the changing us consumer speech - sis international research

8/14/2019 The Changing US Consumer Speech - SIS International Research

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Navigate the Global Economy 1

INSIGHTS INTO THE

CHANGING US

CONSUMER MARKET

2008 Going Forward

Presented by SIS International Research2008

SIS International

Custom Research


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OUTLINE OF PRESENTATION

! SIS Insights The Changing US Consumer Market

! SIS Capabilities and Industry Expertise

!Our Research Methods and Capabilities

! SIS Online Research Panels

! Benefits of Using SIS International Research


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SIS INSIGHTS

THE CHANGING US CONSUMER


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SIS INSIGHTS THE CHANGING USCONSUMER

Market Drivers:

The Aging Baby Boomers

What happened to Generation X?

The Powerful Force of Generation Y Growing Hispanic Culture and Market Segment

Changing US Shopping Patterns

Changing US Retail Distribution Patterns


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BABY BOOMERS

The Aging Baby Boomers:

Post World War II births 1946-1964

Approximately 77 million people

"

High level of income [$64,700 Median Household Income]"High level of education [46% are college educated

"High percentage of home ownership [57% home ownership]


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BABY BOOMERS (cont.)

The Aging Baby Boomers (cont.)

Most do not want to retire in their 50s and 60s

Over 80% intend to keep working, and 56% of them hope to do so

in a new profession. For many, the new job would be in communityservice

Many are currently being downsized from companies

16.4% or 5.6 million of Baby Boomer workers aged 50+, were self-employed.


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Implications of the Aging Baby Boomers Increased mobility to warmer climates in the southeast and southwest

Simplification of lifestyles; Less is More

"Not as loyal to brands as same age group in decades past Baby Boomers are seeking:

"Streamlined financial services

"Smaller homes yet multiple homes

"Alternative healthcare methods reduction in medical benefits

"Part time jobs to supplement their income for retirement


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Immigrants make up 12% of early boomers (born 1946-55) and 15% of late boomers (1956-64)

Control 70% of the total net worth of American households - $7 trillion of wealth

Own 80% of all money in savings and loan associations

Spend more money disproportionately to their numbers than any other age group

Watch television more than any other age group

Read newspapers more than any other age group

Account for a dramatic 40% of total consumer demand


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GENERATION X

What Happened to Generation X? Generation X is defined at those children born from 1963-1978 and is currently

age 28-42, the primary earning years.

This segment is now turning 30 and 40

Sons and daughters of the women's liberation movement in the 1970s and grewup in day care centers and child care surrogate parents

Are more conservative and more serious vs. the upcoming Generation Y marketsegment

Yet will ultimately inherit the baby boomers lifetime savings and investments


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GENERATION X (cont.)

Implications for the Generation X Market Segment in the US More diagnostic research is needed to determine their values, product

preferences, psychographics, etc.

The mobility index of this generation needs to be determined and tracked

Brand preferences can be polarized as they are sandwiched in between theBaby Boomers and Generation Y in the US

It is important to segment this age group rather than merge them in with theGeneration Y or Baby Boomers generation


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GENERATION X (cont.)

In 1970, 47% of Boomers between 18 and 24 lived with their parents

In 1992, 54% of Xers between 18 and 24 lived with their parents. Anincrease of 15%.

In 1975, the median age for first marriages among Boomers was 23.5 yearsfor men and 21.1 years for women.

In 1992, the median age for first Xer marriages was 26.5 years for men and24.4 years for women.


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GENERATION Y

The Powerful Force of Generation Y 1982 2002

Sometimes known as the Millennials

Are technologically literate and connected to the internet

Have an extremely high degree of global brand awareness

Are indulged by their parents

Are less driven by monetary goals and have a moderate high degree of awareness of social and environmental issues

Have a sense of adventure

Know what they want, when they want it and how to get it


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GENERATION Y (cont.)

Implications of The Powerful Force of Generation Y Impact on the new design of products [everything from iPods, clothing,

cars they want to drive, retail stores they want to frequent, etc.]

