The World Ageing Festival, taking place from May 6-10 at the Marina Bay Sands in Singapore, may sound like a quirky event, but it signifies a growing trend that retailers should not ignore. With more than 100 speakers and exhibitors from over 50 countries, the festival brings together professionals in the ‘silver economy’ – the business of aging. As populations age and decline, there is a significant interest in providing goods and services to the elderly, presenting a lucrative opportunity for retailers.
Singapore, known for its high household savings per capita, is an ideal location for the festival. The elderly in Singapore have a greater capacity and willingness to spend on goods and services for themselves and their loved ones. With a high life expectancy and an increase in healthy life years, Singaporeans are looking for lifestyle products and services that cater to their needs. Retailers need to shift their focus from traditional aging products to items like wearable technology, premium health and beauty products, activewear, food, fashion, and home appliances.
Janice Chia, Managing Director of Ageing Asia, predicts that Singapore’s aging market potential will reach an estimated US$72 billion by next year, making it a lucrative market for retailers. China, another country with a high life expectancy and a rising aging population, presents a massive market opportunity estimated at $2.6 trillion next year. With a population of about 300 million over the age of 60, China is considered a ‘super-aged’ country, driving the growth of the silver economy.
In Japan and Korea, where a significant percentage of the population is over 60 years old, seniors continue to spend due to high household savings rates. This presents opportunities for retailers, particularly department stores, to cater to the needs of an aging population. However, in developing countries like Thailand, Vietnam, and India, the situation is different, with low household savings per capita and limited social safety nets for seniors.
As the aging population continues to grow globally, retailers must adapt to meet the needs of older consumers. Just as the fashion industry had to adjust to cater to plus-sized consumers, retailers now need to focus on providing products and services that appeal to healthy agers with disposable income. From packaging design to the shopping experience, retailers must consider the preferences of older shoppers who still prefer to shop in stores despite being digitally enabled.
In countries with healthy aging populations and high saving rates, like Singapore and China, the potential for profit is significant. Retailers must seize the opportunity to tap into the silver economy and provide products and services that cater to the needs and preferences of older consumers. As the world ages, retailers cannot afford to ignore this growing market segment and must adapt to meet the demands of an aging population with money to spend.