George Magazine

opinion MCCRINDLE MARK Social Researcher GLOBAL CHANGES, EMERGING GENERATIONAL TRANSITIONS: OPPORTUNITIES. The median age in Australia is 37, making us a Generation X nation. With the median age in many of its countries approaching the mid-40s, Europe is a baby-boomer continent. The emerging world of Asia, the Middle East and South America could be considered Generation Y zones, with an average age in the 20s. And Africa, home to many countries with a median age in the teens, is our world's Generation Z continent. Consumer spending is stagnating in Western nations while Asian, Latin American and Middle Eastern consumers are growing in economic power. Globally, we're seeing a shift from the baby-boomer and Gen X nations to the rise of the gens Y and Z. The same is happening within countries, with Australia seeing a transition as the younger generations ramp up their household expenditure. While the baby-boomers were impacted by global brands, the relationship was more paternalistic. Gen X saw the rise of the anti-brand movement but for today's emerging generations the shift has gone from pushing back on brands to interacting with them. In a generation, we've gone from low loyalty to brand evangelism and organisations that understand their customers can create an engaged community and a movement of promoters. The power of the emerging consumer is being further enhanced as they move into the workforce and into their wealth accumulation years in record numbers. Today, Gen Y (under-25s) comprise 18% of the workforce but in a decade they will comprise 34%. Meanwhile, today's baby-boomers (55-plus) will move from 17% of the workforce to 3% in a decade. These emerging generations are more than just a consumer base, they are a growing workforce able to communicate, connect and influence the world around them in innovative ways. With these new generations comes a shift in leadership style, from formal and structured to interactive and multimodal; they expect work-life balance, a broad job description and compelling career opportunities rather than just job security and standard remuneration. Leaders who are inspiring rather than commanding, and who build consensus rather than implement control, will not only attract but also retain today's top talent. These demographic transitions are taking place alongside massive economic transitions. Australia's over-65s comprise 14% of the national population but own 26% of the national wealth; those aged 55–64 are 12% of the population yet own 26% of total private wealth. Therefore over the next two decades, this generation that comprises a quarter of the population, and owns more than half of the nation's wealth, will pass on much of their $3 trillion net worth. This represents the biggest intergenerational wealth transfer in Australia's history. Businesses that understand the implications of these changes and position themselves to respond will be ready to benefit from the opportunities they represent. MARK MCCRINDLE, PRINCIPAL, MCCRINDLE RESEARCH We've gone from low loyalty to brand evangelism and organisations that understand their customers can create an engaged community and a movement of promoters. george.opinion 48

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