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Dear Sir, In any country, whether in Asia or the in the West, it is the youngsters that serve as trendsetters. But Japan is becoming an exception to this rule. These days it is often elderly Japanese who take the lead in consumer trends. Young people follow. Behind this phenomenon is the fact that people in Japan are living longer. The recent tendency of older people is to spend more of their own money on themselves rather than leave it to their children. You can gauge the extent of this reversal of roles from the claim of some economists who say Japan’s current consumption slump is due to the inability of goods and services suppliers to immediately recognize this trend. Take the walking shoes now popular among people in their twenties and thirties. Middle-aged and elderly people were the first to buy these shoes for hiking and longer walks around town. Young people took to them and now wear these light, comfortable shoes every day. Other products first made popular by middle-aged and elderly consumers and then picked up by the younger generation include Swiss-made mechanical wristwatches, top-of-the-line guitars and ukuleles, and collapsible travel bicycles. There are many other such products, which elderly people either longed to possess in their youth or are attracted to for health reasons. A lifestyle magazine founded 10 years ago for older readers is now attracting a younger readership as well. Older consumers who are now assuming a leading role in the marketplace are people aged 50 or older who have finished raising and providing for the education of their children. These middle-aged trendsetters are focusing their attention inward -- to their own married and individual lifestyles. This year, the last of Japan's postwar baby boomers will enter their fifties. This rapidly expanding segment of the population now accounts for nearly 40 percent of the total population and in 2005 is forecast to become even larger than the 20-49 age group. Not only are these older consumers growing more numerous, they also have more money. Average net savings (savings minus liabilities) for people in their forties are about US$83,000 dollars. For people in their fifties, net savings total more than US$99,000, and are over US$167,000 for people in their sixties. Aside from spending power, another reason why older people have taken a leading role in consumption is their simple desire to lead fuller lives. They want to enjoy life actively by traveling, attending the theater, and so on. These people prefer to spend their money on their own hobbies and interests rather than use it to provide their children with financial support or an inheritance. If you are trying to market a new product in Japan, or reposition an existing one, take note of this trend. Copyright (c) 2000 Asia Letter Publishers. All rights reserved.
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© Asian Business Strategy & Street Intelligence Ezine 2000
The views expressed here may not necessarily reflect those of partners, publishers, editorial board nor sponsors of the Asia Pacific Management Forum
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