What business opportunities does the silver market bring
What business opportunities does the silver market bring
In fact, the competition in the domestic senior care market has long begun. A number of companies have been laying out the pension industry since around 2010, and there is no shortage of companies involved in boutique pension organizations. The market has brought about what business opportunities.
What are the business opportunities brought by the silver market1The old people have to rely on the old people is the social **** the same expectations. The effective response to the aging of China's population is related to the overall situation of the country's development.On November 24th, the "Opinions of the Central Committee of the State Council on Strengthening the Work on Aging in the New Era" was released, and it put forward a package of initiatives from the aspects of improving the pension service system, perfecting the health support system for the elderly, promoting the participation of the elderly in the society, focusing on constructing an age-friendly society, and actively fostering the silver-hair economy, and so on. "The newest addition to the list is the newest addition to the list, the newest addition to the list, the newest addition to the list, the newest addition to the list.
Households: children and parents living close to each other
According to the "2020 National Development Bulletin on Aging" released by the Department of Aging and Health of the National Health Commission, as of 00:00 on November 1, 2020, China's population of elderly people aged 60 years old and above was 264.02 million people, accounting for 18.7% of the total population; 65 years old and above was 190.0 million people, accounting for 18.7% of the total population; and 65 years old and above was 18.7% of the total population. As of November 1, 2020, China's elderly population aged 60 years and above is 264.02 million, accounting for 18.7% of the total population; China's elderly population aged 65 years and above is 190.64 million, accounting for 13.5% of the total population; China's elderly population dependency ratio is 19.7%, an increase of 7.8 percentage points over 2010.
And in the Opinions of the most concerned sentence is: study the development of housing and other support policies, improve the ladder electricity, water, gas price policy, encourage adult children and elderly parents to live close to or *** with life, fulfill the obligation to support, take care of responsibility. "From this place, we can see that some of the subsequent home-buying policies will be adjusted from the perspective of old age. It can be envisioned that there will be a similar policy, that is, the subscription process of properties around the world can be tilted towards such homebuyers who have the need to support and care for their parents, and provide preference or facilitation in the purchase of homes. At least a similar formulation suggests that the support for elderly care will be increased and the support for related home purchases will be strengthened." Yan Yuejin, research director of the E-House Research Institute Think Tank Center, said.
Nearby living, *** with life, the optimal distance between children and parents, is "a bowl of soup" distance. Mr. He, who lives near Ditan Park in Beijing's Dongcheng District, bought a small house for his parents two kilometers away from his home last year. In his words, his home in the district is a Dongcheng school district, the community and then buy a set of difficulty is too big, but two kilometers away from the district belongs to the Chaoyang District, the cost of purchasing a home from 130,000 yuan / square meter down to less than 70,000 yuan / square meter. The house is newer and the neighborhood is better.
"We have an old man and a young man, unless the strength is particularly strong, want to buy two houses in a small area, either to take care of the children's schooling, disregard for the comfort of the elderly, or like me this choice, one-stop distance, is more realistic than a bowl of soup." In Mr. He's opinion, a house that takes care of children's schooling and parents' retirement is as indispensable as education and medical support within three kilometers, while a work-life balance for the family's top man is equally important. "Not more than half an hour away from the unit, good education within 12 years, and a tertiary hospital could be the ideal home for our age group."
Medical: "Internet + care services"
With the accelerated aging of China's population, the health of the elderly has become a focus of attention for all parties in society. The "Opinions" put forward to improve the health support system for the elderly, to improve the level of health services and management of the elderly, to strengthen the long-term care services and protection of the disabled elderly as well as in-depth promotion of the combination of medical and nursing.
In fact, the state has previously issued favorable policies on care services many times. 2018, the National Health Commission and other eleven departments issued guidance to promote the reform and development of the care service industry; in January 2019, the National Health Commission issued the Notice on Carrying Out the Pilot Work of "Internet+Care Services". In January 2019, the National Health Commission issued the Notice on Carrying Out "Internet + Nursing Service" pilot work in six provinces and cities, including Beijing, focusing on providing medical care services for people with limited mobility, such as elderly or disabled elderly people, post-hospitalization patients, rehabilitation patients and terminal patients.
