Fashion
50+
Consumer Marketing Women’s Style & Fashion
Introduction Diana, a tall and slender 63-year old woman, needed to find a dress for her 40th wedding anniversary dinner. She was excited about the prospect of buying a dress that would make her husband’s eyes pop when he saw her. She made her way to Dillard’s department store, which is the only place she can find clothes lately that fit her. Price was not a concern; all that mattered was getting that desired reaction from her husband. After several hours scouring clothing racks, talking with numerous saleswomen, and making countless trips to the fitting room, she left the store disheartened and empty handed. That night, she pulled an old dress out of her closet, put it on, and clasped the new necklace her husband had given her around her neck. Looking at herself in the mirror, she shrugged and thought, ‘Well, I guess this will have to do.’ In an ideal world, this situation would be a rare occurrence. However, Diana’s case is not unique. The 41.7 million female Baby Boomers in the United States struggle to find retailers that sell stylish apparel that accommodates their changing bodies and allows them to highlight their best features (Howden & Meyer, 2011). These female Baby Boomers, ranging in age from 49-67 years old, recognize there is a void in the apparel market. Retailers are ignoring their needs and failing to provide clothing that meets their unique wants and situations. Women like Diana used to have little difficulty finding clothes when they went shopping. The fashion industry has tended to target younger consumers, including the popular 18-34 year old market segment. Now, these Baby Boomers are outside of this prized demographic group and are lucky to leave department stores with one item they like. Some retailers may see this situation and believe Baby Boomer females are poor apparel customers. The truth is actually the opposite. Any retailer who takes the time to understand female Baby Boomers’ needs will have access to the tremendous purchasing power these customers wield. One-third of the $331 billion dollar U.S. apparel industry comes from women’s apparel, and the percentage coming from Baby Boomers will continue to grow as this generation ages (Schulz, 2012). Luckily for retailers, fifty-plus women know what kind of apparel they want. Author Barbara Kalkis summarized this when she wrote, “The beauty of being over fifty is that we know what we like to wear, what looks good and what is comfortable. We simply need to let the fashion industry know about it.” (Kalkis, 2008).
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This white paper will serve as a wake-up call to the apparel industry’s key players. These key players, including apparel retailers, apparel designers and apparel manufacturers, all play a pivotal role in designing and delivering apparel for female Baby Boomers. Retailers that recognize this immense, longterm business opportunity and move quickly to address this void will be able to capture a share of the growing Baby Boomer market. This paper will help the apparel industry’s key players better understand the female Baby Boomers’ unmet needs and provide recommendations for capturing this amazing business opportunity. If retailers are successfully able to fill this void, then both Baby Boomers and the apparel industry stand to benefit from this mutual relationship. Our intention in preparing this report is to inspire fashion industry professionals to change the status quo. Pat, a focus group participant, conversed with another female participant towards the end of our session. She was trying to convince the woman to not worry about the current lack of appropriate fashions for them because the apparel companies would have to start paying attention to their needs soon. In a very passionate tone, Pat stated, “As the Boomers continue to age, we will find more and more clothes that are designed to fit and sell to our market. They have to listen to us. We are too large of a group [to ignore]!” (Focus Group Participant, Female, Age 64, 2013).
Making the Business Case Baby Boomer women did not always endure frustrating shopping experiences like the one highlighted by Diana’s fruitless shopping trip. In the past, before aging into their 50s, these same women were the focus of numerous marketing messages. Whether companies were marketing music and clothing to them when they were young women or selling household products to them as they were raising families, these women grew up exposed to numerous advertisements targeted specifically at them. This was especially true with apparel retailers, who prized these women for their customer loyalty and their pocketbooks. But as time passed and these women aged beyond their forties, they found that apparel retailers had stopped selling clothing that fit their specific needs. This has left a huge void in the apparel market for female Baby Boomers, but retailers seem relatively unconcerned about addressing this need. Retailers like Nordstrom have been shifting their apparel offerings to appeal to younger, seemingly “hipper” consumers (Nordstrom, 2013). Similar retailers have chosen to either pursue the younger market segment or simply ignore female Baby Boomers entirely. Despite claims that these decisions make sound business sense, ignoring this lucrative segment seems to run counter to retailers’ own business opportunity evaluations. In our conversations with a select set of major retailers, employees shared methods for evaluating new apparel opportunities that incorporated three integral elements: 1) identifying an unmet market need, 2) verifying the market need is of significant size, and 3) determining whether the opportunity presents a worthwhile return on investment. The female Boomers’ apparel market seems to meet all these criteria, yet few retailers have recognized the compelling evidence that makes filling this void such a profitable opportunity. What specific features make this market such a lucrative opportunity? First, the U.S. contains nearly 81.5 million Baby Boomers of which approximately 41.7 million are female (U.S. Census, 2010). The Boomers are also the wealthiest generation in American history and currently hold 70% of the nation’s total wealth (Padberg, 2012). Combine this information with the fact that one-third of the sales in the $331 billion apparel industry are in women’s apparel, and you have the makings of an extremely lucrative market segment (Schulz, 2012). All of these facts may sound wonderful on paper, but many apparel retailers still have reservations about marketing to Baby Boomers. Many of these reservations are based on unfounded stereotypes that need to be debunked before some leaders in the fashion and appearance business will appreciate the value of the Boomer customer. For instance, one stereotype associated with female Baby Boomers labels them as unwilling to try new things. Although Boomers may seem more adverse to new brands, they are simply skeptical and critical of the marketplace (Leventhal, 1997). Their willingness to try new brands or apparel styles is simply a function of each person’s individual preferences. People differ in their
