Assignment: ‘Grey market' on the rise
An important and growing market segment involves the ‘grey market'. Nearly 44% of Britain's adults are over 50 and this proportion is rising rapidly. By 2005, this so-called third generation will have swelled by more than 13% in just 10 years. In 20 years, one in two adults will be over 50. This demographic group is not just large; it's also rich. A report by Mantel, the research company, found that the distribution of wealth within the UK is ‘heavily skewed' towards the older generation. It has the largest proportion of outright homeowners, and more investment and savings products than the adult population at large. Soaring house prices and maturing life-insurance policies have added to this wealth. As well as living longer, this group is staying healthier for longer. Older people also have plenty of time to fill, particularly with workers retiring earlier. In short, as another Mantel study found, the older generation has the desire, the money and the time to spend cash - particularly on holidays.
The 14.1 million third-agers took 32.1 million holidays in 2002, up from 28.7 million in 1996. The older generation now accounts for a substantial portion of the UK tourism market - about 22% of domestic holidays and 26% of holidays abroad. Two-thirds of all people between the ages of 45 and 64 without children at home took a holiday in 2002, according to TGI Europe research. The British are the best travelers, but third-agers also account for 40% of tourism in Germany and 17% in Ireland. All these figures are set to rise as a result of a gradual shift in culture, as well as the simple growth of numbers. Experts said the older generations were more confident and motivated than ever, and this manifested itself in world travel. Empty nests free up both time and money for parents but can be big motivators, too - the trip of a lifetime that has been postponed is now possible, and older generations are prepared to spend lavishly.
Question
1 Identify some of the goods and services likely to be affected by the rise in the grey market.
2 What other implications might result from this trend?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.