1. SIS International
Custom Research
INSIGHTS INTO THE
CHANGING US
CONSUMER MARKET
2008…… Going Forward
Presented by SIS International Research
2008
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2. 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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3. SIS INSIGHTS
THE CHANGING US CONSUMER
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4. SIS INSIGHTS – THE CHANGING US
CONSUMER
• 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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5. 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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6. BABY BOOMERS (cont.)
• The Aging Baby Boomers (cont.)
– Most do not want to retire in their 50’s and 60’s
• 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 community
service
– 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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7. BABY BOOMERS (cont.)
• 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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8. BABY BOOMERS (cont.)
• 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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9. 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 grew
up in day care centers and child care surrogate parents
– Are more conservative and more serious vs. the upcoming Generation Y market
segment
– Yet – will ultimately inherit the baby boomers’ lifetime savings and investments
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10. 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 the
Baby Boomers and Generation Y in the US
– It is important to segment this age group rather than merge them in with the
Generation Y or Baby Boomers generation
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11. 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. An
increase of 15%.
• In 1975, the median age for first marriages among Boomers was 23.5 years
for men and 21.1 years for women.
• In 1992, the median age for first Xer marriages was 26.5 years for men and
24.4 years for women.
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12. 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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13. 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 researched
at this age
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14. 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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15. Some characteristics
of the generations
• Matures (prior to 1946) • Generation X (1965-1980)
– Dedicated to a job they take on – Work to live
– Respectful of authority – Clear & consistent expectations
– Place duty before pleasure – Value contributing to the whole
• Baby boomers (1946-1964) • Gen Y/Millennials (1981-1994)
– Live to work – Live in the moment
– Generally optimistic – Expect immediacy of technology
– Influence on policy & products – Earn money for immediate
consumption
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16. HISPANIC CULTURE AND
MARKET 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, brand
preferences and lifestyles and values
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17. HISPANIC CULTURE AND
MARKET 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-à-vis the
Caucasian, African American, Asian segments, and other ethnic segments in the
US
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18. CHANGING U.S. SHOPPING
PATTERNS
• The Rise of “Lifestyle Shopping Centers”
– In 2005, approximately 191 million shoppers shopped in malls each month in the
US, 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 trillion
in 2004
– The trend: toward building outdoor shopping areas and adding lifestyle sections
to existing enclosed malls
– The lure of entertainment, shopping, and food in an outdoor center
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19. THE CHANGING US SHOPPING
PATTERNS (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. [400,000-800,000
square 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 department
stores, mass merchandisers, mainline specialty stores and food courts [e.b. Macy’s, Sears, etc.]
– Men and women, who are not big shoppers will come to town centers for dining and entertainment
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20. THE CHANGING US SHOPPING
PATTERNS (cont.)
• The Future for Shopping in the US
– Typical malls, or “single use retail environments” will disappear as
“economic hubs” grow to include residential and office buildings
– Retail and entertainment centers are the future
– This evolution will have an impact on today’s retailers
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21. MARKET RESEARCH IMPLICATIONS
• Implications for US Market Research
– Consumers need to be surveyed regarding their retail shopping
patterns and preferences
– Increased intercepts in a variety of malls and “open” town
centers to gain insights into representative consuming habits
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22. SIS International Statistical
Tracking System
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
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23. Navigate the
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• Learn more at the SIS Web Network:
– www.sisinternational.com
– www.sisinternationalresearch.com
– www.sispharma.com
– www.sismiddleeast.com
– http://easterneurope.sisinternationalresearch.com
– www.industrysynthesis.com
– www.marketintelligences.com
– www.sisglobalresearch.com
– www.chinageny.com
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