"Old Age Is No Place For Sissies" 2nd of 12 #bizTrend for 2012

12 business trends for 2012

#2 old age is no place

for sissies

a Trend Report from Design | Intuition by Katie Hatch ©2012 [email protected] +1 (805).886.4619 P a g e 1 o f 1 3

Last updated: 27 Feb 2011

By 2030 the Baby Boomer generation (born

1946-1964) will all be over the age of 65 and

will total 72 million people, representing 20%

of the American population. By 2040, the

population of the U.S. over age 85 will

quadruple in size from present day to an

astonishing 19 million people. (Population)

The Baby Boomer generation is not the same

seniors of generations past. They are young at

heart, feisty, and are not going to fade quietly

into their golden years. With control over 70%

of the $7 trillion U.S. household net worth,

seniors account for 40% of all consumer

spending. In addition, while most consumers

are saving for retirement, kids college tuition,

and paying mortgages, the Boomers are

spending their hard-earned pensions, social

security checks, IRAs, and 401Ks.

Now Its My Turn!

The Baby Boomer demographic has revealed

itself to be as self-conscious as a teenager,

more vain than the average celebrity, and

willing to spend big money to address both

traits. The over 65 crowd are enlisting for

nips and tucks at record levels. In fact,

statistics reveal that over the past five years

cosmetic surgery procedures for patients over

age 65 has increased by 352%. (ABC News, 2012)

Boomers account for 30% of all smart phone

use and continue to embrace new

technologies including iPads, Kindles, and GPS

navigation systems. According to a recent

Nielsen Report, seniors are "adopting

smartphones at a faster rate than any other

age group." (Toor, 2011) Given these facts, it

is essential for businesses to discard

anecdotal preconceptions about the

consumers over the age of 55.

"I think people are saying that people 80 years old

should be picking out their cemetery lot, should be

thinking about how many pills they're taking. I don't

want to think about cemetery lots. I want to think

about living."

Phyllis Porter, 80 year old grandmother after plastic surgery

for a facelift and breast implants.

http://www.agingstats.gov/Main_Site/Data/2010_Documents/Population.aspx



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Vintage Modern

During a recent investor call Peter

Nordstrom said that the retailer's

older demographic of women’s

wear shoppers “if you listen to

them closely [our over 55

customers] clearly want to view

themselves as modern [and] we

have a responsibility to deliver...

[However] the fit dynamic [of the apparel] will

need to change." In other words, while a

grandmother prefers to wear clothing that

reflects how youthful she feels,

she still has the fashion wisdom

and mature figure that come with

of age. Therefore, although she

will be shopping for skinny jeans

rather than 'mom jeans', she will

not buy the butt-crack-revealing,

ultra-low rise jeans that her

granddaughter prefers.

Planes, trains, and automobiles

Baby Boomers in the U.S. and

seniors around the world have been waiting

until their golden years to see the world.

Years of watching the Discovery

Channel, Travel Channel, and

Cooking Channel have sparked a

desire in these would be travelers

to go on safari, scuba dive in Fiji,

to immerse themselves in

Renaissance art and Architecture,

and learn to cook in Paris like Julia

Child.

Although a handful of niche tour companies

have begun to address this enormous

opportunity, most businesses within the

travel industry have, to date,

missed the boat. Case in point, 90%

of U.S. branded airlines are

renowned for their terrible

customer service and complete

lack of charm.

Rather than capitalizing on the

financial lifeline senior fliers could

provide, these airlines seem to go

out of their way to discourage

new business.

"wheelchair assistance" The airlines' offer of

“assistance” to older passengers is limited to

an embarrassing wheel chair ride. The

Santa Barbara based Inogen™ makes small and

portable products for oxygen therapy users.

Inogen ™ and hundreds of similar consumer

biotech companies are capitalizing on scientific,

manufacturing, and design innovations that will

allow aging populations to live longer lives, with

more freedom, at home, and even on the go.

http://shop.nordstrom.com/s/not-your-daughters-jeans-sheri-skinny-stretch-jeans/3206818?origin=category&resultback=598



for sissies



wheelchair itself is an uncomfortable, uglier

than hospital grade apparatus that is one-step

away from announcing to the world, “I’ve

arrived in the United States for my new

Kidney!” More likely, the case is that the

passenger in the wheelchair is actually a

rather wealthy Italian widow who has come

to shower her children and grandchildren

with gifts. She is perfectly capable of walking;

she just does not feel like doing it for 500

meters down an empty and poorly lit

subterranean hallway at LAX after 15 hours of

flying and two layovers.

