Demographics, everyone is trying to understand them. Marketers use demographic data to explain who their audience is and why their customers buy what they do. Typically, those demographics are Gen X, Gen Y, Baby Boomers, and the traditional age demographics 18-24, 25-34, etc., but really this type of targeting is just the tip of the iceberg.
There are two demographic groups that will have more influence on your bottom line than you ever imagine, and they don’t fit as well into the traditional categories. Both of these demographics are all about lifestyle and mindset, and their choices reflect a state of mind, rather than a pre-defined cluster analysis.
Alexa, Google, and Facebook are great at giving you broad generalizations about their audience, but they can’t explain what drives this audience. Not all educated women ages 25-34 with children are the same. Even Neilson, Forrester and Ipsos can’t give you an idea of who is buying your product or browsing your site.
It’s not your fault; The digital world gives people the chance to explore their world in a whole new way. Once upon a time, in the not too distant past, demographics were exposed only to what was immediately available at the bookstore, library, television, newspapers, and what they were exposed to by friends, family, and on their travels. The information was available in small bites, when time allowed to expose them.
In our new digital world, we receive information 24 hours a day. The mouthfuls a person takes can be overwhelming; information can be searched and sent to whoever is looking. Exposure allows consumers to broaden their choices, refine their interests, and delve into new interests with the click of a mouse.
So who are these two groups you need to know? LOHAS and ZOOMERS. WHO? I repeat, LOHAS and ZOOMERS, and no, I did not invent these terms. I have had the opportunity to present a new business several times to Angels, VCs, and judges. The only question after each launch; Who are LOHAS and Zoomers? The public is sure that I have created two new demographics out of thin air for the purpose of business.
I have not done it! LOHAS and ZOOMERS are two demographics to watch out for. It is a way of life.
So who are they? what are they about? LOHAS and ZOOMERS are one mindset, cannot be lumped into traditional demographics, are unique, and sometimes cross into each other’s demographic subset.
YOU HAVE- Health Lifestyles and Sustainability, let’s say one three times fast. So here is a bit of information about them; they make up about 13-19% of the US population, for those who don’t want to do the math, 41-60 million Americans, and growing about 10% per year. The LOHAS age demographic for traditionalists, anyone over the age of 18 can fit into the LOHAS category.
LOHAS is all about health and sustainability – yours, your local community and the global community. LOHAS cares about social justice, personal development, sustainable living, and cultural awareness. LOHAS.com is a great site that will give you an idea of the market numbers.
Here is a brief overview of the LOHAS market; these numbers are available through the Natural Marketing Institute, at LOHAS.com, to name a few.
LOHAS Personal Health Marketplace – this is your HBA category. Startups often target the 1% of a market (not necessarily the right way to go when looking at a market), that being said; this category is estimated at approximately US$117 billion.
LOHAS natural lifestyle – this category is essentially clothing and home accessories, approximately $10 billion. I attribute this to the simple fact that Natural Lifestyle options still don’t exist en masse. Bamboo, hemp, and natural dies just don’t seem profitable enough for most companies small or large to tackle the market. For those trying to address these markets, the supply chain is too small and the economy is not sustainable enough to justify the venture.
LOHAS ecological building – self-explanatory category, from Energy Star appliances, bamboo flooring to energy efficient home certification. Like HBA, this is a large market, at over $100 billion. The green, sustainable trend is driven by a number of factors, but that is an article for another day. As the price of energy rises and people look for ways to lower the cost of running their homes, this category will only increase.
In general, the price of electricity, energy in general, is increasing; Demand is outstripped by supply, resulting in blackouts in cities around the world. This category is growing and the opportunity is huge. LOHAS are concerned and know that they can make an impact from the opportunity that is available.
LOHAS Alternative Energy and alternative transportation – two categories, just like the Green Building category, it is driven by the need to limit the impact on the environment. Of course, as reports of rising energy prices, dwindling water supplies, and rising global temperatures, LOHAS will continue to do its part, to make an incremental impact, to compensate those who They do not do it.
