Redefining ad strategies: Why brands must shift focus to mature consumers

Mature consumers, whose share is increasing, make for better investment, says study by Boston Consulting Group

In today’s advertisements, you often see attractive individuals portraying an idealised life, promoting products ranging from perfumes and cars to fast food and investments. India’s youthful demographic is a prime target for brands, who employ youth icons like Virat Kohli, Deepika Padukone and Ranveer Singh, shaping narratives around dressing, hairstyles and activities such as binge-watching, long drives and socialising with friends.

However, a recent study by the Boston Consulting Group (BCG) underscores the significance of mature consumers, aged 50 to 70, across 12 key markets, including India. They contribute a substantial 27 per cent of the annual $7 trillion spending across nine product categories, with their influence extending to younger age groups, making them an increasingly crucial demographic for brands to consider.

The question of age

In India, consumers in this demographic currently account for 15 per cent of the spending. In China and the United States, they account for 30 per cent; and in countries such as Japan, the United Kingdom, Germany and Spain, 40 per cent This is primarily because of a rapid aging in populations, evident across markets. In most of these markets, this share is increasing rapidly (see: Mature matters).

Mature matters

Share of each age group in the total population  

Source: UN World Population Prospects 2021
Note: Across major markets, populations are aging rapidly and the share of people between 50 and 70 years is increasing in several countries

The myths

The report also debunks several myths regarding mature consumers and their consumption patterns. For instance, although mature consumers do spend less overall each year in every product category, they spend significantly more on individual purchases in all of the categories researched (see: Who spends how).

*Defined as average mature consumer ticket size ÷ average young consumer ticket size

Note: Annual average spending per category presents the percentage of mature consumption in comparison to consumption by younger buyers. The category-wise spending per occasion is presented in the ratio of average consumer ticket sizes for young and mature buyers   Source: BCG

Brands also vastly underestimate the influence that mature consumers have on other groups of consumers. In fact, mature consumers are significantly more likely to influence younger consumers than the other way around (see: Consumer influence by age group).

Consumer influence by age group  

Mature consumers influence younger consumers to a surprising extent, especially on large-ticket items

The study recommends that brands should target what’s defined as “vibrant mature consumers” — people whose purchasing patterns put them in the top 20 per cent of mature consumer spenders. These vibrant mature consumers hold a greater value for brands, owing to their combination of high spending and high loyalty (see: Mature investment).

Mature investment

Vibrant mature consumers are more valuable to brands than younger consumers

Note: All figures are comparative to young consumers. For instance, mature consumers have 1.3 times more loyalty to brands in vehicles category. 
Source: BCG

Change of plans

Consumer behaviour among mature buyers has evolved significantly in the past decade. Ambi Parameswaran, a brand strategist, notes that many retirees now possess homes, cars, and perhaps even scooters, having fulfilled their financial obligations towards their children's education and weddings. This shift has led to emerging markets in holiday homes, mutual funds, elderly living services, and curated tours tailored to the 60-plus generation. Parameswaran highlights the Saregama Carvaan as an example of brands catering to the nostalgia-loving mature audience, emphasising the growing need for products aligned with their cultural and sociological preferences, such as elderly-friendly cars, user-friendly smart TVs, and lightweight scooters, as well as specialised jewellery and watches.

The BCG study underscores the challenge of engaging mature consumers through conventional marketing techniques. To effectively connect with this demographic, a more nuanced approach is essential. Instead of merely altering the age of actors and models in advertisements, brands must identify the values cherished by mature consumers and convey tailored messages supported by factual information. This targeted strategy, it adds, is crucial for effectively resonating with this discerning demographic.