Canadian Apparel
What consumer group spends over $35 billion a year - but is largely ignored when it comes to product development and marketing? According to Statistics Canada, the number of women 50 years older and up went from 5.5 million in 1991 to nearly 7.3 million in 2001. By the end of the decade, Approximately one third of Canadian adults will fall into that age group. This 50+ set is responsible for more spending in Canada then any other group. With those numbers, you would think that marketers would be falling over each other to communicate to this segment. But you would be wrong. The fact is that the 50+ market, both men and women, spends over $35 billion a year in Canada, yet only 5 to 10 percent of advertising dollars are targeted at them. If you are a manufacturer, maybe it's time to look at whom you are really selling to and to make a decision to "fish where the fish are." Think about fine-tuning your message to the most powerful market of all - aging female baby boomers. There are a lot of them, they are in better health than their parents were at their age, they have lots of free time and healthy bank accounts due to a lifetime of hard work and the unprecedented phenomenon of inheritance - and they are prepared to spend on travel, recreation and luxury items. They are the CEOs of their household, the gatekeepers of the brands that get through the door. John Winter, one of Canada's top retail consultants, quoted in David Foot's book, "Boom, Bust and Echo" says "It is easier to manipulate a younger market into buying what's fashionable because they are insecure. By the time you are in your 50s, you've seen trends come and go for 30 years. You know what looks good on you and that's what you buy. Women will spend more on a single item of clothing, but it's likely to be more classic, like a Chanel jacket. They'll shop at stores they couldn't afford when they were younger."
As always, the key questions to ask when looking at your marketing strategy are: Who do you want to talk to? What do you want to tell them? What do they think of you now? What do you want them to think? Why should they believe you? Some of the women you want to talk to can shop comfortably in the Gap right next to a 20-year-old and may even buy the same item. Others need larger sizes and don't want to dress like their daughters. They don't want loud music in the store and they do want mirrors in a more spacious dressing room. Some manufacturers are responding to this market by changing their sizing. In some stores, like Abercrombie and Fitch, women who usually wear a size six can easily fit into a size two. And this doesn't only apply to womenswear. I can't tell you how good I felt recently buying a pair of Lucky Brand jeans that fit me perfectly. They were a size 31. And here I thought I was a perfect size 32 who occasionally has to buy a size 33 (because they shrink?) Armani has been very successful with this market, targeting both men and women with more relaxed silhouettes and quality fabrications. The woman I spoke of earlier will buy an expensive jacket at Holt Renfrew to wear with jeans she purchased at H&M during a four-day weekend in New York. She feels equally comfortable in a downtown boutique or at Costco. She has very specific media habits, watches certain shows, reads targeted magazines and is looking for quality. She trusts name brands but is not limited to those brands. She is more media savvy, more sceptical, more discerning than the younger client so beloved of marketers. She may look for information online but prefers bricks and mortar when it comes time to make the purchase. This is the crowd that is driving luxury car sales and buying and furnishing their second home in cottage country or down south. When the kids leave the nest, they may trade up to a more expensive condo or totally redecorate the house. She may be driving an SUV but she thinks the Mini is a great car. She's worked hard to raise a family, look after parents and is ready to pamper herself. But the notion of pampering has changed from ostentation to "luxurious minimalism": a great day at the spa or a $250 pair of jeans that fits just right. If you can develop a relationship with this customer by offering a focused promise and a rewarding customer experience, then you can expect tremendous market acceptance and growth. The question is, does your product and brand position meet the demands of this woman and the people she influences? These are woman who are unlikely to accept a brand message without a healthy dose of cynicism, If you tell her that a certain accessory is a "must have" or ups her cool factor, you could lose her forever. In fact, you should consider telling her less and let the product do the talking. This is the woman who may want fewer options and features on her cell phone. In terms of apparel, it is not about bells and whistles. It is about quality, comfort and fit. Starbucks is a brand that has successfully engaged this customer through a total shopping experience. It's not just about the coffee. It's about the music, the language, the comfy chair, the convenience and then the coffee. They consistently deliver on the customer's expectation, which in apparel means quality, simplicity, fabric and fit with price following. Holt Renfrew gets it. So does Zara, which has added Zara Woman. Toronto designer Sunny Choi, who does a significant business in the U.S., much of it through Saks Fifth Avenue's Salon Z shop, gets it too. Those who do it right are communicating a focused message through all channels from the cash register to the internet, from package design, labels, hangtags and displays to direct mail and paid advertising. So what's the bottom line? This important target group is not to be ignored. These woman judge the brands they buy based on the product's ability to deliver on its promise, on the quality of service, on clarity of promise, and on the offer itself. Not that different from the younger target, but these women know what they want and are less tolerant of brands that don't deliver. Which all adds up to a growth opportunity for an industry that needs a boost. Forget about the Hillary Duff generation for a while and think Madonna (Esther) again. Ron Telpner is chairman and CEO of The BrainStorm Group, a Toronto-based integrated advertising and marketing agency with clients on both sides of the border. Contact him at rtelpner@brainstormgroup.com or (416) 506-9930. -30- |
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to the household ceo