Existing problems in the development of silver economy
Existing problems in the development of silver economy, with the deepening of the degree of aging, the elderly consumption is entering a period of rapid growth for the elderly to provide products and services, "silver economy", has become a new blue ocean of consumer upgrading. The existing problems in the development of silver hair economy.
Existing problems in the development of the silver economy1Recently, the "silver economy" ushered in a strong wind blowing. November 24, the "Central **** State Council on strengthening the work of the elderly in the new era of the opinions" (hereinafter referred to as "opinions") released, reiterated the basic policy of the work of the elderly and the views on 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 proposed to further standardize the development of institutional care, localities should develop institutional care through direct construction, entrusted operation, purchase of services, encourage social investment and other ways."
In this context, in the sentiment and responsibility as the first key to the elderly industry, the elderly 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 institution 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 care 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***.
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 development of social and economic development, the pension population institutions' changes, 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."
Existing Problems in the Development of the Silver Economy2Data shows that China has become the world's second largest consumer market. From "her economy" to "his economy", the consumption structure continues to optimize, green, healthy, sustainable consumption continues to expand, the rapid development of service consumption, consumption continues to upgrade.
With the deepening of the degree of aging, the elderly consumption is entering a period of rapid growth, providing products and services for the elderly "silver hair economy", is gradually showing a broad space and huge potential, becoming a new blue ocean of consumption upgrade.
Consumption concept
From "can't afford" to "chopping family"
For a long time, in the terminal The consumer market, the elderly is always at the bottom of the list. In many people's impression, the elderly in the expenditure is relatively frugal, the pursuit of low prices, it seems that there is no spending power. In fact, inadvertently, the "silver economy" has quietly come, if you still hold this concept, it can be very wrong.
"The shopping list has down jackets, massagers, health care products, mineral water ...... which is what my partner and I need." In fact, the children do not lack these things, mainly to express our feelings. Besides, catch 'double 11' price than the mall to be a lot cheaper."
In fact, in the context of consumer upgrades, the elderly are more in pursuit of diversified and personalized experiences, and the silver-haired group with the same online shopping needs as moncler outlet store Wu has become increasingly large over the years.
Data from the China Internet Network Information Center (CNNIC) shows that as of June this year, there were 284 million Internet users aged 50 and above, with cell phone users accounting for more than 99% of the total. In addition, the elderly network payment rate has increased tremendously, the new crown pneumonia epidemic prevention and control has become an important driving force to promote their use of network payment. Take Weixin payment for example, in the past two years the elderly users have increased nearly 20 times. Compared with young people, the elderly in online shopping, more important to the practicality of the goods and price factors, see the preferred goods, often buy a little more, a one-time more stockpile. If the purchased goods are more satisfied, they will keep buying back.
With the promotion and popularization of smartphones in the silver group, more and more elderly people are joining the online shopping army, becoming "silver choppers", and their purchasing power is "not to be underestimated". Jingdong Consumption and Industrial Development Research Institute in 2021, the latest report shows that today, "silver-haired people" has become an important growth driver of the consumer market, as of the end of September 2021, the elderly online shopping sales increased by 4.8 times year-on-year.
The huge consumer power and ability behind the numbers has clearly gone far beyond the inherent perception of the elderly. "Insufficient purchasing power" "not willing to spend money for themselves" is gradually becoming the past of the elderly consumption, they are becoming open from the conservative, from "can not afford" to the "The first time I've seen this is when I've had a chance to see a lot of people in the world.
Consumption structure
From the basic needs of the cultural and entertainment experience
With the increase in the income of the elderly, the concept of consumption is updated, they are increasingly youthful and fashionable in their consumption behaviors, and the quality of life in their old age, the enjoyment of the requirements are also constantly improving.
A few days ago, the city of Tianjin cold wind gusts, snow, nearly seventy years old Yu Ming old man but in the circle of friends in the sun in their own in Hainan, facing the sea, the sunny photos. "I'm kind of a migratory bird type of retirement, summering in the north and wintering in the south." moncler outlet online, "I'm not able to do anything about it, plus hobby photography, retirement as long as the physical conditions allow, will come on a trip 'just say yes' to the trip."
Indeed, today's elderly group, has been unable to use the old and frail, negative old age and other single-minded, inertia thinking to consider analyzing their needs. In particular, as the "60" began to enter the 60s, compared with the traditional elderly, they have a stronger sense of health, more income, higher education, life expectancy is richer, but also more in pursuit of high-quality life in old age. From the perspective of consumption structure, they are no longer satisfied with the basic needs of life, but the pursuit of multi-level health services and spiritual and cultural needs.
More and more older people are choosing to learn as they age, and the popularity of senior colleges is even higher; more older people are eager to travel and are becoming more and more "hip". ", from the previous group tours, to the current customized tours, private tours, and even do it yourself to do the strategy, drive on the road; many older people are no longer satisfied with a single savings, but read up on the "financial management", began to consider the purchase of financial and insurance products for asset allocation!
