People above 50 years of age, known as silver generation, are rapidly becoming a force to be counted with when it comes to China market
According to the most recent China Internet Network Information Center (CINIC) report, out of total internet users in China, 28%, or 283 million are above 50 years of age. Only 5 years ago, this was less than 10%.
Majority of silver generation internet users, surprisingly, come from third and fourth-tier cities. More than 70% have middle-to-high income, with 41% of income coming from sources other than the pension and salary.
The average time they spend online per month has reached 143.9 hours. More and more adept at buying online, more than 70% of the “silver generation” is regularly using online payment, orders food delivery, taxi, buys clothes online and more. It has become clear that middle aged and seniors have gone digital, which will in near future impact consumption in all industries.
This new trend has not gone unnoticed, as some of the most popular apps in China started developing the “elder’s mode” by simplifying complex forms, using larger fonts and introducing step by step guides and help chats. In addition, in recent months, variety of internet platforms suitable for elderly users exclusively, such as “XiaoNianGao” (“小年糕”) or “TangDouGuangChangWu” (“糖豆广场舞”) started showing up.
Redefining the seniors
Speaking of seniors in China, they are actually not yet “old”. They are fit, healthy and energetic. They are better educated than ever before, released from the pressure of raising a family and ready to enjoy life.
They spend time on Douyin (抖音), WeChat (微信) and Kuaishou (快手) sharing their lives and communicating with peers.
According to the "Silver Hair Digital User Entertainment Behavior Analysis" report released in 2019, seniors of China are more and more interested in starting or continuing academic studies. In fact, more than 8 million elderly students are regularly attending lectures at 70,000 different universities all around China.
When it comes to expenditure, silver generation mostly spends on food and health. They are well aware of food quality and ready to pay more for premium products and health supplements. There is also a notable increase in consumption related to traveling, particularly within the country. However, when it comes to the buying decisions, seniors in China, not unlike other consumer groups, highly rely on friends' and family’s recommendations. If a product is endorsed by others, they are willing to pay more and stay loyal to the brand.
Silver generation in China is characterized by more leisure time, higher income and stronger desire for experiences, social connections and learning opportunities.
Who does it well
Despite all of the above, majority of companies is still focusing their marketing strategies around millennials and z-generation, which leaves the silver generation market practically vacant.
This, of course, is not the case for all. Some of the brands, such as the veteran in Chinese water sourcing market, Nongfu Spring (农夫山泉), are already breaking into this niche. They have recently launched “Lithium water” which contains more Lithium than any other water in the market. Lithium is known to reduce the side-effects of medication and to improve the cognitive ability in seniors, particularly in relation to Alzheimer’s disease.
In recent years IKEA launched the series of products suitable for the elderly, such as easy to grip tableware made of tempered glass.
Bandai Namco Group, a Japanese toy model manufacturer, recently partnered with a crutch manufacturer to launch a classic robot animation-themed crutch, officially entering the elderly market. The "kids" who used to like these animated images at that time have now reached the age when they have started using crutches.
It is not difficult to see that behind every demand and every change in consumption of the silver generation, a whole range of market opportunities are awaiting.
Sources:
Equalocean, 知乎, CNNIC, ChoZan, Twitter, Bandai Namco
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