A number of companies have carried out business-related layouts in the above context.
In December 2020, the People's Pharmacy Chain Company Limited and Hunan Geer Wisdom Technology Company formally signed a strategic cooperation agreement on the *** construction of the "Internet + Nursing Care Service". At the end of 2018, the micro pulse layout "Internet + care services", micro pulse has explored a group of elderly people as the center, set prevention, management, treatment as one of the whole life cycle management system.
Hu Wei, chief medical officer of Micro Pulse, told Beijing Business Daily that the company found in the exploration of the whole-course management service that there is a certain breakpoint in the management of geriatric diseases in hospitals and the enhancement of the adherence of the elderly, especially in the third and fourth-tier cities, where there is an exodus of the young population and a serious aging of the demographic structure. Many elderly people in the post-diagnosis, post-examination, post-operative and post-hospital management rely on case managers and professional health care team, focusing on the provision of a full range of comprehensive, full-cycle medical and health services to the elderly population has become a social topic, the views put forward, undoubtedly releasing a favorable signal, the state is promoting the participation of enterprises and other social institutions in the work of the elderly.
Ding Shaolei, co-founder and CEO of Golden Nurse, told Beijing Business News that the elderly health support system is an important part of the work of the elderly, and "nursing rehabilitation, long-term care, hospice" is an important part of the elderly health and nursing care is the focus. The release of the policy further accelerates the implementation of "Internet + Nursing" (care), increasing the supply of effective nursing services for the elderly health work and promoting the development of the industry.
In the intelligent products, some companies also have early action. LP Yunzhi relevant person in charge told the Beijing Business Daily reporter, cardiac rehabilitation is a comprehensive and complex intervention therapy for patients with cardiovascular disease, LP cardiac artificial intelligence technology can continuously record to the patient's daytime and nighttime hours of cardiac electrical activity, the doctor and the patient in time to adjust the treatment to provide assistance to reduce the incidence of acute ischemic coronary events and the rate of hospitalization. It also reduces cardiovascular mortality and hospitalization rates in heart failure patients and improves the quality of life of heart failure patients.
Insurance: multi-level pension insurance system
As an important part of the **** the same affluence, pension has long been included in the top-level design by the decision-making level, to promote the third pillar of the pension system, the construction of a multi-level pension insurance system building is not time to wait.
It is understood that the first pillar of the basic pension insurance, the second pillar of the enterprise supplemental pension insurance (i.e., enterprise annuity) and occupational pensions, the third pillar of the individual savings pension insurance and commercial insurance.
So, how is the development of the third pillar pension insurance industry nationwide? Yang Zeyun, a teacher in the Department of Finance at the School of Management of Beijing Union University, analyzed that the third pillar of personal tax deferred commercial pension insurance has been launched since the start of the pilot in May 2018, and by the end of 2019, only 47,000 people had participated in the insurance, and the premium income in 2019 was only 245 million yuan. At present, the third pillar of commercial pension insurance is seriously underdeveloped, but the future development potential is huge.
Where should commercial insurance companies start to develop third-pillar pension insurance products? Yang Zeyun suggested that the first is to develop and design differentiated commercial pension insurance products. People in different life cycles, different needs for commercial pension insurance, should be based on customer demand to develop and design different products. Secondly, it is necessary to control risks and strengthen information disclosure. Commercial pension insurance has a long capital cycle and faces greater risks. And the special nature of pension needs makes it impossible to have large fluctuations in funds. Therefore, fund management needs to control risk based on the pursuit of returns, but also to do a good job of information disclosure.
For the development of old age-related industries, the Opinion states that commercial insurance organizations are encouraged to develop health insurance products for the elderly under the premise of risk-controllable and commercially sustainable.
In fact, in recent years, the CBIRC has encouraged insurance organizations to develop various types of insurance products for the elderly, to enrich the varieties of commercial insurance available to the elderly, and to give full play to the important role of commercial insurance in the social security system.