preferences and willingness to try new things; this applies equally to both Baby Boomers and younger Millennial consumers. Baby Boomers’ accumulated knowledge and life experiences simply make them less susceptible to marketers’ influence attempts, which makes them tougher to advertise to and seemingly brand adverse to new brands. Subsequently, marketers are often also concerned about Baby Boomers’ ages. They assume older consumers are frail and stay at home. Aging is more than just a physical phenomenon though. Dr. Melanie Horn Mallers, Assistant Professor at California State University, Fullerton, who specializes in Gerontology Studies, notes that there are three key aspects of aging: biological, psychological, and sociological (Mallers, 2013a). Biological aging involves the maturation and decline in various functions of the body. It is often used to explain the observed differences in consumer behavior and forms the basis for recommendations in designing marketing strategies. Psychological aging focuses on changes in cognition, personality, and self. This is connected with patterns of information processing and decision-making later in life. Sociological aging focuses on how people assume new roles and responsibilities as they age. They develop new self-concepts and needs for products and services suitable to their newly acquired roles (Moschis, 2012). Marketers and organizations should understand these different aspects of aging and incorporate them into their marketing strategies for the Baby Boomer consumers they target. Another concern marketers have relates to older consumers’ wealth. Many in the apparel and appearance industry believe these consumers live on a fixed income, rely on social security, and do not have much disposable income. Not only are Baby Boomers the wealthiest generation in history, they have significantly more disposable income than their younger counterparts, who recently have struggled with low-paying jobs and staggering levels of student debt (Stroud, 2005). One final stereotype businesses tend to focus on when arguing against targeting Baby Boomers is the idea that these customers’ older age prevents them from providing long-term value relative to the effort they take to acquire. Interestingly though, Baby Boomers’ life expectancies continue to rise. This leads to more opportunities for the Baby Boomers to spend money; the length of post-fifty years old spending is increasing and it is growing disproportionately for the wealthy as compared to the poor (Stroud, 2005). Baby Boomers are an extremely profitable market segment, and will become even more lucrative as they age. Female Baby Boomers meet all the criteria retail industry professionals have identified for compelling market opportunities: an underserved market, a sizeable market opportunity, and a generous return on investment. On top of all that, the common stereotypes associated with older consumers are either blatantly false or no longer applies to the active, curious, and adventurous Baby Boomers. As a result, apparel retailers should be clamoring to sell to this huge, valuable market segment.
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A Market Issue in Women’s Apparel Female Baby Boomers have very different fashion preferences compared to their mothers and grandmothers. Compared to women of previous generations, Baby Boomers are more active, fit, and are not opposed to showing off their bodies. “More Baby Boomer women are now wearing tight jeans, sheath dresses and sleeveless tops that show a bit of cleavage” (Agins, 2005). Despite being more willing to show off their bodies, these women still want their clothes to be ageappropriate and compliment their body types. These features become especially important as these women age and their bodies change. Despite this information, the apparel industry has neglected to offer the clothing designs and styles that female Baby Boomers want. This inattentiveness to the Baby Boomers is not just a problem in the apparel industry. Older women are underrepresented in beauty and cosmetic advertisements, as well as on the runway. When marketers do attempt to target them, they do not seem to understand their needs and wants. The apparel market continues to sell “boxy, figure hiding clothes” which does not match the styles these Baby Boomers desire (Agins, 2005). Apparel retailers often prefer to target people who are “young and hip, turning off many older consumers in the process” (Agins, 2005). The authors of this white paper utilized extensive primary and secondary research to describe why female Baby Boomers are such valuable apparel consumers, and then offer recommendations for targeting this growing, wealthy demographic. Truth be told, these consumers will be challenging to attract and retain. These women value clothes that fit their body types and are made from quality materials. They also want clothing that is “comfortable and provides support” (Agins, 2005). These findings are supported by the focus group we conducted and the numerous Baby Boomers we interviewed. Our focus group participants were recruited from OLLI, the Osher Lifelong Learning Institute, located at the California State University, Fullerton. All participants volunteered for the focus group because of their interest in fashion and beauty. They used this opportunity to share their experiences and opinions, and vocalize their concerns. Through conversations with the participants, we learned that the female Baby Boomers want clothing made for their generation that better fits their body types, makes them look age-appropriate, and is stylish. To gather additional data on female Baby Boomer preferences and understand their apparel challenges, we created a questionnaire that explored several key areas. The questionnaires collected data about the following topics: 1) how important it is to Baby Boomers to look young, 2) shopping preferences (i.e. catalog, television, online, or retail stores), 3) determining which garment attributes are most important (i.e.
