Skin care is already a strong category for the demographic, particularly anti-aging, but other sectors including hair care are less well developed.
But according to Datamonitor’s Matthew Adams, it is the fragrance and deodorant categories that hold good growth potential among the older generation.
“Researchers in Japan have identified why we begin to develop a different natural personal scent as we age and this could lead to all sorts of new products to make people smell and feel both younger and more confident,” he told CosmeticsDesign.
Functionality wins
In addition, the analyst noted that for this demographic group functionality is key; seniors look for products with tangible benefits and are less swayed by fashion.
“Seniors want value for money (like all consumers) but feel less under pressure to spend money on products they don’t feel they need or can prove are right for them,” he said.
Downturn’s effect on seniors is unclear
Seniors are being seen as an increasingly important consumer group as the population ages in the majority of developed markets.
However, it is unclear how their spending power will be affected by the current economic downturn.
Datamonitor’s report, the research for which was conducted in the first half of 2008, suggests that seniors may be less concerned about the downturn than other sectors of the society.
However, Adams said responses may become darker over the course of 2009 if banks, auto companies and other drivers of pension funds continue to stumble.
In addition, he explained that one of the main reasons for the positive reaction amongst the older generation was related to the perceived value of their homes, which could be ‘unfounded confidence’.
Nevertheless, the analyst concludes that the sheer number of consumers in the demographic makes it a very interesting group from a marketer’s point of view.