Silver Elegance: Redefining Luxury for the Ageing Population
BY ANAGHA PATIL/ AUGUST 17, 2024
DESIGNED BY JIYA MAROLY
Luxury brands are redefining their strategies to cater to the increasing influence of elderly consumers in the market, embracing their choices and preferences to capture the silver lining of this demographic shift.
ld age represents a stage of life where individuals have the opportunity to savour the rewards of their efforts, leading to a heightened desire for superior products and services. The phrase “silver economy” describes the opportunities and effects on the economy that come with an ageing population. The silver economy includes products, services, and businesses that meet the requirements and preferences of the ageing population. Across the world, people are living longer. In 1900, the average life expectancy of a newborn was 32 years. By 2021 this had more than doubled to 71 years (Dattani, et al., n.d.). Businesses can therefore tap into this lucrative marketplace, by supplying products and services tailored to the needs of the elderly.
O
Adapting to the consumer behaviour of the ageing population is particularly relevant for developed countries, where the population is older on average (Guido, et al., 2022).
According to a World Health Organisation report, the proportion of the world’s population between 2015 to 2050 will nearly double from 12% to 22%. With this enormous demographic transition, industries across the board must take notice, and the luxury sector is no different. Luxury brands are chosen for their standard and investment value which may not be considered by other businesses making luxury brands more relevant to the senior demographic. By targeting old-age consumers luxury brand owners could therefore leverage a significant part of society with considerable purchasing power owing to their savings. According to an AARP (American Association of Retired Persons, n.d.) survey, more than half of all consumer spending in the US comes from persons aged 50 and above. The demographic shift has been driven by several determining key factors like declining birth rates and increasing life expectancy.
Further, the elderly population at present is far more diverse in terms of consumer behaviour than it has ever been before. Owing to this, organisations need to be very sensitive to the consumption patterns as well as preference of the elderly because it’s quite distinct from those of other age groups. They may value experiences, recreational activities, and health care significantly above possession of material goods which do not form an important part of their lives. Examples of countries with a population of high life expectancy are Italy and the United States, where brands have adopted sophisticated and age-appropriate designs. For instance, in Italy, Gucci and Prada offer elegant clothing and accessories that are stylish and comfortable whereas in the US, brands like Tiffany and Co. offer personalised jewellery and gifts to the older generation. Luxury firms invest not only in research and development but also in materials and technologies that will enhance comfort, practicality, and functionality of their products for elderly consumers.
By prioritising the development of easy-to-use websites and mobile applications for seniors, these brands are promoting inclusivity and accessibility for the elderly.
Companies can gain an upper hand by focusing on developing easy to use websites and mobile applications for seniors and customising their service to suit the needs of the eldery. Brands like Louis Vuitton, the renowned luxury fashion house, and Sephora, which offers high end beauty products, have developed well desinged websites and mobile applications. Their focus on personalised recommendations and user-friendly interfaces demonstrates a commitment to meeting the unique needs of older consumers. This approach not only enhances the overall customer experience but also sets a precedent for other brands to follow suit in order to gain an edge in the market. By embracing inclusivity and customising their services to cater to the elderly, brands can position themselves as leaders in accommodating diverse consumer demographics, ultimately strengthening their competitive advantage.
In the same way, high end firms can modify the properties of their commodities to adequately satisfy the pre-senescent market in terms of health and nutritional requirements. Strategies that bring wellness-oriented aspects into their products may include wearable technology with health monitoring functionalities, furniture with improved support to ensure good posture and comfort, or anti-aging skin care solutions.
Quality and longevity aspects should also be incorporated as the elderly are likely to be particular with their choice of luxury brands if the goods are durable. This calls for the incorporation of high quality materials, accurate workmanship and availability of service facilities for product repair and maintenance. It is understood by luxury brands that customers are willing to spend their money on high-quality items that can satisfy their current needs as well as become timeless possessions. In the future, similar to the development of luxury brands, other brands too can follow the same strategy by emphasising on the production of such products that are luxurious but at the same time with longevity. This allows for brands to tap into the lucrative market of older consumers looking for items that can be considered as fixed investment.
Thus, the idea of residing value is well-illustrated by the process of generational passing down of vintage items. It is worthy to note that these items not only possess cultural value but also have; monetary value. While some of the vintage products, if sold in the market through an auctioning process, bring a high price mainly because the products are scarce, and the global population always tends to associate themselves with products that created history. The stressing on the durability and instrumental value of products which are sold by the brands serves as the opportunity to appeal to the older people who are ready to spend money wisely and survive themselves and their families for several years.
It is possible for luxury businesses to target elderly consumers who care about maintaining the production standards and cultural history by employing timeless design.
This can be achieved through integration of practices that are politically sensitive to geriatrics, recalling aesthetics rooted in classicism, or echoing craftsmanship from handicrafts.
