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© 2013 The Futures Company | 1 Family Values Polycultural America Household Structures What’s Changing Quick Facts Brands & Marketing Quotes of Note Other Resources Download in One NEW AMERICAN HOUSEHOLD NOTE: This document is hyperlinked to allow for interactive navigation of the content. For the full functionality of this document, ensure you are connected to the Internet and viewing in slide show mode. If you opt to print this document, we recommend selecting full Black & White mode for printing to save ink. Now What?
© 2013 The Futures Company | 2 An assortment of facts and figures providing a quick view of the new American household Quick Facts The U.S. is estimated to become a majority-minority nation in 2043. Today over half of all babies born are non-white. (U.S. Census Bureau)U.S. Census Bureau In 2013, there were at least 71,165 same-sex marriages in the United States. (Pew Research Center)Pew Research Center In 2012, 1 in 5 adults ages 25 and older had never been married. In 1960, this number was only about 1 in 10. (Pew Research Center)Pew Research Center The median age at first marriage has never been higher: 27 for women, 29 for men. (Pew Research Center)Pew Research Center In 2010, there were 7.7 million unmarried-partner households in the U.S., up from 5.5 million in 2000. (U.S. Census Bureau)U.S. Census Bureau In 2012, there were 57 million living in multigenerational households, up from 35 million in 1990. (Pew Research Center)Pew Research Center LGBT buying power was projected to be $790 billion in 2012. (Witeck Communications)Witeck Communications The number of households headed by same-sex couples increased 80.4% from 2000 to 2010. (U.S. Census Bureau)U.S. Census Bureau Non-family households (those maintained by a person living alone or with non-relatives only), grew 16% from 34 million in 2000 to 39 million in 2010. (U.S. Census Bureau)U.S. Census Bureau NEW AMERICAN HOUSEHOLD
© 2013 The Futures Company | 3 THE PERFECT STORM FOR UNPRECEDENTED SOCIETAL CHANGE: Shifting demographics, along with profound attitudinal changes that have been shaped by the economic and political environment, have fostered conditions ripe for the redefinition of today’s American household. NEW AMERICAN HOUSEHOLD MAJOR DEMOGRAPHIC SHIFTS PROFOUND ATTITUDINDAL CHANGES ECONOMIC & POLITICAL DEVELOPMENTS Shifting dynamics businesses and brands must understand and address in reaching the new American household What’s Changing
© 2013 The Futures Company | 4 BACK MAJOR DEMOGRAPHIC SHIFTS NEW AMERICAN HOUSEHOLD According to the U.S. Census Bureau, traditional families—those composed of a married couple with kids—account for less than half of American households today, while non-family and single-person households have grown.U.S. Census Bureau Shifting dynamics businesses and brands must understand and address in reaching the new American household What’s Changing % of Total U.S. Households
© 2013 The Futures Company | 5 PROFOUND ATTITUDINAL SHIFTS: BACK NEW AMERICAN HOUSEHOLD 54 % of Millennials agree: “Nowadays, we are free to shape our identities and transform ourselves in whatever way we want” (2014 Global MONITOR, U.S. sample) REDEFINING EXPECTATIONS AND ASPIRATIONS: With the Great Recession, young adults’ decisions about marriage, employment and starting a family were put on hold. The end result is a generation with markedly different attitudes toward traditional lifestage events and an evolving, more expansive definition of family. INCREASING MULTICULTURAL INFLUENCE: The multicultural population within the U.S. has driven the long-term shift towards more multigenerational households since the 1980s. Ethnic values will only increasingly impact attitudinal shifts within the U.S. as it moves towards a majority-minority nation. Some of my lifestyle choices have been influenced by my interactions with people of other races/ethnicities Shifting dynamics businesses and brands must understand and address in reaching the new American household What’s Changing
© 2013 The Futures Company | 6 ECONOMIC AND POLITICAL DEVELOPMENTS: MIDDLE INCOME SQUEEZE: Despite overall economic growth, median household income has fallen 1% in the last 25 years and 5% between 2010 to 2013. Decades of wage stagnation and expanding inequality mean that the total market consumer of today is effectively poorer. Trends such as delayed marriage, delayed home ownership, older roommates, and multigenerational households are all strongly related to this macroeconomic force.median household income has fallen GENDER WAGE-GAP: The growing impetus to address the wage gap—among full-time, year-round workers, women were paid 78 percent of what men were paid in 2013—has fueled social movements including LeanIn.org, based on Facebook COO Sheryl Sandberg’s eponymous bestseller, and political activism such as the Paycheck Fairness Act.LeanIn.orgpolitical activism SAME-SEX MARRIAGE: As of November 2014, same-sex marriage is legal in 32 states and the District of Columbia. In another 13 states, the issue is working its way through the judicial system. The shift in popular support for same sex-marriage has been swift and dramatic: 55% of Americans (including 78% of people 18-29 years old) now think it should be valid and legally recognized, up from 27% in 1996.is legalthink it should be valid and legally recognized Shifting dynamics businesses and brands must understand and address in reaching the new American household What’s Changing BACK NEW AMERICAN HOUSEHOLD