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The term “age-appropriate” came up several times throughout our research. Interpretations of the term include: • • • •
Finding clothing for Baby Boomers that is not for their children, their mothers, or their grandmothers. Looking trendy and stylish while looking their age. “Not so much about numbers as it is about one’s own confidence and ability to pull off trends and styles without looking like they are trying to be anything but themselves.” (Smith, 2009) “Something that inspires confidence and creativity, as opposed to dread and a feeling that one’s stylish days are over as soon as a certain number appears on their birthday cake.” (Smith, 2009)
price, quality, comfort, style, fit and brand name), and 4) how often the Baby Boomers are able to find the apparel they want when they go shopping. This questionnaire was also emailed to a network of female Baby Boomers, and the responses provided were nearly identical to the concerns of the focus group participants indicating a convergence of thought on the subject. The purpose of our primary research is to help apparel retailers understand how to market to female Baby Boomers. Currently, these women feel like fashion “in-betweeners.” In the article “Finding Fashion for Women after 50,” Kalkis mentioned that clothing in mainstream shops is either “too young or outdated for Baby Boomer women” (Kalkis, 2008, p.16). The problem is fashion designers design clothing either for the “twenty-something models or grandmothers” (Kalkis, 2008, p.16). This is the problem Baby Boomers experience daily in apparel stores. They consistently emphasized that they cannot find clothes they can call their own that meet their individual physical needs and styles. This theme was consistent throughout the primary and secondary sources we cited, and continues to highlight the tremendous void that retailers have an opportunity to address. Besides identifying this void, this white paper will also provide recommendations describing how retailers can successfully target Baby Boomers. The following sections identify and describe five recommendations for understanding and marketing apparel products to the female Baby Boomer market.
Proposed Solution #1: Conduct Thorough Market Research In order to effectively capitalize on this void, apparel companies first need to understand female Baby Boomers. This will require companies to conduct primary research
into this market opportunity. Finding out more about these revealed that they purchase apparel they were not always Boomers’ capabilities, needs, desires, and shopping habits satisfied with. There is a general consensus that these women will help apparel companies determine whether female Baby make some apparel purchases based on necessity mainly Boomers are a customer segment they would find worth because they cannot find clothes that fit their bodies and styles. pursuing and provide a framework for how exactly they should These purchases then translate into sales data that buyers go about acquiring them. Apparel industry professionals we and apparel companies can potentially interpret incorrectly. A spoke with emphasized the importance of determining how product that sells may not be popular with the Baby Boomers; valuable a particular market opportunity can be. The industry it may simply be the least worst option they have available. professionals shared some evaluation criteria their companies Additional research would be needed to evaluate whether Baby may consider when researching business opportunities. These Boomers really prefer some of those apparel products, or are professionals also emphasized additional criteria they felt actually disappointed with a specific apparel company’s products were particularly important. According to Jeff Rosenfeld, Vice but purchase them anyway. President of Customer Insight and Analytics at The Neiman Marcus Group, sizing up the opportunity is very important. This issue came up during an interview with Toniya, a Macy’s He said that organizations must make sure an opportunity is sales associate, who stated that a majority of her older female “big enough to be interesting for the company” before they customers were always complaining about being unsatisfied with decide to pursue it (Rosenfeld, 2013). Similarly, Tracy Haffner, the various clothing options available in her department (Macy’s, Senior Vice President of Marketing at Saks Fifth Avenue, 2013). Their complaints ranged from the shirt sleeves being too short to the quality of the clothing stated: “…with a key objective of not meeting their personal standards. driving the company’s revenue and The sales associate stated that she had earnings growth, companies would submitted her customers’ complaints want to understand how valuable A product that sells may not be to the corporate office and had little this [potential] customer group success getting those complaints heard. is” (Haffner, 2013). One specific popular with the Baby Boomers; Instead of seeing any improvements preliminary tool companies can use it may simply be the least worst or changes to the clothing, the same for evaluations before diving into option they have available. unappealing styles were being stocked intense research is the Opportunity over and over again. This situation also Evaluation Matrix Tool (Mullins & helps highlight the value of staff insights Walker, 2010). This tool provides a as well; sales associates are a valuable means of assessing whether or not source of research information for companies and niche markets are ideal fits for one another. companies that are considering marketing to the female Baby This white paper already identified some of the financial Boomers. benefits of pursuing female Baby Boomer customers. But apparel companies should conduct their own qualitative and Chico’s efforts have paid off beyond customer satisfaction; they quantitative research into this market segment to ensure had positive sales growth, quarter after quarter, despite the there is a profitable opportunity for each company’s respective downturned economy. In fact, in 2011, they were recognized situation. Qualitative research methods can include focus groups, for using a retail strategy that attracted customers during the interviews, and surveys. These measures are valuable because recession (Plaehn, 2011). For the second quarter of 2011, Chico’s they collect insight directly from the customer. Quantitative reported revenues of $551 million, up 18 percent from the previous research, like sales data