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Marketing to Over 55s - China - February 2015

Published By :

Mintel

Published Date : Feb 2015

Category :

Advertising and Marketing

No. of Pages : 177 Pages


In China, the number of people above the aged 60 or over will reach 400 million in the early 2030s, representing a quarter of the country’s total population. To put this into perspective, the total US population is officially forecast to be 359.4 million in 2030. The United Nations forecasts that 30% of all Chinese people will be older than 60 by 2040, and a quarter of the population by 2050. National Bureau of Statistics forecasts hold that 2015 will see the over-60s population surpass 230 million.

Yet the number of products and services aimed at the over-55s consumer group remains pitifully small. Of the nearly 15,000 new products picked up in China by Mintel’s GNPD new product database during 2014, only 33 (0.2%) made the claim of being aimed at people over the age of 55. This illustrates a mismatch between the size of the over-55s consumer market in China, and the number of new products and services being targeted at that consumer group.

The key finding of this report is that there is a huge potential market, full of opportunities, that is largely being ignored by product and services marketers. For companies that can engage with over-55s consumers, and adapt their products to serve their needs better, or can come up with innovative new solutions to solve lives problems for the over-55s, there is a wealth of opportunity and potential for new business growth.
Table of Content

Introduction

Definition
Report structure
Methodology
Abbreviations

Executive Summary

Getting to know China’s over-55s
Figure 1: Target Groups, October 2014
Who’s targeting the over-55s, or not?
Figure 2: China - Percentage breakdown of new product launches aimed at over-55s by broad product category, 2003-14
The consumer
Current financial situations: Well over half of over-55s have money left to spend
Figure 3: Consumer current financial situation, October 2014
Changes in spending habits: Food and healthcare lead the over-55s spending increases
Figure 4: Changes in consumer spending habits over the past 12 months, October 2014
Discretionary spending habits: Food and healthcare also lead discretionary spending
Figure 5: Consumer discretionary spending by broad sector of expenditure, October 2014
Plans for the coming year: Healthier eating and more family time remain key aspirations
Figure 6: Consumer planning for activities in the coming 12 months, October 2014
Holiday plans for the coming year: Family holidays still older consumers’ ideal
Figure 7: Consumer planning for holidays in the coming 12 months, October 2014
Attitudes to shopping: Seniors seek quality and familiarity
Figure 8: Consumer attitudes to shopping, October 2014
Key Issues
Are China’s over-55s really so conservative?
Are older consumers still being ignored?
Getting online and out the apartment
Experience leads to higher quality expectations
What we think

Issues and Insights

Are China’s over-55s really so conservative?
The facts
Figure 9: Consumer attitudes to trying new shops and trying new products, October 2014
The implications
Are older consumers still being ignored?
The facts
The implications
Getting online and out the apartment
The facts
The implications
Experience leads to higher quality expectations
The facts
The implications

Trend Applications

Without a care
The Stat:
The Idea:
Futures: East Meets West
The Stat:
The Idea:
Futures: Old Gold
The Stat:
The Idea:

Getting to Know China’s Over-55s

Key points
Who are China’s over-55s?
Figure 10: Target Groups, October 2014
The ‘Stick to what you know’ consumers
Who they are
What they like
Marketing approach
The ‘Online and adventurous’ consumers
Who they are
What they like
Marketing approach
The ‘On a budget and unengaged’ consumers
Who they are
What they like
Marketing approach
An aging population
Figure 11: The population of the over-60s in China, 2000, 2005, 2010 and 2015
Figure 12: Decline in birth rate over 20 years, 1994-2013
A huge opportunity market
Figure 13: China – Potential size of the over-65s consumer economy, compared with other nation GDP data, 2009-14
The tradition of filial piety
Responding to redefined ideas of ‘old age’

Who’s Targeting the Over-55s, Or Not?

Key points
Sectors where over-55s are being actively targeted
Figure 14: China - Percentage breakdown of new product launches aimed at over-55s by broad product category, 2003-14
Figure 15: China – Percentage of all new products launched each year targeted at the over -55s over the period of 2003-14
Dairy products aimed at over-55s
Figure 16: Percentage breakdown of new dairy product launches aimed at over-55s by product type, 2003-14
Figure 17: Companies most active in targeting dairy products at the over-55s, 2003-14
Breakfast cereal products aimed at over-55s
Figure 18: Percentage breakdown of new breakfast cereal launches aimed at over-55s by product type, 2003-14
Healthcare products aimed at over-55s
Figure 19: Percentage breakdown of new healthcare product launches aimed at over-55s by product type, 2003-14
Hot beverage products aimed at over-55s
Figure 20: Percentage breakdown of new hot beverage launches aimed at over-55s by product type, 2003-14
Sweet spreads
Bakery products
Incontinence products
Other products aimed at over-55s
Figure 21: China – Percentage breakdown of other new product launches aimed at over-55s by product type, 2003-14
Service sectors attracting seniors
Sectors where over-55s are yet to be actively targeted
Cosmetics and beauty products and services
Potential for more healthcare and packaged food products aimed at the over-55s
Figure 22: Percentage breakdown of new product launches aimed at over-55s by broad product category, Global vs China, 2003-14
Financial services

