Mary Furlong & Associates' Boomer/Senior Market Report
Exploring the 10 Trends Powering the Age Boom
Summer 2007 - Vol. 4, No. 5
In This Issue:
- LETTER FROM MARY
- FEATURE ARTICLE
- SPECIAL SECTION: BOOMER SUMMIT REVIEW
- NEW MARKET FINDINGS
- SPECIAL ANNOUNCEMENTS
- NEWSWIRE
Dear Friends and Colleagues,
Hope and trust you have found some time for summer fun this year. It has been a challenging time for me the past few weeks. My mom, age 85, fell a few months ago. She slipped one day and the next thing you know there was a small fracture. Though I have been an "expert" in the field of aging for the past 20 plus years, it was amazing how little I knew about navigating the system after a fall.
I did know that the Archstone Foundation and the National Council on Aging have provided funding and research to help people. Local groups offer resources too; for example, the Silicon Valley Council on Aging has a Generational Resource Center with information and referral services. And then there is a stream of products to discover at places like the Relax the Back store.
We managed to get my mother the Kaiser care she needed and the empowering technology tools of a "Cadillac scooter" and a power wheelchair. We found old movies like Sabrina and Roman Holiday to play on her portable DVD player. We even found a Perry Como CD for her roommate, Violet. Eventually, we were able to shop around for a top-tier CCRC (Continuing Care Retirement Community). We wanted one near her friends so a game of Mexican train or Pedro would not be far away.
The key in navigating one of these situations is to find a trusted intermediary who knows the lay of the land. Finding eldercare help is very zip code dependent. Often families navigate these crises from remote locations. Our client Decision Street is going to do a lot to provide help with this in the future. I reached into my Rolodex and found Marissa who used to be in my carpool. Unlike most of those of her generation, she has chosen work in the field of aging and is now a geriatric specialist for Sunrise Senior Living. She led me to Julianne of Care Quest, who did the assessment and shared the options. To have in-home care (cost, about $270 a day) you need to be able to "weight bear" on both legs; with a spinal stenosis problem, this is not an option. So, looking outside, we found a beautiful retirement/assisted living center near Mom's home and senior center. Villa San Ramon has great food, a wonderful slate of activities and the health care assistance she needs. I am 58, my mom is 85. We are not alone in this journey. There are over 77 million boomers, and the fastest-growing part of the population is 80.
There are statistics that you care for your aging parent for 18 years and you care for your children for 17 years. Not sure this is accurate, as most boomers I know are still providing some kind of care -- physical, emotional or financial -- for their adult children. So it's important that you also care for the caregiver. I went back on my blood pressure medicine, and have started exercising again. My friend Jane Glenn Haas of WomanSage says that caregivers need a martini. I followed her advice and found a blackberry martini that has provided some comfort.
The challenge is that we really don't want Mom to be sick -- or in pain. So, how can we help her navigate through this passage? Take a look at the Johnson & Johnson Strength for Caring site and the MetLife Mature Market Institute.
There are many market opportunities around this topic. More financial decisions are tripped with a shock like a fall than you can believe; it is when all of the housing and many of the financial planning decisions are made. Watch for businesses that form around this. I just read that caregiving assessments are one of the top new businesses for entrepreneurs.
Speaking of boomer and senior businesses, I wanted to share the excitement over the Silicon Valley Boomer Venture Summit that took place in June. World Hearing Organization (WHO), which offers mobile hearing aid centers, took home the $10,000 first prize in the General category of the competition. First prize in the Health category went to SeroNostics, a new company whose product will soon allow doctors to perform blood tests right in their offices.
The other four finalists in the General category:
- AmeliaPlex, an Orlando, FL-based company, developing and marketing software solutions that send medication reminders to users' cell phones, pagers and other mobile devices.
- Celery, a Troy, NY-based firm, developing a device that enables users to send and receive handwritten letters as email and receive printed color photos without a computer.