figures, can be combined with qualitative year (Plaehn, 2011). Their 2012 fourth quarter sales grew 15% data to help identify optimal market opportunities. Saks Fifth to $651.9 million (Rubin, 2013). These examples demonstrate Avenue’s Tracy Haffner stated, “…focus groups are more useful for the importance of the extensive research that is needed to target getting a general sense of what customers are looking for. Then, the female Baby Boomers. When done effectively, as in the case you can shape your survey as you have gained some preliminary of Chico’s, research can go a long way towards attracting these insight”. She also suggested tracking spending behavior using women with clothing that meets their unique needs and styles. a significant sample size (at least more than 200 people) in order to provide useful financial information about the potential customers (Haffner, 2013). Combined together these actions can paint a more realistic picture of the business opportunity. Apparel companies should be cautious when analyzing sales data, though. Primary research involving female Baby Boomers
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Application of Solution #1: Conducting More Thorough Market Research The GAPS model of service quality is a is a marketing model that describes four gaps that exist in consumerorganization environments. Gaps 1 and 2 played relevant roles in our research. Gap 1 deals with companies not knowing what their customers want and not being able to meet their expectations. Gap 2 deals with companies knowing what their customers want but not designing the proper process to deliver those needs (Parasuraman, Zeithaml & Berry, 1985). Generally speaking, customers appreciate having their voices heard, especially by big companies. If these customers send in complaints and offer suggestions and actually see changes being made, these gaps will be narrowed or even closed and the customers will feel appreciated. Good customer service leads to customer retention, which can also make customers more brand loyal. Studies show that increasing customer retention rates by 5% can potentially increase profits by anywhere from 25% to 95% (Schefter & Reichheld, 2000). Since multiple research studies show that female Baby Boomers have the money to spend and are willing to spend it on apparel they are satisfied with, there is no reason why apparel companies should ignore or disregard their needs. Furthermore, if the changes the customers are asking for appear to be relatively simple (i.e. longer sleeves, better fitting clothes, longer hemlines, etc.), apparel companies should work to satisfy these desires if they match with their brands’ goals and general product offerings. Conducting extensive primary research will allow these apparel companies to see first-hand what kind of opportunities both new and existing customers could contribute to their brands in terms of loyalty and the bottom line. Listening to and taking actions to address customers’ wants and needs are important strategies in business and marketing. Marketers aim to fill voids in their customers’ lives by offering products and services that meet their needs and wants. Effective research is critical to ensuring marketers understand the needs of Baby Boomers. Without the necessary market information, apparel companies will be unable to determine whether this business opportunity truly fits into their overall strategies.
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Proposed Solution #2: Utilize Age-Neutral Marketing Marketers across all industries utilize market segmentation to divide consumers into subsets based on similar needs and characteristics that cause them to respond in corresponding ways to certain products and marketing strategies (Mullins & Walker, 2010). Marketers use this technique because no industry or market is completely homogenous. Markets are made up of people, and each person is an individual with his or her own wants and needs. Many companies across a variety of industries may start thinking about their customers very differently once those individuals reach their five decade milestone. To marketers, these consumers are suddenly old, frail, weak, and stubborn in their tastes and brand preferences. But it is important to remember “...that the age of fifty is an artificially defined moment in time, with no significance other than that which society attributes” (Stroud, 2005, p. 106). It is a poor business decision for marketers to group all fifty-plus consumers together and assume they all have similar characteristics and product needs. Dr. Mallers’ (2013b) research identified that aging consists of multiple phases and peoples’ bodies change by varying degrees over different lengths of time. It therefore would make sense for apparel companies to take the time to research Baby Boomer customers and divide the market into target segments. Changes, due to aging, are not the only features that differ among the numerous Baby Boomers. These consumers possess their own physical features, clothing
Application of Solution #2: Utilize Age-Neutral Marketing
needs, personal styles, and financial situations. Those same differences exist among all other market segments, from the younger Millennials to single parent households to families with children. Effective marketing requires thorough market research and segmentation if apparel companies wish to capture a part of the lucrative Baby Boomer gold mine. There are numerous factors marketers can use to segment the Baby Boomer population. These can include segmenting by age, lifestyle, income, geography, health, education, or gender (Stroud, 2005). These factors can be included as part of the three important steps involved in the market segmentation process: 1) identify a homogenous segment that differs from other segments, 2) specify criteria that define the segment, and 3) determine segment size and potential (Mullins & Walker, 2010). These market segmentation steps, when combined with the segmentation factors identified above, help provide a framework for marketers to divide up the Baby Boomer market and target those segments that are best aligned with their brands’ unique characteristics and product offerings. No brand can be all things to all customers, and no company could offer the possible apparel combinations that would appeal to every potential Baby Boomer customer. Therefore, companies looking at selling to this generation should market to them the exact same way marketers target any other customer group: through the use of market segmentation.
