Topics

Demographic change and its effect on sales and production

What demographics are

Demographics are the measurable characteristics of a population: age, income, ethnicity, household size, location and education.
Demographic change is a shift in those characteristics over time, and it is external — no business can change the age structure of New Zealand.
Demographic data for New Zealand comes from Stats NZ, principally the Census and population estimates, which businesses use for planning.

An ageing population.

The share of New Zealanders aged 65 and over is rising as life expectancy increases and the baby-boom generation ages.
Effect on sales: growth in healthcare, retirement living, home services, travel, and products designed for accessibility; decline in products aimed at young families.
Effect on production: a smaller share of the population is of working age, so recruitment is harder and wage costs rise.

Growing ethnic diversity.

New Zealand's Māori, Pacific and Asian populations are growing as a share of the total, and Auckland is one of the most ethnically diverse cities in the world.
Effect on sales: demand for a wider range of foods, products and services, and for marketing that speaks to different communities credibly.
Effect on production: a workforce with more languages and cultural knowledge, which is an asset for a business serving those markets or exporting.

Smaller households and later family formation.

More single-person and two-person households.
Effect on sales: demand shifts towards smaller pack sizes, smaller dwellings, convenience food and services that replace household labour.

Internal migration and urban growth.

Population growth is concentrated in some regions and cities while others decline.
Effect on sales and production: a business must locate where its customers and workers actually are — a store in a shrinking town and a shortage of staff in a growing one are the same problem seen twice.

Change the product range — smaller packs, accessible design, a wider food range.
Change the marketing — different channels and messages for different groups, developed with those communities rather than assumed.
Change location — open where population is growing, close or repurpose where it is falling.
Change recruitment — retain older workers with flexible hours, train apprentices, redesign roles so a smaller labour pool can fill them.
Change the process — automate tasks that a shrinking workforce can no longer fill.

Demographics are the measurable characteristics of a population: age, income, ethnicity, household size, location and education.
Demographic change is a shift in those characteristics over time, and it is external — no business can change the age structure of New Zealand.
Demographic data for New Zealand comes from Stats NZ, principally the Census and population estimates, which businesses use for planning.

An ageing population.

The share of New Zealanders aged 65 and over is rising as life expectancy increases and the baby-boom generation ages.
Effect on sales: growth in healthcare, retirement living, home services, travel, and products designed for accessibility; decline in products aimed at young families.
Effect on production: a smaller share of the population is of working age, so recruitment is harder and wage costs rise.

Growing ethnic diversity.

New Zealand's Māori, Pacific and Asian populations are growing as a share of the total, and Auckland is one of the most ethnically diverse cities in the world.
Effect on sales: demand for a wider range of foods, products and services, and for marketing that speaks to different communities credibly.
Effect on production: a workforce with more languages and cultural knowledge, which is an asset for a business serving those markets or exporting.

Smaller households and later family formation.

More single-person and two-person households.
Effect on sales: demand shifts towards smaller pack sizes, smaller dwellings, convenience food and services that replace household labour.

Internal migration and urban growth.

Population growth is concentrated in some regions and cities while others decline.
Effect on sales and production: a business must locate where its customers and workers actually are — a store in a shrinking town and a shortage of staff in a growing one are the same problem seen twice.

Change the product range — smaller packs, accessible design, a wider food range.
Change the marketing — different channels and messages for different groups, developed with those communities rather than assumed.
Change location — open where population is growing, close or repurpose where it is falling.
Change recruitment — retain older workers with flexible hours, train apprentices, redesign roles so a smaller labour pool can fill them.
Change the process — automate tasks that a shrinking workforce can no longer fill.