© 2013 The Futures Company | 7 Increasing multiculturalism, economic challenges and changing social norms, among other forces, are causing the diversification of the American household. Three growing household structures in particular are important for marketers to recognize. They are single- person, multigenerational and non-family households. Increasing variation in family structures Household Structures SINGLE-PERSON HOUSEHOLDS MULTIGENERATIONAL HOUSEHOLDS NON-FAMILY HOUSEHOLDS NEW AMERICAN HOUSEHOLD
© 2013 The Futures Company | 8 BACK SINGLE-PERSON HOUSEHOLDS NEW AMERICAN HOUSEHOLD While women still represent the majority of single person households, the real growth area of the last few decades has been among men — particularly those younger than 65. (U.S. Census Bureau)U.S. Census Bureau Increasing variation in family structures Household Structures
© 2013 The Futures Company | 9 BACK MULTIGENERATIONAL HOUSEHOLDS NEW AMERICAN HOUSEHOLD Since bottoming out about 35 years ago, both the number of people living in multigenerational households and the percentage of households they represent is on the rise. Multigenerational households are a prime example of two major trends in the U.S. consumer marketplace—the differing life stage trajectories of Millennials and the steady growth of the multicultural population. Population Living in Multigenerational Households Has Doubled Since 1980 IN MILLIONS Pew Research Center Increasing variation in family structures Household Structures
© 2013 The Futures Company | 10 NEW AMERICAN HOUSEHOLD BACK NON-FAMILY HOUSEHOLDS “Household” and “family” were synonymous concepts in the past. However, today a household can be made up of many different members all who may not be related to one another. Almost a third of Millennials ages 18-31 were living in a Non-Family Living Arrangement in 2012. http://www.nytimes.com/2013/11/26/health/families.html?pagewanted=all http://www.nytimes.com/2013/11/26/health/families.html?pagewanted=all Non-Family Living Arrangements among Millennials ages 18-31 Pew Research Center *Includes those who are roommates, boarders and/or unmarried partners living together Increasing variation in family structures Household Structures
© 2013 The Futures Company | 11 Shifting gender roles as well as the decline, delay, and re-definition of marriage and parenthood have embedded new ways of living into the American social fabric; cohabitation, same-sex marriages, multiracial marriages and single mothers are no longer the anomalies they once were. Changing values are redefining the meaning of family Family Values GENDER ROLESMARRIAGEPARENTHOOD NEW AMERICAN HOUSEHOLD
© 2013 The Futures Company | 12 Changing values are redefining the meaning of family Family Values NEW AMERICAN HOUSEHOLD Gender roles are becoming increasingly fluid; both men and women are more comfortable with aspects of life and identities that are traditionally considered characteristic of the opposite sex. Agree: “Even though I’m a man, I’m in touch with my feminine side” Agree: “Even though I'm a woman, I'm in touch with my masculine side” “There’s something wrong with a family where the woman earns the money and the man stays home and takes care of the kids.” (among men) 2013 U.S. Yankelovich MONITOR 55 % 58 % Among women:Among men: BACK
© 2013 The Futures Company | 13 Changing values are redefining the meaning of family Family Values NEW AMERICAN HOUSEHOLD A record 55% of the American public now favors allowing gays and lesbians to marry legally, up from 27% in 1996. (Gallup)Gallup The number of new marriages between spouses of a different race or ethnicity rose to 15.1% in 2010. (Pew Research Center)Pew Research Center In 2014 public divided over value of marriage for society % who say society is…. ( Pew Research Center ) Pew Research Center Note: Other responses of “Neither”, “Both Equally”, and “Don’t Know/Refused” are shown above but not labeled BACK While increases in same-sex and interracial marriages have changed the demographic profile of marriage within the U.S., many are re-evaluating whether this traditional rite of passage is necessary to achieve a happy and fulfilled life.