The most effective way to market to Baby Boomers is to treat them like any other customer group, and develop marketing segmentation strategies based upon research (not stereotypes). Therefore, the most effective method for marketing to Baby Boomers is through the use of age-neutral marketing. Dick Stroud writes about age-neutral marketing and he describes it in this way: “The principles of marketing to a thirty year old are the same as if the customer was seventy-five. Marketing theory is intrinsically age-neutral. It should be unbiased, dispassionate and make no assumptions about the implications of age” (Stroud, 2005, p. 167). The challenge for marketers is that their profession tends to be youth centric and requires consistent intervention in order to continue practicing age-neutral marketing (Stroud, 2005). This makes the effort of segmenting and targeting Baby Boomer consumers a challenging task, but not an impossible one. In order to effectively practice age-neutral marketing and use it to capture parts of the profitable female Baby Boomer apparel market, companies should remember the following three truths about marketing: 1) there is no simple formula for linking a person’s age to how they behave as consumers, 2) when age does appear to be linked to differences in behavior the variations are small, and 3) the behavior of older people varies by their nationality (Stroud, 2005, pg. 99). Keeping these truths readily available will help marketers maintain age-neutrality while developing strategies for targeting female Baby Boomers. These truths help serve as a reminder that marketers should target consumers’ values and demonstrate how their products meet or exceed their customers’ needs. Age has nothing to do with whether these needs are met, and therefore should not be a factor businesses consider when evaluating the Baby Boomer market segment.
The Baby Boomers influence on the apparel industry began early as they helped relax typical American garb and established a new casual clothing culture in the United States. Before the Baby Boomers, farmers, ranchers, and other blue collar professionals wore blue denim pants, like Levi Strauss Jeans, for those products’ durability. Levi jeans were introduced in “the 1950’s by James Dean and Marlon Brando”, who each embodied the idealistic counter-culture the Baby Boomer cohort aspired to that disassociated itself from the ‘button-upped’ persona of previous generations (Lee, 2005, p. 10). The Baby Boomers saw Levi’s as a statement of their “anti-establishment, anti-adult, anti-elitist, earthy, proletariat, democratic and youthful” attitudes (Lee, 2005, p. 10). Their unified adoption of Levi Jeans propelled the Levi Strauss brand’s success, at one point making it the “largest clothing manufacturer in the world” (Lee, 2005, p. 10). The Baby Boomer generation sparking this mass adoption of a product that changed the face of the apparel industry; these Baby Boomers have the ability to do the exact same thing with current fashions and trends.
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Proposed Solution #3: Use More AgeAppropriate Fit Models The United States government created body measurement standards that have been in use by apparel companies for decades. These standards were created in 1942 but do not account for many of the defining characteristics of women’s bodies today (especially those of Baby Boomers). Today’s women tend to be fuller, taller and more ethnically diverse than American women 71 years ago were (Lee, 2005). Companies marketing to Baby Boomers need to adapt to the fit needs of 2013 females and use age-appropriate ‘fit models’ as their design inspirations for creating better fitting garments for their customers. If retailers do not take into account the Baby Boomers’ specific physical characteristics, they will run the risk of driving those women away from their products. Female Baby Boomer interest in apparel has diminished due to the lack of appealing clothing offered in the marketplace, resulting in decreased spending within the industry itself. If retailers want to attract these customers, they need to update the physical characteristics they use as inspiration for their apparel designs. Baby Boomers are living longer, healthier lives than previous generations, but still must deal with the physical effects that accompany aging (Lee, 2005). Loss of skin elasticity, menopause, and slowing metabolisms are just some of the factors that contribute to the physical changes these women experience. Although previous generations did not mind wearing loosely fitted clothing, that option does not appeal to the Baby Boomers (Lee, 2005). Using more accurate fit models as templates can help the apparel companies better understand these changes and then, in turn, design clothes that better meet these women’s unique needs. Some apparel brands have made positive progress with regards to apparel fit, including Dana Buchman, a Liz Claiborne Inc. line of dressy career clothing (Agins, 2005). Dana Buchman has made several design changes to jackets and blouses by using over 40 ‘fit models’. The products that are designed around these more accurate models align better with the target customers body shapes, and addressing customer needs is one of the most important aspect of marketing (Agins, 2005). Although Dana Buchman has made progress aligning its brand’s fit and sizing to its target consumers, it still needs to progress further as their target customers age beyond forty years old. The over forty ‘fit model’ does not have the same body characteristics as an over fifty or over sixty year old model. Retail companies need to use age-appropriate ‘fit models’ for each Baby Boomer segment, in
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order to fully align their brands’ fit and sizing with the bodies of their Baby Boomer customers.
Application of Solution #3: How ‘Fit Models’ Will Appeal to Target Consumers Female Baby Boomers have recently found themselves in apparel’s equivalent of “no-woman’s land,” because they do not want either their daughter’s or their mother’s clothing (O’Donnell, Petrecca & Butrymowicz, 2008). Female Baby Boomers are faced with the question: “What is a forty- or fifty-something year old woman to do if she is not ready to shop at Coldwater Creek with her own mother but also feels too mature for spaghetti straps and mini-skirts?” (O’Donnell, Petrecca & Butrymowicz, 2008). Research helps shine light on which market segments to pursue; additional research is required in conjunction with utilizing age-appropriate fit models in order to design new apparel made specifically for female Baby Boomers. Apparel retailers should utilize fit models of various ages, ethnicities, and geographies in an effort to better understand the different Baby Boomer clothing wants and needs across numerous market segments. These same companies also need to realize that the fit models from 1942 no longer accurately account for changes in demographics and the variety of physical characteristics associated with Baby Boomers. Updating these standards will help pave the way for attracting new female Baby Boomer customers who will be thrilled with the apparel offerings
designed and produced specifically for them.
