Hello, everyone! Did you enjoy your ‘Chuseok (Korean Thanksgiving day) two weeks ago?’ Yes? Good. I also had good time eating and shopping. Oh, when it comes to shopping, I have something to tell you guys. At the department store, I found out something interesting that most shoppers looked like in their 20s or 30s. There were barely old people in 60s or older.
So, I began to question myself; where do the elderly normally spend their money? How are their spending patterns different from those of youngsters?
Well, before explaining the difference, I would like to tell you the similarity of consumption pattern shared both by the young and the old. For your better understanding, I am making a remark that the overall consumption trend is declining for each age group due to economic recessions. Actually, in the first quarter of 2012, private consumption has increased only by 1.1 percent over the same period in the previous year. So, it is quite natural that everybody saves more money, while spending less. Keeping these trends in mind, let’s talk about more in detail.
For food and beverage, people at every age group have reduced their expenses. In 90s, this field accounted for more than 25% of the total expenditure. However, currently, it is only about 10 percent out of the total. Clothes and shoes are no exception, showing declining trends. Unlike those fields, people spend more money for their transportation and telecommunication. As you can see from the graph below, people at every age group, except for 40s, increased their expenditure for transportation from year to year. This pattern is also shown from the consumption trend in telecommunication.
Next time, we are going to look at more about ‘differences’ in consumption patterns by different age groups. When we get through both similarity and difference of consumption patterns by each age group, it will be possible to set certain plans to boost up consumption and hence the domestic economy as overall. Doesn’t it sound quite interesting?
So, see you next time 😀