The Elderly Have Become Silver and the Markets Are Rediscovering Them
Italy is a country that is aging rapidly. On one hand, perhaps superficially, the importance of generational turnover has become a slogan and is glorified as a leading driver of change and reform; on the other hand, reduced birth rates and lengthening life expectancies envisage, even for our country, a demographic pyramid that is witnessing and will witness older generations prevailing over younger generations. In 2050, it is estimated that the over 65 age group will represent more than 30% of the total population and that the percentage of people over 80 will change from the current 5.8% to 15%.
This circumstance leads to resignedly concerned questioning of the clear economic sustainability aspects of the current social and welfare systems that in Italy until now have not generated any concrete planning to meet the new challenges of the ageing society. Furthermore, the phenomenon of an ageing population is comparable to other countries: in those countries, however, there is social and cultural recognition of older generations' value for society. It is exactly this recognition that is behind a philosophy designed to transform the same demographic dynamics which in our country only generate alarm into opportunities. For example, the growing seniority of citizens in Japan represents a fundamental driver for innovation aimed at improving social cohesion through an attitude of reverence and respect.
Paradoxically, almost all economic sectors in Italy have neglected the potential of this specific segment and even business areas have focused little attention on the constant growth of the silver markets.
Marketing today is dedicated to a renewed attention to the phenomenon, aimed at fully endorsing its potential: through analysis and understanding of value drivers, behaviors and lifestyles of senior citizens, value can in fact be created for this important segment while at the same time generating new business opportunities.
The Center for Research on Marketing and Services at Bocconi has started a line of research to support the determination of new ageing friendly propositions, identifying key factors in various sectors, from mass retailing to healthcare services. Results from the first study were recently discussed at the eighth International Conference on Theory and Practice of Electronic Governance and they identify the factors that establish seniors accepting and being inclined to purchase technologies. The study demonstrated a significant importance of the social background of reference influencing preferences and attitudes regarding innovation. In addition, it highlighted that purchasing behaviors for technologies in this segment are a direct result of the actual perception of the usefulness of the technology in carrying out daily activities. Lastly, the study confirmed that the segment of over 65 customers is characterized by significant heterogeneous elements regarding economic means, health conditions, values, interests and consumption behaviors. It should therefore not be considered a single homogeneous group (as had occurred until now), but rather requires a more careful and focused analysis. The study concluded that designing goods and services intended for the silver market should be based on a careful understanding of the needs of senior clients and not on a generic technological run-up.
Applying a marketing approach in this situation represents a fundamental contribution to creating true value for older generations, as well as a strong incentive for properly recognizing their important role in society.