Tapping the upmarket silver yuan

Spending by the 60-74 age group in China is forecast to increase by 50% over the 15 years between 2020 and 2035, while it’s likely to decline in younger groups. 

Context

China has an ageing population and a falling birth rate, factors which prompted President Xi’s recent statement that it is necessary to “actively cultivate a new culture of marriage and childbearing and strengthen guidance on young people’s view on marriage, childbirth and family”. Xi has also previously spoken of the need to ensure older people live their lives positively and healthily.

Why Chinese spending matters 

The figures, cited by Jing Daily, come from 36kr, a business focused on the new economy, and highlight how marketers need to be aware of a country’s changing demographics. 

Luxury brands in China frequently appear focused on younger buyers, but there’s a large older population which benefited from the opening up of the economy initiated by Deng Xiaoping and which now has significant spending power. They’re active both IRL and online, and brands need to think about how they can cater to them, not just their children.

Takeaways 

• Around a fifth of China’s population is aged over 60 – that’s 280 million people – with the 60-74 age group predicted to spend $750bn a year by 2035. 
• The pandemic accelerated their move online for shopping and entertainment; over half of the over-60s spend more than four hours a day online; there are high penetration rates for using apps for instant messaging (91%), e-commerce (85%), and short video (81%).
• Baidu, Didi, Taobao, and JD have all launched applications tailored to the senior demographic. 
• Seniors in China typically have more time for leisure and culture than their Western counterparts: women retire at 55, men at 60. 

Sourced from Jing Daily, Reuters