GETTING AHEAD OF GREAT TRANSITION

First Quarter 2023 Findings

We all knew the day was coming. We just didn’t know exactly when — or what it might mean. Some of us were looking forward to it, some of us were dreading it, and still others were actively trying to forget about it.

I am talking about the great generational shift from Baby Boomers to Millennials and Gen Z.

Of course generational shifts don’t happen overnight, but when they do, everything changes. And this shift will be an epoch-defining transition of wealth and power — and it has begun. Baby Boomers, born between 1946 and 1964, have begun to retire in record numbers. According to the Pew Research Center, the rate of retirement for Boomers has accelerated since COVID-19 began. Nearly 29 million Boomers retired in 2020, three million more than in 2019. Some 75 million Boomers are expected to retire by 2030 (out of a total of 78.3 million in the cohort).

Currently, 10,000 Baby Boomers reach retirement age every day, and increasingly, they are deciding to retire early. In fact, 75% of Boomers polled by Coventry (a market research company) said they are planning to retire early.

This ongoing event, which is being called “The Great Retirement” is the start of the generational shift from Boomers to Millennials and Gen Z. When it is over — approximately eight years from now — we will be living in a changed world and the powersports industry will be catering to an entirely new customer base… Like it or not! With this historic shift just beginning, now is the time to get to know how Millennials and Gen Z shop and how they are different from Baby Boomers (the dominant powersports target market today. Did you know that the average age of a powersports vehicle owner today is 50? Do you know the median age of your customer base? Do you have a plan to skew younger with your SKUs?

JUST PHONING IT IN?

In many ways, Millennials and Gen Z consumers shop much like Boomers. Age gaps are modest when it comes to buying from a physical store or shopping on a computer. According to Pew Research (November 21, 2022), 61% of Boomers prefer in-person shopping compared to 53% of those ages 30-49 and 57% of those ages 18-29. Further, 67% of Boomers say they make purchases using their desktop or laptop computer compared to 71% of those 30-49 and 69% of those 18-29.

However, the numbers change dramatically when it comes to shopping on a smartphone. A whopping 92% of those ages 30-49 use their smartphone to buy things online compared to 87% of those ages 18-29 and just 48% of those 65+. For whatever reason, Baby Boomers are hesitant to use their smartphones for online shopping.

Online shopping habits also vary by household income. Adults with upper incomes are more likely than middleand lower-income adults to say they use their smartphone or desktop/laptop computer to make online purchases. This is most pronounced when looking at computer use: A full 86% of higher income adults use their computer to buy things online, compared to 74% of those with middle incomes and about half (51%) of those with lower incomes.

Influencers

Perhaps the most important finding of the Pew study — and the most important for you as a powersports dealer — is how social media and “social media live streaming” are beginning to have a profound effect on buying behavior, especially with younger buyers. And don’t doubt for a second that this influences big ticket items like a motorcycle almost as much as it impacts impulse buys like a T-shirt. (Editor’s Note: Maybe more, since I suspect their online “research” consists of watching TikTok snippets? Don’t underestimate the reach of the influencers)

By now, all of us are familiar with social media and its importance in today’s digital world. However, the term “social media live streaming” may be new to you (it certainly is to me). “Social media live streaming refers to real-time videos shared on social media platforms (as opposed to videos filmed in advance and then posted to social media).” Live streaming social media has been around since 2008 when YouTube held its first live event. Yet it has only been in the last year that live streaming has gone from lukewarm to fully obsessed.

In 2022, nearly a third of all Internet users reported watching at least one video live stream each week (Hootsuite, 2022). Live streaming is important because of the way it is being used. Live streaming has emerged as a way for people to promote products, share tutorials and create content in the hope of influencing people’s tastes, opinions and purchases.

The people selling products via live streaming have become known as “influencers” and, increasingly, young social media users are following influencers and buying products based on influencer recommendations. Overall, four-in-ten social media users say they follow influencers or content creators, while just over half (52%) say they do not do this (and 8% are unsure). However, that number rises to 72% for 18- to 29-year-old social media influencer followers (compared to only 12% of 65 and older – a dramatic 60% gap between younger adults and Baby Boomers). A similar pattern exists with other age groups: 44% of those ages

30 to 49 and 26% of those ages 50 to 64 say they follow influencers.

Most important of all is the fact that 41% of 18- to 29-yearold social media users have purchased something after seeing an influencer post. That number drops to 33% of 30- to 49-year-old social media users, 24% of 50- to 64-year-old social media users and just 20% for those 65+.

The NEW REALITY: If you want to sell to Millennials and older Generation Z consumers, you MUST do live streaming using influencers!

Now is the time to get out in front of the “great transition” and begin in earnest to sell to Millennials and Gen Z. Go online and start livestreaming using influencers. You won’t regret it… Or you can just join the Boomers who are bowing out and become part of the “great retirement!”

A perennial keynote speaker for the Motorcycle Industry Council's annual Communications Symposium, Dr. Paul Leinberger has become the powersports industry's de facto futurist/strategist. Dr. Leinberger is an expert in market/brand strategy and research with more than two decades of social trend forecasting, market strategy and strategic planning. Prior to joining TTD, he was Senior VP of GfK NOP, where he ran the company’s flagship consumer trend services, Roper Reports, as well as the company’s groundbreaking Global Visual Database. His client list reads like a Who’s Who of corporate America: Hewlett-Packard, Apple, Disney, Nordstrom, Microsoft, Levi Strauss, E.& J. Gallo Winery and Toyota, among many others. Prior to his global responsibilities at GfK NOP, Dr. Leinberger was the Corporate Manager in the Product Planning and Market Strategy department at Nissan North America. Dr. Leinberger holds a Ph.D. in organizational and social psychology and a Masters of Urban Planning (Highest Honors). He lives in Irvine, California, and his latest book is available at: www.amazon.com/Unfiltered-Marketing-Credibility-Customers-Distracted/dp/1632651785

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