For Wellness & Better-for-you Brands, Gen X Spends the Most

Generation X: What a boring title for a group that ushered in the use of cell phones, home video games, microwaves, and cable TV. Gen X is that “old generation” now, creeping up into their 50’s, and uncool (clearly) to the younger generations. And in many marketers’ eyes, Gen X is even less relevant. In fact, most marketers do not even target this age group any longer. Our youth-obsessed culture is overlooking one of the most obvious targets.

Well, I’m here to say, we’re going to change that right now.

I’ll be honest, when I first started researching this article, I was pretty darn sure I was going to be searching for days to find data that supported Generation X’s spending muscle. How surprised I was when data point after data point surfaced, disproving my hypothesis. In fact, most research I found states that (at least for now) Generation X has the greatest spending power of all other generations – generating 31 percent of all U.S. income with only 25 percent of the population.

Generation X is a group of big spending tech fiends who were taught to break the rules.

Picture this: my friend’s basement in 1981, MTV comes on the air, blows our minds seeing artists transform music over the airways, and creates a visually-obsessed culture that legitimizes cable television as a new marketing platform.

The 1980s helped shape Generation X into people who are comfortable pushing boundaries, quick at adapting to innovation, and willing to spend their money to get the goods. Yes, Generation X spends more than any other generation. Home-based video games, MTV, cable TV, and microwaves brought a new definition of easy family living and entertainment, as well as access to lifestyles many had never seen before. Keeping up with the Joneses went up a level. We had a whole world of things we could buy.

What defines Gen X?

  • Education: More educated than any generation – 35 percent have college degrees versus 19 percent of Millennials.
  • Technology: While not digital native, innovation and technology became keys to their life (think cell phones, email, and personal computers).
  • Cultural revolution: More women going back to work meant women had power and money. We saw families on TV with moms that worked high-paying jobs as the new normal. Claire Huxtable (The Cosby Show), Maggie Seaver (Growing Pains), and Angela Bower (Who’s the Boss) were different moms than we had seen before. Characters like an African American lawyer and a single mom advertising executive with a male nanny created a generation of people comfortable pushing boundaries and cultural norms.
  • Independence: An increase in single and working moms created a new, more independent youth.
  • Hope: As the first generation unrestricted by the cultural norms of the past, they believed they could have it all; and subsequently came crashing back to earth wondering about work-life balance and wellness.
  • Rebellion: Stuck between two large egocentric generations, Gen X revolted by creating grunge rock and popularizing dystopian novels like Shampoo Planet, by Douglas Copeland.
  • Materialism: A strong relationship with materialism meant Gen X was hit hardest by the Great Recession of 2008.
  • Career length: Despite the fact that Gen X currently holds a significant percentage of high-level jobs, the Great Recession, appetite for spending, and longer life expectancy means they need to remain in the work force longer to pay off mortgages, their children’s tuition, and save for retirement.
  • Age: America is a youth-obsessed culture and Gen X is no longer the youth.

What marketing trends does Gen X influence?

  • Better-for-you and wellness: While Millennials rank evenly with Generation X in their love of mission-driven brands, Gen X-ers spend significantly more on today’s do-gooder brands. Thus, making organic, ethically produced, and sustainable products a viable marketplace for everyone.
  • Email marketing: As the first group that opted out of print catalogues, email marketing became the norm.
  • Convenience: Online shopping’s confluence with social media: They are busier than heck – leading their companies, running kids around, and trying to stay healthy. Online shopping, social media, and on-demand services (such as streaming services like Netflix and meal-kit delivery systems like Blue Apron) are ever-popular with this generation.

How does all of this affect marketing to Gen X?

  • They are skeptical: They learned the hard way. These folks have been through two impeachments. They gave the world grunge music and modern marketing. They are today’s power brokers and executives. They don’t fool easy. They give trust to those who earn it. This is the generation who will research your brand in detail before committing to parting with their money. So, don’t try to win them over with glitz. Show them your true colors and they’ll respond. Gen X has a history of loyalty when it comes to authentic, transparent brands.
  • They are currently the parental generation: The youngest Gen X-er is just now entering into parenthood and the oldest have begun shipping their kids off to college. Almost every sale to a child is a sale to a Gen X-er too. If you’re targeting kids, you’re targeting their parents too.
  • They are premium focused: As professionals and parents with hard-earned money to burn, Gen X-ers put a premium on quality. They want to know that a brand is reliable, that a product is hardy, and that media is sophisticated.

Generation X is a true hybrid when it comes to marketing. As a brand owner, you are playing the long game. Simply put, ignoring this generation puts your bottom line at risk for the foreseeable future.

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Chief Sales & Marketing Officer
For Diana, a fierce determination to pursue what’s right is rooted in her DNA. The daughter of parents who endured unimaginable hardship before emigrating from Eastern Europe to the U.S., she is built for a higher purpose. Starting with an experience working with Jane Goodall to source sustainably made paper, she went on to a career helping Corporate America normalize the use of environmentally responsible products and materials before coming to Retail Voodoo.

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