Changing Demographics

Demographic Overview

Arthur Mead

Summary by Bethany Lyons 

Professor Mead covered a variety of topics in his overview of demographics including how demographic information is useful in today’s marketplace and what can be expected in regard to population changes over the next fifty years.  Some examples of these changes are the percentage of different ethnic backgrounds in the U.S. population and how these groups will grow in our society.

Mead introduced the subject by explaining the link between demographics and the future.  Recently Hamish McRae, in the book The World in 2020, stated that demographics and technology will be the most important tools in the years to come.  According to the OECD, changes in demographics will be the most significant over the next fifty years.  It is important for people in the apparel industry to be aware of these changes in order to serve the customers’ needs. 

Demographics can dramatically affect business decisions.  Site planning, human resource planning, market area assessment, and market area financial potential are laid out according to demographic research.  Target markets are segmented by similar information.  For example, an ethnic market can be targeted geographically by city.  A retailer could also target by price.  The success of the product within a target market can be projected through the use of demographics.

Demographics recently celebrated a milestone.  Because the world population began increasing dramatically in the post-war period, the world reached 6 billion people in 1999.  In the US, the largest part of the population is the Baby Boomers - those born between 1947 and 1964.  Recently the leading edge of the Baby Boomers reached age 50 and began receiving their applications for an AARP card.  By 2015 the leading edge will be reaching age 65 and in the decade ending in 2020 the elderly population is expected to increase as much as 35 per cent.  To keep their business, the apparel industry must recognize the demands of the aging population. Designers, retailers, and manufacturers must work together to cater to the changing marketplace.

This lecture provided an excellent overview of what is to come.  We had the opportunity to learn about what is currently happening in the United States and world population.  This lecture provided us with the information needed to speculate on the direction the apparel industry will be taking.