- eLegacy, a Lewis Center, OH-based firm, developing software that makes it easier for estate holders and their executors to manage and settle estates.
- Prime Footwear, a Stanford-based venture, developing therapeutic footwear with clinically validated technologies for consumers with joint problems.
Finalists in the Health category:
- CellThera, a biotech venture based at UC San Francisco, developing cell-based transplants for severely disabled stroke patients.
- Curant, a Stanford-based venture, developing device-based therapies for people with urinary incontinence.
- cVision Medical Solutions, a Johns Hopkins-based venture, developing a non-invasive ultrasound procedure that measures central venous pressure.
- Optimal Vision, a University of Illinois at Chicago-based venture, developing a non-invasive laser procedure that reshapes the cornea and corrects near-vision loss.
The Summit also showcased superb speakers, Jody Holtzman of AARP and Safa Rashtchy, Managing Director and Senior Internet Analyst at Piper Jaffray, both of whom gave very compelling keynotes. Safa shared the prediction that in the next 10 years the Internet will be mostly about "Communitainment" -- Community, Information and Entertainment. Among the key ideas is that users will communicate with each other, either as the primary activity or a secondary one, and they will tend to view the site as a place to hang out. Now this is not a new idea -- I've been "hanging out" online since SeniorNet in 1986, where we created a hearth as a place to gather and draw strength and friendship. To this day, Marcie Schwarz helps guide the spirit and the integrity of the SeniorNet forums and online community. Certainly the new plethora of websites aimed at the 40+ market to build community (Eons, BOOMj.com) are attempts to get adults to connect and get involved. I wonder if the power is going to be in the niche plays or in the gathering of the boomers in places like Facebook.
I have been on LinkedIn for about three years now, and many of my students and some of my colleagues link together. It is somewhat useful for staying in touch and keeping the resume updated. Guy Kawasaki has written eloquently on how to improve your LinkedIn profile. But, I must tell you, I have only been on Facebook for three weeks and I find it very useful and a ton of fun. This morning Steve Case of Revolution Health wrote and asked to be my new Facebook friend. I remember Steve from AOL and ThirdAge days, when he became so passionate for the democratization of online services. I admire what he is building with Revolution Health and immediately invited him to keynote What's Next '08 in DC. I think that we are going to find many many boomers migrating to Facebook -- the founders will love discovering how they will attract advertising dollars. After all, according to Safa Rashtchy, global online advertising revenue will be 44% of all ad revenue by 2011. And since the boomers have the most discretionary income and the greatest possibility for lead generation to products and services, media companies should pay close attention to the opportunity here.
So, there you have it: two new communities where I spent some time each week. One is a brick-and-mortar place -- my mom's new cruise ship, the Villa San Ramon -- and the other is online Facebook. The world moves fast. I am not sure there will be enough CCRC's to go around for the boomers when it is time. I am booking early into one in Sonoma with a strong staff of sysops, a great wine center and a cybercafe. Let me know if you want to join in.
As for the summer reading list, you must pick up a copy of the new book The 4-Hour Workweek by Timothy Ferriss. His model for outsourcing business tasks changed my business structure. And, ever the lover of biography, Tina Brown's profile of Princess Di, The Diana Chronicles, is worthwhile. My friend Maxine Paetro and James Patterson have a new mystery, The 6th Target, which is always fun. And then there are two boomer reads, Marc Freedman's Encore: Finding Work that Matters in the Second Half of Life and George Moschis' Baby Boomers and Their Parents.
Hope to see you in the fall. We will be speaking at a few events… And take care of yourself. Get some sunshine this summer; share your stories and where you are…love hearing from all of you. Know that you are wishing Mom the best and will carry those good wishes forward.
