Moving Forward

Unlike the past three recessions, it will not be the Baby Boomers who lead the recovery. That is the finding of a new report from PricewaterhouseCoopers and Retail Forward.

Baby Boomers are now faced with financial commitments, such as debt accumulated in better economic times, decreased savings accounts and retirement right around the corner. In contrast, the Gen X and Gen Y demographics have a higher percentage of discretionary income and it is the “up-market affluent” segments of these groups that will be the spending leaders in the post-recessionary era. The report goes even deeper into the spending potential of the larger Gen Y generation, citing their desire for instant gratification and spending patterns on products that offer the latest technology, such as smartphones and MP3 players.

Marketers will need to recognize how to target Gen X and Gen Y consumers, understanding that they shop differently than their Baby Boomer counterparts. These younger shoppers are more concerned with practical consumerism and purchase more selectively. The report concluded:

• Private label brands will still appeal to Gen X and Y shoppers, due to less cost and perceived value.

• Younger shoppers will continue to pick and choose among luxury brands, only buying items that they see as timeless, useful or versatile.

• They will continue to use shopping patterns and techniques employed during this downturn including shopping at certain stores to save money, more purchasing online and more use of social networking sites to find out about sales, promotions and product reviews.