The data shows that there are more than 1,000 insurance products available for the elderly, basically covering the products of disease insurance, medical insurance, accident insurance and pension insurance that the elderly are most concerned about. As of October this year, 25 rate-adjustable long-term medical insurance products with an insured age of more than 70 years have been put online.
However, compared with China's large elderly population, insurance coverage still needs to be further improved. As of today, 107 million seniors aged 60 and above hold commercial insurance policies, and the penetration rate of commercial insurance for seniors (number of people buying commercial insurance/total population) is 41%.
Li Wenwen, deputy director of the Insurance Department at Capital University of Business and Economics, analyzed that the current health insurance products launched by commercial insurance institutions are less popular in the market, and the main reason for this situation is that consumers believe that the product pricing is high. The health insurance products with universal and policy-oriented, due to the risk of adverse selection, also makes people worry about the sustainability of the system. In this regard, Mr. Li said that the future development of health insurance for the elderly should focus on providing a variety of health services for the elderly, and at the same time provide a moderate and controllable health risk protection.
What is the significance of health insurance products for the elderly for the promotion of China's future pension work? Li Wen said, for the elderly, to ensure the quality of life is not enough to have a pension, their physical function decline leads to a very large demand for health risk protection needs and health services. Therefore, the promotion and realization of the combination of medical care for the elderly work is of great significance.
"Opinions" pointed out that the long-term care insurance system to promote the pilot, increase the exploration efforts, improve the existing pilot, and actively explore the establishment of long-term care insurance system suitable for China's national conditions.
Long-term care insurance is mainly for the insured in the loss of daily life, old age and illness or death, focusing on the provision of care protection and financial compensation, at present, China's care insurance also has a social security-type care insurance system, commercial care insurance two categories.
For long-term care insurance, the state has repeatedly issued policies to strongly support the participation of commercial insurance companies, and currently the vast majority of pilot cities in the long-term care insurance program are commercial insurance companies. However, the current level of long-term care insurance services needs to be improved, the asymmetry between the demand and supply of care services, and the huge demand for health, medical and care services for the elderly has brought serious challenges to the current recreational system.
Zhu Junsheng, research director of the China Insurance and Pension Research Center at Tsinghua University's Wudaokou School of Finance, said that the current nursing insurance plus disability insurance premiums accounted for less than 2%, from the point of view of the commercial health insurance, long term care insurance is not yet fully effective.
The data show that the number of disabled/semi-disabled elderly population in China is predicted to be 42.5 million in 2020, accounting for 17%. And the number of disabled/semi-disabled elderly population in China is forecast to be 62.9 million and 96 million in 2030 and 2050 respectively, accounting for 17% and 20% respectively.
In the view of Guo Zhenhua, director of the Department of Insurance at the Shanghai University of International Business and Economics, for long term care insurance, with the gradual increase in the number of elderly people with incapacities, and the long term care insurance and long term care insurance supporting system can solve the problem, which makes the long term care insurance policy demand greatly increased.
What business opportunities does the silver market bring2Recently, the "silver economy" ushered in a strong wind blowing. November 24, "China *** Central State Council on strengthening the work of the elderly in the new era of the opinions" (hereinafter referred to as "opinions") was released, reiterating the basic policy of the work of the elderly and the pension of the elderly.
Meng Lilian, chief expert of Sichuan Tianfu Health Industry Research Institute, told the Securities Daily reporter: "*** build **** enjoy is the basic principle of the work and services for the elderly, and the opinions on the entry of social capital, social forces to participate in the clear. For example, the Opinions put forward to further standardize the development of institutional care, localities should develop institutional care through direct construction, entrusted operation, purchase services, encourage social investment and other ways."
In this context, in order to feelings and responsibility for the first importance of the pension industry, pension institutions can usher in a real "spring"? In this regard, Guo Jianjun, president of Charming Garden China, said in an interview with a reporter from the Securities Daily, "The next three to five years, the domestic senior living institutions will enter a period of mature development. With the post-50s, post-60s crowd into the army of the elderly, the change in consumer attitudes will allow the market to gradually show the trend from old age to enjoy the old. Superimposed on the policy guidance, high-end senior care institutions in the maturity period will be more attractive to the attention of capital."