All the best,
Mary
Two Companies Win Big at Boomer VC Fest
By Tom Murphy
Reprinted with permission from RedwoodAge.com
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| World Hearing Organization CEO Siamak Sani with his low-cost hearing aid and solar battery charger. |
Speaking at Tuesday's Boomer Venture Summit in Santa Clara, Calif., Sani told a panel of judges that his company, World Hearing Organization Inc., wouldn't force its customers to meet with audiologists in their offices, but would bring a mobile testing facility to the customers "like Domino's pizza" no matter where they are.
People could have their hearing tested at, say, a drugstore counter and could walk away with a customized hearing aid in a few minutes, paying well under half what they would pay for a comparable device in a global marketplace estimated at up to $200 billion. Moreover, WHO had plans to market its services worldwide -- to the wealthy and the poor, in advanced countries and the forgotten places.
Read the rest of the article, or find out more about the winners here.
Blogging the Boomer Venture Summit
Mark Miller of 50+Digital gives us the download on the recent Boomer Venture Summit. Here's a rundown of the event, reprinted with permission from his blog. Don't miss his other Summit entries as well!
At the Boomer Venture Summit: Partnering with AARP while it goes on a diet
Want to distribute your product or service through AARP? Get in line. While you're waiting, Emilio Pardo, AARP's chief brand officer, had a few tips on how to work with the behemoth of aging for attendees at the Boomer Venture Summit. Here's what he told the venture summit:
The companies we work with aren't always large, but they must be able to bring trust to the table. Will the consumer trust this information, or this service? And can you deploy fast enough? We've had experience with smaller companies that can handle large volume, and some that cannot. We are looking for fast-moving, sharp, entrepreneurial companies that can give us innovative new products in the five most important categories that will be important to boomers as they age:
- Health
- Financial security
- Giving
- Contribution-legacy
- Play
Libraries Cater to Older Adults
By Caroline Goldman
With stations like the "living room," the "bookstore" and the "front porch," images of a cup of tea in a small country town come to mind. But these names take on a new meaning in Old Bridge, New Jersey.
Old Bridge Public Library has launched a pilot project called Senior Spaces, an interactive section of the library where boomers and seniors can gather to watch a movie, settle in with a good book, or even relax with that cup of tea. Senior Spaces also boasts computers with Internet connection, music listening stations, and a special-needs section for the visually or hearing impaired.
"What is different about this project is that we will be developing programs and services for all three generations of older adults -- the baby boomers not yet retired, older adults who have retired in the last few years, and the elderly, many who can no longer get to the library," says library Assistant Director and project leader Allan M. Kleiman. "We actually are building this space and the program from the bottom up."
But a relaxing spot or easy information access isn't enough. This fall, the library will launch a new Center for Creative Learning, complete with classrooms. "The classroom space will allow the library to have a dedicated area to feature computer classes, lectures, small group discussions, writing classes, programs on health, wellness, retirement, financial security, history, culture and more," says Kleiman.
Senior Spaces was funded in part by INFOLINK (the Eastern New Jersey Regional Library Cooperative) and the New Jersey State Library. As a pilot project, Old Bridge Public Library will provide progress reports and how-to manuals to help other libraries establish similar projects.
For more information about Senior Spaces, visit the Senior Spaces blog or view pictures at Flickr.
Q&A: Furlong Connects Investors with Boomers
Mary Furlong is not the typical face of Silicon Valley. Yet, the 58-year-old tech entrepreneur, Santa Clara University professor and author is courted by top venture capital firms and corporate investors for her connections and expertise in a market they envy: consumers over 40. Furlong reveals to Adweek's Joan Voight what new industries are forming, what the boomer potential is, and marketing missteps to avoid.
Read the Q&A with Mary Furlong.
