whiter, and more affluent – but with notable trends within the other demographics.
Some fast facts:
49.5
average age of the head of household
80%
growth in the next half decade among the 55+ set
2x
rate of increase in spending by 55- to 64-year olds as compared to all households
1/3
number of under-30 households with no landline (vs under 10% of older households)
2
oldest states (Maine and Vermont) who are also the least diverse
25
million teens ages 12 to 17
The older consumer tends to be more risk averse and brand loyal but has far more disposable income. They still have landlines (unlike the younger, more mobile consumer) and use caller ID to screen incoming calls, making research more difficult. As an advertising research project for class last year showed me, even a college student surveying for a final paper has a hard time getting even 15 completed questionnaires. The consumer segments are also becoming more differentiated, with a wider gap between ages and socioeconomic statuses. Markets are becoming more regionalized, with obvious variations in the make up of gender, age, race, and family status depending on the area of the country. Inter-state migration and immigration to the South and West have increased their populations.
For a far more indepth analysis of consumer trends, read the Ad Age article “The Changing Face of the U.S. Consumer”)
Most people are familiar with the idea of “house flipping” – buying a property in disrepair, refurbishing it, and selling it for a profit.
