Rethinking The Youth Market

Five years ago Mitsubishi Motors in North America decided it had to do something about the debt load it had built up with its easy-credit marketing to young people. According to its semi-annual report that year, its ratio of balloon and deferred loans had climbed to 62 percent of its credit portfolio.

The company tightened its credit policies and concluded that most young people could not afford its cars. It refocused its marketing on adults.

The 2008 credit crisis presents a similar scenario. Adults with equity in their homes and well-established credit records are more likely to be able to finance high end items like vehicles and real estate than young people.

Even in the youth-obsessed American market, the situation may prompt some firms to reevaluate their advertising strategies.