unveiled $3 billion Action Plan for Successful Ageing 3 . However, while the growing importance of this generation is starting to be recognized, the CPG industry at large continues to focus on the young and family demographics.
MARKETING FEATURE: SILVER GENERATION
The silver generation faces a number of challenges when navigating the retail
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .landscape . . . . . . . . . . .in . . .search . . . . . . .for . . .products . . . . . . . . . .and . . . . services . . . . . . . . .that . . . . .meet . . . . . .their . . . . .specific . . . . . . . . needs. ................................... Nielsen undertook a specific study of the mature market to understand these challenges and discover if their needs were being met by manufacturers and retailers today.
As I stood twiddling my thumb on my mobile, my mother struggled to read the label on the packaging of dried fruit snacks. She had heard about unhealthy levels of sodium in that product and was concerned whether to make the purchase or not. Unfortunately, she had left her prescription glasses in the car and was having a difficult time reading the information at the back of the pack. My mother is 58 and this is not an uncommon problem among those in that age bracket. According to Nielsen’s latest survey, Turning Silver into Retail Gold, 67% of elderly consumers aged 55 years and above have indicated that more products need to have clearly labelled nutritional information. This group also currently accounts for 40% of Singapore’s grocery spending and is projected to grow to 24% of the overall population by 2030. Clearly, they present viable business opportunities for retailers and manufacturers. But are local retailers and brands aware of this potential? Is there enough being done to win the hearts and carts of these players? “In forty years time, nearly four out of every 10 Singaporeans will be over 65 years old. So reviewing how your brand caters to older consumers isn’t just good PR, it’s good business sense,” says Katie Ewer, strategy director for JKR. And this isn’t just about making labels easier to understand with bigger type; it’s also about making packs easier to open, making products easier to find and making supermarket navigation more straightforward. “Bear in mind that in 40 years, all those silver consumers will also be silver surfers, buying their groceries on line. Making sure that your brand can get noticed and chosen when it’s 16mm high on a mobile page, is a consideration that’s been woefully neglected by brands and online retailers alike,” she adds. Gale Choong, head of marketing at Unilever Singapore, who makes routine retail checks, agreed with the survey results and said there hasn’t been a “massive conscious effort” from FMCG players. This is despite many recognising the trend and the need to adapt to suit the silver generation. But she noted, food is a growing area of experimentation. Herve Simon, group marketing director for Ayam Brand, also shared that going forward the market will see many companies create products that are geared to the ageing population. He said that for food brands, an ageing population means an evolution of nutrition.
12%
2004
2014
30%
24% 2030
forecasted
Products with easy-to-read labels
4
TEA
TURNING SILVER INTO RETAIL GOLD | M ARCH 2016
PRODUCT RELATED
CALORIES
**g
PROTEIN
**g
SUGAR
**g
SODIUM
**g
UNMET NEEDS
Products with clearly labelled nutritional information
67%
咖啡 44%
Local language on packaging
Source: Nielsen’s “Turning Silver into Retail Gold” survey
“Marketing by any age segment is a very delicate task whether teenage or an older age. Many older people resent being overtly marketed to on the basis of their age.” Kim Walker – CEO of Silver Group Asia
Hence, the focus for brands will be a shift in creating food products which will address the nutritional changes for that segment, with a key concept of ageing well. For Ayam Brand specifically, fatty fish and coconut products are 6
WWW.M A R K ET I N G - I N T ER A C T I V E.C O M
8%
two main categories under its umbrella, the brand intends to capitalise and promote. Dairy company FrieslandCampina is also a fast mover into this field, recognising the growing elderly segment is an important one in Asia.
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