Longevity economy can prove lucrative
“The longevity economy is growing and transforming society,” concludes an intriguing study on the ageing population from the ILC Partners Programme. Studying changing consumer patterns is often viewed as the key to retail sales success and one that warrants further investigation. ILC Partners Programme highlighted some important areas that can enhance our understanding of consumer behaviour.
Spending by older households increased steadily throughout the recession years and fell for younger households. Spending by households aged 65 and 74 and 75 and over increased particularly robustly during this period, contrasting with households aged under 49 which were hit particularly hard during the recession. Interestingly, spending growth is mostly driven by increased spending by the average older household rather than by demographic change. According to the research ‘population ageing’ accounts for only £61bn of the expected increase in household spending by 2040. This compares with a potential gain of £212bn when increases in average spending among older consumers is also taken into account.
The shift in the ways in which older people are spending is driving the real growth for some sectors. The market for household goods and services which includes home improvements, is projected to grow relative to today. Businesses that take account of the older population’s needs and requirements will be able to capitalise most. Businesses that adapt their offering to respond to the needs and preferences of an ageing society will reap the rewards. There is enormous potential for work on inclusion, adapting products and services to better meet the needs of an ageing consumer base. There are also opportunities for innovation, developing new products that can serve new markets that are opening up in an ageing society.
As an industry we are usually ahead of the curve when it comes to innovation. The longevity economy will have many demands in the windows and doors market. Security and access are high on the list which is seeing the growing importance of smart technology. We must not let this opportunity pass us by. An interesting market comparison can be made with France. The French window and door sector acknowledged the growing demand for smart homes and interestingly, incorporated smart locks and devices into their products. They didn’t sell these products at a premium, they simply passed on the cost of the smart element of the window, as they acknowledged they were more interested in selling windows and doors and not technology. But smart technology made their windows and doors more attractive to buy and as a result they sold more and used smart technology as a marketing mechanism. If the French can be held up as a blueprint for success, the next area they are focusing on is ‘wellbeing’ and ‘environmental’ benefits of fenestration products. With spending by older households increasing steadily, it is worth considering what window and door products can be created and adapted to match older households’ needs and desires…
John Cowie – Editor