© 2013 The Futures Company | 14 Changing values are redefining the meaning of family Family Values The institution of parenthood is changing as consumers increasingly opt to delay or forego having children altogether. While traditional parenthood (married mother and father with children) is declining, single mothers and fathers, LGBT parents and multiracial parents are on the rise—and so, too, is consumers’ acceptance of them. NEW AMERICAN HOUSEHOLD In 2013, 64% of Americans said that the growing prevalence of single mothers is a big problem for society, but only 42% of those under age 30 feel the same. (Pew Research Center)Pew Research Center In 2011, 35% of Americans viewed the increasing number of gay couples raising children as a bad thing for society, down from 50% in 2007. (Pew Research Center)Pew Research Center (Pew Research Center)Pew Research Center Mothers as breadwinners % based on households with children under age 18 BACK
© 2013 The Futures Company | 15 Polycultural Household Diversity reaches a tipping point in the marketplace NEW AMERICAN HOUSEHOLD The sheer amount of ethnic diversity found in America today has led to a new polycultural marketplace that is restructuring the context in which people are working, living, and consuming. Brands will need to develop cultural intelligence to recognize the nuance involved in opportunities areas like “The Odd Stakeholder.” WHAT IS POLYCULTURALISM? CULTURAL INTELLIGENCE WHO IS THE ODD STAKEHOLDER?
© 2013 The Futures Company | 16 Polycultural Household Diversity reaches a tipping point in the marketplace NEW AMERICAN HOUSEHOLD WHAT IS POLYCULTURALISM? The term polyculturalism refers less to demographics and more to the context in which people are living. Polyculturalism is not about different ethnic heritages coalescing into one super-culture. In a polycultural society, individual ethnic heritages still matter and are still an important aspect of personal identity. BACK At the individual level: Synonymous with “ethnic,” even among those with a background in only one race or ethnicity. At the societal level: Not ethnically homogenous. At the individual level: Refers to being the product (in terms of attitudes, values and lifestyle, not genetically) of many different cultural influences. At the societal level: Diversity has reached a point where it has become an inescapable part of the everyday fabric of daily life. Multiculturalism Vs.Polyculturalism
© 2013 The Futures Company | 17 Polycultural Household Diversity reaches a tipping point in the marketplace NEW AMERICAN HOUSEHOLD CULTURAL INTELLIGENCE: The ability to read the world without feeling threatened in the presence of someone who is different, either because of race, socioeconomic status, appearance, personal abilities, religion or sexual orientation. Superior cultural intelligence includes the ability to relate to those who are different, engage in dialogue, work together or develop personal relationships. BACK My life has been made better by the things I've learned from people whose race or ethnicity differs from my own It feels very natural to me to live and act in ways that are typical of U.S. American culture and still retain the culture of my country of origin (among Hispanic/Asian-Americans) 89 %
© 2013 The Futures Company | 18 Polycultural Household Diversity reaches a tipping point in the marketplace NEW AMERICAN HOUSEHOLD WHO IS THE ODD STAKEHOLDER? Ethnic households are more likely to be multigenerational households. Additional family members become odd stakeholders in purchase decisions for the kids, the house, and a valuable source for referrals. Familial terms can also extend to people who are not necessarily blood-related but are “voluntary kin.” BACK
© 2013 The Futures Company | 19 Now What? A roadmap for developing strategies related to changing American households MARKETING STRATEGIES FOR KEY EMERGING DEMOGRAPHICS SINGLE-PERSON HOUSEHOLDS MULTIGENERATIONAL HOUSEHOLDS POLYCULTURAL HOUSEHOLDS NEW AMERICAN HOUSEHOLD
© 2013 The Futures Company | 20 1 32 Single-person households have full control over their spending decisions and expect the products they buy to be built on their terms. How can your brand offer more individualized services, packaging and customization? Profiling the attitudes and lifestyles of single- person households as they move through lifestages can give brands critical insights into how the modern one-person home differs from simplistic—and often erroneous— stereotypes. When targeting single- person households, marketers have greater freedom in their messaging to play to individual desires, needs and preferences and indulgences (since they aren’t making purchase decisions on behalf of others). PRODUCTINNOVATION POSITIONING SINGLE-PERSON HOUSEHOLDS STRATEGIES FOR YOUR BRAND SINGLE-PERSON HOUSEHOLDS STRATEGIES FOR YOUR BRAND BACK Now What? A roadmap for developing strategies related to changing American households NEW AMERICAN HOUSEHOLD