Proposed Solution #4: Create Clothing that Fits and Flatters
Research and market segmentation certainly play a key role in targeting Baby Boomer customers. But the actual clothing that is designed and sold also needs to address the unique needs and styles of this generation. The Baby Boomer generation strives to be youthful and ageless, particularly regarding how its members feel. The Baby Boomers want their clothing preferences to reflect this desire to look in sync with the age they feel like they are. Age to these women is simply a number. Brands targeting Baby Boomer females should therefore use garment illusions and design tricks
Female Baby Boomers have recently found themselves in a “no-woman’s land” desiring neither their daughter’s nor their mother’s clothing (O’Donnell, Petrecca & Butrymowicz, 2008).
to camouflage certain physical characteristics of aging. This will help these consumers look closely in age to how they feel mentally and emotionally, while enhancing their best physical features, too (Agins, 2005). Brands, like Spanx, have capitalized on women’s desire to slim and shape their bodies, smoothing away lumps and bumps and revealing a blemish free figure (Spanx, 2013). Other brands have been successful in introducing garments that focus on flattering women’s shapes at all sizes. Chico’s has successfully created their “Platinum Denim jeans [that] have a hint of stretch,” and Eileen Fisher has streamlined their garment shape by adding an “implied shape” that fools the eye and plays with body proportions (Agins, 2005). These body shaping garments give women self-confidence by providing exceptional garment fit while also enhancing their best features. These design tricks fool the eye and draw attention away from some of the typical signs of aging—wrinkles, spider veins, sun spots and sagging skin. Regardless of their age, female Baby Boomers agree that fit is the most important feature they value when purchasing clothing. And fit is not a feature that is mutually exclusive to flattering clothes. Baby Boomer women want and can have both. Our primary research supports this preference for well-fitting clothing, and the focus group members ranked fit above price, quality, comfort, style, and brand name. Fit is extremely important as women’s bodies change with age, and most Baby Boomers are frustrated with the amount of energy it takes to find well-fitting garments. Fit is important when apparel shopping for Nancy, 61, who explained that even if she sees a cute dress on a rack, if the dress does not fit properly she will forego purchasing the dress and will leave the store empty handed (Personal Interview, 2013). Combining the use of age-appropriate body models with design tricks and
techniques will aid retailers in developing apparel that fits and flatters according the unique clothing needs of Baby Boomers.
Application of Solution #4: How Creating Clothing that Fits and Flatters Femaile Baby Boomers Retailers have only recently begun selectively refining clothing for Baby Boomer women by using optical illusions, design tricks and altering the cut of garments to create well-fitting, comfortable clothing (Agins, 2005). Simple adjustments to garments can revamp a garment’s look through the strategic placement of something as simple as a couple of rows of stitching, which can provide the illusion of fit without changing the garment’s structure (Agins, 2005). Even the unforgiving pencil skirt can be adjusted through the addition of stretch fabrics and a pleated vent, which helps create a fitted skirt that allows for mobility ease and specifically benefits Baby Boomer consumers (Agins, 2005). There is currently a void in the female Baby Boomer apparel industry for clothing that meets the requirements of these numerous and financially secure women. As they adapt to the
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changes of aging, these women want clothing that provides more structure, shaping support, and also flatters their bodies. Although the changes to garments will require designers and manufacturers to be creative in their uses of design tricks and optical illusions, these women are ready to spend their money if companies are willing to listen to their needs.
products is significant to justify selling. Finally, if they feel a sizable opportunity is at-hand, they should create a petitesized line of clothing or expand their current petite clothing line to better serve this market.
Application of Solution Proposed Solution #5: #5: How Offering More Target Petite-Sized Petite Sizes will Cater Customers to Several Female Baby Boomers
After interviewing and surveying numerous female Baby Boomers, there was one thing repeatedly cited as a major apparel issue. There is a lack of petite-sized clothing options. Several interviewees said they had personally struggled to find clothing that came in petite sizes. They also stated they often had to get their clothing tailored in order to make them fit—a time consuming and expensive process. It was surprising to hear so many interviewees bring up this issue. Since there was such a large consensus on the topic, this appears to be a huge opportunity for both apparel companies and their respective brands. Apparel companies should conduct research into their existing customers to determine what percentage of the female Baby Boomers are petite-sized. If there is a large enough sample, they should conduct further research to see if demand for petite
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Conducting research on petite-sized customers will allow apparel companies to see if pursuing this type of customer will be profitable for them. Since so many of the female Baby Boomers we spoke to said they had to get their clothing constantly altered to fit their petite-sized frames, adding or expanding on petite lines will allow apparel companies to meet the needs of these customers. If the customers no longer have to alter their clothing and can just purchase items that fit right off the rack, they will be more satisfied with what retailers have to offer. An increase in customer satisfaction will likely yield higher customer retention rates, more loyal, and eventually higher sales, all of which are elements highly prized by apparel companies.
Apparel companies should no longer regard this market as a ‘dead-end’ and should instead develop strategies to meet the needs of female Baby Boomers in an effort to create lucrative, brand loyal customers for years to come.
How Will the Next Ten Years Impact the Current Market Void?