SPECIAL SECTION: BOOMER SUMMIT REVIEW
Provided by Excel Meetings and Events
San Francisco, CA - June 25, 2007 - Top venture capital firms including Clearstone Venture Partners, Highland Capital, Intel Capital, Johnson & Johnson Development Corp., Mohr Davidow Ventures, North Castle Partners and Palo Alto Venture Partners participated as business plan judges at the 2007 Silicon Valley Boomer Business Plan Competition (see complete list of judges below). Business Plan Competition finalists pitched their ideas for products and services geared to the 45+ boomer market to the panel of judges before an audience of several hundred attendees. Finalists in the Healthcare category included teams from top university-based ventures representing Johns Hopkins, UC Berkeley, University of Illinois, UC San Francisco and Stanford.
The Silicon Valley Boomer Business Summit (see event photos below) brings together the venture capital and investment communities, experts on aging, and marketing professionals to discuss innovation, investment, entrepreneurship and opportunities within this burgeoning and affluent market segment. The 2007 Summit is presented by The Leavey School of Business at Santa Clara University and produced by Mary Furlong & Associates. Events for the Summit took place over June 18-20. Please visit the Boomer Venture Summit website at www.boomerventuresummit.com/index.htm.
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| Mary Furlong with the two Boomer Business Plan winners, World Hearing Organization and SeroNostics. |
Top prize in the competition's Health category went to SeroNostics, a start-up venture led by a team of bioengineering and mechanical engineering Ph.D. students at UC Berkeley. SeroNostics is developing a hand-held diagnostic device that allows physicians and nurses to analyze quickly blood and other bodily fluids at a doctor's office or other point of care. The device will initially be used to diagnose flu viruses, including avian flu, before expanding to other diseases.
Top prize in the General Business Plan category went to World Hearing Organization (WHO), a San Jose, California-based company that provides mobile hearing aid centers that visit hospitals, drugstores, nursing homes and other healthcare venues. WHO's hearing aids are powered by solar cells and contain a chip programmed with several standard prescriptions. The potential market for these devices is enormous. In the United States alone, it is estimated that 25 million people have untreated hearing impairments. WHO plans to launch its centers in California next year but sees national and global opportunities "down the road."
ABC Channel 7 News Covers the Boomer Venture Summit
Gale Bensussen of North Castle Partners was interviewed by David Louie of ABC Channel 7 for the Moneyscope segment of the ABC 7 evening news. Video of that interview is posted on the ABC Channel 7 News website (select Moneyscope in the left menu, then scroll down), or read the article.
Sponsors for the 2007 Summit
Complete List of Business Plan Competition Finalist Judges
Nancy Kamei, Sector Director, Digital Health, Intel Capital
Charles (Chip) F. Baird, Jr., Managing Partner, North Castle Partners
James P. Firman, Ed. D., President and CEO, National Council on Aging
Jody Holtzman, Director of Knowledge Management, AARP
James L. Koch, Founding Director, Center for Science, Technology & Society, Santa Clara University
Emilio Pardo, Chief Brand Officer, AARP
Bijan Salehizadeh, MD, Partner, Highland Capital Partners
Robert G. Stein, President & CEO, American Society on Aging
Brad Vale, Ph.D., VP, Johnson & Johnson Development Corporation
Vance Vanier, MD, Partner, Mohr Davidow Ventures
Bill Elkus, Managing Director, Clearstone Venture Partners
Peter Ziebelman, Partner, Palo Alto Venture Partners
2007 Boomer Venture Summit Keynote
Speaker Safa Rashtchy, Managing Director,
Piper Jaffray & Co.
Excel Meetings and Events has managed the Silicon Valley Boomer Venture Summit for three consecutive years. For the 2007 Summit, Excel Meetings services included management of web-based registration, speaker/sponsor management, AV production, off-site VIP events, exhibit management, agenda development and event scripting, decor and entertainment. For more information about our services, please visit www.excelmeetings.com.