© 2013 The Futures Company | 21 1 32 Multigenerational households can possess an overwhelming assortment of tastes and preferences; therefore, brands and marketers should strive to offer customizable “variety packs” across product lines that can satisfy everyone. In households seeking to satisfy as many members as possible, functionality and value rise as purchase criteria. When speaking to heads of these households, consider emphasizing economic value propositions like bundling and cost savings. Consider the ways in which extended family members introduce new household tensions. Headspace and personal refuge are at a premium in multigenerational homes—how can you help your consumer create or find that balance? MULTIGENERATIONAL HOUSEHOLDS STRATEGIES FOR YOUR BRAND MULTIGENERATIONAL HOUSEHOLDS STRATEGIES FOR YOUR BRAND BACK Now What? A roadmap for developing strategies related to changing American households NEW AMERICAN HOUSEHOLD PRODUCTINNOVATION POSITIONING
© 2013 The Futures Company | 22 1 32 The American palate is getting broader and bolder due to the influence of ethnic flavors on product innovation. Sensorial stimulation goes beyond food: experiment with new colors, scents, patterns and the other aesthetic components of your consumer experience. While diversity has reached a tipping point, one’s ethnic background is still an important aspect of identity. Forging authentic connections to consumers’ ethnic heritages and traditions remains a key opportunity area for brands. In order to appear culturally intelligent brands need to showcase deep cultural insights, complex portrayals of ethnic consumers and an overall appreciation of what each group of people contributes to society. POLYCULTURAL HOUSEHOLDS STRATEGIES FOR YOUR BRAND POLYCULTURAL HOUSEHOLDS STRATEGIES FOR YOUR BRAND BACK Now What? A roadmap for developing strategies related to changing American households NEW AMERICAN HOUSEHOLD PRODUCTINNOVATION POSITIONING
© 2013 The Futures Company | 23 Brands & Marketing Brands and campaigns that represent the new American family Citibank: A Citibank ad depicting modern couplehood directly addressed the delayed lifestages common among Millennials. The female protagonist claims, “We talked about getting a diamond, but with all the points I earned, I took him to the rock I really wanted.” VIEW AD Cheerios: New Peanut Butter Cheerios has positioned itself as the cereal of “Dadhood.” General Mills recognizes the evolving role of dad within the home by featuring a stay-at-home dad. “Dadhood isn’t always easy, when a rule is broken, we’re the enforcement, but when a heart is broken, we’re the reinforcement, and we wouldn’t have it any other way.” VIEW ADVIEW AD Sprint: The “Framily” plan meets the needs of non-family groups living under the same roof or otherwise. The plan broadly offers customers discounts for groups of up to 10 people regardless of family or household structure. The campaign highlights the “Frobinsons,” a “framily” of mismatched characters, underscoring the vastly changed American household. VIEW ADVIEW AD The BoxTrolls Movie Shows That “Families Come in All Shapes and Sizes”: This recently released animated movie, from the makers of Coraline and Paranorman, tells the story of a young orphaned boy raised by cave-dwelling trash collectors. The trailer outlines: “Sometimes there's a mother, sometimes there's a father, sometimes there's a father and a father, sometimes both fathers are mothers…Families come in all shapes and sizes.” VIEW TRAILER NEW AMERICAN HOUSEHOLD ABC: “Black-ish” highlights the struggles of a multigenerational household navigating the polycultural landscape. In this new family sitcom, an African American family experiences the tensions between upward mobility and cultural heritage. VIEW TRAILERVIEW TRAILER
© 2013 The Futures Company | 24 Quotes of Note Useful snippets of relevant content about the new American family to add color to these insights “Given the disparate purposes cohabitation now serves—different people see it variously as a courtship phase, an economical way to save on rent, a venue for convenient sex, a prelude to getting serious, or an alternative to marriage...” (The Atlantic)(The Atlantic) “When we use the term polyculturalism, we are referring less to a brute demographic fact, and more to the context in which people are growing up, living, working and buying. Multiculturalism exists in any society that is not homogenous. Polyculturalism requires that diversity has reached a point where it has become the fabric of everyday life and not a curiosity that you visit for a while before returning to a monocultural existence.” (David Bersoff, Chief Insights Officer, The Futures Company)(David Bersoff, Chief Insights Officer, The Futures Company) “The mere thought of living alone once sparked anxiety, dread and visions of loneliness. But those images are dated. Now the most privileged people on earth use their resources to separate from one another, to buy privacy and personal space. Living alone