BUZZWORDS | Silver Economy - Education, Matchmaking & Tourism

In China, the population is ageing on a large scale, at a fast pace and to a heavy extent. According to the 2020 Chinese census, the number of people over 60 in China reached 267 million, accounting for 18.43% of the country's total population, and is expected to reach 386 million in 2032 and peak at around 490 million in 2052.

The growing ageing population has generated new businesses that cater specifically to older people, namely the "silver economy". It is not only one industry but a variety of industries that have become seniors-orientated. The Industry Research Report for Silver Economy in China 2021 predicted that China would be the country with the largest growth potential for the silver economy in the world.

2023, when the economy recovers and the restrictions are lifted, would be good timing to tap into this emerging market.

Double V. Consulting presents a series of articles analyzing this consumer group and discovering potential opportunities for new businesses.

This is the first article of the series - targeting seniors aged 50-60. We select 3 industries: education, matchmaking and tourism. We wish a great success in your business in 2023.

EDUCATION

In China, the current retirement age is 55 for females and 60 for males. For seniors aged 55-60, the good life is just beginning - they have plenty of energy, pensions and time to spare. Still, their hope of contributing to society even after retirement never ends. Senior education lights up their passion for life.

▲ Video via @宁夏新闻网

Seniors learning dancing, playing the piano, painting and calligraphy

The purpose of senior education is mainly offline networking. Online-to-offline (O2O) strategy is an important business model:

I. Senior education is in the blue ocean market, which requires lower user acquisition costs in bidding rank than other education stages.

II. Since networking for seniors is among small circles, a premium offline experience will likely earn the education brand's reputation and repurchase.

III. Offline courses boost unit revenue per customer, as they offer a better experience than online courses.

▲ Image via @新华网

Seniors learning to sing opera

▲ Image via @新华网

Seniors experiencing virtual world tour through VR technology

In 1st-tier and 2nd-tier cities, senior education is emerging, but in 3rd-tier and below cities, there is still a need for more resources. Firstcomers who pull off research and product development will gain market share easily.

MATCHMAKING

An interesting phenomenon is that even during the spread of COVID-19, matchmaking activities among seniors in China have continued unabated.

▲ Video via @童姥-女孩别怕

Seniors are also eager for intimacy

It is estimated that there are approximately 100 million singles (including widowed, divorced, etc.) over 50 in China.

Most Chinese marriages in the last century were made at the behest of parents and matchmakers, leading to masses of loveless marriages. Years of wrongly matched marriages enable them to see what they are seeking. After accomplishing obligations to their offspring, nearly 70% of them divorce and explore a new life.

And 80% of widowed seniors desire to remarry.

▲ GIF via matchmaking show @相亲相爱

Her ideal partner: A man who doesn't play mahjong, smoke and drink alcohol

▲ GIF via matchmaking show @相亲相爱

Her ideal partner: A man who leaves her his legacy

▲ GIF via matchmaking show @相亲相爱

Female guest: I haven't taken pills for a year!

Male guest: I haven't taken pills for two years!

▲ GIF via matchmaking show @相亲相爱

Male guest: I can do 200 push-ups per minute.

Female guest: You have a problem with your posture!

Credibility, trust-building, immersive experience... These features make senior matchmaking an O2O business.

The challenge for workers in matchmaking is on the product positioning - to make friends or to make a match? Product positioning affects the business model.

Social networking platforms are efficient in acquiring users, but the huge investment in development and operation plus a low unit revenue per user might result in weak profitability.

Matchmaking platforms price higher than social platforms, but only some seniors have solid purchase power in China.

In addition to challenges, there is also hope for growth: Crossover collaboration with industries such as wealth management, film & television, home decoration, wedding photography, beauty & fashion and the development of high-tech such as big data, cloud computing, AR, VR are expected to upgrade the products and service.

▲ Wedding photography via @东尚摄影

▲ Wedding photography via @喜鹊摄影

TOURISM

In China, many travel agencies ignore the seniors' market potential because they think seniors are prone to personal and property risks. The most common choice for seniors is tour groups, which leads to fierce price competition among travel agencies. Some tour groups even offer a 5-day trip for free. However, as the old Chinese saying says: "There is no such thing as a free lunch 天下没有免费的午餐". Seniors are usually forced to shop during the trip. Compulsory shopping destroys seniors' faith in tourism. Products and services that perfectly match seniors' needs are missing in the market.

▲ Video via @Vista看天下

A travel agency prevented the check-in because the travelers refused the compulsory shopping

According to researches, the main factors influencing the travel decisions of seniors are shown in the image:

▲ Conclusion via @Tourism Research

Image via @Double V. Consulting

Factors influencing travel decision of seniors

I. Health is the top factor. This conclusion points out the direction of tour planning, i.e., agritour, seasonal tour, and medical tour with accompanying interpreters. Such products raise the unit revenue per user.

II. It's worth mentioning that the essence of people's tourism needs is social networking. Therefore, the travel experience can be improved by integrating various ice-breaking topics, games and tasks for senior tourists into the tour.

Next time, Double V. Consulting will continue to share insights about the silver economy.

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