FIGURE 1: FEMALE BABY BOOMER POPULATION BREAKDOWN Age Range of Boomers
Census 2010: Number of People in U.S.
45-49 Years
11,499,506
Of the 41.7 million female Baby Boomers born between 1946-1964 who were aged 46-64 years during the 2010 Census (Howden & Meyer, 2011), seventy-nine percent of them are less than sixty years old, and twenty-eight percent are not even fifty (see Figure 1 which explains the number of female Baby Boomers existing per age segment in 2010 and 2020). The current issue explained in the apparel industry is just the tip of the iceberg. The major market complaints are from the Boomers in their sixties who represent only 21% of the female Baby Boomers. As the younger female Boomers age and their ranks grow, the business opportunity for the key players in the apparel industry will significantly grow.
50-54 Years
11,364,851
55-59 Years
10,141,157
60-64 Years
8,740,424
65-69 Years
0
70-74 Years
0
Over the next ten years, a larger portion of the Baby Boomers will age into the 55-64 years old segment (see Figure 1). During this ten year term, their bodies will begin to go through the same changes the current elder Baby Boomers have been experiencing. With this dramatic shift in age of the female Baby Boomers, the need for more stylish, age-appropriate apparel that accommodates their changing bodies and allows them to maintain their attractive appearance will become even stronger. Apparel retailers, manufacturers, and fashion designers that quickly recognize this growing need will be able to capitalize on this underserved market and reap significant financial rewards over the next decade.
45-49 Years
0
50-54 Years
0
55-59 Years
11,499,506
60-64 Years
11,364,851
65-69 Years
10,141,157
70-74 Years
8,740,424
Age Range of Boomers
Age and Sex Composition: 2010
Census 2010 figures are from a 2010 Census Brief titled “Age and Sex Composition: 2010”
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Conclusion The sheer size of the female Baby Boomer market, coupled with their vast financial resources, should be reasons enough to entice the apparel industry to want to meet their clothing needs. Female Boomers will continue to seek stylish apparel that accommodates their changing bodies while still allowing them to maintain their desired appearance. And to meet their apparel needs, Baby Boomers can draw from their $3 trillion in total disposable income (Freeman, 2008) of which, according to the 2010 Consumer Expenditure Survey (2011), they are spending on average $1,571 to $1,966 a year on apparel and services. With $110.8 billion dollars in U.S. women’s apparel sales in 2011 (Statista, 2012), the U.S. apparel market could experience incremental sales growth if it simply took the time to understand female Baby Boomer’s needs and preferences. If female Baby Boomers cannot find clothing that meets the qualities and characteristics important to them (i.e. fit and style), they will likely not purchase anything, leaving money in their wallets rather than contributing to apparel companies’ bottom lines. Apparel industry professionals who continue to ignore this market are missing out on an amazingly lucrative business opportunity that is waiting to be addressed.
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After collecting extensive secondary data and combining it with the primary research we conducted, we recommend implementing a combination of all five solutions to yield the best results. Although implementing these solutions will be costly, and demand firms to take a long term perspective, we believe the benefits outweigh the cost. If implemented properly, the potential return on investment is tremendous, and capitalizing on this market will provide a huge advantage to all apparel companies who adopt this focus. Implementing this set of recommendations enables apparel companies to tap into the huge Baby Boomer market. Primary research, coupled with our secondary research, all point to the same conclusion: female Baby Boomers have money to spend on apparel and are willing to spend it if they can find clothing that meets their needs. Apparel companies should no longer regard this market as a ‘dead-end’ and should instead develop strategies to meet the needs of female Baby Boomers in an effort to create lucrative, brand loyal customers for years to come.
Appendices APPENDIX A REFERENCES 2010 Consumer Expenditure Survey (2011). U.S. Bureau of Labor Statistics. September 2011. Agins, T. (2005). “Style & Substance: Reshaping Boomer Fashion; An Influential Generation Seeks Snugger Fits and Sleeker Styles; Rise of the 40-Plus ‘Fit Model,’” Wall Street Journal, Eastern Edition, April 15, 2005. Focus Group, Pat, Female Participant, Age 64, March 18, 2013. Freeman, K. (2008). “How to Attract the Baby Boomer Market,” The Practical Accountant, suppl. CPA Wealth Provider, January 2008, 22-23.
Padberg, N. S. (2012). Ho, Ho, Ho Holiday Online Spending - Baby Boomer’s Spend Most Online. Accessed April 7, 2013, [available at http://www.navigateboomermedia.com/blog/navboom/2012/12/ ho-ho-ho-holiday-online-spending---baby-boomers-spend-mostonline.html#trackbacks]. Parasuraman, A., Zeithaml A., & Berry, L. (1985). “A Conceptual Model of Service Quality and Its Implications for Future Research,” Journal of Marketing, 49, 41-50. Personal Interview (2013). Personal interview with Nancy, female, 61. May 1, 2013. Plaehn, T. (2011), Chico’s Retail Strategy Creating Growth. Accessed May 22, 2013, [available at http://www.moneynews.com/ Companies/Chico-s-retail-strategy-CHS/2011/10/06/id/413542].
