| The grey market is broadly defined as those over | | | | On this subject, it should be remembered that the |
| the age of 50 (Although sometimes figures include | | | | grey market certainly has purchasing power. |
| those over the age of 45). This growing group of | | | | Government figures show that households headed by |
| consumers represent a sizeable market for many | | | | adults aged 50 to 64 years have experienced larger |
| providers of goods and services, yet is often | | | | increases in both gross and disposable incomes over |
| misunderstood or even overlooked. | | | | the past 2 years than has been the case for any |
| Brands as diverse as Saga and Harley Davison have | | | | other age group. |
| successfully managed to build sizeable revenue from | | | | According to figures from the government's Family |
| the grey market. As the profile of the older | | | | Spending Survey, the over 45’s spend more |
| consumer changes more than ever before, maybe | | | | than other sectors of the population on the following; |
| you should reconsider your perceptions of this | | | | Gardening related products and services |
| important market. | | | | Insurance Policies |
| The first point to consider is that the grey market | | | | Hairdressing and Beauty Treatments |
| contains many different shades. Older people cover a | | | | Gambling |
| wide spectrum of ages, and those over the age of | | | | Package Holidays |
| 75 often have very different spending patterns, | | | | Alcoholic Drinks |
| incomes and views of those in the early years of the | | | | Tobacco |
| grey market. This means that a ‘one size fits | | | | Recreation and Culture |
| all’ approach to your marketing will rarely | | | | Delve deeper and some interesting insights are |
| succeed. Instead you should segment, prioritise and | | | | uncovered. It might not be too surprising to learn |
| target the grey market, just like any other. | | | | that older retirees spend a significant amount per |
| The grey market is sometimes dismissed as being of | | | | week on recreation and culture, but would you also |
| less value than younger consumer groups. Yet | | | | have known that their spend on hairdressing and |
| recently the number of people of pensionable age | | | | beauty treatments is higher than any other |
| surpassed the number of under 16’s for the first | | | | households? Older consumers obviously have |
| time ever. This can be attributed to the current low | | | | disposable income, as they are also the largest |
| birth rate, the “baby boom” generation, and | | | | spenders amongst households on gambling and |
| increases in life expectancy. It is also important to | | | | package holidays. |
| remember that the fastest growing age group in the | | | | In summary, medical advances and the size of the |
| population are those aged 80 years, who currently | | | | “baby boom generation” mean that this age |
| make up 4.5 per cent of the total population. This | | | | group will grow significantly over future years and |
| age group has increased by over 1.1 million between | | | | statistics show that the grey market consumer has |
| 1981 and 2007 from 2.8 per cent to 4.5 per cent. | | | | more disposable income, and spare time than any |
| Marketing professionals should dismiss such a rapidly | | | | other age group. |
| growing market at their peril. | | | | The grey market are not who they were a |
| Older people can sometimes be stereotyped, | | | | generation ago; this generation of greys feel young |
| especially by younger marketing types. Yet today's | | | | at heart and spend money on enjoying life to the full. |
| `grey market' is characterised by consumers who are | | | | This generation are happier than any previous |
| healthier, more active, and younger in outlook than | | | | ‘grey’ generation to embrace new |
| their counterparts a generation ago, and as such | | | | technologies and try new experiences. |
| there are many opportunities for marketers and | | | | More businesses could well benefit from helping them |
| advertisers who take the trouble to find out what | | | | do so. |
| drives this group and stimulates purchase. | | | | |