ERMUSR MISC. ISSUES 01-13-2004 - Laserfiche WebLink

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more, sizable individual retirement accounts,401(k) Tapping a More Diverse Market plans and portfolios. Another major force reshaping consumer markets is Thus, many seniors have the money to pay for the nation's surging ethnic and racial diversity. fun and comfort. That will spark more spending on HISPANICS AND ASIANS lead the trend. Hispanics al- leisure activities of all kinds, from hobbies and enter- ready are the nation's largest minority group, surpass- tainment to travel and books. Thanks to improved ing blacks. Hispanics will account for more than 45% medical care, many seniors stay physically active for of our population growth from now to 2010. And by years longer than their parents did. Average life ex- 2020, the Hispanic population is likely to double. pectancy in the U.S. continues to expand and is now Our Asian population is expected to more than at a record high of just over 77 years. double in the next 20 years. In actual numbers,the Seniors will also spend on necessities such as gain for Asians is going to be much less than that for health care, assisted living and nursing homes. And Hispanics because it starts from a much lower base. on services they used to provide for themselves, such as lawn In a few years, MARKETING STRATEGIES should care, minor auto maintenance be adjusted to take into account and household repairs. demand will increase these growing ethnic communi- ties. The Echo Boomers for children's clothes, The most successful adver- By 2010, there'll be about 4 mil- tising campaigns will be tailored lion more people aged 18-24 toys, day care and to address their desires. Busi- than there are now—the so- nesses will profit from carefully called echo boomers.As a group, all the many other researching ethnic tastes and they are well educated and tech preferences and then catering to savvy, with good prospects for things that infants them. high earnings. Future efforts are sure to in- Echo boomers are at the and toddlers require. dude more-targeted marketing, prime age for buying cars and notably in communities rich home electronics. Many travel extensively.As they with newly arrived immigrants. Special appeals to push into their late 20s, they'll buy starter homes and Hispanics,Asians and other niche markets will be- - furnishings. come more subtle over time as ethnic identities fade with succeeding generations. MORE MARRIAGES are coming over the next 10 to 15 years as the population of 20-to 34-year-olds increas- New Households es. Bridal shops, florists,photographers and other Changes in U.S.households also affect markets, from wedding-related businesses can count on more cus- their number to their size and makeup. All affect fu- tomers. ture consumer demands and preferences. AND MORE BABIES. The number of births in the U.S. SMALLER HOUSEHOLDS are a trend that marketers was declining until 2000. Now it is on the rise again must take into account for the future. More house- and by 2008, the number of babies born is going to holds will be composed of singles living alone,widows surpass the old record of 4.3 million during the peak and widowers and couples with no children.They of the baby boom. want the convenience of smaller packages for every- By 2020,births are likely to reach 5 million per thing from food for one to cleaning supplies for easier year, thanks to the echo boomers and immigrants storage in tight spaces. who came to the U.S. as children in the 1980s. Household formations will grow slowly in the So despite the aging of the population in general, next decade or so as a result of the fairly stable num- look for the baby-related market to grow again—a fact ber of births in the 1980s. Close to 10 million house- that is often missed. In a few years, demand will in- holds are likely to be added by 2010—meaning more crease for children's clothes, toys,day care and all the people needing a place to live, furniture,appliances many other things that infants and toddlers require. and all that goes with having separate space. 16 I The Kiplinger Letter • KiplingerForecasts.com