This consumer demographic is an enormous

opportunity for cash strapped airlines. Seniors

would surely pay a premium for a concierge

service that provides hassle-free check in,

curbside baggage assistance, valet parking,

and chauffeured

electric cart

transportation to

and from the

gate. Like any

good service

design, the

success or failure

of a senior

concierge

program resides in the details. Seniors will

enthusiastically sign up for an exclusive,

"members only", five- star, white glove

service that makes them look and feel like

royalty. (Nielsen Wire, 2011) (Nielsen Wire, 2011)

Social Media & Seniors

Seniors are the fastest growing

segment of Facebook users, and are

expected to reach 55 million in the US

alone by 2020. (Madden, 2010)

20% of Baby Boomers between 50-64

years of age say they use use social

networking sites on a typical day.

13% of seniors over age 65 log onto

social networking sites on a typical

day, compared with just 4% who did

so in 2009.

10% of internet users over the age of

50 say they use Twitter to share

updates.

Public libraries, adult education

programs, and churches offer free

social media classes specifically

designed for seniors.

53% of Americans between age 50

and 64 and 21% in the 65+ group use

wireless internet connections (Pew

Internet & American Life Project, 2011)

(image source)

http://www.onlykaty.com/events/facebook-class-for-seniors/



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Action Plan: How to Become

a Remarkable Airline

1. Promote the Senior

Concierge Program to

the neglected senior

demographic.

2. Empower your new senior advocates to

spread recommendations via Social

Media.

3. Capitalize on the deep loyalty and

appreciation earned from the offspring of

the traveling seniors. These younger and

more lucrative business

travelers would likely

follow their parents and

grandparents to an

airline that treats them

well, and would

recommend the airline

to social media friends

and followers.

4. Leverage social media to soft launch a

new 'Friends and Family' program that

promotes and rewards consumers based

upon their aggregate loyalty in addition to

their individual frequent flier mileage

accumulation.

5. Wow your newly loyal customers young

and old. Over deliver. Always delight. Be

transparent. Be responsive. Be respectful.

Continue to listen and learn from them

through social media.

Geezer scooter gangs

The Quadrophenia

generation is switching from

four stroke Vespas to plug-in

mobility scooters. Just as in

their youth, these three

wheeling seniors crave

mobility and independence. They watched

their parents lose autonomy when they could

no longer drive, and they are desperate to

avoid that fate. Baby Boomers are holding

onto their car keys, buying handicap scooters,

and finding ways to remain mobile and

independent. Nevertheless,

they face roadblocks at every

turn as municipalities enact

laws limiting, and in some

cases prohibiting the use of

handicapped scooters. (Rules

for users of powered wheelchairs

and mobility scooters (36-46), 2012)

(Steyn & Chan, 2008) (Report:

Mobility Scooters, 2006)

Dream car generation

The Baby Boomer generation grew up during

the era of the futuristic Dream Cars and

powerful Muscle Cars and they do not want

to drive dull, powerless sedans into the

sunset. They want the power and style of a

Shelby, the luxury of a Bentley, and the ease

of access of a walk in bathtub.

Simple improvements to current car designs

would be a great first start towards

http://en.wikipedia.org/wiki/Quadrophenia

http://glossynews.com/society/human-interest/201109210550/gang-of-70-year-olds-on-mobility-scooters-terrorizing-orlando-tourists/

http://www.cnbc.com/id/35724983/Dream_Cars_of_the_Boomer_Generation



for sissies



addressing this lucrative

consumer demographic.

Entry and exit

heights need to be

at a comfortable

sedan-like level,

even on sporty or

SUV models. This

may involve a fold

out step design or similar innovation.

The seat height needs to be

ergonomically correct for aging Boomers

with bad knees and hip replacements.

Easy and functional access should be

added behind the driver's seat to

accommodate wheel chairs and walkers.

