Old World, Meet New

By Ellen Fruchtman, President

I read this great article a few months back about the advertising business. It had to do with the average age of an advertising creative person — which happens to be 28. The advertising business is an industry of young, energetic people (by and large). Compare that to the average age of the largest consumer spending group — which happens to be over the age of 50. Believe me, after doing this for over 28 years, I can understand why. The age old marketing question is this: Can this young age group craft messages for products to consumers double their age? Can they relate?

For many years the sweet spot for advertising was ages 18-34. Back in the ’70s, this demographic was the largest in history — now known as the baby boomers. And, since agencies notoriously employed young people, it was the perfect match. The sweet spot for marketing remains at the 18-34 demo, but there are now far fewer people in that demographic and quite frankly, the money is simply not there. According to McKinsey Consulting, people 50+:

• Earn $2.4 trillion annually compared to $1 trillion for the 18-34 age group.

• Generate 41 percent of all disposable income.

• Buy 60 percent of all packaged goods; over half of all new cars.

• Spend 75 percent more per vacation than consumers under the age of 50.

• Spend 3.5 times the national average holiday shopping online (in 2007).

What does this have to do with the jewelry business?

First, do not abandon the boomer. We may have lost a little money over the last year; we may need  to curb some spending; but we are still the holders of the almighty buck and we’re used to spending it. Old habits die slow. A few upturns in the economy and we’ll be right back to our over-indulgent ways.

Second, and really the point of this article, is the notion of relating to your customer.

The primary customer for fine jewelry is women. Not just any women — usually sophisticated, educated, contemporary and independent women. Some of these women are in the advertising sweet spot of 18-34 — or as I like to refer to it, your bridal customer. And for the most part we have a bunch of old, Hasidic and Indian men crafting our message? Leading the charge? Debating at diamond forums on the state of the industry and what needs to be done? You’ve got to admit, it’s pretty funny.

Take a look at your self and some members of your staff. It’s all about relating to your customer. Nationwide research conducted by AARP shows that the many consumers over the age of 50 feel advertising either portrays them negatively or simply ignores them. And maybe, just maybe, it goes back to the 25 year old copywriter who just doesn’t get it.

There’s definitely a correlation we can’t ignore. Are we prepared to ask the same question of the people who head up our industry? Run our stores? Sell across the counter? Can they/you relate to this new, savvy consumer? Maybe not.

Got something to relate? Email us at suits@fruchtman.com

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By Ellen Fruchtman on January 26, 2010 :: Filed under Think
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