Chinese and foreign companies are piling into the market
But the industry is still generally losing money
According to the seventh census data, China's population over the age of 65 is 190.64 million, accounting for 13.5%. A pension industry data report published by the Eye of Heaven APP shows that it is generally believed that when a country's population over 65 years of age accounted for more than 7%, that is, into the aging society; when the population over 65 years of age accounted for more than 14%, that is, into the depth of the aging society.
13.5% means that China is about to enter a y aging society, and the ensuing huge demand for elderly care has led to the rapid development of the elderly care institutions industry. Data from the Prospect Industry Research Institute shows that the number of nursing institutions in China is on the rise. Data from the Ministry of Civil Affairs shows that by the end of 2020, there were 38,000 senior care institutions nationwide***, an increase of 10.4% from 2019 and 37.2% from the end of 2015. If divided according to the structure of the operating body, the proportion of privately-run nursing homes reached 54.7%. It is predicted that the size of China's nursing home market is expected to reach 111.4 billion yuan in 2026.
In fact, the competition in the domestic pension market has long begun. For example, Taikang Home, Cheng Hejing, Kaijian Huazhan and many other companies have been laying out the pension industry since around 2010, and many of them are involved in boutique pension institutions. Based on the attributes of the senior living industry, real estate and insurance companies are still dominant.
On top of that, foreign companies are also piling into the Chinese senior living market. Statistics from AgeLifePro, a research media in the senior care sector, show that by the end of 2020, 40 companies from at least 11 countries had announced their entry into China's senior care market, with 44 completed projects spread across 17 provinces in the country. For example, Charming Garden, the largest unlisted owner of senior living properties in the United States, has had a number of projects in operation since entering China in 2010, and this year it has signed a contract with Suzhou Recreation and Nutrition Group; Lianshi, Australia's largest operator of senior living communities, landed its first project in China last year; and in addition, the Netherlands-based Boholcke has also cooperated with a Chinese real estate company and is about to develop the community care services market in the Guangdong-Hong Kong-Macao Greater Bay Area*** together.
But it's not all.
However, Meng Lilian told reporters: "The main body of the supply of elderly services is still too little, although there are many organizations, capital is ready to enter the field of elderly services, due to the standards, procedures, content and so on need to be further clarified, a lot of wait-and-see, has entered the due to various reasons to do a good job is not much."
In fact, this market, losses are far more than profits. A survey by Professor Qiao Xiaochun of Peking University's Population Institute pointed out that, as a city with a very serious aging population, Beijing's elderly care enterprises are generally in the red. Surplus accounted for only 4%, basically flat accounted for 32.8%, a slight loss accounted for 32.6%, and a serious loss accounted for 30.7%.
Policy support is especially important
Three to five years or usher in the maturity period
China's current elderly care institutions are mainly divided into two categories, one is to meet the needs of high-income people, this type of institutions are doing more successful. The other part is to meet the low and middle-income people's pension services, basically there are still many problems waiting to be solved.
The reporter found that the above mentioned foreign-funded enterprises Charming Garden, Lianshi, etc. are focusing on boutique senior care institutions in the high-end senior care market.
"China's current senior living institutions, the profit model is clear, but the profitability is not strong." Guo Jianjun told the Securities Daily reporter that, for example, Charming Garden has served more than 60,000 residents so far in the overseas market, providing residents with high-quality senior living services. From the company's experience, Europe and the United States, as the senior care market has been quite mature, the annual gross profit rate of high-end senior care institutions can reach 33%. In the United States, the return on investment for investing in a senior living facility is between 6% and 8%, with some facilities reaching 10%. According to Guo Jianjun, "The industry will also take into account ethical issues and control the data in a reasonable range, such as gross profit margins will be pressed below 40%, so 8%-10% is a better return on investment ratio. But in China, there are very few that do 3%."