The Consumer – Current Financial Situations

Key points
Well over half of over-55s have money left to spend
Figure 23: Consumer current financial situation, October 2014
Figure 24: Statements about current financial situation, September 2013
Men below age of 70 are those most likely to have spare cash
Figure 25: Consumer current financial situation, by gender and age group, October 2014
RMB 8,000 monthly household income the ‘spare cash’ break point
Figure 26: Consumer current financial situations, by monthly household income group, October 2014
Tier 1 still where the extra money is
Figure 27: Consumers surveyed by monthly household income and city, October 2014
Figure 28: Consumer current financial situation, by city tier, October 2014
Sectors enjoying spare cash spending
Figure 29: Sectors where consumer are spending more over the past 12 months, by current consumer financial situation, October 2014
Sectors suffering belt-tightening
Figure 30: Sectors where consumer are spending less over the past 12 months, by current consumer financial situation, October 2014
How consumers view their financial situation
Figure 31: Consumer views on current financial situation, October 2014
Supporting children or grandchildren restricts spending
Figure 32: Consumer views on current financial situations, by gender and age group, October 2014
Figure 33: Consumer views on current financial situations, by monthly household income group, October 2014
The financial planners are spending more
Figure 34: Sectors where consumer spending has increased over the past 12 months, by Consumer views on current financial situations, October 2014

The Consumer – Changes in Spending Habits

Key points
In-home food and healthcare lead the over-55s spending increases
Figure 35: Changes in consumer spending habits over the past 12 months, October 2014
The over-55s spending increases by demographics
Figure 36: Changes in consumers spending more over the past 12 months, by gender and age group, October 2014
The over-55s spending increases by income and employment
Figure 37: Changes in consumers spending more over the past 12 months, by monthly household income group, October 2014
Figure 38: Changes in consumers spending more over the past 12 months, by employment status, October 2014

The Consumer – Discretionary Spending Habits

Key points
Food and healthcare also lead discretionary spending
Figure 39: Consumer discretionary spending by broad sector of expenditure, October 2014
Discretionary spending by demographics
Figure 40: Consumer discretionary spending by broad sector of expenditure, by gender and age group, October 2014
Discretionary spending by income
Figure 41: Consumer discretionary spending by broad sector of expenditure, by monthly household income group, October 2014
Highly diverse preferences of discretionary spending by location
Figure 42: Consumer discretionary spending by broad sector of expenditure, by city, October 2014
Figure 43: Consumer discretionary spending by broad sector of expenditure, by city tier, October 2014
Discretionary spending by key consumer segment
Figure 44: Consumer discretionary spending by broad sector of expenditure, by key consumer segment, October 2014

The Consumer – Plans for the Coming Year

Key points
Healthier eating and more family time remain key aspirations
Figure 45: Consumer planning for activities in the coming 12 months, October 2014
Figure 46: Activities planned for the next 12 months, September 2013
Life plans by demographics
Figure 47: Consumer planning for activities in the coming 12 months, by age group, October 2014
Figure 48: Consumer planning for activities in the coming 12 months, by gender and age group, October 2014
Life plans by income
Figure 49: Consumer planning for activities in the coming 12 months, by monthly household income group, October 2014
Life plans by location
Figure 50: Consumer planning for activities in the coming 12 months, by city, October 2014
Figure 51: Consumer planning for activities in the coming 12 months, by city tier, October 2014

The Consumer – Holiday Plans for the Coming Year

Key points
Family holidays still older consumers’ ideal
Figure 52: Consumer planning for holidays in the coming 12 months, October 2014

The Consumer – Attitudes to Shopping

Key points
Seniors seek quality and familiarity
Figure 53: Consumer attitudes to shopping, October 2014
Seniors’ attitudes to shopping by demographics
Figure 54: Consumer attitudes to shopping, by gender and age group, October 2014
Seniors’ attitudes to shopping by income
Figure 55: Consumer attitudes to shopping, by monthly household income group, October 2014
Seniors’ attitudes to shopping by location
Figure 56: Consumer attitudes to shopping, by city, October 2014
Figure 57: Consumer attitudes to shopping, by city tier, October 2014

Appendix – The Consumer – Current Financial Situation 1

Figure 58: Consumer current financial situations, October 2014
Figure 59: Consumer current financial situation, by demographics, October 2014
Figure 60: Changes in consumer spending habits over the past 12 months, by current consumer financial situation, October 2014

Appendix – The Consumer – Current Financial Situation 2

Figure 61: Consumer current financial situation, October 2014
Figure 62: Consumer current financial situation, by demographics, October 2014
Figure 63: Changes in consumer spending habits over the past 12 months, by current consumer financial situation, October 2014

