Innovate on Purpose: Demographics is your destiny

Demographics can be an essential factor in future planning for companies. The automotive industry witnessed a shift when new entrants like BMW and Mercedes, green and eco-friendly cars, and new causes like grandchildren came along, which altered the preferences of their target audience for brands like Oldsmobile and Cadillac. The population decline in countries like Russia and Japan due to lower birth rates and out-migration highlights the importance of demographics in understanding the workforce and voter profiles, which should influence products and services that are created now and in the near future. A major demographic shift is happening in the US, with the Silent and Greatest generations leaving the scene and the baby boomers starting to age. As Gen Xers and Millennials take over, their diverse needs, opinions, attitudes, perspectives, and expectations will lead to different demands for products and services. Companies must understand these subtle differences to survive in the market.