Guo Jianjun believes that the constraints are mainly the demand side of the problem, "Now the age of the elderly in the nursing institutions are mostly born in the thirties and forties, the consumption concept and later after the fifties and sixties there is a clear difference. They will reject 'enjoyment-type' consumption. However, as the post-fifties and post-sixties crowd gradually joins the army of the elderly, they demand higher standards of care and the retirement environment, and the market will see a shift from old age to 'enjoying old age', and the high-end market will also become a rigid demand."
Chang Hong, China's chief representative of the Los Angeles Convention and Visitors Bureau, told Securities Daily, "From the family's experience at Charming Gardens, the service concept is different from that of an ordinary retirement institution. It's not just enough that the quality, service and hygiene are on point, here the elderly are encouraged to do what they can, bringing them spiritual fulfillment and really making them feel respected. It is for this reason that they have changed their 'stereotypical impression' of elderly care institutions in the past."
"The industry may usher in a mature period in three to five years, on the one hand, a new generation of elderly people to join, from the consumption habits to promote the industry tends to mature; on the other hand, the state gives policies to support, to promote the entry of domestic and foreign private capital into the senior care industry, for example, the nature of our land is divided into land for medical treatment and land for recreation and health care, to increase the capital side of the sector's interest." Guo Jianjun said that in the next three to five years, the return on investment ratio of high-end senior care institutions in the domestic market is likely to increase to 5% to 8% as well.
Wang Peng, an associate professor at the University of the People's Republic of China, told the Securities Daily reporter that with the socio-economic 'development, the changes in the institutions of the elderly population, are generated grading. High-end, intelligent, customized personalized senior care services will all show great potential. "With the passage of time, our country's improvement in the social security system, as well as the increase in the level of income of the population, high-value senior care service system will inevitably be established, the market share will also increase."
What business opportunities does the silver-hair market bring3If you can live to be a hundred, how will you plan and look at your life? This is the question thrown in the book "Life at 100", which also provides readers with a perspective to re-examine the development trend of life and society. Nowadays, old age has become a topic of increasing concern, and the elderly have different requirements for the quality of consumer products and services, and a large-scale, diversified structure of the "silver economy" market has been formed.
Policy Continuous encoding
New 47,000 related enterprises within the year
A few days ago, the Central Committee of the State Council issued the "Opinions on Strengthening the Work of the Elderly in the New Era" (referred to as the "Opinions"), which makes it clear that actively fostering the silver-haired economy. Preparation of relevant special planning, improve the support policy system, and promote the development of the aging industry in an integrated manner. At the same time, the development of elderly-friendly industries.
It is worth mentioning that this is the year following the "14th Five-Year Plan" planning program to implement a clear national strategy to actively respond to the aging of the population, requiring the development of silver economy, the development of ageing technology and products, and cultivate new forms of wisdom, such as old age, the national level once again emphasize the development of silver economy.
Wu Qi, executive director of the Wuxi Digital Economy Research Institute, told the Securities Daily reporter that the population issue is a global, long-term, strategic issue facing a country's economic and social development. The state re-emphasizes the cultivation of silver hair economy, the development of old age industry, in response to the economic and social pressures brought about by aging, at the same time, accelerate the development of new modes of old age related industry integration of new modes of new products and new services, to meet the needs of the elderly network consumption, intelligent consumption, health consumption and other consumption needs, is conducive to creating a new point of growth in the economy and domestic demand.
The policy level for the construction of the pension service system more and more attention, the relevant industry ushered in the development of opportunities, involved in the pension industry market players gradually increased. According to the Tianyecha data, there are currently more than 244,000 enterprises with the name or business scope of "the elderly, the elderly, the elderly," the relevant enterprises. In terms of registered capital, 28.94% of the silver economy-related enterprises have a registered capital of more than 10 million yuan, while another 35.02% have a registered capital of less than 1 million yuan. As of November 25th press release, based on business registration, China has added more than 47,000 silver economy-related enterprises, up 3.72% over the same period last year.
