Farther ALONG the X Axis

American Demographics, May 1, 2004

However, women are still the primary decision makers when it comes to purchases for the home. "Eighty percent of the purchasing decisions are made by women and marketers should pay attention to that demographic," says Lee Sucharda Jr., chairman of Design North, a strategic design firm in Racine, Wis. So, companies should be aware that Gen X women are impatient shoppers. "Time is so critical for them with running a house and having a job," Sucharda says. "They don't want to get bombarded with choice after choice."

Devine Color, in Lake Oswego, Ore., is addressing that concern. Gretchen Schauffler, an artist, came up with a palette of 128 colors that work with the wood tones found in most homes. In 2000, she approached Miller Paint Co, a 110-year-old paint manufacturer, and a year later Devine Color paints were being manufactured and sold in stores. The product is now in 350 stores across the country.

Gen Xers aren't as brand loyal as Baby Boomers, according to Jennifer Ganshirt, a consultant with Frank on Women, a market research firm in Winston-Salem, N.C. They shop at high-end stores as well as discount shops. So retailers have to provide quality products and effective customer service, she says. Gen Xers are more likely to research items online before they go to a store. "Gen Xers come into a retail environment well informed," Ganshirt says. "They do research on the Internet, especially on bigger ticket items. They'll come in with price-comparison charts that they've printed out. But they still need guidance from a trusted retailer. Customer service can make or break a retailer."

Flooring America, with 450 stores that sell carpet, tiles and vinyl flooring, revamped its Web site, so that visitors can see the company's array of products. Flooring America also input its products' true colors, so customers can get an accurate match with their furniture or interior paint. " We say that Gen Xers are our customers of tomorrow," says Sally Kelly, spokesperson for the Manchester, N.H., based company.

LIVING IN THE SHADOW

Following the largest population group in U.S. history is no easy task for Generation X.

Generation Comparison

Baby Boomers 2004

POPULATION: 76 million

# OF HOUSEHOLDS: 46 million

CONSUMER EXPENDITURE: $2.1 trillion

% OF TOTAL CONSUMER EXPENDITURE: 50%

Generation X 2004

POPULATION: 49 million

# OF HOUSEHOLDS: 19 million

CONSUMER EXPENDITURE: $735 million

% OF TOTAL CONSUMER EXPENDITURE: 18%