Less influenced by their parents than previous generations

New product development and design research should be researchedat this age


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GENERATION Y (cont.)

70.4 million youth, ages 5-22, composing approximately 26% of the US population.

75-98% of the teenagers have a computer at home, depending on HHI. ~ 75-80% of have access to the Internet from home.

Teenagers have an average of $100/month disposable income.

15% HS students have a co-signed credit card; 11pc have their own

30% of teenagers have checking accounts

They feel crunched for time.


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Some characteristicsof the generations

Matures (prior to 1946) Dedicated to a job they take on Respectful of authority Place duty before pleasure

Baby boomers (1946-1964) Live to work Generally optimistic Influence on policy & products

Generation X (1965-1980) Work to live Clear & consistent expectations Value contributing to the whole

Gen Y/Millennials (1981-1994) Live in the moment Expect immediacy of technology Earn money for immediate

consumption


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HISPANIC CULTURE ANDMARKET SEGMENT

The Growing Hispanic Culture and Market Segment Spanglish is the third language of the US

35.3 million people, or 12.3% of the US population (2000), up 57.9% from 1990

Projected to reach 59.8 million people by 2020 or 17.8% of the US population

Compared to other immigrant cultures, the Spanish immigrant culture in the US

tends to keep their language and culture Hispanics are increasing their financial wealth in the US and their political clout

Market research needs to segment their preferences for new products, brandpreferences and lifestyles and values


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HISPANIC CULTURE ANDMARKET SEGMENT (cont.)

Implications of the Growing Hispanic Culture and Market Segment

Hispanic consumers have distinct retail store and brand preferences

Hispanic Generation X and Y are vastly different from Hispanic baby boomers

who migrated to the US

The Hispanic market segment needs to be researched and analyzed vis--vis theCaucasian, African American, Asian segments, and other ethnic segments in theUS


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CHANGING U.S. SHOPPINGPATTERNS

The Rise of Lifestyle Shopping Centers

In 2005, approximately 191 million shoppers shopped in malls each month in theUS, up from 181 million in 2004

Women shoppers outnumber men shoppers 2:1 and men spend an average of

10 minutes less per mall visit In 2005, shopping center inclined sales totaled $2.1 trillion, up from $2.0 trillionin 2004

The trend: toward building outdoor shopping areas and adding lifestyle sectionsto existing enclosed malls

The lure of entertainment, shopping, and food in an outdoor center


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THE CHANGING US SHOPPINGPATTERNS (cont.)

Changing US Retail Distribution Patterns

Shoppers are now turning to shopping in Town Centers in the US

Town Centers are open air malls vs. Regional Centers which are enclosed malls

Lifestyle Centers or Town Centers are smaller [150,000 500,000 square feet] vs. [400,000-800,000square feet] than a regional center mall

Town Centers offer upscale and national and local specialty stores ; dining and entertainment [e.g.Whole Foods, The GAP, Barnes and Noble, etc] vs. Regional Malls which offer fine line departmentstores, mass merchandisers, mainline specialty stores and food courts [e.b. Macys, Sears, etc.]

Men and women, who are not big shoppers will come to town centers for dining and entertainment


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THE CHANGING US SHOPPINGPATTERNS (cont.)

The Future for Shopping in the US

Typical malls, or single use retail environments will disappear aseconomic hubs grow to include residential and office buildings

Retail and entertainment centers are the future

This evolution will have an impact on todays retailers


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MARKET RESEARCH IMPLICATIONS

Implications for US Market Research

Consumers need to be surveyed regarding their retail shoppingpatterns and preferences

Increased intercepts in a variety of malls and open towncenters to gain insights into representative consuming habits


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On-going Environmental Scan

On-going Monthly Tracker

Indices A B C D

Statistical & Segmentation Analysis

Net Result: Draw comparisons between segments Draw comparisons between regions Ability to analyze month to month comparisons

SIS International Statistical

Tracking System


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the changing us consumer speech - sis international research

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