If you are a marketer and your marketing strategies are skewed towards the 270-odd millennials of this country, you may soon need to tweak it. For, come 2019, the numbers of millennials will begin to diminish and the number of Gen X consumers will actually be on the rise.
While in the last 10 years the population between 25 years and 35 years (millennials) has grown rapidly, in the next decade, with the birth rates dipping, the census indicates that the 25-35 age group will decline. It will be around 263 million, lesser than their current population. As per the latest census data, 41 to 50 year olds, who fall in the Gen X category is the fastest growing population segment in India. While they contribute just 28% of the population, they contribute up to 42% of the population growth.
In fact, a recent report by Nielsen says that the Gen X group is already a formidable force which marketers across sectors can no longer afford to ignore. According to the report, contrary to popular belief that the Gen X group is slow towards adoption of digital platforms and technology, this generation is actually fast catching up with the millennials.
In fact, demonetisation has had a role to play in ensuring the Gen X become digitally smart. The Nielsen report says that digital financial transaction post demonetisation for the 35-45 years age group went up from 88% to 95%, while the actual spurt was seen in the 45-55 years age group. Only 68% of this group used digital transaction methods pre demonitisation and post demonitisation it has gone up to 90%. The Gen X group is actually spending as much time as the millennials on various financial apps such as mobile wallets, mobile banking and Internet banking.
The population of Gen X using smart phones has also gone up from 21% in 2013 to 45% in 2015. Therefore, three years from now, as per the Nielsen report, there will be fewer Indians between 25-35 years, so marketers cannot have a strategy solely or even heavily aimed at that age group because the 41-50-year-old age segment holds great promise as consumers. "Digital communication from marketers is now consumed by Gen X as much as the original intended recipient - Millennials. So, when the 25-35-year-olds shrink as a segment, demography as well as the dynamics of technology adoption will change and call for new strategies aimed at the elder, digitally savvy consumers in their forties," points out the report. Marketers need to quickly get their act together.