What If…Boomers Become Luxury’s New Obsession? Luxury’s “Silver Lining”

What If…Boomers Become Luxury’s New Obsession? Luxury’s “Silver Lining”

“The tragedy of old age is not that one is old, but that one is young.” – Oscar Wilde

Many readers in the US may remember the recent surprising Sports Illustrated issue featuring Martha Stewart (81) cutting a dashing figure in a range of beautiful swimsuits. Maggie Smith (89) is Loewe’s latest Puzzle bag model, and Catherine Deneuve (78) was featured in a campaign for Saint Laurent in 2021. Helen Mirren (78) walked the runway at the Paris Spring/Summer L’Oréal Fashion Show 2024, featuring a wild crimped hairstyle and a sequined gown. Among Gen X, we have beauties like Cindy Crawford, Kate Moss, Naomi Campbell, and Julianne Moore featured across numerous campaigns. Still, the real kicker came courtesy of Vogue Philippines: on the cover of their April 2023 issue, they featured 106-year-old tattoo artist Apo Whang-Od.

There is a strange dichotomy underfoot: the luxury and beauty industries seem preoccupied with the youth of Gen Z and Gen Alpha when older Gen X and boomers have the financial capacity to spend extravagantly. Baby boomers, in particular, a generation known for defying convention, are redefining retirement. They are wealthier, healthier, and more tech-savvy than previous generations, and their expectations for their golden years are far from rocking chairs on a porch. Oscar Wilde clearly had a point, but today’s “older gens” live life differently to their parents, possibly flipping that quote upside down.

While the chatter around Gen Z and Gen Alpha continues unabated, the age of maturity is undoubtedly upon us, and the proof is in the media’s increasing obsession with older models and spokespeople. Clearly, this generation has been mildly neglected by the luxury industry, and there is a sizeable market opportunity here that requires a little rethink and pivot. Older generations, including older Gen X, but especially boomers born between 1946 and 1964, present many opportunities for luxury brands willing to adapt their approach. Quite a few brands are beginning to do so for various reasons.  In this analysis, we focus on boomers, but the facts apply equally to older Gen X and even older cohorts who fall outside the bands of the boomer generation.

1. The Opportunity: What Makes Boomers and Older Cohorts Such Appealing Luxury Customers?

Below are some critical characteristics that make older cohorts such ideal luxury candidates:

• Financial Security and Time:  Boomers are generally in a strong financial position. Many are retired or nearing retirement, with disposable income and the time to indulge in experiences and high-quality products. Unlike younger generations, who are burdened with student loans, starting out in jobs, and raising families, they have the resources to invest in luxury freely.
• Heritage and Value: Older Gen X and Boomers value quality and craftsmanship. They appreciate brands with a rich history and heritage, something luxury brands excel at providing. They may be more willing to spend a premium on a timeless piece that will last a lifetime and investment pieces they can hand down to the next generation rather than trendy items. Brands with investment value include Patek Philippe, Vacheron Constantin, Cartier, Bulgari and Van Cleef & Arpels, as well as icons like Chanel and Hermès. These typically hold their value and are coveted by younger generations.

• Experiences Trump Things:  While boomers and older Gen X appreciate luxury goods, as part of the present industry shift, experiences are becoming increasingly important. Pure luxury brands can offer unique experiences alongside their products, such as exclusive events, travel packages, or personalized consultations. Since more and more luxury brands are crossing into hospitality and branded residences, the older cohort’s target customer is an increasingly important consumer. The hospitality industry has truly benefitted from the post-Covid revival of travel. A notable example is the extremely successful listing of Viking Cruises, a cruise company catering to the over-55 crowd.

• In-store shopping and loyalty – Exceptional Customer Service: Older cohorts tend to be more old-school and traditional and appreciate polite and personalized customer service and brand loyalty programs that cater to their needs and preferences. Luxury brands can score highly with this target audience when really paying attention to facets of the customer experience in-store and how they can optimize this. Since this generation is more used to in-store shopping and less driven by e-commerce, building a connection through an engaged experience in-store is especially important.
• Focus on Wellness and Longevity: Boomers and older cohorts are more health-conscious than previous generations, and with the advent of modern medicine and a healthier lifestyle live longer lives. Luxury brands can cater to this by offering wellness-focused products like high-performance activewear, luxury skincare lines with anti-aging properties, or travel experiences focused on rejuvenation.

2. Getting Down to Brass Tacks: What Products and Services To Focus On?

Take a day in the life of your typical wealthy, retired (or still dabbling in work) boomer and imagine how they might want to fill that day: golf, tennis, spa treatments, lunches and dinners with friends, shopping, hobbies, volunteering. Or maybe they are still involved in running a business, some form of employment, or sit on several company boards but have a fair amount of free time. Many products and services will speak to this group if adapted to their lifestyle. It is important to think about what needs and preoccupations drive people at this age, and when following through on this thought exercise, it quickly becomes clear where brands should focus, namely:

• Wellness and Longevity: Luxury health retreats, personalized fitness programs with cutting-edge technology, or in-home care services with a premium touch. For instance, Miraval Resorts and Equinox Hotels could build out wellness/fitness and recovery programs that combine hospitality with health checkups and fitness training targeted at the over-60 crowds.
• Experiences over Things – Hospitality, Food & Beverage, Travel Outfitters: Exclusive travel experiences, access to cultural events, or curated adventures tailored to their interests. Focusing on multi-generational experiences that can include family and friends. For instance, Safari Outfitters like Abercrombie & Kent will design and market multi-generational, multi-interest, highly curated luxury bespoke travel packages that address the needs and interests of boomers who want to take children and grandchildren along on vacations focused on special adventures, cultural interests, or educational content.