Haffner, T. (2013). Personal Interview with Senior Vice President of Marketing, Saks Fifth Avenue. May 16, 2013.
Rosenfeld, J. (2013). Personal Interview with Vice President of Customer Insight and Analytics, Neiman Marcus Group. May 16, 2013.
Howden, L. M., & Meyer, J. A. (2011). “Age and Sex Composition: 2010,” U.S. Census Bureau, May 2011, 2.
Nordstrom (2013). Personal Interview with Dan, sales associate. May 12, 2013.
Kalkis, B. (2008). “Finding Fashion for Women after 50,” Active Over 50 Magazine, Bay Area Edition, Winter.
Rubin, B. F. (2013). Chico’s 4th-Quarter Net up 26% on Strong Sales Growth. Accessed May 22, 2013, [available at http://online. wsj.com/article/BT-CO-20130228-707495.html].
Lee, B. (2005). “Clothing and Fit Preferences of Female Baby Boomers at the University of Wisconsin,” [A Research Paper] University of Wisconsin-Stout, May 2005. Leventhal, R. C. (1997). “Aging Consumers and Their Effects on the Marketplace,” Journal of Consumer Marketing, 14(4), 276-281. Macy’s (2013). Personal interview Toniya, sales associate. May 15, 2013. Mallers, M.H. (2013a). Gerontology and Marketing: 2 Sides of the Same Coin. Slideshow Presentations, March 7, 2013. Mallers, M. H. (2013b). Personal Interview with Assistant Professor of Human Services and Faculty in the MS Gerontology Program, California State University, Fullerton. April 19, 2013. Moschis, G. P. (2012). “Consumer Behaviors in Later Life: Current Knowledge, Issues, and New Directions for Research,” Psychology & Marketing, 29(2), 57-75. Mullins, J. W., & Walker O. C. (2010). Marketing Management: A Strategic Decision-Making Approach, 7th ed., United States: McGraw-Hill Irwin. O’Donnell, J., Petrecca, L., & Butrymowicz, S. (2008). Clothing for Baby Boomers. Accessed April 12, 2013, [available at http://abcnews. go.com/Business/story?id=5785306&page=1&singlePage=true].
Schefter, P., & Reichheld, F. F. (2000). The Economics of E-Loyalty. Accessed May 14, 2013, [available at http://hbswk.hbs. edu/archive/1590.html]. Schulz, C. (2012). Statistics and Facts on the Apparel Market in the U.S. Accessed April 2, 2013, [available at http://www.statista.com/ topics/965/apparel-market-in-the-us/]. Smith, H. (2009). What, Exactly, Is ‘Age Appropriate’ Clothing? Accessed May 15, 2013, [available at http://jezebel.com/5303460/ what-exactly-is-age-appropriate-clothing]. Spanx (2013). Accessed April 30, 2013, [available at www.spanx. com/category/index.jsp?categoryId=4463905&clickId=topnav_ aboutus_text]. Statista (2012). Assessed May 3, 2013, [available at http://www. statista.com/topics/965/apparel-market-in-the-us/]. Stroud, D. (2005), The 50-Plus Market. United Kingdom and United States: Kogan Page Limited. U.S. Census (2010). Accessed May 10, 2013, [available at http:// www.census.gov/].
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AUTHORS Rebecca Covent, MBA Danielle Johansen, MS Gerontology Matthew McConnell, MBA Susan McCormick, MBA Michelle Wang, MBA Brianne Weber, MBA GRAPHIC DESIGN Howard Tran, MBA
Mihaylo College of Business and Economics 800 N. State College Blvd. Fullerton, CA 92834
ACADEMIC SPONSOR & EDITOR Susan Cadwallader, Ph.D. Associate Professor Department of Marketing Mihaylo College of Business and Economics (657) 278-7565 scadwallader@fullerton.edu Š 2013 California State University, Fullerton Publication date: June 2013 CSUF and the CSUF logo are registered trademarks of California State University, Fullerton, an entity of the California State University system.
50+
About the Research Our research involved several steps spanning one full semester at California State University, Fullerton. First, we reviewed published materials about apparel, beauty and appearance for the 50+ consumer. In realizing the limited amount of research, we decided to collect primary research. We began this process by conducting a focus group with members of the Osher Lifelong Learning Institute, located at California State University, Fullerton with participants who were all in their sixties. From the strong focus group feedback, our group was able to narrow the focus to female Baby Boomers and the challenges they face when apparel shopping. To gain additional support on the topic, a questionnaire was distributed (through email) to a network of female Baby Boomers. The responses, gathered over a 1-week time period, provided nearly identical concerns raised during the focus group. Armed with this data we met with Dr. Melanie Horn Mallers, Assistant Professor in the Department of Human Services and MS Gerontology Faculty. Additionally, we conversed with two fashion industry professionals to better understand what would trigger them to take interest and act upon the market need we found. Furthermore, we talked with two fashion retail salespeople to gain a better perspective on changes occurring in their department stores and complaints they have received directly from female Baby Boomers. Lastly, we kept our eyes and ears open throughout the semester whenever we interacted with female Baby Boomers; the valuable insights gained through these interactions were used in our paper.
Consumer Marketing