Appendix – The Consumer – Changes in Spending Habits

Figure 64: Changes in consumer spending habits over the past 12 months, October 2014
Figure 65: Changes in consumer spending habits over the past 12 months – Food and non-alcoholic beverages for the home, by demographics, October 2014
Figure 66: Changes in consumer spending habits over the past 12 months – Medical/healthcare, by demographics, October 2014
Figure 67: Changes in consumer spending habits over the past 12 months – Food and non-alcoholic beverages outside of the home, by demographics, October 2014
Figure 68: Changes in consumer spending habits over the past 12 months – Holidays/travelling, by demographics, October 2014
Figure 69: Changes in consumer spending habits over the past 12 months – Entertainment/leisure, by demographics, October 2014
Figure 70: Changes in consumer spending habits over the past 12 months – Fashion, by demographics, October 2014
Figure 71: Changes in consumer spending habits over the past 12 months – Household care products, by demographics, October 2014
Figure 72: Changes in consumer spending habits over the past 12 months – Personal care, by demographics, October 2014
Figure 73: Changes in consumer spending habits over the past 12 months – Mobile phone, by demographics, October 2014
Figure 74: Changes in consumer spending habits over the past 12 months – Transport, by demographics, October 2014
Figure 75: Changes in consumer spending habits over the past 12 months – Alcoholic drinks and tobacco, by demographics, October 2014
Figure 76: Changes in consumer spending habits over the past 12 months – Electronic equipment, by demographics, October 2014

Appendix – The Consumer – Discretionary Spending Habits

Figure 77: Consumer discretionary spending by broad sector of expenditure, October 2014
Figure 78: Most popular consumer discretionary spending by broad sector of expenditure, by demographics, October 2014
Figure 79: Next most popular consumer discretionary spending by broad sector of expenditure, by demographics, October 2014
Figure 80: Other consumer discretionary spending by broad sector of expenditure, by demographics, October 2014
Figure 81: Consumer discretionary spending by broad sector of expenditure, by most popular consumer planning for activities in the coming 12 months, October 2014
Figure 82: Consumer discretionary spending by broad sector of expenditure, by next most popular consumer planning for activities in the coming 12 months, October 2014
Figure 83: Consumer attitudes to shopping, by most popular consumer discretionary spending by broad sector of expenditure, October 2014
Figure 84: Consumer attitudes to shopping, by next most popular consumer discretionary spending by broad sector of expenditure, October 2014

Appendix – The Consumer – Plans for the Coming Year

Figure 85: Consumer planning for activities in the coming 12 months, October 2014
Figure 86: Most popular consumer planning for activities in the coming 12 months, by demographics, October 2014
Figure 87: Next most popular consumer planning for activities in the coming 12 months, by demographics, October 2014
Figure 88: Other consumer planning for activities in the coming 12 months, by demographics, October 2014
Figure 89: Consumer planning for activities in the coming 12 months, by current consumer financial situation, October 2014

Appendix – The Consumer – Holiday Plans for the Coming Year

Figure 90: Consumer planning for holidays in the coming 12 months, October 2014

Appendix – The Consumer – Attitudes to shopping

Figure 91: Consumer attitudes to shopping, October 2014
Figure 92: Agreement with the statement ‘It’s best to stick to shops you’ve been to rather than going to new ones’, by demographics, October 2014
Figure 93: Agreement with the statement ‘It is better to stick to the products you use rather than trying new ones’, by demographics, October 2014
Figure 94: Agreement with the statement ‘It’s good to experience something new rather than sticking to the same things’, by demographics, October 2014
Figure 95: Agreement with the statement ‘It is worth paying a bit more for products that are of higher quality’, by demographics, October 2014
Figure 96: Agreement with the statement ‘It is worth waiting until products go on sale to buy’, by demographics, October 2014
Figure 97: Agreement with the statement ‘There is a lack of advertisements that target the elder group’, by demographics, October 2014
Figure 98: Agreement with the statement ‘There is a lack of products designed for people of my age’, by demographics, October 2014
Figure 99: Agreement with the statement ‘Online shopping is just a trend’, by demographics, October 2014
Figure 100: Agreement with the statement ‘Online security puts me off online shopping’, by demographics, October 2014
Figure 101: Agreement with the statement ‘The process of online shopping is too complicated’, by demographics, October 2014
Figure 102: Agreement with the statement ‘It is easier to shop online than in-store’, by demographics, October 2014

Appendix – Further Analysis by Target Groups

Figure 103: Target groups, by demographics, October 2014
Figure 104: Consumer current financial situation, by target groups, October 2014
Figure 105: Consumer current financial situation, by target groups, October 2014
Figure 106: Changes in consumer spending habits over the past 12 months, by target groups, October 2014
Figure 107: Consumer discretionary spending by broad sector of expenditure, by target groups, October 2014
Figure 108: Consumer attitudes to shopping, by target groups, October 2014

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