 "E-commerce's silver lining")
The 'typical' e-commerce shopper is older than you think. According to the Futures Company's Global Monitor research, 60 per cent of consumers in the 50+ age group globally say they've purchased a product or service online, compared to 51 per cent in the age group of 16-34, and 56 per cent in the age group of 35-49. This finding is true across most of Asia. In most of the markets, people above the age of fifty are as likely as, if not more likely than, younger consumers to shop online. Three factors contribute to older consumers' greater propensity for online shopping:
Nearly half of consumers in the age group of fifty and above say they're more likely to stick to products and brands that they've used before, than to try new ones. Among younger consumers, just one-third are more likely to stick to the tried and tested, than to experiment with unfamiliar products and brands.
Connected to this, older consumers are also more price - than brand - motivated; 60 per cent are more likely to shop on the basis of price than brand, versus 54 per cent among younger consumers.
Finally, older consumers are also more likely than their juniors to be searching for ways to simplify their lives: 73 per cent of the people above the age of 50 globally endorse this statement, versus 68 per cent of younger consumers.
The older shopper is, therefore, more of a searcher than a browser: They tend to know what they are looking for and go to market searching for the best deal on that specific item, rather than browsing the alternatives in the hope of discovering something new and different.
A report by TGI International shows that "while younger generations are the first to embrace new digital technologies, once these enter the mainstream the real driving force behind growth is adoption by older generations. These groups have the added appeal of higher levels of disposable income, and increasing size as life expectancy grows.
What does this all mean for businesses? If your brand targets older consumers, don't forget to think about e-commerce as a channel, and digital media in general as a way of driving purchase. And no matter who you're targeting today, start thinking about older consumers and how you can meet their changing needs, both online and offline.
Nearly half of consumers in the age group of fifty and above say they're more likely to stick to products and brands that they've used before, than to try new ones. Among younger consumers, just one-third are more likely to stick to the tried and tested, than to experiment with unfamiliar products and brands.
Connected to this, older consumers are also more price - than brand - motivated; 60 per cent are more likely to shop on the basis of price than brand, versus 54 per cent among younger consumers.
Finally, older consumers are also more likely than their juniors to be searching for ways to simplify their lives: 73 per cent of the people above the age of 50 globally endorse this statement, versus 68 per cent of younger consumers.
The older shopper is, therefore, more of a searcher than a browser: They tend to know what they are looking for and go to market searching for the best deal on that specific item, rather than browsing the alternatives in the hope of discovering something new and different.
A report by TGI International shows that "while younger generations are the first to embrace new digital technologies, once these enter the mainstream the real driving force behind growth is adoption by older generations. These groups have the added appeal of higher levels of disposable income, and increasing size as life expectancy grows.
What does this all mean for businesses? If your brand targets older consumers, don't forget to think about e-commerce as a channel, and digital media in general as a way of driving purchase. And no matter who you're targeting today, start thinking about older consumers and how you can meet their changing needs, both online and offline.
The author is Jeremy Sy, director of consulting (Asia-Pacific), The Futures Company. Re-printed with permission.
Link: http://blog.thefuturescompany.com/digital/e-commerces-silver-lining/
Link: http://blog.thefuturescompany.com/digital/e-commerces-silver-lining/