Ageing populations remain a key trend in most East Asian countries. Many age-friendly and accessible products are available on the market. What new frontiers are yet to be explored in Asia’s silver market? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his views in The Business Times – Top Stories on how marketers should tackle Asia’s silver market.
According to the Asia-Pacific Silver Economy Business Opportunities Report 2013, the projected household savings of over-60’s senior citizens is set to reach USD974 billion in Japan, USD37 billion in Singapore and USD148 billion in South Korea by 2017. At the same time, senior citizens in their mid-60’s and younger – otherwise known as baby boomers – are often healthier, wealthier and better educated. They also tend to have diverse tastes and aspirations which marketers can tap into.
Perera opined that it is crucial to develop standards in elderly nutrition, eldercare and living conditions in homes and the wider community, especially in adherence to the Silver Industry Standards Committee (SISC), to help stimulate growth in this sector. As companies address these standards by developing age-appropriate products and services, they will both contribute to the economy as well as address the unmet needs of older people.
An example of an industry that is full of service providers who are ready to cash in on this sector is the travel industry. Perera discussed the gradual rise in spending and higher frequency of travel purchases amongst senior citizens, in comparison to other age groups. According to Chan Brothers Travel, bookings by seniors have increased 10% yearly; illustrating the great potential of Singapore’s fast-ageing population.
At the same time, virtual retirement villages are also mushrooming in Singapore, such as Asia’s first – Aspire 55. These providers offer an activity hub – also known as a well-being innovation lab – which provide social, care and health services. The only constraint is that members continue to live in their own homes instead.
Many marketers are still ambivalent about jumping into the silver market as it is viewed to be of low economic value. But this will change over time as marketers bow to the inevitable.
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