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Here come the U-Boomers!

Posted on | May 18, 2010 | No Comments

As I was scanning the Internet today, I came across an interesting article about U-boomers.  Like most of us, I had heard about the infamous baby boomers, but U-boomers?  Now, that is something new. According to David Court and Diana Farrell of McKinsey and Company, an international marketing research firm, U-boomers are the next big opportunity for consumer companies.U-boomers are the 24 million middle-class U.S. households that are fast approaching retirement. They are described as a “cohort of unprepared, yet undaunted and uncompromising baby boomers” who will account for 25% of total U.S. consumption by 2015.  They are the largest segment of boomers who are optimistic and have high expectations, similar to the 10 million wealthier boomers.  But, like the 11 million disadvantaged, pessimistic boomers, they will not be able to afford the lifestyle they want.  This is where, as they say in marketing, the opportunities lie.

So how does a company reposition itself to capitalize on this changing and growing market?  The article suggests increasing the use of web-based tools to keep costs down and yet provide a high degree of personalization and customization.   Provide products and services that create an image of being smart, innovative and proud; not cheap and old.  Become more inclusive with products that offer convenience, service and low prices and look to products that contribute to the health of the boomers. As many boomers are unmarried (21 million by 2015 between ages 51 and 70), services and activities that add a sense of community and support will also open the doors into this market.

Does the above information sound like a reasonable response to the changing market place?  Have you changed some of your product offerings to target the growing retirement-aged boomers?  Rural retailers may already being seeing this change, if so what are you doing differently?  I would love to hear your responses.  Become a NBS member and add your comments!  It’s all free.

Until next time,

Marilyn Schlake, Associate Director, NebraskaEDGE Program, UNL

Source:  “Make Way for the U-Boomers” by David Court and Diana Farrell, Forbes.com, 04.08.08

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