Leading Generational Expert and Noted Trendcaster Debunks the Graying of America Theory
13 January 1998
Leading Generational Expert and Noted Trendcaster Debunks the Graying of America Theory
Burns AARP Card on 50th Birthday to Warn Businesses Nationwide:
The Invasion of 80 Million 'Gray Hairs' is 20 Years Away!
MIDDLETOWN, Conn., Jan. 13 -- Ken Gronbach, a leading
generational expert and noted business trendcaster, strongly warned businesses
across the nation at a meeting held at his offices today, to reject the
'graying of America' theory that has been the popular buzz of business
analysts of late: because if you don't, you will be gearing your business for
a massive wave of geriatric consumers and its inherent buying power, that
absolutely will not arrive for the next 20 to 25 years!
"It will be 20 to 25 years before the Boomer is first ready to accept
their older age status much less succumb to it," stated Gronbach, "I don't
know how business has been convinced that the Boomer market will reach its
peak within the next five years, when simple mathematics prove that the
majority of the Boomers will not even turn fifty for another ten years and
further, that they will accept 'an old age status' when they do," he
emphasized strongly.
Mr. Gronbach likens the graying of America to the Rolling Stones, "Anyone
who believes that the Boomer is suddenly going to embrace old age at 50 also
believes that Mick Jagger is going to play Big Band!"
To emphasize his diametrically opposed position to the aging Boomer
theory, Mr. Gronbach celebrated his 50th birthday recently by burning his AARP
card to focus the business world on the fact that turning 50 does not
instantly turn you old and put you into a convalescent home. According to Mr.
Gronbach, "The Boomer is the most important marketing group on the planet, and
that is why I believe, most business analysts are forecasting that the only
way to make businesses profitable from this year forward, is to begin to
market products and/or services today to capture the elder Boomer of
tomorrow." Beware he counseled, "Business will have to wait at least 20 - 25
years before that market exists," he emphasized. That's when Mr. Gronbach
believes Boomers will first begin to take notice of these new 'older boomer'
products and services and believes it will probably take another five years
before they will even consider purchasing it.
Since the Boomer began turning 50 in 1995 business analysts, Gronbach
contends, have planted a picture in the minds of U.S. business leaders of
America becoming overwhelmed by 80 million Boomers in walkers within the next
few years, "The fact of the matter is that targeting anything designed for
graying Boomers will first gain importance for this market in the year 2025,"
he stated. Gronbach warned, "And if that product even remotely conjures up an
image of old age it will be instantly rejected by the Boomer."
Mr. Gronbach contends that there are only two generations worth marketing
to as we move toward the new millennium and sums it up in one simple, but
memorable phrase, "Market to the Boomer or the Teen, Not In Between." Gronbach
proves his point with well documented statistics, analysis and generational
demographic profiles. He charts the generations by their level of impact on
buying power:
The 70 + Age Group 20 million Represents the remaining population of
the once very large GI population.
51-70 Age Group 30 million Known as the silent generation, it was
the smallest generation of this
century.
35 to 50 Age Group 80 million The Baby Boomer is the largest trend-
setting generation whose
unprecedented buying
power has dominated the marketplace
for the last 30 years.
18-34 Age Group 50 million The Gen X, Baby Bust Generation is
nearly 50% smaller in size than the
Boomer!
17&Under Age Grp. 8O Million The Echo Boom Generation will be the
same size as the Boomer and have even
more buying power!
Mr. Gronbach's generational study has also identified other trends that
will impact business. According to Gronbach, Boomers will work well into
their seventies before they even consider themselves first ready to qualify
for an AARP card. Already, the consumer marketplace has seen that any product
or service that delays the aging process is in high demand by the Boomer.
His latest research also indicates that the 24 year low in unemployment in
America is quickly slipping into underemployment. Companies, he predicts,
will go out of business not because of lack of demand for its product, but
because they won't be able to deliver it. Gen X, at roughly half the size of
the Boomer market, will be responsible for the overwhelming shortage of people
in the workforce, preventing products from being manufactured and/or delivered
to the marketplace.
The airline and hotel business should watch out too, predicts Gronbach.
Gen Xers' are saying no to business travel in a major way. They value time
with their families and friends and don't look at business travel as a
necessary rite of passage to climb the corporate ladder. Take note, suggests
Gronbach, the next time you're on an airplane, who is taking up the majority
of seats -- its the current 'gray hairs' aged 51-70 years old. He predicts
that there won't be any difficulty in getting an airline ticket in the years
to come -- and that finally, airlines will have to return to providing good
old-fashioned quality and service, to attract and maintain Gen X, the smallest
population segment coming at us in thirty years! "And that's the best news to
air travelers no matter which demographic group you belong to," Gronbach added
with a smile.
SOURCE KGA Public Relations