Trunk depths need to be corrected so that

seniors can easy lower and lift out

groceries.

At present, the substantial senior and

handicap accessible auto market is served

exclusively by aftermarket manufacturers like

Freedom Motors Inc in Battle Creek, Michigan.

According to their website, FMI is on a

"mission of constant innovation and

improvement." FMI Company President and

Owner, Sieto van Dillen says, "we enjoy

providing our customers with cutting edge

wheelchair accessible vehicles that they can

be proud of”. (Freedom Motorworks, Inc.,

2012). While their competitors retrofit vans

and trucks to accommodate handicapped

drivers, FMI takes popular cars and makes

them accessible while

improving the original

design. Current models

offered include a

redesigned Honda

Element, Chrysler PT

Cruiser, Toyota Sienna,

and Scion XB. Signature

design elements include

truly awesome gull-wing

doors and floor tracks that allow users to sit

in their wheelchair and drive.

Aging in Place and

universal design

Aging-in-Place is a term that has been

bandied about ever since statisticians realized

that in the year 2010 more Americans would

be over the age of 50 than under. However,

little has been done to address the

opportunity and need in a proactive manner.

Even during the housing boom when billions

of dollars was poured into the residential

housing market at fiscally unsustainable levels,

the percentage of homes, which were

designed for Aging in Place was negligible.

Additionally, while home improvement and

DIY retailers have returned to profitability,

they offer few products in the Aging in Place

and universal design categories. The majority

of home decor, fixture, and hardware

products that comply with and have been

engineered for universal access are

commercial grade for hospitals and

retirement homes. As a result, the prices are

hospitality market high, the designs are stale

Handicap accessible Scion XB by FMI



for sissies



Walk-In Bathtubs are a great example of a

well-designed product for independent living.

They have been updated nicely for easy and

affordable residential retrofit. The styles

offered, though limited suit any home decor. Image source (Walk-In Bathtubs, 2012)

and institutional, the materials industrial, and

the decorating appeal is zero.

Aging in Place

Statistics

The National Association of

Home Builders predicts that

the Aging in Place

remodeling market accounts

for approximately 10% of the

$214 billion home

improvement industry, and

continues to grow annually

with the aging median population. (AARP,

2012)

Partially driven by the trend towards

shorter hospital stays, 10 of the 20 fastest

growing occupations are health-care

related.

Currently employing 1.3 million people,

home health care related job openings are

expected to grow at a rate of 50% through

2020.

Home health care related revenue is

forecast to exceed $72 billion in 2011.

(Wang & Ohngren, 2010)

91% of seniors prefer to Age In Place

rather than relocate into a retirement

community or assisted living facility

(AARP, 2012); 63% plan to stay in their

current homes, 12% plan to buy another

home, and 26% are unsure. (55+ Housing:

Builders, Buyers, and Beyond, 2009)

Even if they begin to need day-to-day

assistance or ongoing health

care during retirement, most

(82%) would prefer to stay in

their homes

Aging-in Place is

already a feature of new

healthcare legislation as a way

to improve service, maximize

the value of dollars spent, and

cut costs to a broken Medicare

and Medicaid system.

Moreover, amazingly it has bi-partisan

support. (AARP Wyoming, 2012) (Fagan &

Cabrera)

Communities in place

Opportunities abound for communities willing

to focus their resources and attention on the

Aging in Place market. Cash strapped

municipalities willing to pioneer a new model

http://assets.aarp.org/rgcenter/ppi/liv-com/aging-in-place-2011-full.pdf



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for urban planning focused on

cradle-to-grave living can seek

public and private funding for

Aging in Place infrastructure,

transportation, and education.

mHealth. The growing trend

towards mHeath (mobile

smart phone and tablet

access) and eHealth (electronic health records)

will require seniors to have high-speed

internet access in order to stay connected to

remote health monitoring devices. One way

to address this growing need is for

communities to offer Municipal Wireless

Networks.

Flipping for Good. Consider a community that

is suffering from a housing overhang, high

unemployment and diminishing industry. A

concerted effort to update homes on the

market to be stylish, affordable, and Aging in

Place compatible would help to differentiate

the homes from the glut of real estate on the

market. It would also benefit the community

by raising property values, attracting new

industry, and creating sorely

need jobs.