Luxury businesses are aligning strategic assets as timeless and omnichannel customer experience. In a transitional economy, modernifications take place into every sector of the economy and hence, timelessness assures longevity in the market. Luxury brands and retailers must have a fully integrated online and offline presence to keep up with the changing demands of customers. This strategy is called omnichannel luxury marketing which helps the luxury brands to stay competitive in the market.
Additionally, Luxury brands are now taking control of the second-hand resale market, capitalising on this trend to ensure their products maintain their value and appeal. Apart from the concept of ‘vintage’ as a possible strategy for targeting senior citizens, luxury brands can also address second-hand market opportunities. Most seniors are aware of the value and high quality of second-hand items, as pre-owned luxury products are quite popular among them due to the quality of timeless appeal and craftsmanship. The market for pre-owned luxury goods, especially watches, has been effectively exploited by luxury watch making brand Rolex through licensing and developing a network of authorised retailers for pre-owned genuine Rolex watches. These merchants ensure that buyers get original products so that the elderly have the opportunity to purchase quality goods at a lower price.
Ensuring that the elderly receive a seamless and integrated multichannel approach by linking up brick-and-mortar contact points with digital ones is another strategy that can be adopted. Indeed, luxury businesses are beginning to realise the extent that it is necessary to address the senior consumers who may want the ease of buying things online and at the same time maintain the tradition of store shopping. For example, Burberry’s flagship stores transform store spaces into an environment offering technological integration and conventional shopping. Thus, in order to reach higher customer engagement, there are other means through which clients can buy from Burberry’s online portal offering more detailed information on its products (Nguyen & Bug, 2016).
Image Description: Burberry's 9,224 sq ft, three-floor corner location on west London's Sloane Street is the first of the brand's flagships to debut its new store concept, offering insight into the British brand's take on what luxury bricks-and-mortar retail means today (Drapers, 2021).
Source: Morgan, G. (2021, July 21). Burberry, Solane Street, London. [Photograph]. Drapers.
In conclusion, luxury brands have been effectively addressing the needs of the older customers offering valuable long-lasting possessions which can be regarded as both luxury goods and substantial long-term acquisitions. These brands have tried to focus their attention on this area of the market emphasising on values such as durability, craftsmanship and timeless appeal which has grabbed much attention of the older community who are more inclined to look for quality and longevity in their purchased products. As for other relatively smaller brands it is imperative that they emulate this specific strategy by tapping on the opportunities that are relevant in the present as well as future to yield higher unitility.
Keywords
​
Silver Economy, Ageing Population, Luxury Brands, Consumer Behavior, High-Quality Products, Health-Oriented Features, Second-Hand Luxury Market, Timeless Craftsmanship, Purchasing Power , Market Adaptation
​
References
​
Guido, G., Ugolini, M. M., & Sestino, A. (2022, January 7). Active ageing of elderly consumers: Insights and opportunities for Future Business Strategies. SpringerLink. https://link.springer.com/article/10.1007/s43546-021-00180-4
Institute of Medicine (US) Committee on the Long-Run Macroeconomic Effects of the Aging U.S. Population. (2012). Aging and the Macroeconomy: Long-Term Implications of an Older Population. Washington (DC): National Academies Press (US). https://www.ncbi.nlm.nih.gov/books/NBK144283/ doi: 10.17226/13465
The longevity economy® outlook. (2019). AARP. https://doi.org/10.26419/int.00042.001
Martins, J. M., Yusuf, F., & Swanson, D. A. (2012). Consumer demographics and behaviour: Markets are people. Springer.
Nguyen, K. L., & Bug, P. (2016, January). Burberry : A model for successful technology integration. Research Gate. https://www.researchgate.net/publication/325100401_Burberry_a_model_for_successful_technology_integration
Slabá, M. (2024, June 16). Digital Object Identifier. Wikipedia. https://en.wikipedia.org/wiki/Digital_object_identifier
United Nations. (2019). Ageing. United Nations. https://www.un.org/en/global-issues/ageing
Worthington , H., Simmonds , P., & Farla, K. (2018). A new push for European democracy: How the voice of citizens is included. The official portal for European data. https://data.europa.eu/en
DISCOVER MORE STORIES
Sailing the entrepreneurial boat: India’s growing startup sector
AUGUST 11
BY VANSHITA KALRA
Understanding the Political Motivations Behind the 2024-25 Union Budget
AUGUST 2
BY AALIYA BUKHARY
Budget 2024-25 Paving the Way for Viksit Bharat
JULY 30
BY MANSI JHA
The views published in this journal are those of the individual author/s and do not necessarily reflect the position or policy of the team behind Beyond Margins, or the Department of Economics of Sophia College for Women (Autonomous), or Sophia College for Women (Autonomous) in general. The list of sources may not be exhaustive. If you’d like to have the complete list, email us at beyondmarginssophia@gmail.com