Their financial strength and spending power should not be underestimated. Nowadays, most of the elderly enjoy pension insurance, have a stable income, and compared with many young people who run around naked without a house or a car, the vast majority of the elderly have one or more sets of housing, and not only do they not have the pressure of rent and mortgage, but they may even rely on the house to get some extra income.
This generation of older people has more wealth and a more open mind, they are trying to break the stereotype of the market for middle-aged and older people, and more and more trying to break through the age limitations on them. Their mentality tends to be younger, and their consumption concepts are gradually converging with those of young people. In addition to daily household consumption expenditure, they are increasingly focusing on make-up, clothing and other display-type consumption.
The seventh national census data show that China's population aged 60 and above has reached 264 million people, accounting for 18.7% of the total population. With the increase of the elderly population, the elderly will undoubtedly gradually become the main force of consumption, such a large number of elderly people with money and leisure, its consumption potential is undoubtedly very huge. And, with the deepening of the degree of aging, the elderly consumption is about to enter a period of rapid growth.
Existing problems in the development of the silver economy3
China's population aged 60 and above has reached 264 million, and the number is expected to exceed 300 million in the "14th Five-Year Plan" period, which means that China's "silver economy" contains a huge space.
On November 24th, the "Opinions of the Central State Council on Strengthening the Work of the Elderly in the New Era" (hereinafter referred to as the "Opinions") was released to the public, and the Opinions call for active cultivation of the silver economy, and the strengthening of the planning and development of the old age industry.
Official data show that China is the country with the largest elderly population in the world, with 264 million people aged 60 and above, accounting for 18.7% of the total population, and 191 million people aged 65 and above, accounting for 13.5% of the total population.
Wang Haidong, director of the Department of Aging and Health of the National Health Commission, said in a recent interview with China Business News that, to strengthen the construction of the aging industry system, first of all, we should increase policy support, and give preferential support to all aspects of finance, taxation, land, etc. The second is to improve the aging products. The second is to improve the scientific and technological content of aging products, extend the industrial chain, expand the economic benefits, through the creation of a number of leading enterprises, play a role in demonstrating the role of driving the development of the aging industry to better promote the development of the industry.
"Opinions" requires the preparation of relevant special planning, improve the support policy system, and promote the development of the aging industry in an integrated manner. Encourage the use of resource endowment advantages, the development of comparative advantages of the characteristics of the aging industry. Coordinated use of existing funding channels to support the development of aging industry.
Overall, the development of the domestic aging industry is relatively lagging behind, and the supply of supplies and services for the elderly is insufficient. Currently, there are only 2,000 kinds of products for the elderly in China, which is 1/20 of that of Japan, and the independent innovation ability of the manufacturing industry of the elderly products is low, and the basic, core and cutting-edge technologies are mostly in the hands of foreign-funded enterprises. The development of aging industry organization form is insufficient, the lack of leading and brand enterprises, existing enterprises exist "small, scattered, chaotic, poor" phenomenon.
"The aging industry is not yet mature, we have been to the size of the elderly population on the market, which is not accurate, it is more important to look at the elderly consumption ability and willingness. But the future is expected to change, because now the population born in the 60's will enter the aging, these potentially elderly people's pockets of money compared to the past to be more money, people born in the 60's, more advocate my old age I call the shots, the demand for senior products will be further increased." A population expert said.
However, the above experts also said that now the old age products technology technology content is not high, need to increase investment in science and technology. This is related to China's aging industry-related policy fragmentation, implementation of ineffective and other issues related to the development of industry, the lack of uniform price, tax, trade, talent, investment and financing, land and other policy support and planning to lead the enterprise and social organizations to participate in the development of the aging industry is still faced with a number of "glass door", "spring gate "In addition, the statistical index system of the aging industry has been improved. In addition, the lack of statistical index system of the aging industry, it is difficult to grasp the basic situation of industrial development and information, to provide a scientific basis for decision-making, these factors lead to the overall development of the aging industry lagging behind, the supply of supplies and services for the elderly is insufficient.
The National Health Commission of the relevant departments responsible for 24 hours, at present, China's aging cause and the development of the aging industry is unbalanced, inadequate, the development of the aging industry is lagging behind. The "Opinions" on the one hand, proposed to strengthen the planning and guidance, and to promote the development of the aging industry in an integrated manner; on the other hand, proposed the development of appropriate industries for the elderly, the relevant departments to develop a catalog of supplies and services for the elderly, quality standards, and promote the certification of elderly services. At the same time, the "Opinions" requirements, market supervision and other departments to strengthen supervision, crack down on infringement of intellectual property rights and the production and sale of counterfeit and shoddy goods and other illegal acts, to safeguard the rights and interests of the elderly consumption, to create a safe, convenient and honest consumer environment.