Learning for Life. Local colleges

could offer home health care

and geriatric specialties as

continuing education and

degree courses to provide a

ladder up for the unemployed

and underemployed.

Wireless Access Zones (WAZ) provide

universal broadband service to entire

communities. Through economies of

scale, WAZ facilitates construction of

the costly infrastructure necessary for

high-speed internet access. A

community WAZ would reduce

individual and business utility costs

while improving connectivity,

productivity, and industry modernization.

Going Green for the Gray. Another great

community infrastructure project would be

the installation of renewable energy sources.

In addition to improving the air quality of the

region, it would help fixed income seniors

offset or eliminate costly heating and cooling

bills.

Aging in style

The home furnishings industry has been blind

to the lucrative opportunity that the Aging in

Place market offers. While the housing crash

triggered sales of furniture to drop off a cliff,

the over 50 demographic increased their

demand for Aging in Place furnishings. Baby

Boomers are increasingly

interested in rejuvenating their

homes to meet their empty-nest

decorating preferences and

lifestyle needs. For Seniors,

Aging in Place also means Aging

in Style.

“We boomers don’t plan on

quitting anytime soon,” said

ASID member Pat Rowen in an



for sissies



article entitled, The Boomer Boom is Coming.

“We want it all: comfort, beauty, function,

safety and style.” (Mallers, 2009)

While a handful of companies have addressed

the functional needs of the Aging in Place

market, the styles are rather depressing, and

scream, "I'm old and feeble!" Contrary the

rules of Decorating 101, these products do

not reflect the fashion sense and lifestyle of

the consumer. The same grandmother who is

shopping for skinny jeans wants a sofa that

looks great while at the same time is at a

comfortable height for sitting and standing.

Conclusions

Breaking the Mold. Listen, watch and study

today's senior demographic. Consider the

opportunities available to them and

obstacles in their way. How can your

company capitalize on its strengths to

address those opportunities for innovation

and market gratification?

Modern not Morose. Products and services

need to be designed for a customer that

feels like a 30 year old, but has the maturity,

fiscal wisdom, level of taste, and creaky

bones of their biological age.

Global Geriatrics. By 2050 the world

population over age 55 years will have

doubled from its present day total share of

15% to 28%. (Tomorrow Today, 2012)

Middle Age in the Middle Kingdom.

By 2050 38% of the Chinese population will

be over the age of 55. (Tomorrow Today, 2012)

With the One Child Rule, China is facing

challenges from an aging population that

defy their cultural norms. Savvy companies

will look towards China and other BRIC

countries for lucrative market share.

Hot or Not. The same rules that apply to

the cars the Baby Boomers want to drive

and be seen in applies to their furniture:

They want to look hot, but they won't when

it takes them 10 minutes to get in and out

of their car or sofa.

" There is no doubt that Baby Boomers are at the early

stages of what promises to be a long-term and lucrative

love affair with life. We aren’t simply writing a new

chapter of our lives, we’re writing a brand new book." (Baby-boomer Magazine, 2011)



for sissies



Dream Cars for Dreamers. This

generation remembers when air

travel required passengers to dress

in their Sunday best. They grew up

during the Dream Car era and

coveted muscle cars in Road and

Track magazine.

Freedom. With newfound freedom

and money to burn, seniors want to

be able to travel wherever,

whenever and however they want.

Now Its My Turn. After years of taking care

of others, seniors want to feel like they are

the ones being pampered. They feel that

they are owed some respect, which is quite

different from pity.

Follow the Money. As state and federal agencies, insurance companies, and retirement accounts converge towards the lucrative 'Golden Years' consumer demographic, astute businesses will kick the innovation train into high gear to catch up with an already moving freight train of younger than you think seniors who are ready to consume.

Maturity is a bitter

disappointment for which

no remedy exists, unless

laughter can be said to

remedy everything.

Kurt Vonnegut



for sissies

a Trend Report from Design | Intuition by Katie Hatch ©2012 [email protected] +1 (805).886.4619 P a g e 1 0 o f 1 3


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http://www.youtube.com/playlist?list=PL06AA588A77D719F9



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Excerpt: GE estimates that the over-the-counter blood glucose monitoring is a $7 billion market--and

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