Gen-X consumers most important for store brands, says demographics expert

Because of its size and seeming uniqueness, the millennial generation garners most of the attention these days in marketing circles. But Generation X consumers, who range in age from 35 to 51, are the most important consumers for store brands right now and should not be overlooked as they sometimes are, said independent journalist and demographics expert Brad Edmondson during the Private Label Trade Show’s opening seminar on Nov. 12 in Rosemont, Ill.

Nearly 70 million strong, GenX-ers are the generation with the largest household size since many of them are currently raising children. And these GenX-headed households have many distinguishing characteristics that bode well for private brands, Edmondson added.

Especially noteworthy, “GenX redefined marriage,” Edmondson emphasized. In part because the Great Recession impacted male-dominated professions such as construction and manufacturing more than female-dominated ones such as healthcare and education, 40 percent of wives in this generation earn more than their husbands. This means that in many families, fathers are sharing more of the household responsibilities, including child-rearing and grocery shopping. Thus, it’s crucial to recognize the influence of GenX men in making family grocery purchases, Edmondson told his audience.

In addition, more than 60 percent of GenX couples are in dual-income households. With more college education overall than any previous generation, many GenX-ers are financially successful and favor shopping at chains such as Austin, Texas-based Whole Foods Market and Rochester, N.Y.-based Wegmans Food Markets. However, a significant proportion of this generation continues to struggle economically and shops at places like Earth City, Mo-based Save-A-Lot stores. There is a growing divide between the haves and have-nots, Edmondson observed.

Because Generation X grew up during the Great Recession, GenX consumers “spent their formative years being thrifty,” he said. Thus, even higher wage earners in this generation appreciate the value proposition of store brands.

Also significant, only two-thirds of Generation X is married, a smaller proportion than any prior generation. Many GenX couples are cohabiting and raising children without bothering with a formal marriage certificate. Such couples do less planning for the future, Edmondson pointed out.

“When you cohabit, there is more emphasis on getting by on a day-to-day basis,” he noted. “And the food budget is a top-of-mind concern.” Again, the excellent value provided by private brands appeals to such consumers, he added.

This generation’s relatively high level of education also means that GenX-ers want to learn more about a product before they purchase it, according to Edmondson. Transparency is as important to Generation X as it is to millennials, he said.

Given that so many GenX-ers are raising families in dual-income households, it would be easy to conclude that convenience is their top priority, but research has indicated otherwise. “These people have everything but time,” Edmondson said. However, the data show that what they want most of all is “to have more fun and more unstructured time with their kids.” Cooking together as a family is one way for GenX parents to spend quality time with their children, he suggested.

Edmondson recommended that grocery retailers develop meal kits for easy and delicious cooking projects that families can undertake as a bonding activity. Meals that incorporate frozen fruits and vegetables as well as home-cooked pizzas made from precut ingredients and premixed pizza dough are two such examples.

As Edmonson maintained, retailers can do much more to engage Generation X with private brand products and meal solutions.