comports with modern values. It promotes freedom, personal control and self-realization—all prized aspects of contemporary life.” (Eric Klinenberg, “One’s a Crowd” New York Times(Eric Klinenberg, “One’s a Crowd” New York Times) "There is a dramatic cultural shift among Millennials and Xers in wanting to be involved fathers. Men want a different relationship with their children than men have had in the past... They don’t want to be stick figures in their children’s lives. They don’t want it on their tombstones how many hours they billed. That ‘Cat’s Cradle’ song is very much alive and well in the male psyche.” (Ellen Galinsky, President and Co-Founder of Families and Work Institute)(Ellen Galinsky, President and Co-Founder of Families and Work Institute) “Demographic transformations are dramas in slow motion. America is in the midst of two right now. Our population is becoming majority non-white at the same time a record share is going gray. Each of these shifts would by itself be the defining demographic story of its era. The fact that both are unfolding simultaneously has generated big generation gaps that will put stress on our politics, families, pocketbooks, entitlement programs and social cohesion..” (Next America, Pew Research Center) (Next America, Pew Research Center) NEW AMERICAN HOUSEHOLD
© 2013 The Futures Company | 25 Other Resources Links to additional content on the new American family MONITOR LIVE Spotlight October 2014: Diversity Reaches a Tipping Point October 2014: Diversity Reaches a Tipping Point September 2014: U.S. Yankelovich MONITOR Outlook September 2014: U.S. Yankelovich MONITOR Outlook August 2014: The Future of Home August 2014: The Future of Home January 2013: Meet the Modern Man January 2013: Meet the Modern Man MONITOR Download May 2013: Multicultural Consumers May 2013: Multicultural Consumers May 2014: Women May 2014: Women May 2014: Men May 2014: Men March 2014: Millennials March 2014: Millennials February 2014: Home February 2014: Home MONITOR Minute Five Big Findings from the U.S. Yankelovich MONITOR data Five Big Findings from the U.S. Yankelovich MONITOR data Rise of Multicultural Millennials: The “M Squared” Rise of Multicultural Millennials: The “M Squared” On this Father’s Day, consider the “New Dad” On this Father’s Day, consider the “New Dad” Meet the Mamaculturals Meet the Mamaculturals Futures5 The decline of the brand badge, single Americans rise, wage stagnation and more The decline of the brand badge, single Americans rise, wage stagnation and more A new record for multi-generational households (and more) A new record for multi-generational households (and more) Facebook acknowledges evolving definitions of gender (and more) Facebook acknowledges evolving definitions of gender (and more) Report: The changing state of motherhood and “Taking a stand” for same-sex marriage Report: The changing state of motherhood and “Taking a stand” for same-sex marriage NEW AMERICAN HOUSEHOLD Other Sources Allianz: LoveFamilyMoney study Allianz: LoveFamilyMoney study Pew Research: Household and Family Structure Pew Research: Household and Family Structure Pew Research: Social & Demographic Trends Pew Research: Social & Demographic Trends Pew Research: Marriage and Divorce: Data and Attitudes Pew Research: Marriage and Divorce: Data and Attitudes Supreme Court Allows Gay Marriage to Begin in 5 States Supreme Court Allows Gay Marriage to Begin in 5 States Senate Republicans Block Bill on Equal Pay Senate Republicans Block Bill on Equal Pay A Rising Share of Young Adults Live in Their Parents’ Home A Rising Share of Young Adults Live in Their Parents’ Home No Picket Fence: Younger Adults Opting to Rent No Picket Fence: Younger Adults Opting to Rent Two Couples, One Mortgage Two Couples, One Mortgage The Rise of Intermarriage The Rise of Intermarriage The Rise of Single Fathers The Rise of Single Fathers Modern Parenthood Modern Parenthood A Survey of LGBT Americans A Survey of LGBT Americans Census Shows Big Jump in Interracial Couples Census Shows Big Jump in Interracial Couples America’s Families and Living Arrangements: 2012 America’s Families and Living Arrangements: 2012 Households and Families: 2010 Households and Families: 2010 Men, Women Flip the Script in Gender Expectation Men, Women Flip the Script in Gender Expectation U.S. Women on the Rise as Family Breadwinner U.S. Women on the Rise as Family Breadwinner Under One Roof, Building for Extended Families Under One Roof, Building for Extended Families Collective Home Ownership on the Rise Collective Home Ownership on the Rise Boomer Divorce and Cohabitation Rates on the Rise Boomer Divorce and Cohabitation Rates on the Rise
© 2013 The Futures Company | 26 Download in One Share or save this Download NEW AMERICAN HOUSEHOLD CLICK HERE to access the Interactive Download on the New American Household All data are from the 2014 U.S. Yankelovich MONITOR, unless otherwise noted
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