Michael Lee-Chin: follow what the customer will need next
Richard took notes when Michael Lee-Chin described looking beyond what customers were buying today. The interview used the aging baby boomer population to explain a business thesis built around a future change in demand.
Consumption followed by saving
Lee-Chin recalled looking at his own generation in 1983. He expected households that were buying homes and furniture to become more concerned with saving as they aged. He said this reasoning led him toward wealth management businesses.
Richard asks about the scale of the change
In his closing response, Richard focused on industries that could become many times larger over a long period. The useful distinction is between a growing category and a business positioned to serve it. Lee-Chin described his reasoning and recalled the outcome. That does not mean another demographic forecast will work.
In Richard's words
"investing in what people are going to do tomorrow or in 10 years from now" (Richard C. Wilson, recorded library conversation)
How to use this
- Map how a customer group's needs change with age.
- Identify the assumptions between a population trend and demand for a particular product.
Questions and answers
What population did Lee-Chin discuss?
The baby boomer generation, including his own changing needs.
What did Richard emphasize?
The possibility of positioning a business ahead of a large, sustained change in demand.