The findings of the Prime Time Study show that 6% of South Africans account for nearly 20% of SA spend! According to the report, a ‘golden seam' of South Africa's biggest spenders are often ignored by marketers, these urban 40 plusses, while only a small percentage have a combined income amounting to nearly R300 billion - which marketers aren't reaching to...
The study, presented in Durban, Cape Town and Johannesburg in the last few weeks, showed that nearly half of 50-plusses, who are LSM7+, say they are debt free - so surely worth attention. The research looked at various aspects including brand and shopping behaviour and media. Focus groups and video and 1200 face-to face-interviews were used, as well as strategic workshops - all in metropolitan areas.
The results show this group often feels marginalised and ignored by the retail, corporate and media worlds. To quote the findings, ‘age is an attitude' and when you see that 22% of over 40s and 65% of over 60s are bond-free, you can see why. Prime Timers have the time and the finances to enjoy life and they know what they want and when they want it. And what they want is quality and lifestyle.
Even though they may not be getting the same salary they got when they were in their forties, they haven't got the same debts and things like school fees to worry about. In fact, a Prime Timer's life is pretty worry-free.
“In a time of higher prices and rising interest rates, it is the financially secure within the valuable 40-plus market who are able to save and spend and therefore present businesses with a golden opportunity,” maintains institute director, Professor John Simpson.
Conducted in tandem with Synovate, Prime Time is the largest study ever carried out on SA's mature market and is the result of months of extensive qualitative and quantitative research.
“Age is an attitude, not a chronological event,” adds Simpson. “Very few marketers look at this age group. We felt we were looking at a blinding flash of the obvious but at the same time it's a complex group of people. In other parts of the world they've been addressing this group for a considerable time. For instance, facts such as the average consumer will buy 13 motor cars, seven after the age of 50, are highly relevant here. In the US, over 50s are responsible for over 50% of buying power - and don't forget they also invented rock and roll...”
The report shreds many marketing myths surrounding this age group. Just a few uncovered in the report are:
Prime Timers are in fact:
The well-known series of Vodacom ads featuring ‘George', the technophobic 50-something guy who can't possibly work out such complex instruments such as SMS or wi-fi, was mentioned in the presentation to demonstrate just how wrong companies can get it. Over 50s especially are working more and more from home offices, without people around necessarily to do things for them - so they've had to learn and do so happily. In fact, the extra time they now have is often spent on Ihe internet networking across the globe.
The overall findings show this is a significant (both in size and value) active, able, financially secure, loyal, discerning, in touch market. BUT they feel disregarded, ignored and marginalised by marketers, brand owners and the media. So listen to these words and as the report concludes ‘recognise the need for market specific service, which is more demanding than in most other markets. If you dismiss it, don't expect to capture it - it isn't about fuddy duddies!