• Time-Saving Convenience: Services like personal assistants, errand runners, or concierge services (medical, nursing, entertainment) that free up their valuable time are crucial. Quintessentially, a high-end concierge service could, for instance, start catering specifically to the needs of the boomer generation with bespoke packages.
• Legacy and Heirlooms: Luxury goods crafted with exceptional materials and sustainable practices designed to be passed down through generations.
• Cognitive Enhancement: Brain training programs, access to cutting-edge advancements in cognitive health, or even brain-computer interface experiences. Think technologies like Neuralink.
• Personalized Luxury: Highly customized products and services catering to the preferences of the elderly. This could include bespoke clothing, tailored financial advice, curated art collections, and wealth and estate management.

3. The Roadmap: How Can luxury brands capitalize on these opportunities?

• Targeted Marketing: Marketing must move beyond traditional marketing channels and embrace platforms frequented by boomers, such as specific TV channels, magazines, and online communities. A recent article by behavioral scientist Prof Ben Voyer of ESCP and LSE Business School and research chair holder of the Cartier-HEC-ESCP espoused the virtues of luxury marketing in print. All of us appreciate the visceral and very hedonistic pleasure of holding and looking at a glossy magazine. It is something older generations are much more used to. It is important to remember this when crafting marketing strategies.
• Focus on Brand Storytelling: For older cohorts, tradition, family, and provenance are values that really count. Therefore, the heritage, craftsmanship, and quality that define a brand can never be understated and must be stressed. Older cohorts, much more than younger generations, value timeless pieces and lasting value because oftentimes, the motivation is to pass something of lasting, intrinsic value onto the subsequent generations.
• Exceptional Customer Service: Boomers appreciate personalized attention and high-touch experiences, often only available through in-store experiences. It is important to hire boutique staff that resonates with older generations. At-home clienteling is also an opportunity for engagement with older cohorts who may prefer to shop in the privacy of their homes. This could nicely be supported through technology, specifically AR/VR, to make the experience more immersive.
• Prioritizing Experiences: Brands should offer experiences that complement their products, such as exclusive workshops, cultural events, or travel packages tailored to their interests. Such activations are especially appreciated because they provide a forum for meaningful exchange among people interested in similar pursuits, allowing older generations to stay in touch with younger cohorts and not lose relevance.
• Embracing Technology: While older cohorts might not be digital natives, many are comfortable using technology. Although this may seem counter-intuitive, it is a good idea to offer user-friendly online shopping experiences and utilize social media platforms to connect with them.

4. A Hypothetical Reality: Boomers Will Have Their Own “Silver Cities”

Let’s take this thought exercise a step further and imagine a reality where brands segue from branded residences to branded high-end retirement communities replete with their products and services. Bingo nights and sterile hallways will become a thing of the past, and boomers will reside in meticulously designed urban enclaves catering to the active and affluent older population with outstanding amenities and a focus on well-being. Examples of luxury retirement communities and residences abound, including Binswood Hall in the UK, Hope Island on Australia’s Gold Coast and Sarasota Bay Club, Florida. Imagining Bugatti or Armani putting its branding stamp on a high-end retirement residence somewhere in Palm Beach or Turks and Caicos soon is hardly far-fetched. The hallmarks of such communities will be as follows:

• A Redefinition of Luxury: The days of one-size-fits-all senior housing will soon be gone. Luxury here will translate to personalized service. Older cohorts will enjoy high-rise apartments with stunning views outfitted with the latest smart-home technology for ease and safety. On-site concierge teams will handle everything from scheduling doctor appointments to planning social events.
• Focus on Wellness: These communities will prioritize holistic well-being. State-of-the-art fitness centers with trainers specializing in senior fitness, rooftop gardens for urban agriculture and social interaction, and even on-site medical facilities with preventative care will be included.
• Social Connection Will Be Critical: Human connection is crucial at every stage of life. “Silver communities” will combat isolation by fostering a sense of community. Residents can enjoy art studios, gourmet restaurants with nutritionally tailored menus, and even theaters or performance spaces. These features not only provide entertainment but also create opportunities to connect with like-minded individuals.
• Connecting with Urban Centers: These enclaves won’t be isolated but will be seamlessly integrated into existing urban landscapes, allowing residents easy access to cultural attractions, museums, and green spaces. This will foster a sense of belonging and allow seniors to remain engaged with the city’s energy.

A truly mind-blowing iteration of this concept is the idea of purpose-built cities that will accommodate the general population and possibly cater to the older set. Dezeen Magazine recently published an article about the Sierra Leone-born actor Idris Elba spearheading a project with Sasaki Associates and London-based architects Foster + Partners off the coast of Sierra Leone. Foster + Partners are the architects behind 50 Hudson Yards and Lusail Towers in Qatar.

For this idea, the architects and Elba are creating a master plan for the entire island of Sherbro in Sierra Leone. The goal is to redevelop this 65-mile-long island into a self-reliant, smart city. This island would accommodate up to 1 million people. As per Elba’s comment, “Part of me wants to build that beautiful retirement home for my mum.” Thus, it seems there will be a component catering to this cohort. This idea could easily be adapted to target affluent boomers. In fact, smart cities such as these are being developed in Mexico, Malaysia, and the USA. NEOM The Line in Saudi Arabia is a revolutionary urban dwelling solution in the middle of the Saharan desert; it will stretch 170 km from the mountains of NEOM across the desert to the Red Sea. It is meant to run on 100% renewable energy, and 95% of the land will be preserved for nature, with AI powering many central functions.

As the number of older cohorts grows worldwide, mobility issues and living spaces for this group will become more pressing, along with the need to provide products and services that resonate with the more affluent older cohorts. Silver cities are a paradigm shift offering a glimpse into a future where aging is not synonymous with decline but a chance to live a new chapter filled with luxury, purpose, and joy.