The changing ways of reaching China’s ballooning senior population
China’s senior segment is one the most anticipated demographics in the world, yet remains one of the least-tapped by foreign brands. Many readers will be familiar with the sheer scale of what is to come: China’s 297 million over-60s are expected to grow to more than half a billion by 2050. A push for large families during the Mao Era has driven this, in addition to life expectancy increasing from 46.6 in 1950 to 77.5 nowadays.
Until recently, foreign brands struggled to connect with this demographic given their reliance on traditional media like state-run TV, radio, and newspapers. But Covid changed their media consumption, forcing many silver surfers online. Most have stayed.
Elderly Chinese haven’t just been difficult to reach historically, they have been too frugal to spoil themselves with premium imported products – a hangover from austere times from the cultural revolution, akin to grandparents in the West who lived through the Great Depression.
Yet this thriftiness is changing as Chinese consumers who have come of age during more prosperous times are reaching their mature years. China’s current 240 million ‘Post-80s’ consumers (those born in the 1980s) will be over 60 in 2050, accounting for a large swathe of the 500 million-plus elderly.
Post-80s consumers’ formative years were when China was opening up and aspirational foreign brands were making a genuine impact in China. As a result, they remain among the most-receptive to buying imported products. Whilst they will be a lucrative group in their golden years, they are already playing a big part in influencing decisions in the elderly segment today.
Many Post-80s’ parents don’t have the confidence or knowhow to research and choose products, seeking their children’s opinions on what and how to buy. As a result, numerous premium brands targeting Chinese elderly have reached them by marketing through their children. But the influence of this is changing. For a start, more elderly are becoming confident online; researching, participating on online forums and even following elderly influencers to learn about brands.
Arguably more dramatic, is the shift from the traditional setup of elderly parents living with their kids under one roof. Whilst half of Chinese elderly lived with younger family members in 2010, just 40% did in 2021. Whilst children continue to influence their parents’ purchase decisions, they have less sway than before.
Living apart and being online is increasing China’s seniors’ independence and – in addition to changing their customer journeys – is influencing which products and services they are buying; their function, packaging, format and user experience needs. This is creating opportunities through shifting preferences across many industries including health, personal care, food & beverage and even tourism.
Just as brands need a different playbook to be successful in China than other markets, within China, reaching the increasingly lucrative elderly segment requires a different strategy than reaching Gen-Zers. Contact China Skinny to learn how to best connect with China’s increasingly lucrative senior segment, and other demographics too.
