Who are the buyers of the future at auctions
The long-term viability of the auction business is focused on attracting and retaining financially stable buyers. With baby boomers retired or retiring and tending to downsize, two generations comprise the bulk of potential auction buyers over the next two decades: Generation X and Millennials. This is the first of a two-part review, with each article focused on one of these generations, starting with Gen-X:
What parts of the Gen-X experience can help us understand how to focus the auction environment to meet their needs?:
- Who they are
- Where they are financially
- How they spend their time, what their interests are
- What their expectations are in a buying/bidding experience
- What comfort level they have with technology
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While each of these subject areas has been studied in infinite detail, this is an attempt to distil some learnings from multiple sources into an auction house useable form.
Who are Gen-X
Gen-X’ers were born between 1965 and 1980, so the oldest is 59 and the youngest 44. Many grew up as latch-key kids who had to take care of themselves because both parents worked. This group is self-reliant, well educated, and open to change; they also tend to be more skeptical than their surrounding generations. Because their parents were workaholics and spent less time with them as children, Gen X’ers prefer a life balance in every sense of the word.
Where are the Gen-Xers financially
Gen-X’ers are in their peak earning years, and per the Bureau of Labor Statistics generate the highest annual household income, nearly $20,000 ahead of the nearest group, the Millennials. However, Gen-X also has the highest level of debt. Lower and later birth rates mean that many have children at home or in college. Gen-X’ers will be the prime recipients of the great wealth transfer, inheriting from baby boomers over the next 20 years.
How do they spend their time, what are their interests
Work and parenting consume most Gen-X’ers time. For leisure, they tend to be outdoor people, from gardening to beach walking to climbing mountains. They exercise, are focused on nutrition, and are interested in their health. Gen-X’ers value nostalgia and stability, this generation has seen huge economic and social changes as a result of the rise of technology. They collect on a massive scale, from art, vinyl records, toys and action figures, comics, to movie memorabilia and much more, primarily focused on the period from 1965 forward.
With their wealth entering a period of dramatic improvement through children completing education, and inheriting from parents, they are likely to deepen their appreciation for art and culture and upscale their collections in quality and investment appreciation potential. This is the generation which will next transition from hobbyist collector to investment level collector.
What are their expectations in the buying / bidding experience
The primary driver for Gen-X is trust, achieved through transparency and honesty, value for money, and convenience. To achieve these, auctions need to have efficient processes, offer great customer service, and personalize to the individual. In technology terms, integration between systems is key, allowing seamless interactions with customers. Within the context of a live auction Gen-X expects the process to be straightforward, with clear rules and no hidden fees. They prefer platforms that are transparent about bid increments, reserve prices, and auction timelines. They appreciate real-time notifications and updates during the bidding process, ensuring they can react quickly and stay informed.
What is their comfort level with technology
Gen-X is the generation that has seen the whole evolution of technology from early video games and dial-up internet, through to mobile technology, social media, and smart devices. They find the rate of change challenging and have a preference for user friendly and reliable simplicity. They have less interest in constantly upgrading to the latest devices or apps.
Conclusion
From an auction house perspective, this generation represents the largest growth potential group in the next decade. On top of them being the executors of their parents’ estates, and therefore a great source of consignments, they collect, and they are interested in upscaling their collections as their financial circumstances improve. High quality art and collectibles from the period 1965 to 2000 will likely have great demand for the foreseeable future.
Please drop me an e-mail (kevin@asharex.com) if you have any questions, or for a demo of our fractional bidding system.
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