LOHAS is a mindset and demographic that should not be ignored.
There is a final category that needs to be looked at, this industry is a monster. It is broad and segmented; each segment is codependent on the other, travel and tourism. The World Tourism Organization pegged the global travel market in 2010 at €781 billion, which roughly translates to you might want to sit down for the conversion; approximately US$1.1 trillion in 2010.
LOHAS Ecotourism and Travel – This category covers everything from biking through Napa Valley or France, to cultural immersion, volunteer trips, and adventure travel. For the LOHAS segment, this is approximately $42 billion, and I should mention that the adventure travel market is the fastest growing segment of the travel market.
The message… ignore LOHAS at your own risk.
I have talked about the LOHAS, and the ZOOMERS? Aahhh, what a fabulous segment, they are smart, they are curious, they like almost everything and they have the money.
We all understand the Boomers, born after World War II (1946 to 1964), or so we think. We make a lot of assumptions that could lead us in the wrong direction.
Mistake #1 – All boomers fall into the same mindset and the same demographic. Much of the media coverage and advertising tells us that the boomers are beginning to retire; the images submitted are of gray-haired couples riding bicycles, reading a newspaper and sitting quietly drinking their coffee.
For those under 35, when they hear “Boomer” their first thought is the Boomer from the TV show “Saved by the Bell”; His next thought is his grandparents.
Mistake #2 – Boomers are often classified as the demographic that isn’t that smart with a smartphone, isn’t that good with a computer, and doesn’t really understand the internet. Be careful not to fall into this trap.
Mistake #3 – Assuming all boomers retire; Remember that 1964 wasn’t that long ago, and this group hasn’t quite reached its 50th birthday, and certainly won’t be retiring anytime soon. If they’ve retired, it’s because they can, and it’s most likely a hiatus before their next big adventure in the world of work. They’ve worked hard, they’ve invested well, and they can afford to take time off.
Boomers make up 65% of Canadian and US net worth.. I haven’t looked at the numbers, but I’m pretty sure this is a reasonable estimate in Europe as well.
My parents are “Boomers”, I promise you, if you made even one of the 3 mistakes above, you haven’t captured my parents in your target audience. They’re over 60, they’ve got their iPhones and Blackberries, they’re serial entrepreneurs, and they certainly don’t understand the sweet gray couple in the media.
So who are my parents? they are ZOOMERS. WHO? ZOOM! No, I did not invent the term, it is real, it is defined and ZOOMERS must be understood.
Zoomers are a sub-segment of boomers that very few talk about. I love this quote, I came across it when I was trying to understand the Zoomers, it’s a perfect description and credit must go to John A. Cutter at the St. Petersburg Times. Zoomers are a
“Limitless baby boomer who sees retirement as the fast track to a new, more energetic life characterized by healthy living, a high level of physical activity, a pursuit of higher education, and who is technologically and financially literate.”
In Canada, Zoomers represent 44% of the population (14.5 million) and control over 77% of all Canadian wealth. This is roughly the same statistic in the United States.
We have websites (zoomer.ca), magazines (zoomermag.com) and radio stations (zoomerradio.ca) dedicated to Zoomers.
Zoomers are smart, savvy, and many are addicted to technology. They are enterprising, they are adventurous and they are not supporters of the boring and the banal. Don’t call them sir or ma’am, they’re not old enough for that. Don’t assume they want to go to bingo or an elderly person’s trip to the casino. They certainly aren’t seniors, and they cringe at the thought of using a senior discount.
Zoomers are likely to be the neighbors across the street throwing a loud party on a Friday or Saturday night. If you’re going to travel, Zoomers are just as likely to climb Kilimanjaro as 30-somethings.
For Zoomers – 60 is the new 40! I promise you, no 40-year-old man wants to be considered a senior.
Zoomers certainly aren’t old enough to be shut out of life, and they don’t want to be sold on senior trips, senior packages, and a senior way of life.