The 2021 China Silver Hair Economy Industry Research Report released by AiMedia Consulting shows that during 2016-2020, the market size of China's silver hair economy continued to rise, and in 2020 it had reached 5.4 trillion yuan, with an annual growth rate of 25.6%. It is predicted that by 2021, the market size of China's silver hair economy will keep growing and reach 5.9 trillion yuan.
Silver hair demand generates investment opportunities
The capital market is expected to introduce supportive policies
It is worth noting that the cultivation of the silver hair economy, the development of the old age industry has also been pushed to the capital market spotlight. In the interactive platform of the Shanghai and Shenzhen Stock Exchanges, some investors have asked questions and made suggestions about the layout of the listed companies in the relevant industries, and the listed companies have responded positively.
A Shaanxi service industry company replied, "The company is now focusing on health management, recreation and health-related resources and projects, for the 'silver economy' market, but also actively do a good job in the demand management and user operations of the elderly customer base."
Another Fujian-based information technology services company said that as a pioneer in the field of smart aging, the company has led the industry in the development of the "Wisdom+" smart aging service platform, which combines the Internet of Things and cloud computing technology to closely link the needs of the elderly home health management, daily life, community services, social service providers, and government supervision and management. It closely links the health management needs of the elderly at home, their daily life needs, community services, social service providers, as well as government supervision and management, and realizes the new intelligent elderly care model of "Internet + Elderly". Next, the company will continue to increase investment in the elderly industry, layout of institutional recreation services, improve the company's elderly service system.
"Securities Daily" reporter according to the Oriental Wealth Choice data statistics, as of November 25, the A-share market of the concept of old-age stocks **** there are 95, involving real estate, pharmaceutical manufacturing, lodging, business services, and other industries. 95 companies debut fundraising totaled 123.86 billion yuan. In the first three quarters of this year, 95 companies realized revenue income totaling 2,895.37 billion yuan, an increase of 12.8% year-on-year, and realized net profit attributable to shareholders of the parent company totaling 194.38 billion yuan.
Chen Lei, chief economist of Sichuan Cai Securities, said in an interview with the Securities Daily reporter that the current elderly industry has entered a period of rapid development, and the implementation of the measures put forward in the "Opinions" will further promote the construction of a diversified system of China's old age industry, which is expected to include the elderly financial (annuities, trusts, wealth management, etc.), services (medical care, bathing, and other specialized services to help the elderly), real estate (senior citizen apartments.), and other industries will usher in a new era of development, Senior community) and other industries will usher in investment opportunities. For the capital market, the follow-up is expected to introduce a series of supportive policies to guide the flow of funds to the elderly industry, bringing new growth points for the market.
"Relevant listed companies can combine their main business to develop special pension products and provide differentiated pension services." Chen Leak suggested that for the real estate, construction and home furnishing industries, they can develop home aging-friendly design, develop and build senior apartments, senior communities and other specialty products; for the tourism industry, they can combine with specialty scenic spots and rural tourism to develop a green pension and vacation industry; for the Internet industry, they can develop intelligent senior care services and launch aging-friendly models for their products, etc.; and for the healthcare industry, in addition to targeting the health of the elderly For the medical industry, in addition to developing medicines and healthcare products for the elderly, it can develop recreational services centered on medical rehabilitation. It is important to note that enterprises should combine the physical characteristics of the elderly group when developing elderly products, and should be equipped with a comprehensive medical service team when providing elderly services to prevent risks.
In addition, in Wu Qi's view, the current development of the elderly industry there are three issues need to pay great attention to: First, although the elderly consumer willingness to enhance, but part of the relative lack of consumption capacity, limiting its consumption demand; Second, in line with the elderly consumption needs of the infrastructure and products and services to be perfected, for example, the increasingly prominent digital divide; Third, the elderly industry policy system and safeguards need to be improved, such as with the financial support of the elderly industry to be perfected. Third, the policy system and safeguard measures for the elderly industry need to be improved, such as supporting the relative lagging behind of financial services, can learn from the experience and practice of developed countries, combined with China's national conditions, to accelerate the innovation of pension finance.