New Estimates of the Future Path of 401(k) Assets
National Bureau of Economic Research
Over the past two and a half decades there has been a fundamental change in saving for retirement in the United States, with a rapid shift from employer-managed defined benefit pensions to defined contribution saving plans that are largely controlled by employees. To understand how this change will affect the well-being of future retirees, we project the future growth of assets in self-directed personal retirement plans. We project the 401(k) assets at age 65 for cohorts attaining age 65 between 2000 and 2040. We also project the total value of assets in 401(k) accounts in each year through 2040 and we project the value of 401(k) assets as a percent of GDP over this period. We conclude that cohorts that attain age 65 in future decades will have accumulated much greater retirement saving (in real dollars) than the retirement saving of current retirees.
Find out more.
The Future of Retirement: The New Old Age 2007
HSBC
The HSBC Future of Retirement third annual global survey of older people, work and retirement, reveals that older people, those in their 60s and 70s, are vitally important to our families, communities and workplaces. Indeed, the survey finds that while there may be questions arising over increasing health demands from those over 80, those in their 60s and 70s are healthier, happier and fitter than ever before. There may be more of them, but they are in the main, active contributory adults, without whom our families, communities and even in some cases, our workplaces, could not flourish.
- Contribute to society -- older people are contributing billions of dollars to the global economy in voluntary work
- Contribute to the workforce -- older people are contributing to their communities and the economy through their labor and their taxes
- Contribute to their families -- more older people are giving money, support and care to families and friends than are receiving it.
Families are strong and important: The Future of Retirement survey shows that despite all the changes that the concept and nature of the family has been subject to, the family is still chosen by the overwhelming majority of survey respondents as defining "who they are." In addition, most people believe that families should be responsible for their members.
Boomers Business Conference: Health & Lifestyle Super Segment
A Consumer Health World Conference
September 17-19, 2007, at the Hilton, Chicago, IL
Health and healthcare concerns are shaping boomers' purchase decisions about a wide range of lifestyle issues, including financial services, retirement, nutrition, travel & leisure, and housing. This national conference fosters broad discussion on these issues by bringing together leadership from a number of health and other industry sectors including employers, health plans, wellness and fitness program executives, healthcare provider organizations, policy makers and others that have a stake in improving the health of individuals and the workplace.
Special offer for friends of Mary Furlong! Receive 30% off registration to this national event and the associated conferences, including the International Consumer Healthcare On Demand Conference and the Marketing to the New Healthcare Consumer Conference. Just visit Consumer Health World and register with the following code: NXHGXBSWHD.
Backup Care Ranked as Fastest Growing Employee Benefit
Backup care is one of the fastest growing employee benefits, according to survey results released in June 2007 by the Society of Human Resource Management (SHRM), which estimate that 14% of employers offered some type of backup care assistance in 2006, up from just 6% of employers in 2005.
Electronics Giant Seeks a Cure in Health Care
Fleeing chips and TVs, Philips makes big bet on aging consumers
Boomers are Easing into 'Elderhood'
Great news! The kids are going to save us from ourselves.
A VC Love Fest Focused on Boomers
Entrepreneurs and venture capitalists are meeting Tuesday at the third annual Silicon Valley Boomer Venture Summit, a virtual love fest of panel discussions and competitions focused on bringing must-have products to the most-unique generation.
Older Workers Better With Tech
Who said older workers aren't hip when it comes to the latest technology?
Baby Boomers Are Cashing In. So What?
Will stocks suffer a multi-decade bear market as the baby-boom generation sells its shares to support its retirement? Some have predicted such an outcome, but a new study -- which projects huge growth in 401(k) assets in future decades -- paints a far more sanguine picture.
Congress Putting Long-Term Care Under Scrutiny
A Congressional committee yesterday began looking into business practices in the long-term care insurance industry.
Aging Baby Boomers Reluctantly Losing Spending Spotlight to Echo Boomers
Visa says Echo Boomers will be spending $2.45 trillion by 2015.
Read more articles here.
Boomer/Senior Market Report
Published by Mary Furlong & Associates3527 Mt. Diablo Blvd.
#128, Lafayette, CA 94549Telephone: 925-283-7698
http://www.maryfurlong.com